TEST BANK FOR B! B!
Operations and Supply Chain Management 17th Edition By F. Robert Jacobs
B! B! B! B! B! B! B! B! B! B!
Chapter 1-22 B!
Chapter 01 Test Bank Static B! B! B! B!
1. Efficiency means doing the right things to create the most value for the company.
B! B! B! B! B! B! B! B! B! B! B! B! B!
FALSE
Efficiency means doing something at the lowest possible cost.
B! B! B! B! B! B! B! B!
2. Effectiveness means doing the right things to create the most value for the company.
B! B! B! B! B! B! B! B! B! B! B! B! B!
TRUE
Effectiveness means doing the right things to create the most value for the company.
B! B! B! B! B! B! B! B! B! B! B! B! B!
AACSB:B!AnalyticalB!Thinking
Blooms:B!Remembe
rB ! Difficulty:B!1B!
Easy
LearningB!Objective:B!01-
04B!EvaluateB!theB!efficiencyB!ofB!aB!firm.B ! T
opic:B!Efficiency,B!Effectiveness,B!andB!Value
3. A doctor completes a surgical procedure on a patient without error. The patient dies anyway. In operations management ter
B! B! B! B! B! B! B! B! B! B! B! B! B! B! B! B! B! B!
ms, we could refer to this doctor as being efficient but not effective.
B! B! B! B! B! B! B! B! B! B! B! B!
TRUE
Efficiency means doing something at the lowest possible cost. Effectiveness means doing the right things to create the most value. T
B! B! B! B! B! B! B! B! B! B! B! B! B! B! B! B! B! B! B! B!
he doctor performed the surgery without error. Because the patient died, no value was created.
B! B! B! B! B! B! B! B! B! B! B! B! B! B!
AACSB:B!AnalyticalB!Thinking
Blooms:B!Analyz
eB ! Difficulty:B!2B!Me
dium
LearningB!Objective:B!01-
04B!EvaluateB!theB!efficiencyB!ofB!aB!firm.B ! T
opic:B!Efficiency,B!Effectiveness,B!andB!Value
4. A worker can be efficient without being effective.
B! B! B! B! B! B! B!
TRUE
Efficiency means doing something at the lowest possible cost. Effectiveness means doing the right things to create the most val
B! B! B! B! B! B! B! B! B! B! B! B! B! B! B! B! B! B! B!
ue. These are different things.
B! B! B! B!
AACSB:B!AnalyticalB!Thinkin
gB ! Blooms:B!Underst
andB ! Difficulty:B!2B!
Medium
LearningB!Objective:B!01-
04B!EvaluateB!theB!efficiencyB!ofB!aB!firm.B ! T
1-1
CopyrightB!©2021B!McGraw-
HillB!Education.B!AllB!rightsB!reserved.B!NoB!reproductionB!orB!distributionB!withoutB!theB!priorB!writtenB!consentB!ofB!McGraw-HillB!Education.
, opic:B!Efficiency,B!Effectiveness,B!andB!Value
1-2
CopyrightB!©2021B!McGraw-
HillB!Education.B!AllB!rightsB!reserved.B!NoB!reproductionB!orB!distributionB!withoutB!theB!priorB!writtenB!consentB!ofB!McGraw-HillB!Education.
,5. A process can be effective without being efficient.
B! B! B! B! B! B! B!
TRUE
Often, maximizing effectiveness and efficiency at the same time creates conflict between the two goals. "Being efficient" at th
B! B! B! B! B! B! B! B! B! B! B! B! B! B! B! B! B! B!
e customer service counter at a local store or bank means using the fewest number of clerks possible at the counter. Being effe
B! B! B! B! B! B! B! B! B! B! B! B! B! B! B! B! B! B! B! B! B! B!
ctive, though, means minimizing the amount of time customers need to wait in line.
B! B! B! B! B! B! B! B! B! B! B! B! B!
AACSB:B!AnalyticalB!Thinkin
gB ! Blooms:B!Underst
andB ! Difficulty:B!2B!
