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OPERATIONS AND SUPPLY CHAIN MANAGEMENT (17TH EDITION) — F.
ROBERT JACOBS & RICHARD B. CHASE EXAM QUESTIONS AND CORRECT
ANSWERS LATEST EDITION 2026
Operations and Supply Chain Management (17th Edition) — F. Robert Jacobs & Richard B.
Chase
Original Practice Questions — Operations and Supply Chain Management (17th Edition)
Chapter 1: Operations and Supply Chain Management (Questions 1–20)
1. Which of the following best defines operations and supply chain management (OSCM)?
A) The management of financial resources in a firm
B) The design, operation, and improvement of the systems that create and deliver the firm's
primary products and services
C) The management of human resources in manufacturing
D) The marketing of products to customers
Answer: B — The design, operation, and improvement of the systems that create and deliver
the firm's primary products and services
Rationale: OSCM is defined as the design, operation, and improvement of the systems that
create and deliver the firm's primary products and services.
2. Which of the following is a characteristic of a service operation?
A) Tangible output
B) Intangible output
C) Low customer contact
D) High inventory levels
Answer: B — Intangible output
Rationale: Services are intangible, while goods are tangible. Services also tend to have higher
customer contact and cannot be stored as inventory.
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3. The triple bottom line in operations management refers to which three dimensions?
A) Profit, people, planet
B) Price, product, promotion
C) Planning, production, distribution
D) Productivity, quality, efficiency
Answer: A — Profit, people, planet
Rationale: The triple bottom line evaluates operations on social (people), environmental
(planet), and financial (profit) performance.
4. A supply chain consists of which of the following?
A) Only the manufacturing process
B) A network of organizations and activities that supply goods and services to customers
C) Only the distribution network
D) Only the retail outlets
Answer: B — A network of organizations and activities that supply goods and services to
customers
Rationale: A supply chain includes all organizations and activities involved in transforming raw
materials into final products delivered to customers.
5. Which of the following is an example of a pure good?
A) Automobile
B) Restaurant meal
C) University lecture
D) Legal consultation
Answer: A — Automobile
Rationale: Automobiles are tangible goods. The other options are services or have significant
service components.
6. Operations management focuses primarily on which of the following?
A) Managing people
B) Managing processes and systems
C) Managing finances
D) Managing marketing
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Answer: B — Managing processes and systems
Rationale: Operations management focuses on the processes and systems that create and
deliver products and services.
7. Which of the following is a key difference between manufacturing and service operations?
A) Manufacturing is capital-intensive; services are labor-intensive
B) Manufacturing has tangible output; services have intangible output
C) Manufacturing has high customer contact; services have low customer contact
D) Manufacturing cannot be standardized; services can be standardized
Answer: B — Manufacturing has tangible output; services have intangible output
Rationale: Manufacturing produces tangible goods, while services produce intangible outputs.
8. The supply chain includes which of the following flows?
A) Information, product, and cash flows
B) Only product flows
C) Only information flows
D) Only cash flows
Answer: A — Information, product, and cash flows
Rationale: Supply chains involve the flow of information, products/services, and cash between
organizations.
9. Which of the following is NOT a strategic decision in operations?
A) Product design
B) Process selection
C) Daily scheduling
D) Capacity planning
Answer: C — Daily scheduling
Rationale: Daily scheduling is a tactical/operational decision, not a strategic decision.
10. The "bullwhip effect" in supply chains refers to which of the following?
A) Increasing inventory efficiency
B) Demand variability amplification as you move up the supply chain
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C) Decreased lead times
D) Reduced costs
Answer: B — Demand variability amplification as you move up the supply chain
Rationale: The bullwhip effect occurs when demand variability increases as you move upstream
in the supply chain.
11. Which of the following is a current issue in operations and supply chain management?
A) Increasing globalization
B) Decreasing technology
C) Decreasing customer expectations
D) Increasing isolation of supply chains
Answer: A — Increasing globalization
Rationale: Globalization, technology, sustainability, and risk management are current issues in
OSCM.
12. Which of the following best describes a "core competency"?
A) A skill that is easy to imitate
B) A unique capability that provides competitive advantage
C) A routine task
D) A financial resource
Answer: B — A unique capability that provides competitive advantage
Rationale: Core competencies are unique capabilities that provide competitive advantage and
are difficult to imitate.
13. The primary goal of operations management is to:
A) Maximize costs
B) Minimize productivity
C) Create value for customers
D) Reduce quality
Answer: C — Create value for customers
Rationale: Operations management aims to create value by efficiently transforming inputs into
outputs that satisfy customers.
