,Russell & Taylor / Operations & Supply Chain Management, 10th edition Test Bank
Chapter 1:
Operations Management
True/False
1. Operations management is only concerned with the day-to-day operations of a firm’s
productive systems.
Ans: False, LO: 1, Bloom: K, Difficulty: Easy, AACSB: None
2. A warehouse operation is an example of a physical transformation process.
Ans: False, LO: 1, Bloom: K, Difficulty: Easy, AACSB: None
3. A supply chain is a series of activities from supplier to customer that adds value to a
product or service.
Ans: True, LO: 1, Bloom: K, Difficulty: Moderate, AACSB: None
4. Human resources management provides product demand estimates that are used in
production decisions.
Ans: False, LO: 1, Bloom: K, Difficulty: Moderate, AACSB: None
5. A retail operation is an example of an exchange transformation process.
Ans: True, LO: 1, Bloom: K, Difficulty: Easy, AACSB: None
6. Which of the following is a functional areas of operations management?
a. information technology
b. legal
c. compliance
d. human resources
Ans: False, LO: 1, Bloom: C, Difficulty: Easy, AACSB: None
7. Operations management designs, operates, and improves marketing systems.
Ans: False, LO: 1, Bloom: K, Difficulty: Easy, AACSB: None
8. An operations manager benefits from an integrated view of business organizations.
Ans: True, LO: 1, Bloom: K, Difficulty: Easy, AACSB: None
9. The systematic analysis of work methods is known as operations research.
Ans: False, LO: 2, Bloom: K, Difficulty: Easy, AACSB: None
Copyright ©2020 John Wiley & Sons, Inc. 1-1
,Russell & Taylor / Operations & Supply Chain Management, 10th edition Test Bank
10. Which of the following best fits the definition of lean production?
a. a system that prizes efficiency and quantity
b. a system that prizes efficiency and quality
c. a system that prizes flexibility and quantity
d. a system that prizes flexibility and quality
Ans: D, LO: 2, Bloom: K, Difficulty: Easy, AACSB: None
11. The adaptation of mass production to emphasize quality and flexibility, rather than
efficiency, is known as lean production.
Ans: True, LO: 2, Bloom: K, Difficulty: Moderate, AACSB: None
12. Because of a global recession in the late 2000s ,companies started focusing on the
most critical factors to sustain their business during the downturn.
Ans: True, LO: 2, Bloom: K, Difficulty: Moderate, AACSB: None
13. Sustainability is concerned with the following
a. profits
b. global supply chains
c. sustain the health of people in the long term
d. increasing market share
Ans: C, LO: 2, Bloom: K, Difficulty: Moderate, AACSB: None
14. An effective strategic positioning strategy considers all of the following expect
a. strengths and weaknesses of the organization
b. needs of the marketplace
c. the strategic management team
d. positions of competitors
Ans: True, LO: 2, Bloom: K, Difficulty: Moderate, AACSB: None
15. Globalization requires that firms compete only on cost and not quality, speed or
flexibility.
Ans: False, LO: 3, Bloom: K, Difficulty: Moderate, AACSB: None
16. Companies pursue globalization for all of the following reasons except
a. gain access to global markets
b. increase shipping costs
c. be more responsive to changes in demand
d. build reliable sources of supply
Ans: C, LO: 3, Bloom: C, Difficulty: Moderate, AACSB: None
Copyright ©2020 John Wiley & Sons, Inc. 1-2
, Russell & Taylor / Operations & Supply Chain Management, 10th edition Test Bank
17. The European Union requires that strict quality and environmental standards be met
before companies can do business with member countries.
Ans: True, LO: 3, Bloom: K, Difficulty: Moderate, AACSB: None
18. A major challenge and opportunity for many firms is the globalization of the supply
chain.
Ans: True, LO: 3, Bloom: K, Difficulty: Easy, AACSB: None
19. Globalization has affected manufacturing but not service operations.
Ans: False, LO: 3, Bloom: K, Difficulty: Easy, AACSB: None
20. Two-thirds of today’s businesses operate globally.
Ans: True, LO: 3, Bloom: K, Difficulty: Moderate, AACSB: None
21. In 2010, the US surpassed China as the world’s largest manufacturer.
Ans: False, LO: 2, Bloom: K, Difficulty: Moderate, AACSB: None
22. China has reshaped the way firms compete globally.
Ans: True, LO: 3, Bloom: K, Difficulty: Easy, AACSB: None
23. Increases in productivity enable a nation to raise its standard of living.
Ans: True, LO: 4, Bloom: K, Difficulty: Easy, AACSB: None
24. What is the most common measure of competitiveness?
a. GDP
b. wage rates
c. productivity
d. manufacturing output
Ans: True, LO: 4, Bloom: K, Difficulty: Easy, AACSB: None
25. Multifactor productivity is best defined as
a. a single output and a single input
b. multiple outputs and a single input
Copyright ©2020 John Wiley & Sons, Inc. 1-3
Chapter 1:
Operations Management
True/False
1. Operations management is only concerned with the day-to-day operations of a firm’s
productive systems.