Medium
LearningB!Objective:B!01-
04B!EvaluateB!theB!efficiencyB!ofB!aB!firm.B ! T
opic:B!Efficiency,B!Effectiveness,B!andB!Value
6. Operations and supply chain management is defined as the design, operation, and improvement of the systems that creat
B! B! B! B! B! B! B! B! B! B! B! B! B! B! B! B! B!
e and deliver the firm's primary products and services.
B! B! B! B! B! B! B! B!
TRUE
Operations and supply chain management is defined as the design, operation, and improvement of the systems that create and d
B! B! B! B! B! B! B! B! B! B! B! B! B! B! B! B! B! B! B!
eliver the firm's primary products and services.
B! B! B! B! B! B!
AACSB:B!AnalyticalB!Thinking
Blooms:B!Remembe
rB ! Difficulty:B!1B!
Easy
LearningB!Objective:B!01-01B!IdentifyB!theB!elementsB!ofB!operationsB!andB!supplyB!chainB!management.B!(OSCM)
Topic:B!WhatB!IsB!OperationsB!andB!SupplyB!ChainB!Management?
7. The term "value" refers to the relationship between quality and the price paid by the consumer.
B! B! B! B! B! B! B! B! B! B! B! B! B! B! B!
TRUE
Related to efficiency and effectiveness is the concept of value, which can be metaphorically defined as quality divided by price.
B! B! B! B! B! B! B! B! B! B! B! B! B! B! B! B! B! B! B!
AACSB:B!AnalyticalB!Thinking
Blooms:B!Remembe
rB ! Difficulty:B!1B!
Easy
LearningB!Objective:B!01-
04B!EvaluateB!theB!efficiencyB!ofB!aB!firm.B ! T
opic:B!Efficiency,B!Effectiveness,B!andB!Value
8. Attempting to balance the desire to efficiently use resources while providing a highly effective service may create conflict be
B! B! B! B! B! B! B! B! B! B! B! B! B! B! B! B! B! B!
tween the two goals.
B! B! B!
TRUE
Often maximizing effectiveness and efficiency at the same time creates conflict between the two goals.
B! B! B! B! B! B! B! B! B! B! B! B! B! B!
AACSB:B!AnalyticalB!Thinking
Blooms:B!Analyz
eB ! Difficulty:B!1B!
Easy
LearningB!Objective:B!01-
04B!EvaluateB!theB!efficiencyB!ofB!aB!firm.B ! T
opic:B!Efficiency,B!Effectiveness,B!andB!Value
1-3
CopyrightB!©2021B!McGraw-
HillB!Education.B!AllB!rightsB!reserved.B!NoB!reproductionB!orB!distributionB!withoutB!theB!priorB!writtenB!consentB!ofB!McGraw-HillB!Education.
, 9. Central to the concept of operations strategy are the notions of operations focus and trade-offs.
B! B! B! B! B! B! B! B! B! B! B! B! B! B!
TRUE
Central to this thinking was the notion of factory focus and manufacturing trade-
B! B! B! B! B! B! B! B! B! B! B! B!
offs. Because a factory cannot excel on all performance measures, its management must devise a focused strategy, to perform
B! B! B! B! B! B! B! B! B! B! B! B! B! B! B! B! B! B! B!
a limited set of tasks extremely well. This requires trade-offs.
B! B! B! B! B! B! B! B! B!
AACSB:B!AnalyticalB!Thinking
Blooms:B!Remembe
rB ! Difficulty:B!1B!
Easy
LearningB!Objective:B!01-03B!RecognizeB!theB!majorB!conceptsB!thatB!defineB!theB!operationsB!andB!supplyB!chainB!managementB!field.
Topic:B!HistoricalB!DevelopmentB!ofB!OperationsB!andB!SupplyB!ChainB!Management
10. OSCM is concerned with management of the trickiest parts of the system that produces a good or delivers a service.
B! B! B! B! B! B! B! B! B! B! B! B! B! B! B! B! B! B! B!
FALSE
OSCM is concerned with the management of the entire system that produces a good or delivers a service.
B! B! B! B! B! B! B! B! B! B! B! B! B! B! B! B! B!
AACSB:B!AnalyticalB!Thinking
Blooms:B!Remembe
rB ! Difficulty:B!1B!
