Question Bank in line with Operations Management,Reid,5e

File: ch01, Chapter 1: Introduction to Operations Management


Multiple Choice


1. Every business is managed through what three major functions?
a) accounting, finance, and marketing
b) engineering, finance, and operations management
c) accounting, purchasing, and human resources
d) accounting, engineering, and marketing
e) finance, marketing, and operations management

Ans: e
Section Ref: What is Operations Management?
Level: easy


2. Which business function is responsible for managing cash flow, current assets, and capital investments?
a) accounting
b) finance
c) marketing
d) operations management
e) purchasing

Ans: b
Section Ref: What is Operations Management?
Level: easy


3. The finance function is responsible for
a) sales, generating customer demand, and understanding customer wants and needs
b) plans and coordinates all the resources needed to design, produce, and deliver the merchandise to its
various retail locations
c) planning, coordinating, and controlling the resources needed to produce a company’s products and
services
d) managing cash flow, current assets, and capital investments
e) efficiency and costs

Ans: d
Section Ref: What is Operations Management?
Level: easy


4. Which business function is responsible for sales, generating customer demand, and understanding
customer wants and needs?
a) finance
b) human resources
c) marketing
d) operations management
e) purchasing

,Ans: c
Section Ref: What is Operations Management?
Level: easy


5. Which business function is responsible for planning, coordinating, and controlling the resources needed
to produce a company’s products and services?
a) engineering
b) finance
c) human resources
d) marketing
e) operations management

Ans: e
Section Ref: What is Operations Management?
Level: easy


6. Which of the following is not true for business process reengineering?
a) It can increase efficiency.
b) It cannot be used to improve quality.
c) It can reduce costs.
d) It involves asking why things are done in a certain way.
e) It involves redesigning processes.

Ans: b
Section Ref: Historical Development
Level: easy


7. At the GAP, which function plans and coordinates all the resources needed to design, produce, and
deliver the merchandise to its various retail locations?
a) engineering
b) human resources
c) marketing
d) operations management
e) purchasing

Ans: d
Section Ref: What is Operations Management?
Level: easy


8. Operations Management is responsible for increasing the organization’s efficiency, which means the
company will be able to __________.
a) add to the engineering process
b) take for granted current operations
c) increase the number of positions under the manager’s position
d) eliminate activities that do not add value
e) increasing purchasing opportunities

Ans: d

,Section Ref: What is Operations Management?
Level: moderate


9. Which one of the following would not generally be considered to be a transformation?
a) a haircut
b) a train ride
c) manufacturing a radio
d) waiting to see the doctor
e) a surgery

Ans: d
Section Ref: What is Operations Management?
Level: moderate


10. At a factory, the transformation process is a (an) change of raw materials and
components into products.
a) locational
b) imperceptible
c) hypothetical
d) irreversible
e) physical

Ans: e
Section Ref: What is Operations Management?
Level: moderate


11. Which of the following is not an input?
a) services
b) managers
c) buildings
d) technology
e) information

Ans: a
Section Ref: What is Operations Management?
Level: moderate


12. Operations management is responsible for orchestrating all the resources needed to produce the final
product. This includes all of the following except ______________________________________.
a) obtaining customer feedback
b) arranging schedules
c) managing inventory
d) controlling quality
e) designing work methods

Ans: a
Section Ref: What is Operations Management?
Level: hard

, 13. Which second-tier computer company utilized a drastic change in its operations function to become an
industry leader in the late 1990s?
a) Apple
b) Compaq
c) Dell
d) IBM
e) Kozmo

Ans: c
Section Ref: What is Operations Management?
Level: easy


14. A company with a low customer contact that is capital intensive is called:
a) a farm
b) manufacturing
c) quasi-manufacturing
d) service
e) Industrial era operations management

Ans: c
Section Ref: Differences Between Manufacturing and Service Organizations
Level: easy


15. Which initially successful web-based home delivery company had to shut down in 2001 due to
inadequate management of its operations?
a) Contact.com
b) Time Saver.com
c) Kozmo.com
d) Kramer.com
e) Neptune.com

Ans: c
Section Ref: What is Operations Management?
Level: moderate


16. In order to be successful with Web-based on-line shopping, companies must do all except which of the
following?
a) manage distribution centers and warehouses
b) operate fleets of trucks
c) maintain adequate inventories of products
d) promise same-day delivery
e) schedule deliveries

Ans: d
Section Ref: What is Operations Management?
Level: hard