Test Bank for
Operations and Supply Chain Management 16th Edition By F. Robert Jacobs
Chapter 1-22
Chapter 01 Test Bank Static
1. Efficiency means doing the right things to create the most value for the company.
FALSE
Efficiency means doing something at the lowest possible cost.
2. Effectiveness means doing the right things to create the most value for the company.
TRUE
Effectiveness means doing the right things to create the most value for the company.
AACSB: Analytical Thinking
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 01-04 Evaluate the efficiency of a firm.
Topic: Efficiency, Effectiveness, and Value
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
Efficiency means doing something at the lowest possible cost. Effectiveness means doing the right things to create the most value. The
doctor performed the surgery without error. Because the patient died, no value was created.
AACSB: Analytical Thinking
Blooms: Analyze
Difficulty: 2 Medium
Learning Objective: 01-04 Evaluate the efficiency of a firm.
Topic: Efficiency, Effectiveness, and Value
4. A worker can be efficient without being effective.
TRUE
Efficiency means doing something at the lowest possible cost. Effectiveness means doing the right things to create the most value.
These are different things.
AACSB: Analytical Thinking
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 01-04 Evaluate the efficiency of a firm.
Topic: Efficiency, Effectiveness, and Value
1-1
Copyright ©2021 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill
Education.
,5. A process can be effective without being efficient.
TRUE
Often, maximizing effectiveness and efficiency at the same time creates conflict between the two goals. "Being efficient" at the
customer service counter at a local store or bank means using the fewest number of clerks possible at the counter. Being effective,
though, means minimizing the amount of time customers need to wait in line.
AACSB: Analytical Thinking
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 01-04 Evaluate the efficiency of a firm.
Topic: Efficiency, Effectiveness, and Value
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
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.
AACSB: Analytical Thinking
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 01-01 Identify the elements of operations and supply chain management. (OSCM)
Topic: What Is Operations and Supply Chain Management?
7. The term "value" refers to the relationship between quality and the price paid by the consumer.
TRUE
Related to efficiency and effectiveness is the concept of value, which can be metaphorically defined as quality divided by price.
AACSB: Analytical Thinking
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 01-04 Evaluate the efficiency of a firm.
Topic: Efficiency, Effectiveness, and Value
8. Attempting to balance the desire to efficiently use resources while providing a highly effective service may create conflict between
the two goals.
TRUE
Often maximizing effectiveness and efficiency at the same time creates conflict between the two goals.
AACSB: Analytical Thinking
Blooms: Analyze
Difficulty: 1 Easy
Learning Objective: 01-04 Evaluate the efficiency of a firm.
Topic: Efficiency, Effectiveness, and Value
1-2
Copyright ©2021 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill
Education.
,9. Central to the concept of operations strategy are the notions of operations focus and trade-offs.
TRUE
Central to this thinking was the notion of factory focus and manufacturing trade-offs. Because a factory cannot excel on all
performance measures, its management must devise a focused strategy, to perform a limited set of tasks extremely well. This requires
trade-offs.
AACSB: Analytical Thinking
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 01-03 Recognize the major concepts that define the operations and supply chain management field.
Topic: Historical Development of Operations and Supply Chain Management
10. OSCM is concerned with management of the trickiest parts of the system that produces a good or delivers a service.
FALSE
OSCM is concerned with the management of the entire system that produces a good or delivers a service.
AACSB: Analytical Thinking
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 01-01 Identify the elements of operations and supply chain management (OSCM).
Topic: What Is Operations and Supply Chain Management?
11. OSCM is a functional field of business with clear line management responsibilities.
TRUE
OSCM is a functional field of business with clear line management responsibilities.
AACSB: Analytical Thinking
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 01-02 Know the potential career opportunities in operations and supply chain management.
Topic: What Is Operations and Supply Chain Management?
12. The supply network can be thought of as a pipeline through which cash, material, and information flow.
FALSE
Think of the supply network as a pipeline through which material and information flow.
AACSB: Analytical Thinking
Blooms: Understand
Difficulty: 1 Easy
Learning Objective: 01-01 Identify the elements of operations and supply chain management (OSCM).
