Chapter 1 Operations and Supply Chain Management

What kind of product is defined by a set of intangible features? A. An evening gown or a tuxedo B.A championship football game C.A service D.A sports car E.All of the above

A service

One reason for studying operations and supply chain management (OSCM) is which of the following? A. OSCM is essential for understanding organizational behavior B. Most business graduates do OSCM work regardless of their job title C. All managers should understand the basic principles that guide the design of transformation processes. D. OSCM is a required course in all business degree programs E. OSCM is the most rigorous business discipline

All managers should understand the basic principles that guide the design of transformation processes.

When considering the concept of value, how is quality defined? A. By the price of the product B. By the producer's reputation in the industry C. By the weight of the product D. By the attractiveness of the product considering its features and durability E. By the product's uniqueness relative to other similar products

By the attractiveness of the product considering its features and durability

Which of the following are defined as core goods? A. Chemicals B. Airlines C. Data storage systems D. Hotels E. None of these

Data Storage systems

Which of the following is not a measure of operations and supply chain management efficiency used by Wall Street? A. Inventory turnover B. Revenue per employee C. Receivable turnover D Earnings per share E Asset turnover

Earnings per share

Efficiency means doing the right things to create the most value for the company. (True or False)

FALSE :Efficiency means doing something at the lowest possible cost.

The supply network as can be thought of as a pipeline through which cash, material, and information flows.

FALSE: Think of the supply network as a pipeline through which material and information flows.

OSCM is concerned with management of the trickiest parts of the system that produces a good or delivers a service.

FALSE:OSCM is concerned with the management of the entire system that produces a good or delivers a service.

One of the "package of features" that make up a service is: A. Appearance B. Facilitating goods C. Packaging D. Cost E. Implied use

Facilitating goods

Managing customer touch points becomes a concern under current issues in OCSM when: A. Complaints arise about shaking hands with customers in cultures that is frowned upon. B. Firms striving to become superefficient begin to scrimp on staffing and training customer support personnel. C. A firm has a workforce trained in specifically diverse situations and the correct level of service may be hard to discern. D. Firms market global products. E. Senior executives fail to recognize the contribution OCSM can make to their success

Firms striving to become superefficient begin to scrimp on staffing and training customer support personnel.

Which of the following are not listed in the text as jobs in OSCM? A. Department store manager B. Project manager C. Hospital administrator D. Data Center manager E. Call center manager

Hospital administrator

Current issues in OSCM do not include: A. Coordinating relationships between organizations B. Making senior management aware that OSCM can be a competitive weapon C. Managing customer touch points D. Increasing global supply chain employment

Increasing global supply chain employment.

The Goods-Services Continuum consists of which set of the following categories? A. No goods, some goods, even mix, some service, no service B. Pure goods, core goods, core services, pure services C. No service, some service, good service, excellent service D. Self-service, help desk service, face-to-face service, service-with-a-smile E. None of these

Pure goods, Core Goods, Pure Services, Core Services

Which of the following is a measure of operations and supply management efficiency used by Wall Street? A. Dividend payout ratio B. Current ratio C. Receivable turnover D. Earnings per share growth E. Financial leverage

Receivable turnover

Which of the following is not a way that operations and supply processes are categorized? A. Planning B. Returning C. Delivering D. Selecting E. Making

Selecting

Which of the following is not a characteristic that distinguishes services from goods? A. Service jobs are unskilled B. A service is intangible C. Services are perishable D. Services are heterogeneous E. None of these

Service jobs are unskilled.

Central to the concept of operations strategy are the concepts of operations focus and trade-offs.

TRUE: Central to their thinking was the notion of factory focus and manufacturing trade-offs. Because a factory cannot excel on all performance measures, its management must devise a focused strategy, (to perform) a limited set of tasks extremely well. This requires trade-offs.

Effectiveness means doing the right things to create the most value for the company.

TRUE: Effectiveness means doing the right things to create the most value for the company.

A doctor completes a surgical procedure on a patient without error. The patient dies anyway. In operations management terms, we could refer to this doctor as being efficient but not effective.

TRUE: Efficiency means doing something at the lowest possible cost. Effectiveness means doing the right things to create the most value. The doctor performed the surgery without error. Because the patient died, no value was created.

A worker can be efficient without being effective.

TRUE: Efficiency means doing something at the lowest possible cost. Effectiveness means doing the right things to create the most value. These are different things.

OSCM is a functional field of business with clear line management responsibilities.

TRUE: OSCM is a functional field of business with clear line management responsibilities

Attempting to balance the desire to efficiently use resources while providing a highly effective service may create conflict between the two goals.

TRUE: Often maximizing effectiveness and efficiency at the same time creates conflict between the two goals.

A process can be effective without being efficient.

TRUE: Often, maximizing effectiveness and efficiency at the same time creates conflict between the two goals. "Being efficient" at the customer service counter at a local store or bank means using the smallest number of clerks possible at the counter. Being effective, though, means minimizing the amount of time customers need to wait in line.

Operations and supply chain management is defined as the design, operation, and improvement of the systems that create and deliver the firm's primary products and services.

TRUE: Operations and supply chain management is defined as the design, operation, and improvement of the systems that create and deliver the firm's primary products and services.

The term "value" refers to the relationship between quality and the price paid by the consumer.

TRUE: Related to efficiency and effectiveness is the concept of value, which can be metaphorically defined as quality divided by price.