Chapter 1 Introduction to Managing Operations Across the Supply Chain
1) Which of the following is NOT one of the processes included in operations
management?
A) Design
B) Finance
C) Produce
D) Deliver
Answer: B
Explanation: Design, supply, produce, and deliver are operations management processes.
Finance is not.
Difficulty: 1 Easy
Topic: A Broad Definition of Supply Chain Operations Management
Learning Objective: 01-01 Explain what operations management is and why it is
important.
Bloom's: Remember
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation; Screen Reader Compatible
2) A supply chain is a global network of organizations and activities involved in:
A) Producing, buying, servicing, and disposing of goods and services.
B) Designing, transforming, consuming, and disposing of goods and services.
C) Financing, producing, and marketing of goods and services.
D) Designing, financing, selling, and disposing of goods and services.
Answer: B
Explanation: The organizations and activities in a supply chain are involved in
designing, transforming, consuming, and disposing of goods and services.
Difficulty: 1 Easy
Topic: A Broad Definition of Supply Chain Operations Management
Learning Objective: 01-01 Explain what operations management is and why it is
important.
Bloom's: Remember
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation; Screen Reader Compatible
,3) Operations managers answer questions of what, how, when, where, and who by
defining both the ________ and ________ aspects of the operations management system.
A) Financing and capacity
B) Marketing and delivery
C) Structural and infrastructural
D) Production and accounting
Answer: C
Explanation: Structural and infrastructural aspects of operations management must be
defined to answer questions of what, how, when, where, and who.
Difficulty: 2 Medium
Topic: A Broad Definition of Supply Chain Operations Management
Learning Objective: 01-02 Describe the major decisions that operations managers
typically make.
Bloom's: Remember
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation; Screen Reader Compatible
4) Structural operations management decisions include:
A) Workforce, capacity, and facilities.
B) Workforce, production planning, and materials controls.
C) Capacity, facilities, and technology.
D) Materials controls, supply chain, and value definition.
Answer: C
Explanation: Structural decisions include capacity, facilities, technology, and the supply
chain network. The other decisions are infrastructural decisions.
Difficulty: 2 Medium
Topic: A Broad Definition of Supply Chain Operations Management
Learning Objective: 01-02 Describe the major decisions that operations managers
typically make.
Bloom's: Remember
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation; Screen Reader Compatible
,5) Joe Jones was asked to undertake a project to determine the resources and capacity his
firm would need in the next three to 10 years. These types of decisions are considered to
be:
A) Infrastructural aspects of operations management.
B) Positional aspects of operations management.
C) Assessment aspects of operations management.
D) Structural aspects of operations management.
Answer: D
Explanation: Resources and capacity are among the structural decisions.
Difficulty: 2 Medium
Topic: A Broad Definition of Supply Chain Operations Management
Learning Objective: 01-02 Describe the major decisions that operations managers
typically make.
Bloom's: Apply
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation; Screen Reader Compatible
6) Physical goods can be differentiated from services in the operations management
process by:
A) Longer lead times and they can be inventoried.
B) More capital-intensive and shorter lead times.
C) More labor-intensive and longer lead times.
D) More expensive and easier to control.
Answer: A
Explanation: Physical goods typically have longer lead times than services and can be
inventoried (services typically cannot). See Table 1-1.
Difficulty: 1 Easy
Topic: A Broad Definition of Supply Chain Operations Management
Learning Objective: 01-02 Describe the major decisions that operations managers
typically make.
Bloom's: Remember
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation; Screen Reader Compatible
, 7) Which of the following functions would NOT have to think about "processes"?
A) Logistics management
B) Production management
C) Supply management
D) Accounting
E) All of these have to think about "processes."
Answer: E
Explanation: All functions must think about processes.
Difficulty: 1 Easy
Topic: A Broad Definition of Supply Chain Operations Management
Learning Objective: 01-03 Explain the role of processes and "process thinking" in
operations management.
Bloom's: Remember
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation; Screen Reader Compatible
8) Which of the following statements about operations management processes is NOT
true?
A) Inputs to operations management processes can be materials, people, and/or
information.
B) Outputs of operations management processes are always tangible goods.
C) Operations management processes involve transformation of inputs into valuable
outputs.
D) Design of operations processes should reflect what customers want.
Answer: B
Explanation: Outputs of operations management processes can be services.
Difficulty: 2 Medium
Topic: A Broad Definition of Supply Chain Operations Management
Learning Objective: 01-03 Explain the role of processes and "process thinking" in
operations management.
Bloom's: Remember
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation; Screen Reader Compatible