Test Bank for
Operations and Supply Chain Management 2024 Release By William J Stevenson
and Thomas Kull
Chapter 1-19 Answers are at the End of Each Chapter
Chapter 1
Student name:
TRUE/FALSE - Write 'T' if the statement is true and 'F' if the statement is false.
1) As a service business, the operations management activities of an airline company have
nothing in common with the operations management activities within a bicycle
manufacturing company.
⊚ true
⊚ false
2) Operations managers are responsible for managing activities and resources that produce
goods and/or provide services.
⊚ true
⊚ false
3) Effectiveness refers to achieving intended goals whereas efficiency refers to minimizing cost
and time.
⊚ true
⊚ false
4) Operations, marketing, and finance function independently of each other in most
organizations.
⊚ true
⊚ false
5) The operations function exists only in firms that are goods-oriented.
⊚ true
⊚ false
6) Operations management pertains almost exclusively to the management of manufacturing
operations.
⊚ true
⊚ false
7) Value-added refers to the cost of the inputs required to produce goods and services.
⊚ true
⊚ false
8) As long as a product is ready in advance of when customers demand it, the timing of when a
, product is manufactured does not influence the value-added.
⊚ true
⊚ false
9) Storing an item earlier than the scheduled delivery date is an example of a value adding
activity.
⊚ true
⊚ false
10) Management information systems (MIS) are concerned with providing management with the
information it needs to effectively manage.
⊚ true
⊚ false
11) Operations management involves both system design and planning/control decisions.
⊚ true
⊚ false
12) System design decisions have very little impact on planning/control decisions.
⊚ true
⊚ false
13) An example of an operations control decision is the choice of location.
⊚ true
⊚ false
14) Scheduling jobs is a system design decision and not a planning decision.
⊚ true
⊚ false
15) Design decisions are usually strategic and long term, while planning decisions are tactical
and medium term.
⊚ true
⊚ false
16) Managing inventory levels is considered a planning/control operations decision area.
⊚ true
⊚ false
17) A basic difference between manufacturing and service organizations is that services are
action-oriented and manufacturing is goods-oriented.
⊚ true
⊚ false
,18) Service involves a much higher degree of customer contact than the production of goods.
⊚ true
⊚ false
19) Service often requires a higher labour content, whereas the production of goods is more
capital intensive.
⊚ true
⊚ false
20) Measurement of productivity in service is more straightforward than in goods production due
to the high degree of uniformity of inputs.
⊚ true
⊚ false
21) Models are simplified representations of something and thus ignore important aspects of a
situation.
⊚ true
⊚ false
22) Quantitative techniques are often quick and practical techniques for many decisions.
⊚ true
⊚ false
23) A systems approach emphasizes interrelationships among subsystems, but its main theme is
that the whole is greater than the sum of its individual parts.
⊚ true
⊚ false
24) Queuing techniques are useful for analyzing situations in which waiting lines form.
⊚ true
⊚ false
25) It is essential to use the systems approach when something is being designed, redesigned,
implemented, improved, or otherwise changed.
⊚ true
⊚ false
, 26) A systems approach is to concentrate on efficiency within a subsystem and thereby achieve
overall efficiency.
⊚ true
⊚ false
27) Many operations management decisions can be described as trade-offs.
⊚ true
⊚ false
28) The Pareto phenomenon is one of the most important and pervasive concepts that can be
applied at all levels of management.
⊚ true
⊚ false
29) Operations managers, who usually use quantitative approaches, have no responsibility to
make ethical decisions.
⊚ true
⊚ false
30) Prior to the Industrial Revolution, goods were produced primarily by craftsmen or their
apprentices using custom made parts.
⊚ true
⊚ false
31) Frederick Taylor spearheaded the scientific management movement in America.
⊚ true
⊚ false
32) The Human Relations Movement, which emphasized the importance of the human element in
job design, was replaced by the more technical aspects of Scientific Management.
⊚ true
⊚ false
33) The moving assembly line introduced by Henry Ford is an example of the development of
mass production based on large volumes of standardized goods produced using low or semi-
skilled workers and highly specialized equipment.
