Lead the Pack with the [Operations Management ,8th ed, Heizer] 2024 Test Bank

File: ch01, Chapter 1: Operations Management



True/False


1. Operations management is only concerned with the day-to-day operations of a firm’s
productive systems.
Ans: False, LO: 1, Bloom: K, Difficulty: Easy, AACSB: None



2. A warehouse operation is an example of a physical transformation process.
Ans: False, LO: 1, Bloom: K, Difficulty: Easy, AACSB: None



3. A supply chain is a series of activities from supplier to customer that adds value to a
product or service.
Ans: True, LO: 1, Bloom: K, Difficulty: Moderate, AACSB: None

4. Human resources management provides product demand estimates that are used in
production decisions.
Ans: False, LO: 1, Bloom: K, Difficulty: Moderate, AACSB: None



5. A retail operation is an example of an exchange transformation process.
Ans: True, LO: 1, Bloom: K, Difficulty: Easy, AACSB: None



6. The four primary functional areas of a firm are marketing, finance, operations, and
legal.
Ans: False, LO: 1, Bloom: K, Difficulty: Easy, AACSB: None

7. Operations management designs, operates, and improves marketing systems.
Ans: False, LO: 1, Bloom: K, Difficulty: Easy, AACSB: None



8. An operations manager benefits from an integrated view of business organizations.
Ans: True, LO: 1, Bloom: K, Difficulty: Easy, AACSB: None



9. The systematic analysis of work methods is known as operations research.
Ans: False, LO: 2, Bloom: K, Difficulty: Easy, AACSB: None




10. Lean production refers to high-volume production of a standardized product.

,Ans: False, LO: 2, Bloom: K, Difficulty: Easy, AACSB: None




11. The adaptation of mass production to emphasize quality and flexibility, rather than
efficiency, is known as lean production.
Ans: True, LO: 2, Bloom: K, Difficulty: Moderate, AACSB: None



12. Because of a global recession in the late 2000s ,companies started focusing on the
most critical factors to sustain their business during the downturn.
Ans: True, LO: 2, Bloom: K, Difficulty: Moderate, AACSB: None



13. The most current era in the evolution of operations and supply chain management is
sustainability.
Ans: True, LO: 2, Bloom: K, Difficulty: Moderate, AACSB: None



14. The set of activities that creates and delivers products to the customer is known as the
supply chain.
Ans: True, LO: 2, Bloom: K, Difficulty: Moderate, AACSB: None



15. Globalization requires that firms compete only on cost and not quality, speed or
flexibility.
Ans: False, LO: 3, Bloom: K, Difficulty: Moderate, AACSB: None



16. Globalization of the supply chain has many pros and few, if any, cons.
Ans: False, LO: 3, Bloom: K, Difficulty: Moderate, AACSB: None




17. The European Union requires that strict quality and environmental standards be met
before companies can do business with member countries.
Ans: True, LO: 3, Bloom: K, Difficulty: Moderate, AACSB: None




18. A major challenge and opportunity for many firms is the globalization of the supply
chain.
Ans: True, LO: 3, Bloom: K, Difficulty: Easy, AACSB: None



19. Globalization has affected manufacturing but not service operations.
Ans: False, LO: 3, Bloom: K, Difficulty: Easy, AACSB: None

,20. Two-thirds of today’s businesses operate globally.
Ans: True, LO: 3, Bloom: K, Difficulty: Moderate, AACSB: None




21. In 2010, the US surpassed China as the world’s largest manufacturer.
Ans: False, LO: 2, Bloom: K, Difficulty: Moderate, AACSB: None



22. China has reshaped the way firms compete globally.
Ans: True, LO: 3, Bloom: K, Difficulty: Easy, AACSB: None




23. Increases in productivity enable a nation to raise its standard of living.
Ans: True, LO: 4, Bloom: K, Difficulty: Easy, AACSB: None



24. Productivity is the most common measure of competitiveness.
Ans: True, LO: 4, Bloom: K, Difficulty: Easy, AACSB: None




25. Single factor productivity measures compare output to an individual input.
Ans: True, LO: 4, Bloom: K, Difficulty: Moderate, AACSB: None




26. Deployment is a step in strategy formulation that evaluates the alignment between
core competencies and order winners.
Ans: False, LO: 5, Bloom: K, Difficulty: Easy, AACSB: None




27. Positioning is a step in strategy formulation that defines how firms will compete in
the marketplace.
Ans: True, LO: 5, Bloom: K, Difficulty: Moderate, AACSB: None




28. Order qualifiers are the characteristics of a product that have to be satisfied just to be
considered for purchase by a customer.
Ans: True, LO: 5, Bloom: K, Difficulty: Easy, AACSB: None

, 29. An order qualifier is the characteristic of a product that wins orders in the
marketplace.
Ans: False, LO: 5, Bloom: K, Difficulty: Easy, AACSB: None



30. Core competencies tend to be processes and not products or technologies.
Ans: True, LO: 5, Bloom: K, Difficulty: Easy, AACSB: None




31. The first of five basic steps in strategy formulation is determining a firm’s order
winners and order qualifiers.
Ans: False, LO: 5, Bloom: K, Difficulty: Easy, AACSB: None



32. Order winners and order qualifiers change over time in response to the dynamics of
changing market conditions.
Ans: True, LO: 5, Bloom: K, Difficulty: Moderate, AACSB: None




33. Companies that compete on winnovation establish a corporate culture that
discourages risk taking.
Ans: False, LO: 5, Bloom: K, Difficulty: Moderate, AACSB: None

34. Firms compete in the marketplace based on cost, speed, quality and flexibility.
Ans: True, LO: 5, Bloom: K, Difficulty: Easy, AACSB: None




Multiple Choice


35. Operations management is concerned with the _________ of a firm’s productive
systems.
a. design
b. operation
c. improvement
d. All of these answer choices are correct.
Ans: D, LO: 1, Bloom: K, Difficulty: Easy, AACSB: None




36. The transformation process associated with health care is best described as
a. locational
b. exchange
c. physiological