Chapter 01
Operations and Supply Chain Management
True / False Questions
1. Efficiency means doing the right things to create the most value for the
company.
True False
2. Effectiveness means doing the right things to create the most value for the
company.
True False
3. A doctor completes a surgical procedure on a patient without error. The
patient dies anyway. In operations management terms, we could refer to this
doctor as being efficient but not effective.
True False
4. A worker can be efficient without being effective.
True False
5. A process can be effective without being efficient.
True False
6. Operations and supply chain management is defined as the design,
operation, and improvement of the systems that create and deliver the firm's
primary products and services.
True False
,7. The term "value" refers to the relationship between quality and the price paid
by the consumer.
True False
8. Attempting to balance the desire to efficiently use resources while providing a
highly effective service may create conflict between the two goals.
True False
9. Central to the concept of operations strategy are the notions of operations
focus and trade-offs.
True False
10. OSCM is concerned with management of the trickiest parts of the system that
produces a good or delivers a service.
True False
11. OSCM is a functional field of business with clear line management
responsibilities.
True False
12. The supply network as can be thought of as a pipeline through which cash,
material and information flows.
True False
13. Supply networks cannot be constructed for every product or service.
True False
14. "Operations" refers to manufacturing and service processes used to transform
resources employed by a firm into products desired by customers.
True False
,15. "Supply Chain" refers to processes that move information and material to and
from the manufacturing and service processes of the firm.
True False
16. "Supply Chain" includes only inbound freight and inventory.
True False
17. It is critical that a sustainable strategy meet the needs of shareholders and
employees. It is also highly desirable that it preserves the environment.
True False
18. Planning is where a firm must determine how anticipated demand will be met
with available resources.
True False
19. Although planning involves determining how the various supply chain
processes (sourcing, making, delivering, and returning) will be met, planning
itself is not considered a supply chain process.
True False
20. The supply chain processes mentioned in the textbook are: planning,
sourcing, delivering, and returning.
True False
21. All managers should understand the basic principles that guide the design of
transformation processes.
True False
22. Operations and supply management changes constantly because of the
dynamic nature of competing in global business and the constant evolution of
information technology.
True False
, 23. Internet technology has made the sharing of reliable real-time information
expensive.
True False
24. Capturing information directly from the source through such systems as point-
of-sale, radio-frequency identification tags, bar-code scanners, and automatic
recognition has had little impact on Operations and Supply Chain
Management.
True False
25. Use of systems like point-of-sale, radio-frequency identification tags, bar-code
scanners, and automatic recognition has made it more difficult to understand
what all the information is saying.
True False
26. Operations and supply chain processes can be conveniently categorized as
planning, sourcing, making, and delivering.
True False
27. A major aspect of planning involves developing a set of metrics to monitor the
supply chain.
True False
28. Returning involves processes for receiving worn-out, defective, and excess
products back from customers but does not involve support for customers
who have problems with the product.
True False
29. Delivering is not considered in supply chain analysis when outside carriers
are contracted to move products to customers.
True False
Operations and Supply Chain Management
True / False Questions
1. Efficiency means doing the right things to create the most value for the
company.
True False
2. Effectiveness means doing the right things to create the most value for the
company.
True False
3. A doctor completes a surgical procedure on a patient without error. The
patient dies anyway. In operations management terms, we could refer to this
doctor as being efficient but not effective.
True False
4. A worker can be efficient without being effective.
True False
5. A process can be effective without being efficient.
True False
6. Operations and supply chain management is defined as the design,
operation, and improvement of the systems that create and deliver the firm's
primary products and services.
True False
,7. The term "value" refers to the relationship between quality and the price paid
by the consumer.
True False
8. Attempting to balance the desire to efficiently use resources while providing a
highly effective service may create conflict between the two goals.
True False
9. Central to the concept of operations strategy are the notions of operations
focus and trade-offs.
True False
10. OSCM is concerned with management of the trickiest parts of the system that
produces a good or delivers a service.
True False
11. OSCM is a functional field of business with clear line management
responsibilities.
True False
12. The supply network as can be thought of as a pipeline through which cash,
material and information flows.
True False
13. Supply networks cannot be constructed for every product or service.
True False
14. "Operations" refers to manufacturing and service processes used to transform
resources employed by a firm into products desired by customers.
True False
,15. "Supply Chain" refers to processes that move information and material to and
from the manufacturing and service processes of the firm.
True False
16. "Supply Chain" includes only inbound freight and inventory.
True False
17. It is critical that a sustainable strategy meet the needs of shareholders and
employees. It is also highly desirable that it preserves the environment.
True False
18. Planning is where a firm must determine how anticipated demand will be met
with available resources.
True False
19. Although planning involves determining how the various supply chain
processes (sourcing, making, delivering, and returning) will be met, planning
itself is not considered a supply chain process.
True False
20. The supply chain processes mentioned in the textbook are: planning,
sourcing, delivering, and returning.
True False
21. All managers should understand the basic principles that guide the design of
transformation processes.
True False
22. Operations and supply management changes constantly because of the
dynamic nature of competing in global business and the constant evolution of
information technology.
True False
, 23. Internet technology has made the sharing of reliable real-time information
expensive.
True False
24. Capturing information directly from the source through such systems as point-
of-sale, radio-frequency identification tags, bar-code scanners, and automatic
recognition has had little impact on Operations and Supply Chain
Management.
True False
25. Use of systems like point-of-sale, radio-frequency identification tags, bar-code
scanners, and automatic recognition has made it more difficult to understand
what all the information is saying.
True False
26. Operations and supply chain processes can be conveniently categorized as
planning, sourcing, making, and delivering.
True False
27. A major aspect of planning involves developing a set of metrics to monitor the
supply chain.
True False
28. Returning involves processes for receiving worn-out, defective, and excess
products back from customers but does not involve support for customers
who have problems with the product.
True False
29. Delivering is not considered in supply chain analysis when outside carriers
are contracted to move products to customers.
True False
