1. Why is operations management a more encompassing term than production management?
A. Operations management is concerned with multiple products and services.
B. Operations management refers to service as well as manufacturing organizations.
C. Operations management is broader including the financing and marketing functions.
D. Operations management makes use of the tools of quantitative analysis and computer
systems.
LO: 1.1
Topic: Definition of Operations and Supply Chain Management
Difficulty: 2 Moderate
AACSB: Reflective thinking
Bloom's: Understand
Feedback: Production management was changed to operations management to include services.
2. Which of the following functions is responsible for the actual movement of goods and/or
services across organizations?
A. Logistics
B. Operations
C. Purchasing
D. None of these
LO: 1.1
Topic: Definition of Operations and Supply Chain Management
Difficulty: 1 Easy
AACSB: Reflective thinking
Bloom's: Remember
Feedback: Logistics is responsible for the movement of goods / services.
3. Approximately what percentage of the American workforce works in service industries?
A. 20%
B. 40%
C. 80%
D. 90%
LO: 1.1
Topic: Definition of Operations and Supply Chain Management
Difficulty: 2 Moderate
AACSB: Reflective thinking
Bloom's: Understand
Feedback: The U.S. Census reports more than 80% of the workforce is employed in services.
1-1
,Chapter 01 - The Operations Function
4. The five decision areas in operations management are
A. planning, technology, inventory, control, and services.
B. process, quality, capacity, inventory, and supply chain.
C. process, quality, technology, capacity, and production.
D. none of these.
LO: 1.2
Topic: Operations Decisions
Difficulty: 1 Easy
AACSB: Reflective thinking
Bloom's: Remember
Feedback: Process, quality, capacity, inventory, and supply chain are the five decision areas.
5. A productive process approach
A. views operations as a separate organizational function.
B. must provide feedback information for control of process inputs and technology.
C. is of limited use in service organizations.
D. disregards human and social concerns.
LO: 1.4
Topic: Operations as a Process
Difficulty: 3 Hard
AACSB: Reflective thinking
Bloom's: Understand
Feedback: The model of operations as a productive system includes a feedback loop.
6. Capacity decisions
A. include staffing and scheduling.
B. include inventory control.
C. include defining product specifications.
D. are none of these.
LO: 1.2
Topic: Operations Decisions
Difficulty: 2 Moderate
AACSB: Reflective thinking
Bloom's: Understand
Feedback: Capacity decisions include staffing levels and scheduling, but not inventory or specifications.
1-2
, Chapter 01 - The Operations Function
7. Inventory decisions involve
A. determining what to order, how much to order, and when to order.
B. tracking the flow of materials.
C. managing the finished goods inventories.
D. all of these.
LO: 1.2
Topic: Operations Decisions
Difficulty: 1 Easy
AACSB: Reflective thinking
Bloom's: Remember
Feedback: Ordering decisions, finished goods inventory decisions, and inventory tracking are all included in the inventory decision area.
8. Challenges facing operations and supply chain managers signify that
A. more emphasis should be placed on manufacturing than on service industries.
B. every operation should be externally directed to meet the customers' requirements.
C. operations decisions should precede decisions in other functions in an organization.
D. to be competitive, strategies for operations should have a narrow focus such as
consideration of the effects of industry changes only.
LO: 1.5
Topic: Challenges Facing Operations and Supply Chain Managers
Difficulty: 3 Hard
AACSB: Reflective thinking
Bloom's: Understand
Feedback: A, C, and D are not correct; increasing need to meet customer requirements is a current challenge.
9. The essence of operations management can be described by
A. process, capacity, and people.
B. decisions, function, and process.
C. planning, control, and organization.
D. integrated planning and control.
LO: 1.1
Topic: Definition of Operations and Supply Chain Management
Difficulty: 2 Moderate
AACSB: Reflective thinking
Bloom's: Understand
Feedback: Operations decisions, operations as a function, and process orientation are the heart of operations.
1-3
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