Test Bank For
Introduction to Operations and Supply Chain Management, 6th Edition
Robert B. Handfield Frank Montabon Cecil B. Bozarth
Chapter 1-15
Chapter 1 Introduction to Operations and Supply Chain Management
Learning Objective 1-1
1) Every organization has an operations function.
Answer: TRUE
Diff: 1
Reference: Why Study Operations and Supply Chain Management?
Keywords: organization, operations, function
AACSB: Application of Knowledge
LO: 1.1: Describe what is meant by operations and supply chain management and explain why
activities in these are critical to an organization's survival
2) Most organizations function as part of a larger supply chain.
Answer: TRUE
Diff: 1
Reference: Why Study Operations and Supply Chain Management?
Keywords: organization, supply chain
AACSB: Application of Knowledge
LO: 1.1: Describe what is meant by operations and supply chain management and explain why
activities in these are critical to an organization's survival
3) The supply chain is a network of manufacturers and service providers that work together to
create products or services needed by end users.
Answer: TRUE
Diff: 1
Reference: Why Study Operations and Supply Chain Management?
Keywords: organization, supply chain, network
AACSB: Application of Knowledge
LO: 1.1: Describe what is meant by operations and supply chain management and explain why
activities in these are critical to an organization's survival
4) To participate in a supply chain, a firm must actually handle the physical goods at some point.
Answer: FALSE
Diff: 2
Reference: Why Study Operations and Supply Chain Management?
Keywords: decisions, supply chain, operations
AACSB: Application of Knowledge
LO: 1.1: Describe what is meant by operations and supply chain management and explain why
activities in these are critical to an organization's survival
5) Information and materials are two examples of inputs to the transformation process.
Answer: TRUE
,Diff: 1
Reference: Why Study Operations and Supply Chain Management?
Keywords: information, materials, input, transformation
AACSB: Application of Knowledge
LO: 1.1: Describe what is meant by operations and supply chain management and explain why
activities in these are critical to an organization's survival
6) In general, operations management activities are information and decision intensive.
Answer: TRUE
Diff: 2
Reference: Why Study Operations and Supply Chain Management?
Keywords: information, decisions, operations, management
AACSB: Application of Knowledge
LO: 1.1: Describe what is meant by operations and supply chain management and explain why
activities in these are critical to an organization's survival
7) Of the three flows linking organizations in a supply chain, information and monetary flows
always move upstream and physical flows always move downstream.
Answer: FALSE
Diff: 2
Reference: Why Study Operations and Supply Chain Management?
Keywords: information, monetary, information flows, supply chain
AACSB: Application of Knowledge
LO: 1.1: Describe what is meant by operations and supply chain management and explain why
activities in these are critical to an organization's survival
8) A second-tier supplier is downstream from a first-tier supplier in a supply chain.
Answer: FALSE
Diff: 2
Reference: Why Study Operations and Supply Chain Management?
Keywords: downstream, supply chain, tier
AACSB: Application of Knowledge
LO: 1.1: Describe what is meant by operations and supply chain management and explain why
activities in these are critical to an organization's survival
9) Most of the participants in a supply chain are both suppliers and customers.
Answer: TRUE
Diff: 2
Reference: Why Study Operations and Supply Chain Management?
Keywords: supply chain, supplier, customer
AACSB: Application of Knowledge
LO: 1.1: Describe what is meant by operations and supply chain management and explain why
activities in these are critical to an organization's survival
,10) Transportation and warehousing are examples of logistics activities.
Answer: TRUE
Diff: 2
Reference: Purpose and Organization of This Book
Keywords: logistics, transportation, warehousing
AACSB: Application of Knowledge
LO: 1.1: Describe what is meant by operations and supply chain management and explain why
activities in these are critical to an organization's survival
11) The collection of people, technology, and systems within an organization that has primary
responsibility for providing the organization's products or services is called:
A) the supply chain.
B) the operations function.
C) the evoked set.
D) relationship management.
Answer: B
Diff: 2
Reference: Why Study Operations and Supply Chain Management?
Keywords: operations, function
AACSB: Application of Knowledge
LO: 1.1: Describe what is meant by operations and supply chain management and explain why
activities in these are critical to an organization's survival
12) Which of these is NOT a component of the operations function in an organization?
A) People
B) Technology
C) Systems
D) Information
Answer: D
Diff: 1
Reference: Why Study Operations and Supply Chain Management?
