SCMT 364 Midterm Practice Questions
and correct Answers
True or False
Efficiency means doing the right thing to create the most value for the company. - correct answer-
✅FALSE
This is effectiveness.
*Efficiency means doing something at the lowest possible cost.
True or False
A process can be effective without being efficient. - correct answer-✅True
True or False
"Operations" refers to manufacturing and service processes used to transform resources employed by a
firm into products desired by customers. - correct answer-✅True
True or False
The supply chain process mentioned in the textbook are planning, sourcing, delivering, and returning. -
correct answer-✅False--> missing making
Which of the following is NOT a characteristic that distinguishes services from goods?
a) Service jobs are unskilled
b) A service is intangible
c) Services are perishable
d) Services are heterogeneous
e) None of the above - correct answer-✅a) Service Jobs are unskilled
The goods-service continuum consists of which set of the following categories? - correct answer-✅Pure
goods, core goods, core services, pure services.
What are the five stages of the SCM Processes? - correct answer-✅1) Planning
2) Sourcing
3) Making
4) Delivering
5) Returning
Define Planning - correct answer-✅Processes needed to operate in an existing supply chain
Define Sourcing - correct answer-✅Selection of suppliers that will deliver the goods and services to
create the firm's product
Define Making - correct answer-✅Producing the major product or service
Define Delivering - correct answer-✅Logistics processes such as selecting carriers, coordinating the
movement of goods and information, and collecting payments from customers.
Define Returning - correct answer-✅Receiving worn-out excess, and or defective products back from
customers
What defines business? - correct answer-✅-The organized effort of individuals to produce and sell, for a
profit, the goods and services that satisfy society's needs.
What are operations? - correct answer-✅Refers to the manufacturing and service processes that are
used to transform the resources employed by a firm into products (or services) desired by a customer.
What is supply chain? - correct answer-✅A supply chain refers to processes that move information and
material to and from the manufacturing and service processes of the firm.
What are the links between Operations and Marketing? - correct answer-✅1) Marketing Identifies the
market for new products (DEMAND) -->
2) Operations needs to design new products/ processes -->
3) Operations identifies opportunity to deliver service more quickly
, 4) Marketing needs to determine if customers will pay more for the quicker service
(marketing has to identify what the people want, where the DEMAND exists)
What are the links between operations and finance? - correct answer-✅1) Finance identifies
profitability issue in a particular product line -->
2) Operations needs to lower product manufacturing costs -->
3) Operations identifies need for new production facility
4) Finance needs to determine best way to finance the construction
(Operations is often efficient with cutting costs)
What was involved in the transformation from goods to services? - correct answer-✅-The US and most
Western countries have been evolving from agriculture to manufacturing to service economies
-In 1800, 90% of the US labor force was working on farms doing agriculture production
-Today, only 3% of the US labor force is involved in agriculture production
-Technology improved decrease in human labor
-In turn, manufacturing production peaked in the US in 1950
-The US became a services economy in the late 1960s and early 1970s
-Today, 70% of the US labor force works in services
What identifies manufacturing? - correct answer-✅-Tangible
-Generally can be INVENTORIED
-LOW CUSTOMER CONTACT
-LONGER RESPONSE TIME
-CAPITCAL INTENSIVE
examples: Apparel, Computers, Furniture, Pharmaceutical
What identifies services? - correct answer-✅-INTANGIBLE product
-Generally cannot be INVENTORIED
-HIGH CUSTOMER CONTACT
-SHORT RESPONSE TIME
-LABOR INTENSIVE
examples) Banks, Colleges, Dentists, and Advertising
-He had an example about a girl cashing in thousands of $$ coins.
Whats an example of a pure good? - correct answer-✅Chemicals
Whats an example of a core good? - correct answer-✅Cars
Whats an example of core services? - correct answer-✅Hotels
Whats an example of pure services? - correct answer-✅Teaching
What falls under tangible (goods)? - correct answer-✅-Tangible
-Less interaction with customers
-Often homogeneous
-Not perishable-can be inventoried
What falls under intangible (services)? - correct answer-✅-Intangible
-Interaction with customer is required
-Inherently heterogeneous
-Perishable/time dependent
-Defined and evaluated as a package of features
and correct Answers
True or False
Efficiency means doing the right thing to create the most value for the company. - correct answer-
✅FALSE
This is effectiveness.