Easy
LearningB!Objective:B!01-01B!IdentifyB!theB!elementsB!ofB!operationsB!andB!supplyB!chainB!managementB!(OSCM).
Topic:B!WhatB!IsB!OperationsB!andB!SupplyB!ChainB!Management?
11. OSCM is a functional field of business with clear line management responsibilities.
B! B! B! B! B! B! B! B! B! B! B!
TRUE
OSCM is a functional field of business with clear line management responsibilities.
B! B! B! B! B! B! B! B! B! B! B!
AACSB:B!AnalyticalB!Thinking
Blooms:B!Remembe
rB ! Difficulty:B!1B!
Easy
LearningB!Objective:B!01-02B!KnowB!theB!potentialB!careerB!opportunitiesB!inB!operationsB!andB!supplyB!chainB!management.
Topic:B!WhatB!IsB!OperationsB!andB!SupplyB!ChainB!Management?
12. The supply network can be thought of as a pipeline through which cash, material, and information flow.
B! B! B! B! B! B! B! B! B! B! B! B! B! B! B! B!
FALSE
Think of the supply network as a pipeline through which material and information flow.
B! B! B! B! B! B! B! B! B! B! B! B! B!
AACSB:B!AnalyticalB!Thinkin
gB ! Blooms:B!Unders
tandB ! Difficulty:B!1B!
Easy
LearningB!Objective:B!01-01B!IdentifyB!theB!elementsB!ofB!operationsB!andB!supplyB!chainB!managementB!(OSCM).
Topic:B!WhatB!IsB!OperationsB!andB!SupplyB!ChainB!Management?
13. Supply networks cannot be constructed for every product or service.
B! B! B! B! B! B! B! B! B!
FALSE
Networks such as this can be constructed for any product or service.
B! B! B! B! B! B! B! B! B! B! B!
AACSB:B!AnalyticalB!Thinkin
gB ! Blooms:B!Unders
1-4
CopyrightB!©2021B!McGraw-
HillB!Education.B!AllB!rightsB!reserved.B!NoB!reproductionB!orB!distributionB!withoutB!theB!priorB!writtenB!consentB!ofB!McGraw-HillB!Education.
Operations and Supply Chain Management 17th Edition By F. Robert Jacobs
B! B! B! B! B! B! B! B! B! B!
Chapter 1-22 B!
Chapter 01 Test Bank Static B! B! B! B!
1. Efficiency means doing the right things to create the most value for the company.
B! B! B! B! B! B! B! B! B! B! B! B! B!
FALSE
Efficiency means doing something at the lowest possible cost.
B! B! B! B! B! B! B! B!
2. Effectiveness means doing the right things to create the most value for the company.
B! B! B! B! B! B! B! B! B! B! B! B! B!
TRUE
Effectiveness means doing the right things to create the most value for the company.
B! B! B! B! B! B! B! B! B! B! B! B! B!
AACSB:B!AnalyticalB!Thinking
Blooms:B!Remembe
rB ! Difficulty:B!1B!
Easy
LearningB!Objective:B!01-
04B!EvaluateB!theB!efficiencyB!ofB!aB!firm.B ! T
opic:B!Efficiency,B!Effectiveness,B!andB!Value
3. A doctor completes a surgical procedure on a patient without error. The patient dies anyway. In operations management ter
B! B! B! B! B! B! B! B! B! B! B! B! B! B! B! B! B! B!
ms, we could refer to this doctor as being efficient but not effective.
B! B! B! B! B! B! B! B! B! B! B! B!
TRUE
Efficiency means doing something at the lowest possible cost. Effectiveness means doing the right things to create the most value. T
B! B! B! B! B! B! B! B! B! B! B! B! B! B! B! B! B! B! B! B!
he doctor performed the surgery without error. Because the patient died, no value was created.
B! B! B! B! B! B! B! B! B! B! B! B! B! B!
AACSB:B!AnalyticalB!Thinking
Blooms:B!Analyz
eB ! Difficulty:B!2B!Me
dium
LearningB!Objective:B!01-
04B!EvaluateB!theB!efficiencyB!ofB!aB!firm.B ! T
opic:B!Efficiency,B!Effectiveness,B!andB!Value
4. A worker can be efficient without being effective.
B! B! B! B! B! B! B!