Keywords: operations, function, information
AACSB: Application of Knowledge
LO: 1.1: Describe what is meant by operations and supply chain management and explain why
activities in these are critical to an organization's survival
13) Which of the following is NOT a flow typically found in a supply chain?
A) physical
B) information
C) monetary
D) risk
Answer: D
Diff: 2
Reference: Why Study Operations and Supply Chain Management?
Keywords: supply chain, flow
AACSB: Application of Knowledge
LO: 1.1: Describe what is meant by operations and supply chain management and explain why
activities in these are critical to an organization's survival
14) Which of the following is primarily a supply chain management decision?
A) from whom to purchase materials
, B) how many of each item should be produced
C) the mix of labor skill and automation
D) the location of the plant
Answer: A
Diff: 3
Reference: Why Study Operations and Supply Chain Management?
Keywords: supply chain, decision, supplier
AACSB: Application of Knowledge
LO: 1.1: Describe what is meant by operations and supply chain management and explain why
activities in these are critical to an organization's survival
15) ________ is an example of an output of the transformation process.
A) Material
B) Information
C) Satisfied customers
D) Intangible needs
Answer: C
Diff: 3
Reference: Why Study Operations and Supply Chain Management?
Keywords: output, transformation, process, customer
AACSB: Application of Knowledge
LO: 1.1: Describe what is meant by operations and supply chain management and explain why
activities in these are critical to an organization's survival
16) Typical inputs to the transformation process include:
A) tangible goods.
B) satisfied customers.
C) intangible needs.
D) fulfilled needs.
Answer: C
Diff: 2
Reference: Why Study Operations and Supply Chain Management?
Keywords: intangible needs, inputs
AACSB: Application of Knowledge
LO: 1.1: Describe what is meant by operations and supply chain management and explain why
activities in these are critical to an organization's survival
17) Which of the following statements about the operations function is NOT correct?
A) Inputs to operations can take many different forms.
B) Nearly all operations activities require coordination with other business functions.
C) The outputs of an operations function are always tangible.
D) Operations management activities are information and decision intensive.
Answer: C
Diff: 2
Reference: Why Study Operations and Supply Chain Management?
Keywords: operations, function, tangible output
AACSB: Application of Knowledge
LO: 1.1: Describe what is meant by operations and supply chain management and explain why
activities in these are critical to an organization's survival
18) Which of these statements about flows in a supply chain is best?
Introduction to Operations and Supply Chain Management, 6th Edition
Robert B. Handfield Frank Montabon Cecil B. Bozarth
Chapter 1-15
Chapter 1 Introduction to Operations and Supply Chain Management
Learning Objective 1-1
1) Every organization has an operations function.
Answer: TRUE
Diff: 1
Reference: Why Study Operations and Supply Chain Management?
Keywords: organization, operations, function
AACSB: Application of Knowledge
LO: 1.1: Describe what is meant by operations and supply chain management and explain why
activities in these are critical to an organization's survival
2) Most organizations function as part of a larger supply chain.
Answer: TRUE
Diff: 1
Reference: Why Study Operations and Supply Chain Management?
Keywords: organization, supply chain
AACSB: Application of Knowledge
LO: 1.1: Describe what is meant by operations and supply chain management and explain why
activities in these are critical to an organization's survival
3) The supply chain is a network of manufacturers and service providers that work together to
create products or services needed by end users.
Answer: TRUE
Diff: 1
Reference: Why Study Operations and Supply Chain Management?
Keywords: organization, supply chain, network
AACSB: Application of Knowledge
LO: 1.1: Describe what is meant by operations and supply chain management and explain why
activities in these are critical to an organization's survival
4) To participate in a supply chain, a firm must actually handle the physical goods at some point.
Answer: FALSE
Diff: 2
Reference: Why Study Operations and Supply Chain Management?
Keywords: decisions, supply chain, operations
AACSB: Application of Knowledge
LO: 1.1: Describe what is meant by operations and supply chain management and explain why
activities in these are critical to an organization's survival
5) Information and materials are two examples of inputs to the transformation process.
Answer: TRUE
,Diff: 1
Reference: Why Study Operations and Supply Chain Management?
Keywords: information, materials, input, transformation
AACSB: Application of Knowledge
LO: 1.1: Describe what is meant by operations and supply chain management and explain why
activities in these are critical to an organization's survival
6) In general, operations management activities are information and decision intensive.
Answer: TRUE
Diff: 2
Reference: Why Study Operations and Supply Chain Management?
Keywords: information, decisions, operations, management
AACSB: Application of Knowledge
LO: 1.1: Describe what is meant by operations and supply chain management and explain why
activities in these are critical to an organization's survival
7) Of the three flows linking organizations in a supply chain, information and monetary flows
always move upstream and physical flows always move downstream.