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OPERATIONS AND SUPPLY CHAIN MANAGEMENT (17TH EDITION) — F.
ROBERT JACOBS & RICHARD B. CHASE EXAM QUESTIONS AND CORRECT
ANSWERS LATEST EDITION 2026
Operations and Supply Chain Management (17th Edition) — F. Robert Jacobs & Richard B.
Chase
Original Practice Questions — Operations and Supply Chain Management (17th Edition)
Chapter 1: Operations and Supply Chain Management (Questions 1–20)
1. Which of the following best defines operations and supply chain management (OSCM)?
A) The management of financial resources in a firm
B) The design, operation, and improvement of the systems that create and deliver the firm's
primary products and services
C) The management of human resources in manufacturing
D) The marketing of products to customers
Answer: B — The design, operation, and improvement of the systems that create and deliver
the firm's primary products and services
Rationale: OSCM is defined as the design, operation, and improvement of the systems that
create and deliver the firm's primary products and services.
2. Which of the following is a characteristic of a service operation?
A) Tangible output
B) Intangible output
C) Low customer contact
D) High inventory levels
Answer: B — Intangible output
Rationale: Services are intangible, while goods are tangible. Services also tend to have higher
customer contact and cannot be stored as inventory.
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,Page 2 of 78
3. The triple bottom line in operations management refers to which three dimensions?
A) Profit, people, planet
B) Price, product, promotion
C) Planning, production, distribution
D) Productivity, quality, efficiency
Answer: A — Profit, people, planet
Rationale: The triple bottom line evaluates operations on social (people), environmental
(planet), and financial (profit) performance.
4. A supply chain consists of which of the following?
A) Only the manufacturing process
B) A network of organizations and activities that supply goods and services to customers
C) Only the distribution network
D) Only the retail outlets
Answer: B — A network of organizations and activities that supply goods and services to
customers
Rationale: A supply chain includes all organizations and activities involved in transforming raw
materials into final products delivered to customers.
5. Which of the following is an example of a pure good?
A) Automobile
B) Restaurant meal
C) University lecture
D) Legal consultation
Answer: A — Automobile
Rationale: Automobiles are tangible goods. The other options are services or have significant
service components.
6. Operations management focuses primarily on which of the following?
A) Managing people
B) Managing processes and systems
C) Managing finances
D) Managing marketing
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Answer: B — Managing processes and systems
Rationale: Operations management focuses on the processes and systems that create and
deliver products and services.
7. Which of the following is a key difference between manufacturing and service operations?
A) Manufacturing is capital-intensive; services are labor-intensive
B) Manufacturing has tangible output; services have intangible output
C) Manufacturing has high customer contact; services have low customer contact
D) Manufacturing cannot be standardized; services can be standardized
Answer: B — Manufacturing has tangible output; services have intangible output
Rationale: Manufacturing produces tangible goods, while services produce intangible outputs.
8. The supply chain includes which of the following flows?
A) Information, product, and cash flows
B) Only product flows
C) Only information flows
D) Only cash flows
Answer: A — Information, product, and cash flows
Rationale: Supply chains involve the flow of information, products/services, and cash between
organizations.
9. Which of the following is NOT a strategic decision in operations?
A) Product design
B) Process selection
C) Daily scheduling
D) Capacity planning
Answer: C — Daily scheduling
Rationale: Daily scheduling is a tactical/operational decision, not a strategic decision.
10. The "bullwhip effect" in supply chains refers to which of the following?
A) Increasing inventory efficiency
B) Demand variability amplification as you move up the supply chain
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C) Decreased lead times
D) Reduced costs
Answer: B — Demand variability amplification as you move up the supply chain
Rationale: The bullwhip effect occurs when demand variability increases as you move upstream
in the supply chain.
11. Which of the following is a current issue in operations and supply chain management?
A) Increasing globalization
B) Decreasing technology
C) Decreasing customer expectations
D) Increasing isolation of supply chains
Answer: A — Increasing globalization
Rationale: Globalization, technology, sustainability, and risk management are current issues in
OSCM.
12. Which of the following best describes a "core competency"?
A) A skill that is easy to imitate
B) A unique capability that provides competitive advantage
C) A routine task
D) A financial resource
Answer: B — A unique capability that provides competitive advantage
Rationale: Core competencies are unique capabilities that provide competitive advantage and
are difficult to imitate.
13. The primary goal of operations management is to:
A) Maximize costs
B) Minimize productivity
C) Create value for customers
D) Reduce quality
Answer: C — Create value for customers
Rationale: Operations management aims to create value by efficiently transforming inputs into
outputs that satisfy customers.
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