Topic: What Is Operations and Supply Chain Management?
13. Supply networks cannot be constructed for every product or service.
FALSE
Networks such as this can be constructed for any product or service.
AACSB: Analytical Thinking
Blooms: Understand
Difficulty: 1 Easy
Learning Objective: 01-01 Identify the elements of operations and supply chain management (OSCM).
Topic: What Is Operations and Supply Chain Management?
1-3
Copyright ©2021 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill
Education.
,14. "Operations" refers to manufacturing and service processes used to transform resources employed by a firm into products desired
by customers.
TRUE
Operations refers to manufacturing, service, and health care processes that are used to transform the resources employed by a firm into
products desired by customers.
AACSB: Analytical Thinking
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 01-01 Identify the elements of operations and supply chain management (OSCM).
Topic: What Is Operations and Supply Chain Management?
15. "Supply chain" refers to processes that move information and material to and from the manufacturing and service processes of the
firm.
TRUE
Supply chain refers to processes that move information and material to and from the manufacturing and service processes of the firm.
AACSB: Analytical Thinking
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 01-01 Identify the elements of operations and supply chain management (OSCM).
Topic: What Is Operations and Supply Chain Management?
16. "Supply chain" includes only inbound freight and inventory.
FALSE
Supply chain refers to processes that move information and material to and from the manufacturing and service processes of the firm.
AACSB: Analytical Thinking
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 01-01 Identify the elements of operations and supply chain management (OSCM).
Topic: What Is Operations and Supply Chain Management?
17. It is critical that a sustainable strategy meet the needs of shareholders and employees first, and then focus on preserving the
environment.
FALSE
A sustainable strategy that meets the needs of shareholders and employees while preserving the environment is critical.
AACSB: Analytical Thinking
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 01-01 Identify the elements of operations and supply chain management (OSCM).
Topic: What Is Operations and Supply Chain Management?
1-4
Copyright ©2021 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill
Education.
,18. Planning is where a firm must determine how anticipated demand will be met with available resources.
TRUE
Planning consists of the processes needed to operate an existing supply chain strategically. Here a firm must determine how
anticipated demand will be met with available resources.
AACSB: Analytical Thinking
Blooms: Understand
Difficulty: 1 Easy
Learning Objective: 01-01 Identify the elements of operations and supply chain management (OSCM).
Topic: Operations and Supply Chain Processes
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.
FALSE
Operations and supply chain processes can be conveniently categorized…as planning, sourcing, making, delivering, and returning.
AACSB: Analytical Thinking
Blooms: Understand
Difficulty: 1 Easy
Learning Objective: 01-01 Identify the elements of operations and supply chain management (OSCM).
Topic: Operations and Supply Chain Processes
20. The supply chain processes mentioned in the textbook are planning, sourcing, delivering, and returning.
FALSE
Operations and supply chain processes can be conveniently categorized…as planning, sourcing, making, delivering, and returning.
AACSB: Analytical Thinking
Blooms: Understand
Difficulty: 1 Easy
Learning Objective: 01-01 Identify the elements of operations and supply chain management (OSCM).
Topic: Operations and Supply Chain Processes
21. All managers should understand the basic principles that guide the design of transformation processes.
TRUE
All managers should understand the basic principles that guide the design of transformation processes.
AACSB: Analytical Thinking
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 01-01 Identify the elements of operations and supply chain management (OSCM).
Topic: What Is Operations and Supply Chain Management?
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
The field of operations and supply management is ever changing due to the dynamic nature of competing in global business and the
constant evolution of information technology.
1-5
Copyright ©2021 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill
Education.
, AACSB: Analytical Thinking
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 01-03 Recognize the major concepts that define the operations and supply chain management field (OSCM).
Topic: What Is Operations and Supply Chain Management?
23. Internet technology has made the sharing of reliable real-time information expensive.
FALSE
Internet technology has made the sharing of reliable real-time information inexpensive.
AACSB: Analytical Thinking
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 01-03 Recognize the major concepts that define the operations and supply chain management field (OSCM).