Ans: False, LO: 1, Bloom: K, Difficulty: Easy, AACSB: None
2. A warehouse operation is an example of a physical transformation process.
Ans: False, LO: 1, Bloom: K, Difficulty: Easy, AACSB: None
3. A supply chain is a series of activities from supplier to customer that adds value to a
product or service.
Ans: True, LO: 1, Bloom: K, Difficulty: Moderate, AACSB: None
4. Human resources management provides product demand estimates that are used in
production decisions.
Ans: False, LO: 1, Bloom: K, Difficulty: Moderate, AACSB: None
5. A retail operation is an example of an exchange transformation process.
Ans: True, LO: 1, Bloom: K, Difficulty: Easy, AACSB: None
6. Which of the following is a functional areas of operations management?
a. information technology
b. legal
c. compliance
d. human resources
Ans: False, LO: 1, Bloom: C, Difficulty: Easy, AACSB: None
7. Operations management designs, operates, and improves marketing systems.
Ans: False, LO: 1, Bloom: K, Difficulty: Easy, AACSB: None
8. An operations manager benefits from an integrated view of business organizations.
Ans: True, LO: 1, Bloom: K, Difficulty: Easy, AACSB: None
9. The systematic analysis of work methods is known as operations research.
Ans: False, LO: 2, Bloom: K, Difficulty: Easy, AACSB: None
Copyright ©2020 John Wiley & Sons, Inc. 1-1
,Russell & Taylor / Operations & Supply Chain Management, 10th edition Test Bank
10. Which of the following best fits the definition of lean production?
a. a system that prizes efficiency and quantity
b. a system that prizes efficiency and quality
c. a system that prizes flexibility and quantity
d. a system that prizes flexibility and quality
Ans: D, LO: 2, Bloom: K, Difficulty: Easy, AACSB: None
11. The adaptation of mass production to emphasize quality and flexibility, rather than
efficiency, is known as lean production.
Ans: True, LO: 2, Bloom: K, Difficulty: Moderate, AACSB: None
12. Because of a global recession in the late 2000s ,companies started focusing on the
most critical factors to sustain their business during the downturn.
Ans: True, LO: 2, Bloom: K, Difficulty: Moderate, AACSB: None
13. Sustainability is concerned with the following
a. profits
b. global supply chains
c. sustain the health of people in the long term
d. increasing market share
Ans: C, LO: 2, Bloom: K, Difficulty: Moderate, AACSB: None
14. An effective strategic positioning strategy considers all of the following expect
a. strengths and weaknesses of the organization
b. needs of the marketplace
c. the strategic management team
d. positions of competitors
Ans: True, LO: 2, Bloom: K, Difficulty: Moderate, AACSB: None
15. Globalization requires that firms compete only on cost and not quality, speed or
flexibility.
Ans: False, LO: 3, Bloom: K, Difficulty: Moderate, AACSB: None
16. Companies pursue globalization for all of the following reasons except
a. gain access to global markets
b. increase shipping costs
c. be more responsive to changes in demand
d. build reliable sources of supply
Ans: C, LO: 3, Bloom: C, Difficulty: Moderate, AACSB: None
Copyright ©2020 John Wiley & Sons, Inc. 1-2
, Russell & Taylor / Operations & Supply Chain Management, 10th edition Test Bank
17. The European Union requires that strict quality and environmental standards be met
before companies can do business with member countries.
Ans: True, LO: 3, Bloom: K, Difficulty: Moderate, AACSB: None
18. A major challenge and opportunity for many firms is the globalization of the supply
chain.
Ans: True, LO: 3, Bloom: K, Difficulty: Easy, AACSB: None
19. Globalization has affected manufacturing but not service operations.
Ans: False, LO: 3, Bloom: K, Difficulty: Easy, AACSB: None
20. Two-thirds of today’s businesses operate globally.
Ans: True, LO: 3, Bloom: K, Difficulty: Moderate, AACSB: None
21. In 2010, the US surpassed China as the world’s largest manufacturer.
Ans: False, LO: 2, Bloom: K, Difficulty: Moderate, AACSB: None
22. China has reshaped the way firms compete globally.
Ans: True, LO: 3, Bloom: K, Difficulty: Easy, AACSB: None
23. Increases in productivity enable a nation to raise its standard of living.
Ans: True, LO: 4, Bloom: K, Difficulty: Easy, AACSB: None
24. What is the most common measure of competitiveness?
a. GDP
b. wage rates
c. productivity
d. manufacturing output
Ans: True, LO: 4, Bloom: K, Difficulty: Easy, AACSB: None
25. Multifactor productivity is best defined as
a. a single output and a single input
b. multiple outputs and a single input
Copyright ©2020 John Wiley & Sons, Inc. 1-3