⊚ true
⊚ false
Operations and Supply Chain Management 2024 Release By William J Stevenson
and Thomas Kull
Chapter 1-19 Answers are at the End of Each Chapter
Chapter 1
Student name:
TRUE/FALSE - Write 'T' if the statement is true and 'F' if the statement is false.
1) As a service business, the operations management activities of an airline company have
nothing in common with the operations management activities within a bicycle
manufacturing company.
⊚ true
⊚ false
2) Operations managers are responsible for managing activities and resources that produce
goods and/or provide services.
⊚ true
⊚ false
3) Effectiveness refers to achieving intended goals whereas efficiency refers to minimizing cost
and time.
⊚ true
⊚ false
4) Operations, marketing, and finance function independently of each other in most
organizations.
⊚ true
⊚ false
5) The operations function exists only in firms that are goods-oriented.
⊚ true
⊚ false
6) Operations management pertains almost exclusively to the management of manufacturing
operations.
⊚ true
⊚ false
7) Value-added refers to the cost of the inputs required to produce goods and services.
⊚ true
⊚ false
8) As long as a product is ready in advance of when customers demand it, the timing of when a
, product is manufactured does not influence the value-added.
⊚ true
⊚ false
9) Storing an item earlier than the scheduled delivery date is an example of a value adding
activity.
⊚ true
⊚ false
10) Management information systems (MIS) are concerned with providing management with the
information it needs to effectively manage.
⊚ true
⊚ false
11) Operations management involves both system design and planning/control decisions.
⊚ true
⊚ false
12) System design decisions have very little impact on planning/control decisions.
⊚ true
⊚ false
13) An example of an operations control decision is the choice of location.
⊚ true
⊚ false
14) Scheduling jobs is a system design decision and not a planning decision.
⊚ true
⊚ false
15) Design decisions are usually strategic and long term, while planning decisions are tactical
and medium term.
⊚ true
⊚ false
16) Managing inventory levels is considered a planning/control operations decision area.
⊚ true
⊚ false
17) A basic difference between manufacturing and service organizations is that services are
action-oriented and manufacturing is goods-oriented.
⊚ true
⊚ false
,18) Service involves a much higher degree of customer contact than the production of goods.
⊚ true
⊚ false
19) Service often requires a higher labour content, whereas the production of goods is more
capital intensive.
⊚ true
⊚ false
20) Measurement of productivity in service is more straightforward than in goods production due
to the high degree of uniformity of inputs.
⊚ true
⊚ false
21) Models are simplified representations of something and thus ignore important aspects of a
situation.
⊚ true
⊚ false
22) Quantitative techniques are often quick and practical techniques for many decisions.
⊚ true
⊚ false
23) A systems approach emphasizes interrelationships among subsystems, but its main theme is
that the whole is greater than the sum of its individual parts.
⊚ true
⊚ false
24) Queuing techniques are useful for analyzing situations in which waiting lines form.
⊚ true
⊚ false
25) It is essential to use the systems approach when something is being designed, redesigned,
implemented, improved, or otherwise changed.
⊚ true
⊚ false
, 26) A systems approach is to concentrate on efficiency within a subsystem and thereby achieve
overall efficiency.
⊚ true
⊚ false
27) Many operations management decisions can be described as trade-offs.
⊚ true
⊚ false
28) The Pareto phenomenon is one of the most important and pervasive concepts that can be
applied at all levels of management.
⊚ true
⊚ false
29) Operations managers, who usually use quantitative approaches, have no responsibility to
make ethical decisions.
⊚ true
⊚ false
30) Prior to the Industrial Revolution, goods were produced primarily by craftsmen or their
apprentices using custom made parts.
⊚ true
⊚ false
31) Frederick Taylor spearheaded the scientific management movement in America.
⊚ true
⊚ false
32) The Human Relations Movement, which emphasized the importance of the human element in
job design, was replaced by the more technical aspects of Scientific Management.
⊚ true
⊚ false
33) The moving assembly line introduced by Henry Ford is an example of the development of
mass production based on large volumes of standardized goods produced using low or semi-
skilled workers and highly specialized equipment.
⊚ true
⊚ false
