Chapter 10 of Introduction to Business Test Bank by OpenStax with verified questions and answers, fully updated for 2025–2026 academic use and exam preparation.

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Chapter 10 ACHIEVING WORLD-CLASS OPERATIONS MANAGEMENT


TRUE-FALSE QUESTIONS

Title: ANSWER: T REFERENCE: Production and Operations Management--An Overview LEARNING
OUTCOME: 1
1. Production converts inputs into outputs by changing the inputs in some way.
a. True
b. False

Title: ANSWER: F REFERENCE: Production and Operations Management--An Overview LEARNING
OUTCOME: 1
2. Operations management refers to the role that computers play in the production process.
a. True
b. False

Title: ANSWER: T REFERENCE: The Production Processes: How Do We Make It? LEARNING OUTCOME: 2
3. A job shop uses an intermittent production process.
a. True
b. False

Title: ANSWER: F REFERENCE: The Production Processes: How Do We Make It? LEARNING OUTCOME: 2
4. Low volume, short production runs, and high-variety production are characteristic of the continuous
process.
a. True
b. False

Title: ANSWER: T REFERENCE: The Production Processes: How Do We Make It? LEARNING OUTCOME: 2
5. Service companies generally use a repetitive or intermittent production process rather than the
continuous process.
a. True
b. False

Title: ANSWER: T REFERENCE: Location, Location, Location: Where Do We Make It? LEARNING OUTCOME: 3
6. Site selection is a part of production planning.
a. True
b. False

Title: ANSWER: F REFERENCE: Location, Location, Location: Where Do We Make It? LEARNING OUTCOME: 3
7. The reason that Castle and Cooke processes and packages Dole pineapple products in Hawaii is more
than likely because of low energy costs.
a. True
b. False



Title: ANSWER: T REFERENCE: Location, Location, Location: Where Do We Make It? LEARNING OUTCOME: 3
8. Lumber mills are located near the forests in the Northwest to save shipping costs and to be near their

,raw material.
a. True
b. False

Title: ANSWER: F REFERENCE: Location, Location, Location: Where Do We Make It? LEARNING OUTCOME: 3
9. Facilities layout is all-important in production lines but it is not important in service-oriented businesses.
a. True
b. False

Title: ANSWER: F REFERENCE: Location, Location, Location: Where Do We Make It? LEARNING OUTCOME: 3
10. Process layout is almost always designed as a continuous, assembly-line layout.
a. True
b. False

Title: ANSWER: T REFERENCE: Location, Location, Location: Where Do We Make It?LEARNING OUTCOME: 3
11. Product layout is also called assembly-line layout.
a. True
b. False

Title: ANSWER: T REFERENCE: Pulling It Together: Resource Planning LEARNING OUTCOME: 4
12. Because Straube Electronics has decided to buy terminal switches instead of producing them, Straube
has made a make-or-buy decision.
a. True
b. False

Title: ANSWER: F REFERENCE: Pulling It Together: Resource Planning LEARNING OUTCOME: 4
13. A listing of the components and the number of each required to make the product is called the bill of
lading.
a. True
b. False

Title: ANSWER: T REFERENCE: Production and Operations Control LEARNING OUTCOME: 5
14. The critical path method is a sophisticated scheduling system that is based on the minimum time the
project will take to complete.
a. True
b. False

Title: ANSWER: F REFERENCE: Looking for a Better Way: Improving Production and Operations LEARNING
OUTCOME: 6
15. Total quality management says that quality is the responsibility solely of the production and shipping
departments.
a. True
b. False

Title: ANSWER: T REFERENCE: Looking for a Better Way: Improving Production and Operations LEARNING
OUTCOME: 6
16. The just-in-time (JIT) system schedules arrival of inventory so that it can be used almost immediately
and will not need to be stored on site.
a. True
October 22, 2018 2

, b. False

Title: ANSWER: F REFERENCE: Looking for a Better Way: Improving Production and Operations LEARNING
OUTCOME: 6
17. Just-in-time (JIT) is an inventory system that was developed in California and is starting to catch on in
Japan.
a. True
b. False

Title: ANSWER: F REFERENCE: Transforming the Factory Floor with Technology LEARNING OUTCOME: 7
18. The critical path method (CPM) is used to design, test, and modify new and existing products.
a. True
b. False

Title: ANSWER: T REFERENCE: Transforming the Factory Floor with Technology LEARNING OUTCOME: 7
19. Computer-aided manufacturing (CAM) uses computers to develop and control the production process.
a. True
b. False

Title: ANSWER: T REFERENCE: Transforming the Factory Floor with Technology LEARNING OUTCOME: 7
20. Robots are especially useful for repetitive tasks such as cutting sheet metal and spot welding.
a. True
b. False

Title: ANSWER: T REFERENCE: Transforming the Factory Floor with Technology LEARNING OUTCOME: 7
21. Replacing human effort with robots is most effective for tasks requiring consistency, accuracy, and
speed.
a. True
b. False

Title: ANSWER: F REFERENCE: Trends in Production and Operations Management
LEARNING OUTCOME: 8 RATIONALE: A shortage of such workers is predicted.
22. Researchers predict a glut of better-educated and more highly skilled workers.
a. True
b. False

Title: ANSWER: T REFERENCE: Trends in Production and Operations Management LEARNING OUTCOME: 8
23. Business process management provides businesses with a unified system of operation.
a. True
b. False


MULTIPLE CHOICE QUESTIONS

Title: ANSWER: B REFERENCE: Production and Operations Management--An Overview LEARNING
OUTCOME: 1
1. _____ is the process that converts inputs into outputs that can be sold as goods and services.
A. Marketing
B. Production
October 22, 2018 3