MQM 227 Final Exam Questions and Answers 100% Correct
Why is operations management a more encompassing term than production management?
A. Operations management is concerned with multiple products and services
B. Operations management refers to service as well as manufacturing organizations
C. Operations management is broader including the financing and marketing functions
D. Operations management makes use of the tools of quantitative analysis and computer
systems —Answer: B. Operations management refers to service as well as manufacturing
organizations
The four decision areas in operations management are:
A. Planning, technology, inventory, and control
B. Process, quality, capacity, and inventory
C. Process, quality, technology, and capacity
D. None of these —Answer: B. Process, quality, capacity, and inventory
The contemporary operations themes signify that:
A. More emphasis should be placed on manufacturing than on service industries
B. Every operation should be externally directed to meet the customers' requirements
C. Operations decisions should precede decisions in other functions in an organization
D. To be competitive, strategies for operations should exclude broader supply chain issues —
Answer: B. Every operation should be externally directed to meet the customers' requirements
The essence of operations management can be described by:
A. Process, capacity, and people
B. Decisions, function, and process
C. Planning, control, and organization
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,D. Integrated planning and control —Answer: B. Decisions, function, and process
The three primary functions that exist in most business organizations are:
A. Operations, accounting, and finance
B. Operations, production, and finance
C. Production, marketing, and human resources
D. Operations, finance, and marketing —Answer: D. Operations, finance, and marketing
T / F - The process view provides a basis for viewing an entire business as a system of
interconnected processes. —Answer: True
T / F - As price increases and benefits remain constant, the value of a product increases. —
Answer: False
T / F - Best practices in operations are best for all organizations. —Answer: False
At Disney, "making people happy" is an example of:
A. Operations Mission
B. Corporate Strategy
C. Business Strategy
D. Operations Strategy —Answer: B. Corporate Strategy
The four elements that form the heart of operations strategy include:
A. Mission, distinctive competence, objectives, and internal analysis
B. Mission, distinctive competence, internal analysis, and external analysis
C. Mission, objectives, internal analysis, and external analysis
D. Mission, distinctive competence, objectives, and strategic decisions —Answer: D. Mission,
distinctive competence, objectives, and strategic decisions
The operation objectives of quality, cost, delivery, and flexibility are:
A. Mutually exclusive
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, B. Independent of each other
C. Connected
D. Unique —Answer: C. Connected
Make or buy is an example of what type of strategic decision?
A. Inventory
B. Process
C. Quality
D. Capacity —Answer: B. Process
A decision is made that suppliers will be chosen based on quality rather than cost. This is an
example of which of the following?
A. Objective
B. Mission
C. Distinctive Competence
D. Strategic decision —Answer: D. Strategic decision
T / F - A corporate strategy drives the business strategy, which in turn drives the operations
strategy in an organization. —Answer: True
T / F - The business strategy can be derived from a firm's distinctive competence that is difficult
for competitors to copy or imitate. —Answer: True
T / F - Imitative products have low profit margins and fairly predictable demand. —Answer:
True
The market-pull view of new product innovation is to:
A. "Pull" the products into the market as fast as possible
B. Develop products that the company can sell, based on customer needs
C. Market whatever the company makes best
D. Make new products appealing through innovative packaging —Answer: B. Develop
products that the company can sell, based on customer needs
© 2025 All rights reserved
Why is operations management a more encompassing term than production management?
A. Operations management is concerned with multiple products and services
B. Operations management refers to service as well as manufacturing organizations
C. Operations management is broader including the financing and marketing functions
D. Operations management makes use of the tools of quantitative analysis and computer
systems —Answer: B. Operations management refers to service as well as manufacturing
organizations
The four decision areas in operations management are:
A. Planning, technology, inventory, and control
B. Process, quality, capacity, and inventory
C. Process, quality, technology, and capacity
D. None of these —Answer: B. Process, quality, capacity, and inventory
The contemporary operations themes signify that:
A. More emphasis should be placed on manufacturing than on service industries
B. Every operation should be externally directed to meet the customers' requirements
C. Operations decisions should precede decisions in other functions in an organization
D. To be competitive, strategies for operations should exclude broader supply chain issues —
Answer: B. Every operation should be externally directed to meet the customers' requirements
The essence of operations management can be described by:
A. Process, capacity, and people
B. Decisions, function, and process
C. Planning, control, and organization
© 2025 All rights reserved
,D. Integrated planning and control —Answer: B. Decisions, function, and process
The three primary functions that exist in most business organizations are:
A. Operations, accounting, and finance
B. Operations, production, and finance
C. Production, marketing, and human resources
D. Operations, finance, and marketing —Answer: D. Operations, finance, and marketing
T / F - The process view provides a basis for viewing an entire business as a system of
interconnected processes. —Answer: True
T / F - As price increases and benefits remain constant, the value of a product increases. —
Answer: False
T / F - Best practices in operations are best for all organizations. —Answer: False
At Disney, "making people happy" is an example of:
A. Operations Mission
B. Corporate Strategy
C. Business Strategy
D. Operations Strategy —Answer: B. Corporate Strategy
The four elements that form the heart of operations strategy include:
A. Mission, distinctive competence, objectives, and internal analysis
B. Mission, distinctive competence, internal analysis, and external analysis
C. Mission, objectives, internal analysis, and external analysis
D. Mission, distinctive competence, objectives, and strategic decisions —Answer: D. Mission,
distinctive competence, objectives, and strategic decisions
The operation objectives of quality, cost, delivery, and flexibility are:
A. Mutually exclusive
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, B. Independent of each other
C. Connected
D. Unique —Answer: C. Connected
Make or buy is an example of what type of strategic decision?
A. Inventory
B. Process
C. Quality
D. Capacity —Answer: B. Process
A decision is made that suppliers will be chosen based on quality rather than cost. This is an
example of which of the following?
A. Objective
B. Mission
C. Distinctive Competence
D. Strategic decision —Answer: D. Strategic decision
T / F - A corporate strategy drives the business strategy, which in turn drives the operations
strategy in an organization. —Answer: True
T / F - The business strategy can be derived from a firm's distinctive competence that is difficult
for competitors to copy or imitate. —Answer: True
T / F - Imitative products have low profit margins and fairly predictable demand. —Answer:
True
The market-pull view of new product innovation is to:
A. "Pull" the products into the market as fast as possible
B. Develop products that the company can sell, based on customer needs
C. Market whatever the company makes best
D. Make new products appealing through innovative packaging —Answer: B. Develop
products that the company can sell, based on customer needs
© 2025 All rights reserved
