False Only, 100% Original Verified, A+ Grade)(Test Bank Answers At The End Of Each Chapter)
Name: Class: Date:
Ch 01: Operations Management and Value Chains
Indicate whether the statement is true or false.
1. Preproduction services of a value chain include warranty and claim services.
a. True
b. False
2. If the value ratio for a good or service is high, the good or service is perceived favorably by customers.
a. True
b. False
3. A pair of running shoes is an example of a durable good.
a. True
b. False
4. The intangible nature of a service makes it difficult to keep a competitor from copying a service encounter design.
a. True
b. False
5. Vehicles, furniture, and dishwashers are examples of nondurable goods.
a. True
b. False
6. The higher the customer participation in service processes, the more certainty a firm has with respect to service time
and capacity.
a. True
b. False
7. A process invariably resides within a department or traditional management function.
a. True
b. False
8. Proportional increases or decreases in the perceived benefits and the price of a product result in no net change in the
value of the product.
a. True
b. False
9. Big data analytics is intended to support service businesses such as virtual banking.
a. True
b. False
Indicate the answer choice that best completes the statement or answers the question.
10. A warm welcome by an employee at a hotel check-in counter is an example of
a. social sustainability.
b. predictive analytics.
c. a service blueprint.
Powered by Cognero Page 1
,Name: Class: Date:
Ch 01: Operations Management and Value Chains
d. a moment of truth.
11. Which of the following is a sequence of activities that is intended to create a certain result, such as a physical good, a
service, or information?
a. Process
b. Matrix
c. Variant
d. Task
12. In the context of customer benefit packages, which services are those that are not essential to the primary service but
enhance it?
a. Core
b. Tertiary
c. Peripheral
d. Central
13. Which of the following statements is true of goods-producing processes?
a. They use employees as a substitute for physical inventory.
b. They require extensive customer participation in service creation and delivery.
c. They require more flexibility and adaptation to special circumstances than service processes.
d. They are mechanistic and controllable because of the lack of customer participation.
14. Building a high-performing organization with a capable leadership and workforce is an example of what type of
sustainability?
a. Economic
b. Technological
c. Political
d. Environmental
15. Which of the following statements is true of service employees?
a. They require good human interaction skills and strong cross-selling skills.
b. They perform mechanized and rigid processes.
c. They have little or no interaction with customers.
d. They rely more on hard technology than soft technology to perform work.
16. Which of the following is a valid difference between goods and services?
a. Goods can be stored as physical inventory, whereas services cannot be stored as physical inventory.
b. Goods-producing firms rely solely on soft technology, whereas service-providing firms rely solely on hard
technology.
c. The demand for goods cannot be predicted, whereas the demand for services can be easily predicted.
d. Customers directly participate in goods-producing activities, whereas customers do not participate in service-
providing activities.
17. What type of good is one that does not quickly wear out but typically lasts at least three years?
a. Durable
Powered by Cognero Page 2
,Name: Class: Date:
Ch 01: Operations Management and Value Chains
b. Soft
c. Consumer packaged
d. Fast-moving consumer
18. Which of the following refers to raw materials, work-in-process, or finished goods that are maintained to support
production or satisfy customer demand?
a. Throughput
b. A variant
c. A subsidy
d. Inventory
19. Which of the following is an example of a nondurable good?
a. An airplane
b. Software
c. Furniture
d. A dishwasher
20. Predictive analytics is used by organizations to
a. analyze business policies through visual representations.
b. identify the best decisions for a particular situation.
c. understand past and current performance.
d. envisage the future by detecting patterns and relationships in data.
21. What type of sustainability is an organization's commitment to maintain healthy communities and improve the quality
of life?
a. Environmental
b. Economic
c. Social
d. Political
22. What type of good is one that is no longer useful once it's used or lasts for less than three years?
a. Heavy-duty
b. Nondurable
c. Hard
d. Slow-moving consumer
23. Which of the following statements is true of goods?
a. Goods-producing industries rely on machines and hard technology to perform work.
b. Goods-producing employees require stronger behavioral skills than physical skills.
c. The demand for goods is more difficult to predict than the demand for services.
d. Durable goods are those that are no longer useful once they are used.
24. Which of the following statements is true of operations management (OM)?
a. The application of the concepts and methods of OM is limited to the technology industry.
b. OM is the only function by which managers can directly affect the value provided to all stakeholders.
Powered by Cognero Page 3
, Name: Class: Date:
Ch 01: Operations Management and Value Chains
c. The activities involved in OM focus on creating value solely for external customers.
d. OM and its principles are exclusively applicable to firms that produce tangible products.
25. Ensuring consumer safety in using goods and services is an example of what type of sustainability?
a. Social
b. Economic
c. Political
d. Environmental
26. Which of the following terms is a key activity performed by operations managers that involves deciding the best way
to assign people to work tasks and responsibilities?
a. Forecasting
b. Process design
c. Job design
d. Reengineering
27. Which of the following statements is true of service facilities?
a. They need to be in close proximity to customers.
b. They store their services as physical inventory.
c. They require employees with stronger technical skills than behavioral skills.
d. They rely more on hard technology than soft technology to perform work.
28. Purchasing is a key activity performed by operations managers that involves
a. determining when resources such as employees and equipment should be assigned to work.
b. using technology to improve productivity and respond faster to customers.
c. coordinating the acquisition of materials, supplies, and services.
d. ensuring that goods, services, and processes will meet customer expectations and requirements.
29. Which of the following statements is true of a value chain?
a. The pre- and postservice framework of a value chain emphasizes that service is a critical component of
traditional manufacturing processes.
b. The input-output framework of a value chain suggests that the value chain begins with inputs from customers.
c. A value chain solely focuses on the operations function of an organization.
d. A value chain is narrower in scope than a supply chain.
30. Service encounter design is a key activity performed by operations managers that involves
a. managing the flow of materials, information, people, and money from suppliers to customers.
b. ensuring that the right amount of resources is available when needed.
c. predicting the future demand for raw materials, finished goods, and services.
d. determining how to recover from service upsets.
31. Which of the following is a network of facilities and processes that describes the flow of materials, finished goods,
services, information, and financial transactions from suppliers, through the facilities and processes that create goods and
services, and those that deliver them to the customer?
a. Product-process matrix
Powered by Cognero Page 4