Topic: What Is Operations and Supply Chain Management?
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.
FALSE
Capturing information directly from the source through such systems as point-of-sale, radio-frequency identification tags, bar-code
scanners, and automatic recognition has shifted the focus to understanding both what all the information is saying and also how good
are the decisions that can be made using it.
AACSB: Analytical Thinking
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 01-03 Recognize the major concepts that define the operations and supply chain management field (OSCM).
Topic: What Is Operations and Supply Chain Management?
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.
FALSE
Capturing information directly from the source through such systems as point-of-sale, radio-frequency identification tags, bar-code
scanners, and automatic recognition has shifted the focus to understanding both what all the information is saying and also how good
are the decisions that can be made using it.
AACSB: Analytical Thinking
Blooms: Understand
Difficulty: 1 Easy
Learning Objective: 01-03 Recognize the major concepts that define the operations and supply chain management field (OSCM).
Topic: What Is Operations and Supply Chain Management?
26. Operations and supply chain processes can be conveniently categorized as planning, sourcing, making, and delivering.
FALSE
Operations and supply chain processes can be conveniently categorized as planning, sourcing, making, delivering, and returning.
AACSB: Analytical Thinking
Blooms: Remember
Difficulty: 2 Medium
Learning Objective: 01-01 Identify the elements of operations and supply chain management (OSCM).
Topic: Operations and Supply Chain Processes
1-6
Copyright ©2021 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill
Education.
,27. A major aspect of planning involves developing a set of metrics to monitor the supply chain.
TRUE
A major aspect of planning is developing a set of metrics to monitor the supply chain so that it is efficient and delivers high quality
and value to customers.
AACSB: Analytical Thinking
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 01-01 Identify the elements of operations and supply chain management (OSCM).
Topic: Operations and Supply Chain Processes
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.
FALSE
Returning involves the processes for receiving worn-out, defective, and excess products back from customers and support for
customers who have problems with delivered products.
AACSB: Analytical Thinking
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 01-01 Identify the elements of operations and supply chain management (OSCM).
Topic: Operations and Supply Chain Processes
29. Delivering is not considered in supply chain analysis when outside carriers are contracted to move products to customers.
FALSE
Delivering is also referred to as logistics processes. Carriers are picked to move products to warehouses and customers, coordinate and
schedule the movement of goods and information through the supply network, develop and operate a network of warehouses, and run
the information systems that manage the receipt of orders from customers and invoicing systems to collect payments from customers.
AACSB: Analytical Thinking
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 01-01 Identify the elements of operations and supply chain management (OSCM).
Topic: Operations and Supply Chain Processes
30. Services are intangible processes that cannot be weighed or measured.
TRUE
There are five essential differences between services and goods. The first is that a service is an intangible process that cannot be
weighed or measured, whereas a good is a tangible output of a process that has physical dimensions.
AACSB: Analytical Thinking
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 01-01 Identify the elements of operations and supply chain management (OSCM).
Topic: Differences between Services and Goods
1-7
Copyright ©2021 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill
Education.
,31. Service innovations can be patented.
FALSE
A service innovation, unlike a product innovation, cannot be patented.
AACSB: Analytical Thinking
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 01-01 Identify the elements of operations and supply chain management (OSCM).
Topic: Differences between Services and Goods
32. Services are homogeneous.
FALSE
There are five essential differences between services and goods. One of these is that services are inherently
heterogeneous.
AACSB: Analytical Thinking
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 01-01 Identify the elements of operations and supply chain management (OSCM).
Topic: Differences between Services and Goods
33. Services are defined and evaluated as a package of features that affect the five senses.
TRUE
The specifications of a service are defined and evaluated as a package of features that affect the five senses.
AACSB: Analytical Thinking
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 01-01 Identify the elements of operations and supply chain management (OSCM).
Topic: Differences between Services and Goods
34. Automobiles and appliances are classified as "pure goods."
FALSE
In Exhibit 1.4, automobiles and appliances are classified as "core goods."
AACSB: Analytical Thinking
Blooms: Remember
Difficulty: 2 Medium
Learning Objective: 01-01 Identify the elements of operations and supply chain management (OSCM).