TRUE
Efficiency means doing something at the lowest possible cost. Effectiveness means doing the right things to create the most val
B! B! B! B! B! B! B! B! B! B! B! B! B! B! B! B! B! B! B!
ue. These are different things.
B! B! B! B!
AACSB:B!AnalyticalB!Thinkin
gB ! Blooms:B!Underst
andB ! Difficulty:B!2B!
Medium
LearningB!Objective:B!01-
04B!EvaluateB!theB!efficiencyB!ofB!aB!firm.B ! T
1-1
CopyrightB!©2021B!McGraw-
HillB!Education.B!AllB!rightsB!reserved.B!NoB!reproductionB!orB!distributionB!withoutB!theB!priorB!writtenB!consentB!ofB!McGraw-HillB!Education.
, opic:B!Efficiency,B!Effectiveness,B!andB!Value
1-2
CopyrightB!©2021B!McGraw-
HillB!Education.B!AllB!rightsB!reserved.B!NoB!reproductionB!orB!distributionB!withoutB!theB!priorB!writtenB!consentB!ofB!McGraw-HillB!Education.
,5. A process can be effective without being efficient.
B! B! B! B! B! B! B!
TRUE
Often, maximizing effectiveness and efficiency at the same time creates conflict between the two goals. "Being efficient" at th
B! B! B! B! B! B! B! B! B! B! B! B! B! B! B! B! B! B!
e customer service counter at a local store or bank means using the fewest number of clerks possible at the counter. Being effe
B! B! B! B! B! B! B! B! B! B! B! B! B! B! B! B! B! B! B! B! B! B!
ctive, though, means minimizing the amount of time customers need to wait in line.
B! B! B! B! B! B! B! B! B! B! B! B! B!
AACSB:B!AnalyticalB!Thinkin
gB ! Blooms:B!Underst
andB ! Difficulty:B!2B!
Medium
LearningB!Objective:B!01-
04B!EvaluateB!theB!efficiencyB!ofB!aB!firm.B ! T
opic:B!Efficiency,B!Effectiveness,B!andB!Value
6. Operations and supply chain management is defined as the design, operation, and improvement of the systems that creat
B! B! B! B! B! B! B! B! B! B! B! B! B! B! B! B! B!
e and deliver the firm's primary products and services.
B! B! B! B! B! B! B! B!
TRUE
Operations and supply chain management is defined as the design, operation, and improvement of the systems that create and d
B! B! B! B! B! B! B! B! B! B! B! B! B! B! B! B! B! B! B!
eliver the firm's primary products and services.
B! B! B! B! B! B!
AACSB:B!AnalyticalB!Thinking
Blooms:B!Remembe
rB ! Difficulty:B!1B!
Easy
LearningB!Objective:B!01-01B!IdentifyB!theB!elementsB!ofB!operationsB!andB!supplyB!chainB!management.B!(OSCM)
Topic:B!WhatB!IsB!OperationsB!andB!SupplyB!ChainB!Management?
7. The term "value" refers to the relationship between quality and the price paid by the consumer.
B! B! B! B! B! B! B! B! B! B! B! B! B! B! B!
TRUE
Related to efficiency and effectiveness is the concept of value, which can be metaphorically defined as quality divided by price.
B! B! B! B! B! B! B! B! B! B! B! B! B! B! B! B! B! B! B!
AACSB:B!AnalyticalB!Thinking
Blooms:B!Remembe
rB ! Difficulty:B!1B!
Easy
LearningB!Objective:B!01-
04B!EvaluateB!theB!efficiencyB!ofB!aB!firm.B ! T
opic:B!Efficiency,B!Effectiveness,B!andB!Value
8. Attempting to balance the desire to efficiently use resources while providing a highly effective service may create conflict be
B! B! B! B! B! B! B! B! B! B! B! B! B! B! B! B! B! B!
tween the two goals.
B! B! B!
TRUE
Often maximizing effectiveness and efficiency at the same time creates conflict between the two goals.
B! B! B! B! B! B! B! B! B! B! B! B! B! B!
AACSB:B!AnalyticalB!Thinking
Blooms:B!Analyz
eB ! Difficulty:B!1B!
