Test Bank for Operations and Supply Chain Management The Core 6th Edition By F. Robert Jacobs (2025 UPDATED LATEST VERSION)

Test Bank for Operations and Supply Chain Management The Core 6th Edition By F. Robert Jacobs (2025 UPDATED LATEST VERSION) 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 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