Topic: Differences between Services and Goods
35. Core service providers integrate tangible goods into their product.
TRUE
Core service providers must integrate tangible goods.
AACSB: Analytical Thinking
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 01-01 Identify the elements of operations and supply chain management (OSCM).
Topic: Differences between Services and Goods
1-8
Copyright ©2021 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill
Education.
,36. "Product-service bundling" refers to a company building service activities into its product offerings for its customers.
TRUE
Product-service bundling refers to a company building service activities into its product offerings for its customers.
AACSB: Analytical Thinking
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 01-01 Identify the elements of operations and supply chain management (OSCM).
Topic: Differences between Services and Goods
37. In contrast to careers in finance and marketing, careers in OSCM involve hands-on involvement with people and processes.
TRUE
OSCM jobs are hands-on, working with people and figuring out the best way to do things.
AACSB: Analytical Thinking
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 01-02 Know the potential career opportunities in operations and supply chain management.
Topic: Careers in Operations and Supply Chain Management
38. A supply chain manager is an OSCM job while a purchasing manager is not.
FALSE
Both supply chain manager and purchasing manager are listed as typical management and staff jobs in operations and supply chain
management.
AACSB: Analytical Thinking
Blooms: Remember
Difficulty: 2 Medium
Learning Objective: 01-02 Know the potential career opportunities in operations and supply chain management.
Topic: Careers in Operations and Supply Chain Management
39. Just-in-time (JIT) production was a major breakthrough in manufacturing philosophy pioneered by the Japanese.
TRUE
JIT was pioneered by the Japanese.
AACSB: Analytical Thinking
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 01-03 Recognize the major concepts that define the operations and supply chain management field.
Topic: Historical Development of Operations and Supply Chain Management
40. Lean manufacturing refers to just in time production coupled with total quality control.
TRUE
JIT—coupled with total quality control (TQC)—is now a cornerstone in many manufacturers' production practices, and the term "lean
manufacturing" is used to refer to the set of concepts.
AACSB: Analytical Thinking
Blooms: Remember
Difficulty: 2 Medium
Learning Objective: 01-03 Recognize the major concepts that define the operations and supply chain management field.
Topic: Historical Development of Operations and Supply Chain Management
1-9
Copyright ©2021 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill
Education.
, 41. The Baldrige National Quality Award was started under the direction of the National Institute of Standards and Technology.
TRUE
Helping the quality movement along is the Baldrige National Quality Award, which was started in 1987 under the direction of the
National Institute of Standards and Technology.
AACSB: Analytical Thinking
Blooms: Remember
Difficulty: 2 Medium
Learning Objective: 01-03 Recognize the major concepts that define the operations and supply chain management field.
Topic: Historical Development of Operations and Supply Chain Management
42. The approach that advocates making revolutionary changes as opposed to evolutionary changes is called "creation theory."
FALSE
Business process reengineering seeks to make revolutionary changes as opposed to evolutionary changes.
AACSB: Analytical Thinking
Blooms: Remember
Difficulty: 2 Medium
Learning Objective: 01-03 Recognize the major concepts that define the operations and supply chain management field.
Topic: Historical Development of Operations and Supply Chain Management
43. The approach that advocates making revolutionary changes as opposed to evolutionary changes is called "business process
reengineering."
TRUE
Business process reengineering seeks to make revolutionary changes as opposed to evolutionary changes.
AACSB: Analytical Thinking
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 01-03 Recognize the major concepts that define the operations and supply chain management field.
Topic: Historical Development of Operations and Supply Chain Management
44. Business process reengineering, which seeks revolutionary change, is contrasted with total quality management which commonly
advocates incremental change.
TRUE
Business process reengineering seeks to make revolutionary changes as opposed to evolutionary changes (which are commonly
advocated in TQM).
AACSB: Analytical Thinking
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 01-03 Recognize the major concepts that define the operations and supply chain management field.
Topic: Historical Development of Operations and Supply Chain Management
1-10
Copyright ©2021 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill
Education.
