, Chapter 01 Test Bank – Static
1. Operations managers are responsible for assessing consumer wants and needs and selling and promoting the organization's
goods or services.
FALSE
Operation managers are not responsible for promoting goods/services. It is the marketing functional area that is responsible
for assessing consumer wants and needs and selling and promoting the organization’s goods or services.
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 01-06 Describe the operations function and the nature of the operations manager's job.
Topic: The Scope of Operations Management
2. Often, the collective success or failure of companies' operations functions will impact the ability of a nation to compete with
other nations.
TRUE
A nation is often only as competitive as its companies.
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 01-03 Explain the importance of learning about operations management.
Topic: Why Learn about Operations Management?
1-1
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill
Education.
,3. Companies are either producing goods or delivering services. This means that only one of the two types of operations
management strategies are used.
FALSE
There are very few pure goods or pure services, so most companies sell product packages which combine goods and
services. Therefore, most production systems involve a blend of goods and services.
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 01-02 Identify similarities and differences between production and service operations.
Topic: Introduction to Operations Management
Topic: Production of Goods versus Providing Services
4. Operations, marketing, and finance function independently of each other in most organizations.
FALSE
Operations, marketing, and finance are naturally dependent upon one another.
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 01-04 Identify the three major functional areas of organizations and describe how they interrelate.
Topic: Why Learn about Operations Management?
5. The greater the degree of customer involvement, the more challenging the design and management of operations.
TRUE
Greater customer involvement leads greater variation in the goods and services provided. This creates greater variation in
production or service requirements and results in more complexity in the design and management of operations.
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 01-05 Summarize the two major aspects of process management.
Topic: Process Management
1-2
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill
Education.
, 6. Goods-producing organizations are not involved in service activities.
FALSE
There are very few pure goods or pure services, so most companies sell product packages which combine goods and
services. Therefore, most production systems involve a blend of goods and services.
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 01-02 Identify similarities and differences between production and service operations.
Topic: Production of Goods versus Providing Services
7 Service operations require additional inventory because of the unpredictability of consumer demand.
FALSE
Service operations cannot use inventory as a hedge against unpredictable demand.
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 01-02 Identify similarities and differences between production and service operations.
Topic: Production of Goods versus Providing Services
8. In for-profit organizations, the value of outputs is measured by the prices customers are willing to pay for goods or services.
TRUE
Customers' willingness to pay for goods or services sets the value of these outputs.
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 01-02 Identify similarities and differences between production and service operations.
Topic: Introduction
1-3
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill
Education.
1. Operations managers are responsible for assessing consumer wants and needs and selling and promoting the organization's
goods or services.
FALSE
Operation managers are not responsible for promoting goods/services. It is the marketing functional area that is responsible
for assessing consumer wants and needs and selling and promoting the organization’s goods or services.
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 01-06 Describe the operations function and the nature of the operations manager's job.
Topic: The Scope of Operations Management
2. Often, the collective success or failure of companies' operations functions will impact the ability of a nation to compete with
other nations.
TRUE
A nation is often only as competitive as its companies.
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 01-03 Explain the importance of learning about operations management.
Topic: Why Learn about Operations Management?
1-1
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill
Education.
,3. Companies are either producing goods or delivering services. This means that only one of the two types of operations
management strategies are used.
FALSE
There are very few pure goods or pure services, so most companies sell product packages which combine goods and
services. Therefore, most production systems involve a blend of goods and services.
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 01-02 Identify similarities and differences between production and service operations.
Topic: Introduction to Operations Management
Topic: Production of Goods versus Providing Services
4. Operations, marketing, and finance function independently of each other in most organizations.
FALSE
Operations, marketing, and finance are naturally dependent upon one another.
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 01-04 Identify the three major functional areas of organizations and describe how they interrelate.
Topic: Why Learn about Operations Management?
5. The greater the degree of customer involvement, the more challenging the design and management of operations.
TRUE
Greater customer involvement leads greater variation in the goods and services provided. This creates greater variation in
production or service requirements and results in more complexity in the design and management of operations.
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 01-05 Summarize the two major aspects of process management.
Topic: Process Management
1-2
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill
Education.
, 6. Goods-producing organizations are not involved in service activities.
FALSE
There are very few pure goods or pure services, so most companies sell product packages which combine goods and
services. Therefore, most production systems involve a blend of goods and services.
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 01-02 Identify similarities and differences between production and service operations.
Topic: Production of Goods versus Providing Services
7 Service operations require additional inventory because of the unpredictability of consumer demand.
FALSE
Service operations cannot use inventory as a hedge against unpredictable demand.
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 01-02 Identify similarities and differences between production and service operations.
Topic: Production of Goods versus Providing Services
8. In for-profit organizations, the value of outputs is measured by the prices customers are willing to pay for goods or services.
TRUE
Customers' willingness to pay for goods or services sets the value of these outputs.
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 01-02 Identify similarities and differences between production and service operations.
Topic: Introduction
1-3
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill
Education.