Easy
LearningB!Objective:B!01-
04B!EvaluateB!theB!efficiencyB!ofB!aB!firm.B ! T
opic:B!Efficiency,B!Effectiveness,B!andB!Value
1-3
CopyrightB!©2021B!McGraw-
HillB!Education.B!AllB!rightsB!reserved.B!NoB!reproductionB!orB!distributionB!withoutB!theB!priorB!writtenB!consentB!ofB!McGraw-HillB!Education.
, 9. Central to the concept of operations strategy are the notions of operations focus and trade-offs.
B! B! B! B! B! B! B! B! B! B! B! B! B! B!
TRUE
Central to this thinking was the notion of factory focus and manufacturing trade-
B! B! B! B! B! B! B! B! B! B! B! B!
offs. Because a factory cannot excel on all performance measures, its management must devise a focused strategy, to perform
B! B! B! B! B! B! B! B! B! B! B! B! B! B! B! B! B! B! B!
a limited set of tasks extremely well. This requires trade-offs.
B! B! B! B! B! B! B! B! B!
AACSB:B!AnalyticalB!Thinking
Blooms:B!Remembe
rB ! Difficulty:B!1B!
Easy
LearningB!Objective:B!01-03B!RecognizeB!theB!majorB!conceptsB!thatB!defineB!theB!operationsB!andB!supplyB!chainB!managementB!field.
Topic:B!HistoricalB!DevelopmentB!ofB!OperationsB!andB!SupplyB!ChainB!Management
10. OSCM is concerned with management of the trickiest parts of the system that produces a good or delivers a service.
B! B! B! B! B! B! B! B! B! B! B! B! B! B! B! B! B! B! B!
FALSE
OSCM is concerned with the management of the entire system that produces a good or delivers a service.
B! B! B! B! B! B! B! B! B! B! B! B! B! B! B! B! B!
AACSB:B!AnalyticalB!Thinking
Blooms:B!Remembe
rB ! Difficulty:B!1B!
Easy
LearningB!Objective:B!01-01B!IdentifyB!theB!elementsB!ofB!operationsB!andB!supplyB!chainB!managementB!(OSCM).
Topic:B!WhatB!IsB!OperationsB!andB!SupplyB!ChainB!Management?
11. OSCM is a functional field of business with clear line management responsibilities.
B! B! B! B! B! B! B! B! B! B! B!
TRUE
OSCM is a functional field of business with clear line management responsibilities.
B! B! B! B! B! B! B! B! B! B! B!
AACSB:B!AnalyticalB!Thinking
Blooms:B!Remembe
rB ! Difficulty:B!1B!
Easy
LearningB!Objective:B!01-02B!KnowB!theB!potentialB!careerB!opportunitiesB!inB!operationsB!andB!supplyB!chainB!management.
Topic:B!WhatB!IsB!OperationsB!andB!SupplyB!ChainB!Management?
12. The supply network can be thought of as a pipeline through which cash, material, and information flow.
B! B! B! B! B! B! B! B! B! B! B! B! B! B! B! B!
FALSE
Think of the supply network as a pipeline through which material and information flow.
B! B! B! B! B! B! B! B! B! B! B! B! B!
AACSB:B!AnalyticalB!Thinkin
gB ! Blooms:B!Unders
tandB ! Difficulty:B!1B!
Easy
LearningB!Objective:B!01-01B!IdentifyB!theB!elementsB!ofB!operationsB!andB!supplyB!chainB!managementB!(OSCM).
Topic:B!WhatB!IsB!OperationsB!andB!SupplyB!ChainB!Management?
13. Supply networks cannot be constructed for every product or service.
B! B! B! B! B! B! B! B! B!
FALSE
Networks such as this can be constructed for any product or service.
B! B! B! B! B! B! B! B! B! B! B!
AACSB:B!AnalyticalB!Thinkin
gB ! Blooms:B!Unders
1-4
CopyrightB!©2021B!McGraw-
HillB!Education.B!AllB!rightsB!reserved.B!NoB!reproductionB!orB!distributionB!withoutB!theB!priorB!writtenB!consentB!ofB!McGraw-HillB!Education.