Operations and Supply Chain Management 16th Edition By F. Robert Jacobs
Chapter 1-22
Chapter 01 Test Bank Static
1. Efficiency means doing the right things to create the most value for the company.
FALSE
Efficiency means doing something at the lowest possible cost.
2. Effectiveness means doing the right things to create the most value for the company.
TRUE
Effectiveness means doing the right things to create the most value for the company.
AACSB: Analytical Thinking
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 01-04 Evaluate the efficiency of a firm.
Topic: Efficiency, Effectiveness, and Value
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
Efficiency means doing something at the lowest possible cost. Effectiveness means doing the right things to create the most value. The
doctor performed the surgery without error. Because the patient died, no value was created.
AACSB: Analytical Thinking
Blooms: Analyze
Difficulty: 2 Medium
Learning Objective: 01-04 Evaluate the efficiency of a firm.
Topic: Efficiency, Effectiveness, and Value
4. A worker can be efficient without being effective.
TRUE
Efficiency means doing something at the lowest possible cost. Effectiveness means doing the right things to create the most value.
These are different things.
AACSB: Analytical Thinking
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 01-04 Evaluate the efficiency of a firm.
Topic: Efficiency, Effectiveness, and Value
1-1
Copyright ©2021 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill
Education.
,5. A process can be effective without being efficient.
TRUE
Often, maximizing effectiveness and efficiency at the same time creates conflict between the two goals. "Being efficient" at the
customer service counter at a local store or bank means using the fewest number of clerks possible at the counter. Being effective,
though, means minimizing the amount of time customers need to wait in line.
AACSB: Analytical Thinking
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 01-04 Evaluate the efficiency of a firm.
Topic: Efficiency, Effectiveness, and Value
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
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.
AACSB: Analytical Thinking
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 01-01 Identify the elements of operations and supply chain management. (OSCM)
Topic: What Is Operations and Supply Chain Management?
7. The term "value" refers to the relationship between quality and the price paid by the consumer.
TRUE
Related to efficiency and effectiveness is the concept of value, which can be metaphorically defined as quality divided by price.
AACSB: Analytical Thinking
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 01-04 Evaluate the efficiency of a firm.
Topic: Efficiency, Effectiveness, and Value
8. Attempting to balance the desire to efficiently use resources while providing a highly effective service may create conflict between
the two goals.
TRUE
Often maximizing effectiveness and efficiency at the same time creates conflict between the two goals.
AACSB: Analytical Thinking
Blooms: Analyze
Difficulty: 1 Easy
Learning Objective: 01-04 Evaluate the efficiency of a firm.
Topic: Efficiency, Effectiveness, and Value
1-2
Copyright ©2021 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill
Education.
,9. Central to the concept of operations strategy are the notions of operations focus and trade-offs.
TRUE
Central to this thinking was the notion of factory focus and manufacturing trade-offs. Because a factory cannot excel on all
performance measures, its management must devise a focused strategy, to perform a limited set of tasks extremely well. This requires
trade-offs.
AACSB: Analytical Thinking
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 01-03 Recognize the major concepts that define the operations and supply chain management field.
Topic: Historical Development of Operations and Supply Chain Management
10. OSCM is concerned with management of the trickiest parts of the system that produces a good or delivers a service.
FALSE
OSCM is concerned with the management of the entire system that produces a good or delivers a service.
AACSB: Analytical Thinking
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 01-01 Identify the elements of operations and supply chain management (OSCM).
Topic: What Is Operations and Supply Chain Management?
11. OSCM is a functional field of business with clear line management responsibilities.
TRUE
OSCM is a functional field of business with clear line management responsibilities.
AACSB: Analytical Thinking
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 01-02 Know the potential career opportunities in operations and supply chain management.
Topic: What Is Operations and Supply Chain Management?
12. The supply network can be thought of as a pipeline through which cash, material, and information flow.
FALSE
Think of the supply network as a pipeline through which material and information flow.
AACSB: Analytical Thinking
Blooms: Understand
Difficulty: 1 Easy
Learning Objective: 01-01 Identify the elements of operations and supply chain management (OSCM).
