Chapter 1 Review Questions

Which of the following lists is in correct supply chain order? A. first tier supplier - manufacturer - distributor B. distributor - manufacturer - retailer C. first tier supplier - second tier supplier - third tier supplier D. customer - retailer - distributor

A. first tier supplier - manufacturer - distributor

Which of the following is primarily a supply chain management decision? A. from whom to purchase materials B. how many of each item should be produced C. the mix of labor skill and automation D. plant location

A. from whom to purchase materials

Which one of the following would not generally be considered an aspect of operations management? A. Work methods B. Secure financial resources C. Maintain quality D. Product or service design E. Manage inventories

B. Secure financial resources

An electronic commerce system: A. is used to transmit information only upstream. B. can improve the speed and quality of business communication. C. is used to transmit information only downstream. D. links everyone in the supply chain except customers.

B. can improve the speed and quality of business communication.

Which of the following statements regarding the supply chain is TRUE? A. A second tier supplier is downstream from a first tier supplier. B. A first tier supplier is upstream from a second tier supplier. C. A first tier supplier is downstream from a second tier supplier. D. A customer is upstream from a first tier supplier.

C. A first tier supplier is downstream from a second tier supplier.

Which of these statements about recent trends in operations and supply chain management is best? A. A lower level of competition exists thanks to an increased level of globalization. B. The rate of change in markets is actually lower than 10-15 years ago once inflation is factored in. C. Managers tend to make decisions with less information than they used to. D. Customers demand increased standardization in goods and services.

C. Managers tend to make decisions with less information than they used to.

______________ is an example of an output of the transformation process. A. Material B. Information C. Satisfied customers D. Intangible needs

C. Satisfied customers

Which of the following statements about the operations function is NOT correct? A. Inputs to operations can take many different forms. B. Nearly all operations activities require coordination with other business functions. C. The outputs of an operations function are always tangible. D. Operations management activities are information intensive.

C. The outputs of an operations function are always tangible.

Which of the following statements is (are) true? I. Measurement of productivity in service is more straightforward than in manufacturing since it is not necessary to take into account the cost of materials. II. Service involves a much higher degree of customer contact than manufacturing. III. Local optimization ignores any larger problem of which the local decision being optimized may be a component. A. I only B. I and III only C. II and III only D. I and II only. E. All of the above.

D. I and II only.

15. Which of the following statements is (are) true? I. A second-tier supplier is downstream from a first-tier supplier in the supply chain. II. Most organizations function as part of larger supply chain that are linked through physical, monetary, and information flows. III. Of the three flows linking organizations in a supply chain, information and monetary flows always move upstream and physical flows always move downstream. IV. The SCOR model is used to define relationships in supply chain management. A. I only B. I and IV only C. II and III only D. II and IV only. E. III only

D. II and IV only.

Which one of the following is not a typical question dealt with by an operations manager? A. How much capacity will be needed in the months ahead? B. What is a satisfactory location for a new facility? C. Which products/services should be offered? D. How to motivate employees? E. How much to sell a product for?

E. How much to sell a product for?

Which of the following is NOT a trend in operations management? A. increased use of electronic commerce B. increased globalization C. decreased delivery times D. decreased customization

D. decreased customization

Which of the following is not a characteristic of service operations? A. intangible output B. high customer contact C. high labor content D. easy measurement of productivity E. low uniformity of output

D. easy measurement of productivity

Which of the following is generally not a characteristic of a service operation? A. intangible output B. high customer contact C. high labor content D. stockpiling of output for future use E. low uniformity of output

D. stockpiling of output for future use

Which of the following does not use operations management? A. A CPA firm B. A bank C. A hospital D. A supermarket E. None of the above; they all use it (or should use it, at least)

E. None of the above; they all use it (or should use it, at least)

Which of the following is not a type of operations? A. goods production B. storage/transportation C. entertainment D. communication E. all the above involve operations

E. all the above involve operations