Chapter 1: Operations and Supply Chain Strategy
TRUE/FALSE
1. Emphasizing cost, quality, time, and flexibility is an effective strategic approach for
operations management.
ANS: F
Page 6
PTS: 1
2. Flexibility refers to a strategy that seeks to provide a product or service that is less
expensive than similar products or services offered by competitors.
ANS: F
Page 7
PTS: 1
3. Setting a competitive priority does not automatically ensure that goals will be achieved.
ANS: T
Page 6
PTS: 1
4. Quality involves offering a product or service that is superior to the alternatives in the eyes
of the customer.
, ANS: T
Page 7
PTS: 1
5. Competing on the basis of consistent quality involves continuously monitoring and
evaluating processes to maximize errors.
ANS: F
Page 7
PTS: 1
6. Superior quality involves offering something that customers will pay a premium for, that is,
something that outshines the competition.
ANS: T
Page 8
PTS: 1
7. Delivery speed refers to delivering a product when promised, but not necessarily quickly.
ANS: F
Page 9
PTS: 1
, 8. Mass customization involves keeping products in a standard format and then adding unique
components for the individual customer at the last possible moment.
ANS: F
Page 9
PTS: 1
9. A company’s business strategy sets the broad guidelines for what the company will be doing
for the near future (the next 6 to 18 months), the mid-range future (the next 2 to 5 years),
and the distant future (5 or more years from the present).
ANS: T
Page 11
PTS: 1
10. A mission statement is not an important aspect of explaining why a company exists.
ANS: F
Page 11
PTS: 1
11. Functional strategies specify the core goals of areas like operations, marketing, finance, or
IT.
ANS: T
Page 11
PTS: 1
, 12. Strategic business decisions always have an optimal solution.
ANS: F
Page 12
PTS: 1
13. Using a product promotion is a key operations strategy.
ANS: F
Page 11
PTS: 1
14. Infrastructural decisions are operational decisions that represent long-term, high-capital-
investment decisions that occur less frequently than many decisions but have a lasting
impact on the organization.
ANS: F
Page 13
PTS: 1
15. An infrastructural decision concerning production planning might ask what quantities of a
particular item should be produced.
ANS: T
Page 13
PTS: 1
TRUE/FALSE
1. Emphasizing cost, quality, time, and flexibility is an effective strategic approach for
operations management.
ANS: F
Page 6
PTS: 1
2. Flexibility refers to a strategy that seeks to provide a product or service that is less
expensive than similar products or services offered by competitors.
ANS: F
Page 7
PTS: 1
3. Setting a competitive priority does not automatically ensure that goals will be achieved.
ANS: T
Page 6
PTS: 1
4. Quality involves offering a product or service that is superior to the alternatives in the eyes
of the customer.
, ANS: T
Page 7
PTS: 1
5. Competing on the basis of consistent quality involves continuously monitoring and
evaluating processes to maximize errors.
ANS: F
Page 7
PTS: 1
6. Superior quality involves offering something that customers will pay a premium for, that is,
something that outshines the competition.
ANS: T
Page 8
PTS: 1
7. Delivery speed refers to delivering a product when promised, but not necessarily quickly.
ANS: F
Page 9
PTS: 1
, 8. Mass customization involves keeping products in a standard format and then adding unique
components for the individual customer at the last possible moment.
ANS: F
Page 9
PTS: 1
9. A company’s business strategy sets the broad guidelines for what the company will be doing
for the near future (the next 6 to 18 months), the mid-range future (the next 2 to 5 years),
and the distant future (5 or more years from the present).
ANS: T
Page 11
PTS: 1
10. A mission statement is not an important aspect of explaining why a company exists.
ANS: F
Page 11
PTS: 1
11. Functional strategies specify the core goals of areas like operations, marketing, finance, or
IT.
ANS: T
Page 11
PTS: 1
, 12. Strategic business decisions always have an optimal solution.
ANS: F
Page 12
PTS: 1
13. Using a product promotion is a key operations strategy.
ANS: F
Page 11
PTS: 1
14. Infrastructural decisions are operational decisions that represent long-term, high-capital-
investment decisions that occur less frequently than many decisions but have a lasting
impact on the organization.
ANS: F
Page 13
PTS: 1
15. An infrastructural decision concerning production planning might ask what quantities of a
particular item should be produced.
ANS: T
Page 13
PTS: 1