Topic: What Is Operations and Supply Chain Management?
13. Supply networks cannot be constructed for every product or service.
FALSE
Networks such as this can be constructed for any product or service.
AACSB: Analytical Thinking
Blooms: Understand
Difficulty: 1 Easy
Learning Objective: 01-01 Identify the elements of operations and supply chain management (OSCM).
Topic: What Is Operations and Supply Chain Management?
1-3
Copyright ©2021 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill
Education.
,14. "Operations" refers to manufacturing and service processes used to transform resources employed by a firm into products desired
by customers.
TRUE
Operations refers to manufacturing, service, and health care processes that are used to transform the resources employed by a firm into
products desired by customers.
AACSB: Analytical Thinking
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 01-01 Identify the elements of operations and supply chain management (OSCM).
Topic: What Is Operations and Supply Chain Management?
15. "Supply chain" refers to processes that move information and material to and from the manufacturing and service processes of the
firm.
TRUE
Supply chain refers to processes that move information and material to and from the manufacturing and service processes of the firm.
AACSB: Analytical Thinking
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 01-01 Identify the elements of operations and supply chain management (OSCM).
Topic: What Is Operations and Supply Chain Management?
16. "Supply chain" includes only inbound freight and inventory.
FALSE
Supply chain refers to processes that move information and material to and from the manufacturing and service processes of the firm.
AACSB: Analytical Thinking
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 01-01 Identify the elements of operations and supply chain management (OSCM).
Topic: What Is Operations and Supply Chain Management?
17. It is critical that a sustainable strategy meet the needs of shareholders and employees first, and then focus on preserving the
environment.
FALSE
A sustainable strategy that meets the needs of shareholders and employees while preserving the environment is critical.
AACSB: Analytical Thinking
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 01-01 Identify the elements of operations and supply chain management (OSCM).
Topic: What Is Operations and Supply Chain Management?
1-4
Copyright ©2021 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill
Education.
,18. Planning is where a firm must determine how anticipated demand will be met with available resources.
TRUE
Planning consists of the processes needed to operate an existing supply chain strategically. Here a firm must determine how
anticipated demand will be met with available resources.
AACSB: Analytical Thinking
Blooms: Understand
Difficulty: 1 Easy
Learning Objective: 01-01 Identify the elements of operations and supply chain management (OSCM).
Topic: Operations and Supply Chain Processes
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.
FALSE
Operations and supply chain processes can be conveniently categorized…as planning, sourcing, making, delivering, and returning.
AACSB: Analytical Thinking
Blooms: Understand
Difficulty: 1 Easy
Learning Objective: 01-01 Identify the elements of operations and supply chain management (OSCM).
Topic: Operations and Supply Chain Processes
20. The supply chain processes mentioned in the textbook are planning, sourcing, delivering, and returning.
FALSE
Operations and supply chain processes can be conveniently categorized…as planning, sourcing, making, delivering, and returning.
AACSB: Analytical Thinking
Blooms: Understand
Difficulty: 1 Easy
Learning Objective: 01-01 Identify the elements of operations and supply chain management (OSCM).
Topic: Operations and Supply Chain Processes
21. All managers should understand the basic principles that guide the design of transformation processes.
TRUE
All managers should understand the basic principles that guide the design of transformation processes.
AACSB: Analytical Thinking
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 01-01 Identify the elements of operations and supply chain management (OSCM).
Topic: What Is Operations and Supply Chain Management?
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
The field of operations and supply management is ever changing due to the dynamic nature of competing in global business and the
constant evolution of information technology.
1-5
Copyright ©2021 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill
Education.
, AACSB: Analytical Thinking
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 01-03 Recognize the major concepts that define the operations and supply chain management field (OSCM).
Topic: What Is Operations and Supply Chain Management?
23. Internet technology has made the sharing of reliable real-time information expensive.
FALSE
Internet technology has made the sharing of reliable real-time information inexpensive.
AACSB: Analytical Thinking
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 01-03 Recognize the major concepts that define the operations and supply chain management field (OSCM).
