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ISDS 3115 Exam 1 – Operations & Supply Chain
Management / Process Analysis, Forecasting,
Capacity, and Inventory Management / Louisiana State
University (LSU)
ISDS 3115 Exam 1
Which of the following represent reasons for globalizing operations? a. to gain improvements in
the supply chain b. to improve operations c. to expand a product's life cycle d. to attract and
retain global talent e. All of the above are valid. - CORRECT ANSWER ✔✔ e. All of the above
are valid.
Which of the following does not represent reasons for globalizing operations? a. reduce costs b.
improve supply chain c. reduce responsiveness d. attract and retain global talent e. All of the
above are valid reasons for globalizing operations. - CORRECT ANSWER ✔✔ c. reduce
responsiveness
NAFTA seeks to a. substitute cheap labor in Mexico for expensive labor in the United States b.
curb illegal immigration from Mexico to the United States c. phase out all trade and tariff
barriers between the United States and Mexico d. phase out all trade and tariff barriers between
the United States, Canada, and Mexico e. All of the above are NAFTA goals. - CORRECT
ANSWER ✔✔ d. phase out all trade and tariff barriers between the United States, Canada, and
Mexico
,With reference to cultural and ethical issues, the World Trade Organization has a. succeeded in
providing equal protection of intellectual property among nations b. made progress in providing
equal protection of intellectual property among nations c. phased out all trade and tariff barriers
between the United States and Mexico d. eliminated slave labor and child labor e. played little
role in addressing cultural and ethical issues among nations - CORRECT ANSWER ✔✔ b. made
progress in providing equal protection of intellectual property among nations
Which of the following is true about business strategies? a. An organization should stick with its
strategy for the life of the business. b. All firms within an industry will adopt the same strategy.
c. Well defined missions make strategy development much easier. d. Strategies are formulated
independently of SWOT analysis. e. Organizational strategies depend on operations strategies -
CORRECT ANSWER ✔✔ c. Well defined missions make strategy development much easier.
Which of the following activities takes place once the mission has been developed? a. The firm
develops alternative or back-up missions in case the original mission fails. b. The functional
areas develop their functional area strategies. c. The functional areas develop their supporting
missions. d. The ten OM decision areas are prioritized. e. Operational tactics are developed -
CORRECT ANSWER ✔✔ c. The functional areas develop their supporting missions.
Which of the following statements about organizational missions is false? a. They reflect a
company's purpose. b. They indicate what a company intends to contribute to society. c. They are
formulated after strategies are known. d. They define a company's reason for existence. e. They
provide guidance for functional area missions. - CORRECT ANSWER ✔✔ c. They are
formulated after strategies are known.
Some of the operations-related activities of Hard Rock Cafe include desiging meals and
analyzing them for ingredient cost and labor requirements. T/F - CORRECT ANSWER ✔✔ True
Operations management is the set of activities that create value in the form of goods and services
by transforming inputs into outputs. T/F - CORRECT ANSWER ✔✔ True
An example of a "hidden" production function is money transfers at banks. T/F - CORRECT
,ANSWER ✔✔ True
The production process at Hard Rock Cafe is limited to meal preparation and serving customers.
T/F - CORRECT ANSWER ✔✔ False
All organizations, including service firms such as banks and hospitals, have a production
function. T/F - CORRECT ANSWER ✔✔ True
One reason to study operations management is to learn how people organize themselves for
productive enterprise. T/F - CORRECT ANSWER ✔✔ True
The operations manager performs the management activities of planning, organizing, staffing,
leading, and controlling of the OM function. T/F - CORRECT ANSWER ✔✔ True
"How much inventory of this item should we have?" is within the critical decision area of
managing quality. T/F - CORRECT ANSWER ✔✔ False
Shewhart's contributions to operations management came during the Scientific Management Era.
T/F - CORRECT ANSWER ✔✔ False
Students wanting to pursue a career in operations management will find multidisciplinary
knowledge beneficial. T/F - CORRECT ANSWER ✔✔ True
Customer interaction is often high for manufacturing processes, but low for services. T/F -
CORRECT ANSWER ✔✔ False
Productivity is more difficult to improve in the service sector. T/F - CORRECT ANSWER ✔✔
True
, Manufacturing now constitutes the largest economic sector in postindustrial societies. T/F -
CORRECT ANSWER ✔✔ False
In order to have a career in operations management, one must have a degree in statistics or
quantitative methods. T/F - CORRECT ANSWER ✔✔ False
Henry Ford is known as the Father of Scientific Management. T/F - CORRECT ANSWER ✔✔
False
In the past half-century, the number of people employed in manufacturing has more or less held
steady, but each manufacturing employee is manufacturing about 20 times as much. T/F -
CORRECT ANSWER ✔✔ True
A knowledge society is one that has migrated from work based on knowledge to one based on
manual work. T/F - CORRECT ANSWER ✔✔ False
Productivity is the total value of all inputs to the transformation process divided by the total
value of the outputs produced. T/F - CORRECT ANSWER ✔✔ False
An operations task performed at Hard Rock Café is a. borrowing funds to build a new restaurant
a. advertising changes in the restaurant menu c. calculating restaurant profit and loss d.
preparing employee schedules e. all of the above - CORRECT ANSWER ✔✔ d. preparing
employee schedules
Operations management is applicable a. mostly to the service sector b. to services exclusively c.
mostly to the manufacturing sector d. to all firms, whether manufacturing and service e. to the
manufacturing sector exclusively - CORRECT ANSWER ✔✔ d. to all firms, whether
manufacturing and service