Answer: FALSE
Diff: 2
Reference: Why Study Operations and Supply Chain Management?
Keywords: information, monetary, information flows, supply chain
AACSB: Application of Knowledge
LO: 1.1: Describe what is meant by operations and supply chain management and explain why
activities in these are critical to an organization's survival
8) A second-tier supplier is downstream from a first-tier supplier in a supply chain.
Answer: FALSE
Diff: 2
Reference: Why Study Operations and Supply Chain Management?
Keywords: downstream, supply chain, tier
AACSB: Application of Knowledge
LO: 1.1: Describe what is meant by operations and supply chain management and explain why
activities in these are critical to an organization's survival
9) Most of the participants in a supply chain are both suppliers and customers.
Answer: TRUE
Diff: 2
Reference: Why Study Operations and Supply Chain Management?
Keywords: supply chain, supplier, customer
AACSB: Application of Knowledge
LO: 1.1: Describe what is meant by operations and supply chain management and explain why
activities in these are critical to an organization's survival
,10) Transportation and warehousing are examples of logistics activities.
Answer: TRUE
Diff: 2
Reference: Purpose and Organization of This Book
Keywords: logistics, transportation, warehousing
AACSB: Application of Knowledge
LO: 1.1: Describe what is meant by operations and supply chain management and explain why
activities in these are critical to an organization's survival
11) The collection of people, technology, and systems within an organization that has primary
responsibility for providing the organization's products or services is called:
A) the supply chain.
B) the operations function.
C) the evoked set.
D) relationship management.
Answer: B
Diff: 2
Reference: Why Study Operations and Supply Chain Management?
Keywords: operations, function
AACSB: Application of Knowledge
LO: 1.1: Describe what is meant by operations and supply chain management and explain why
activities in these are critical to an organization's survival
12) Which of these is NOT a component of the operations function in an organization?
A) People
B) Technology
C) Systems
D) Information
Answer: D
Diff: 1
Reference: Why Study Operations and Supply Chain Management?
Keywords: operations, function, information
AACSB: Application of Knowledge
LO: 1.1: Describe what is meant by operations and supply chain management and explain why
activities in these are critical to an organization's survival
13) Which of the following is NOT a flow typically found in a supply chain?
A) physical
B) information
C) monetary
D) risk
Answer: D
Diff: 2
Reference: Why Study Operations and Supply Chain Management?
Keywords: supply chain, flow
AACSB: Application of Knowledge
LO: 1.1: Describe what is meant by operations and supply chain management and explain why
activities in these are critical to an organization's survival
14) Which of the following is primarily a supply chain management decision?
A) from whom to purchase materials
, B) how many of each item should be produced
C) the mix of labor skill and automation
D) the location of the plant
Answer: A
Diff: 3
Reference: Why Study Operations and Supply Chain Management?
Keywords: supply chain, decision, supplier
AACSB: Application of Knowledge
LO: 1.1: Describe what is meant by operations and supply chain management and explain why
activities in these are critical to an organization's survival
15) ________ is an example of an output of the transformation process.
A) Material
B) Information
C) Satisfied customers
D) Intangible needs
Answer: C
Diff: 3
Reference: Why Study Operations and Supply Chain Management?
Keywords: output, transformation, process, customer
AACSB: Application of Knowledge
LO: 1.1: Describe what is meant by operations and supply chain management and explain why
activities in these are critical to an organization's survival
16) Typical inputs to the transformation process include:
A) tangible goods.
B) satisfied customers.
C) intangible needs.
D) fulfilled needs.
Answer: C
Diff: 2
Reference: Why Study Operations and Supply Chain Management?
Keywords: intangible needs, inputs
AACSB: Application of Knowledge
LO: 1.1: Describe what is meant by operations and supply chain management and explain why
activities in these are critical to an organization's survival
17) Which of the following statements about the operations function is NOT correct?
A) Inputs to operations can take many different forms.
B) Nearly all operations activities require coordination with other business functions.
C) The outputs of an operations function are always tangible.
D) Operations management activities are information and decision intensive.
Answer: C
Diff: 2
Reference: Why Study Operations and Supply Chain Management?
Keywords: operations, function, tangible output
AACSB: Application of Knowledge
LO: 1.1: Describe what is meant by operations and supply chain management and explain why
activities in these are critical to an organization's survival
18) Which of these statements about flows in a supply chain is best?