Topic: What Is Operations and Supply Chain Management?
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.
FALSE
Capturing information directly from the source through such systems as point-of-sale, radio-frequency identification tags, bar-code
scanners, and automatic recognition has shifted the focus to understanding both what all the information is saying and also how good
are the decisions that can be made using it.
AACSB: Analytical Thinking
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 01-03 Recognize the major concepts that define the operations and supply chain management field (OSCM).
Topic: What Is Operations and Supply Chain Management?
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.
FALSE
Capturing information directly from the source through such systems as point-of-sale, radio-frequency identification tags, bar-code
scanners, and automatic recognition has shifted the focus to understanding both what all the information is saying and also how good
are the decisions that can be made using it.
AACSB: Analytical Thinking
Blooms: Understand
Difficulty: 1 Easy
Learning Objective: 01-03 Recognize the major concepts that define the operations and supply chain management field (OSCM).
Topic: What Is Operations and Supply Chain Management?
26. Operations and supply chain processes can be conveniently categorized as planning, sourcing, making, and delivering.
FALSE
Operations and supply chain processes can be conveniently categorized as planning, sourcing, making, delivering, and returning.
AACSB: Analytical Thinking
Blooms: Remember
Difficulty: 2 Medium
Learning Objective: 01-01 Identify the elements of operations and supply chain management (OSCM).
Topic: Operations and Supply Chain Processes
1-6
Copyright ©2021 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill
Education.
,27. A major aspect of planning involves developing a set of metrics to monitor the supply chain.
TRUE
A major aspect of planning is developing a set of metrics to monitor the supply chain so that it is efficient and delivers high quality
and value to customers.
AACSB: Analytical Thinking
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 01-01 Identify the elements of operations and supply chain management (OSCM).
Topic: Operations and Supply Chain Processes
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.
FALSE
Returning involves the processes for receiving worn-out, defective, and excess products back from customers and support for
customers who have problems with delivered products.
AACSB: Analytical Thinking
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 01-01 Identify the elements of operations and supply chain management (OSCM).
Topic: Operations and Supply Chain Processes
29. Delivering is not considered in supply chain analysis when outside carriers are contracted to move products to customers.
FALSE
Delivering is also referred to as logistics processes. Carriers are picked to move products to warehouses and customers, coordinate and
schedule the movement of goods and information through the supply network, develop and operate a network of warehouses, and run
the information systems that manage the receipt of orders from customers and invoicing systems to collect payments from customers.
AACSB: Analytical Thinking
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 01-01 Identify the elements of operations and supply chain management (OSCM).
Topic: Operations and Supply Chain Processes
30. Services are intangible processes that cannot be weighed or measured.
TRUE
There are five essential differences between services and goods. The first is that a service is an intangible process that cannot be
weighed or measured, whereas a good is a tangible output of a process that has physical dimensions.
AACSB: Analytical Thinking
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 01-01 Identify the elements of operations and supply chain management (OSCM).
Topic: Differences between Services and Goods
1-7
Copyright ©2021 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill
Education.
,31. Service innovations can be patented.
FALSE
A service innovation, unlike a product innovation, cannot be patented.
AACSB: Analytical Thinking
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 01-01 Identify the elements of operations and supply chain management (OSCM).
Topic: Differences between Services and Goods
32. Services are homogeneous.
FALSE
There are five essential differences between services and goods. One of these is that services are inherently
heterogeneous.
AACSB: Analytical Thinking
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 01-01 Identify the elements of operations and supply chain management (OSCM).
Topic: Differences between Services and Goods
33. Services are defined and evaluated as a package of features that affect the five senses.
TRUE
The specifications of a service are defined and evaluated as a package of features that affect the five senses.
AACSB: Analytical Thinking
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 01-01 Identify the elements of operations and supply chain management (OSCM).
Topic: Differences between Services and Goods
34. Automobiles and appliances are classified as "pure goods."
FALSE
In Exhibit 1.4, automobiles and appliances are classified as "core goods."
AACSB: Analytical Thinking
Blooms: Remember
Difficulty: 2 Medium
Learning Objective: 01-01 Identify the elements of operations and supply chain management (OSCM).
