OMGT 3123 Chapter 1

23) In general, operations management activities are information and decision intensive. T F

True

25) Most of the participants in a supply chain are both suppliers and customers. T F

True

26) Electronic commerce refers to the use of information technology solutions to automate business transactions. T F

True

28) Every organization has an operations function. T F

True

17) Most organizations function as part of a larger supply chain. T F

True

18) The supply chain is a network of manufacturers and service providers that work together to convert and move goods from the raw materials stage to the end user. T F

True

20) Information and materials are two examples of inputs to the transformation process. T F

True

The Logistics function of a supply chain would include Marketing and Engineering as its key inter-organizational participants. T F

False

The association for operations management is AOM. T F

False

2) 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

16) Planning numbers needed for effective decision making are typically developed by: A) forecasting. B) capacity planning. C) inventory management. D) process selection.

A) forecasting.

E-commerce is the component of a supply chain that is the most susceptible to breakdown. T F

False

The drive for efficiency has decreased the level of globalization in the world economy over the last twenty years. T F

False

To avoid supply chain problems, firms must manage relationships with their downstream suppliers as well as their upstream customers. T F

False

1) The organization that provides national and institutional leadership in purchasing and materials management is: A) APICS. B) ISM. C) CLM. D) ASQ.

B) ISM.

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.

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

C) Satisfied customers

4) 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

15) Which department is least likely to interact with the purchasing function? A) engineering B) finance C) human resources D) operations

C) human resources

12) Efforts to improve cooperation among firms in the supply chain can be characterized as: A) globalization. B) domestic focus. C) relationship management. D) electronic commerce.

C) relationship management.

14) Jon was a mathematical whiz. He had a flair for developing spreadsheets, using statistics, and creating simulations to show the effects of changes in policy and infrastructure. His skills equipped him well for his operations and supply chain position as: A) a service manager. B) an analyst. C) a commodity manager. D) a sourcing manager.

B) an analyst.

13) Which job title would most likely be responsible for supervising production in a manufacturing setting? A) supply chain manager B) production manager C) supplier development manager D) purchasing manager

B) production manager

10) The collection of people, technology, and systems within an organization that has primary responsibility for providing the organization's products or services is called: A) the supply chain. B) the operations function. C) the evoked set. D) relationship management.

B) the operations function.

7) 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) More companies are putting an emphasis on relationship management. D) Customers demand increased standardization in goods and services.

C) More companies are putting an emphasis on relationship management.

6) 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 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

3) Which of the following is NOT a flow typically found in a supply chain? A) physical B) information C) monetary D) risk

D) risk

19) To participate in a supply chain, a firm must actually handle the physical goods at some point. T F

False

22) Inputs to the transformation process are tangible, but the outputs may be tangible or intangible. T F

False

24) A second-tier supplier is downstream from a first-tier supplier in the supply chain. T F

False

29) Of the three flows linking organizations in a supply chain, information and monetary flows always move upstream and physical flows always move downstream. T F

False

21) The transformation process can be used to describe the production of intangible services. T F

True