*Efficiency means doing something at the lowest possible cost.
True or False
A process can be effective without being efficient. - correct answer-✅True
True or False
"Operations" refers to manufacturing and service processes used to transform resources employed by a
firm into products desired by customers. - correct answer-✅True
True or False
The supply chain process mentioned in the textbook are planning, sourcing, delivering, and returning. -
correct answer-✅False--> missing making
Which of the following is NOT a characteristic that distinguishes services from goods?
a) Service jobs are unskilled
b) A service is intangible
c) Services are perishable
d) Services are heterogeneous
e) None of the above - correct answer-✅a) Service Jobs are unskilled
The goods-service continuum consists of which set of the following categories? - correct answer-✅Pure
goods, core goods, core services, pure services.
What are the five stages of the SCM Processes? - correct answer-✅1) Planning
2) Sourcing
3) Making
4) Delivering
5) Returning
Define Planning - correct answer-✅Processes needed to operate in an existing supply chain
Define Sourcing - correct answer-✅Selection of suppliers that will deliver the goods and services to
create the firm's product
Define Making - correct answer-✅Producing the major product or service
Define Delivering - correct answer-✅Logistics processes such as selecting carriers, coordinating the
movement of goods and information, and collecting payments from customers.
Define Returning - correct answer-✅Receiving worn-out excess, and or defective products back from
customers
What defines business? - correct answer-✅-The organized effort of individuals to produce and sell, for a
profit, the goods and services that satisfy society's needs.
What are operations? - correct answer-✅Refers to the manufacturing and service processes that are
used to transform the resources employed by a firm into products (or services) desired by a customer.
What is supply chain? - correct answer-✅A supply chain refers to processes that move information and
material to and from the manufacturing and service processes of the firm.
What are the links between Operations and Marketing? - correct answer-✅1) Marketing Identifies the
market for new products (DEMAND) -->
2) Operations needs to design new products/ processes -->
3) Operations identifies opportunity to deliver service more quickly
, 4) Marketing needs to determine if customers will pay more for the quicker service
(marketing has to identify what the people want, where the DEMAND exists)
What are the links between operations and finance? - correct answer-✅1) Finance identifies
profitability issue in a particular product line -->
2) Operations needs to lower product manufacturing costs -->
3) Operations identifies need for new production facility
4) Finance needs to determine best way to finance the construction
(Operations is often efficient with cutting costs)
What was involved in the transformation from goods to services? - correct answer-✅-The US and most
Western countries have been evolving from agriculture to manufacturing to service economies
-In 1800, 90% of the US labor force was working on farms doing agriculture production
-Today, only 3% of the US labor force is involved in agriculture production
-Technology improved decrease in human labor
-In turn, manufacturing production peaked in the US in 1950
-The US became a services economy in the late 1960s and early 1970s
-Today, 70% of the US labor force works in services
What identifies manufacturing? - correct answer-✅-Tangible
-Generally can be INVENTORIED
-LOW CUSTOMER CONTACT
-LONGER RESPONSE TIME
-CAPITCAL INTENSIVE
examples: Apparel, Computers, Furniture, Pharmaceutical
What identifies services? - correct answer-✅-INTANGIBLE product
-Generally cannot be INVENTORIED
-HIGH CUSTOMER CONTACT
-SHORT RESPONSE TIME
-LABOR INTENSIVE
examples) Banks, Colleges, Dentists, and Advertising
-He had an example about a girl cashing in thousands of $$ coins.
Whats an example of a pure good? - correct answer-✅Chemicals
Whats an example of a core good? - correct answer-✅Cars
Whats an example of core services? - correct answer-✅Hotels
Whats an example of pure services? - correct answer-✅Teaching
What falls under tangible (goods)? - correct answer-✅-Tangible
-Less interaction with customers
-Often homogeneous
-Not perishable-can be inventoried
What falls under intangible (services)? - correct answer-✅-Intangible
-Interaction with customer is required
-Inherently heterogeneous
-Perishable/time dependent
-Defined and evaluated as a package of features