Topic: Differences between Services and Goods
35. Core service providers integrate tangible goods into their product.
TRUE
Core service providers must integrate tangible goods.
AACSB: Analytical Thinking
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 01-01 Identify the elements of operations and supply chain management (OSCM).
Topic: Differences between Services and Goods
1-8
Copyright ©2021 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill
Education.
,36. "Product-service bundling" refers to a company building service activities into its product offerings for its customers.
TRUE
Product-service bundling refers to a company building service activities into its product offerings for its customers.
AACSB: Analytical Thinking
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 01-01 Identify the elements of operations and supply chain management (OSCM).
Topic: Differences between Services and Goods
37. In contrast to careers in finance and marketing, careers in OSCM involve hands-on involvement with people and processes.
TRUE
OSCM jobs are hands-on, working with people and figuring out the best way to do things.
AACSB: Analytical Thinking
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 01-02 Know the potential career opportunities in operations and supply chain management.
Topic: Careers in Operations and Supply Chain Management
38. A supply chain manager is an OSCM job while a purchasing manager is not.
FALSE
Both supply chain manager and purchasing manager are listed as typical management and staff jobs in operations and supply chain
management.
AACSB: Analytical Thinking
Blooms: Remember
Difficulty: 2 Medium
Learning Objective: 01-02 Know the potential career opportunities in operations and supply chain management.
Topic: Careers in Operations and Supply Chain Management
39. Just-in-time (JIT) production was a major breakthrough in manufacturing philosophy pioneered by the Japanese.
TRUE
JIT was pioneered by the Japanese.
AACSB: Analytical Thinking
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 01-03 Recognize the major concepts that define the operations and supply chain management field.
Topic: Historical Development of Operations and Supply Chain Management
40. Lean manufacturing refers to just in time production coupled with total quality control.
TRUE
JIT—coupled with total quality control (TQC)—is now a cornerstone in many manufacturers' production practices, and the term "lean
manufacturing" is used to refer to the set of concepts.
AACSB: Analytical Thinking
Blooms: Remember
Difficulty: 2 Medium
Learning Objective: 01-03 Recognize the major concepts that define the operations and supply chain management field.
Topic: Historical Development of Operations and Supply Chain Management
1-9
Copyright ©2021 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill
Education.
, 41. The Baldrige National Quality Award was started under the direction of the National Institute of Standards and Technology.
TRUE
Helping the quality movement along is the Baldrige National Quality Award, which was started in 1987 under the direction of the
National Institute of Standards and Technology.
AACSB: Analytical Thinking
Blooms: Remember
Difficulty: 2 Medium
Learning Objective: 01-03 Recognize the major concepts that define the operations and supply chain management field.
Topic: Historical Development of Operations and Supply Chain Management
42. The approach that advocates making revolutionary changes as opposed to evolutionary changes is called "creation theory."
FALSE
Business process reengineering seeks to make revolutionary changes as opposed to evolutionary changes.
AACSB: Analytical Thinking
Blooms: Remember
Difficulty: 2 Medium
Learning Objective: 01-03 Recognize the major concepts that define the operations and supply chain management field.
Topic: Historical Development of Operations and Supply Chain Management
43. The approach that advocates making revolutionary changes as opposed to evolutionary changes is called "business process
reengineering."
TRUE
Business process reengineering seeks to make revolutionary changes as opposed to evolutionary changes.
AACSB: Analytical Thinking
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 01-03 Recognize the major concepts that define the operations and supply chain management field.
Topic: Historical Development of Operations and Supply Chain Management
44. Business process reengineering, which seeks revolutionary change, is contrasted with total quality management which commonly
advocates incremental change.
TRUE
Business process reengineering seeks to make revolutionary changes as opposed to evolutionary changes (which are commonly
advocated in TQM).
AACSB: Analytical Thinking
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 01-03 Recognize the major concepts that define the operations and supply chain management field.
Topic: Historical Development of Operations and Supply Chain Management
1-10
Copyright ©2021 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill
Education.
