Test Bank For Operations Management: Sustainability and Supply Chain Management, 13th Edition

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Operations ManagementThirteenth EditionPrinciples ofOperations ManagementEleventh EditionJay HeizerBarry RenderChuck MunsonTest Bank (Download only) forOperations Management &Principles of OperationsManagement: Sustainability andSupply Chain ManagementRevised by Jianli Hu

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1Operations Management, 13e(Heizer/Render/Munson)Chapter 1 Operations and ProductivitySection 1What is Operations Management?1) Some of the operations-related activities of Hard Rock Caféinclude designing musicinstruments and analyzing them forcost and labor requirements.Answer: FALSEDiff: 1Objective: LO 1.1 Define operations managementLearning Outcome: Discuss operations and operations management as a competitive advantagefor the organization2) Because Hard Rock Cafés are themed restaurants, operations managers focus their layoutdesign efforts on attractiveness while paying little attention to efficiency.Answer: FALSEDiff: 1Objective: LO 1.1 Define operations managementLearning Outcome: Discuss operations and operations management as a competitive advantagefor the organization3) All organizations, including service firms such as banks and hospitals, have a productionfunction.Answer: TRUEDiff: 2Objective: LO 1.1Define operations managementLearning Outcome: Discuss operations and operations management as a competitive advantagefor the organization4) Operations management is the set of activities that creates value in the form of tangible goods,not services,by transforming inputs into outputs.Answer: FALSEDiff: 1Objective: LO 1.1 Define operations managementLearning Outcome: Discuss operations and operations management as a competitive advantagefor the organization5)Production is the creation of goods and services.Answer: TRUEDiff: 2Objective: LO 1.1Define operations managementLearning Outcome: Discuss operations and operations management as a competitive advantagefor the organization

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26) At Hard Rock Café, tasks that reflect operations or operations management include:A) designing efficient layouts.B) providing meals.C) receiving ingredients.D) preparing effective employee schedules.E) all of these.Answer: EDiff: 1Objective: LO 1.1 Define operationsmanagementLearning Outcome: Discuss operations and operations management as a competitive advantagefor the organization7) An operations task performed at Hard Rock Café is:A) borrowing funds to build a new restaurant.B) advertising changes in the restaurant menu.C) creating the company income statement.D) preparing employee schedules.E) overseeing financial reports.Answer: DDiff: 2Objective: LO 1.1 Define operations managementAACSB: Reflective thinkingLearning Outcome: Discuss operationsand operations management as a competitive advantagefor the organization8) Operationsmanagement is applicable:A) mostly to the service sector.B) to services exclusively.C) mostly to the manufacturing sector.D)to all firms, whether manufacturing or service.E) to the manufacturing sector exclusively.Answer: DDiff: 2Objective: LO 1.1 Define operations managementLearning Outcome: Discuss operations and operations management as a competitive advantagefor the organization9) ________ is the set of activities that creates value in the form of goods and services bytransforming inputs into outputs.Answer: Operations managementDiff: 1Objective: LO 1.1 Define operations managementLearning Outcome: Discussoperations and operations management as a competitive advantagefor the organization

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310) Identify three or more operations-related tasks carried out by Hard Rock Café.Answer: Providing custom meals; designing, testing, and costing meals; acquiring, receiving,and storing supplies; recruiting and training employees; preparing employee schedules;designing efficient restaurantlayouts.Diff: 1Objective: LO 1.1 Define operations managementLearning Outcome: Discuss operations and operations management as a competitive advantagefor the organization11) Define operations management. Will your definition accommodate both manufacturing andservice operations?Answer: Operations management can be defined as the management of all activities directlyrelatedto the creation of goods and/or services through the transformation of inputs into outputs.Yes.Diff: 1Objective: LO 1.1 Define operations managementLearning Outcome: Discuss operations and operations management as a competitive advantagefor the organizationSection 2Organizing to Produce Goods and Services1) Which of the following are the primary functions of all organizations?A) production/operations, marketing, and human resourcesB)marketing, human resources, and finance/accountingC) sales, quality control, and production/operationsD) marketing, production/operations, and finance/accountingE) research and development, finance/accounting, and purchasingAnswer: DDiff: 2Objective: LO 1.1 Define operations managementLearning Outcome: Discuss operations and operations management as a competitive advantagefor the organization2) Which of the following taskswithin a manufacturing firm is performed by the operationsfunction?A)market researchB) borrowing fundsC) sales promotionD) stock issueE) quality assurance and controlAnswer: EDiff: 2Objective: LO 1.1 Define operations managementLearning Outcome: Discuss operations and operations management as a competitive advantagefor the organization

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43) Which of the following would NOT be an operations function in a commercial bank?A) auditingB) teller schedulingC) maintenanceD) collectionE) check clearingAnswer: ADiff: 2Objective:LO 1.1 Define operations managementLearning Outcome: Discuss operations and operations management as a competitive advantagefor the organization4) The marketing function is concerned with:A) producing goods or providing services.B) procuring materials, supplies, and equipment.C) building and maintaining a positive image.D) generating the demand for the organization's products or services.E) securing monetary resources.Answer: DDiff: 2Objective: LO 1.1 Define operations managementLearning Outcome: Discuss operations and operations management as a competitive advantagefor the organization5) The purchasing function is concerned with:A) producing goods or providing services.B) procuring materials, supplies, and equipment.C) building and maintaining a positive image.D) generating the demand for the organization's products or services.E) securing monetary resources.Answer: BDiff: 2Objective: LO 1.1 Define operations managementLearning Outcome: Discuss operations and operations management as a competitive advantagefor the organization6) The finance function is concerned with:A) producing goods or providing services.B) procuring materials, supplies, and equipment.C)building and maintaining apositive image.D) generating the demand for the organization's products or services.E) securing monetary resources.Answer: EDiff: 2Objective: LO 1.1 Define operations managementLearning Outcome: Discuss operations and operations management as a competitive advantagefor the organization

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57) Which of the following tasks within an airline company is related to operations?A) crew schedulingB) international monetary exchangeC) salesD) advertisingE) accounts payableAnswer: ADiff: 2Objective:LO 1.1 Define operations managementLearning Outcome: Discuss operations and operations management as a competitive advantagefor the organization8) Marketing, production/operations, and ________ are the three functions that all organizationsmust perform to create goods and services.Answer:finance/accountingDiff: 1Objective: LO 1.1 Define operations managementLearning Outcome: Discuss operations and operations management as a competitive advantagefor the organizationSection 3The Supply Chain1) Competition in the 21st century is no longer between companies; it is betweensupply chains.Answer: TRUEDiff: 2Learning Outcome:Discuss operations and operations management as a competitive advantagefor the organization2) An accounting firmthat provides tax services for a company would not be considered to bepart of that company's supply chain.Answer: FALSEDiff: 2AACSB: Reflective thinkingLearning Outcome: Compare and contrast different sourcing strategies including outsourcingandinsourcing

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63) What is a global network of organizations and activities that supply a firm with goods andservices?A) supply treeB) provider networkC) supply chainD) vendor networkE) vendor treeAnswer: CDiff: 1Learning Outcome: Compare and contrast different sourcing strategies including outsourcingand insourcing4) Which of the following fosters specialization and worldwide supplychains?A) more expensive transportationB) instant communicationC) economies of scopeD) managers with a broad knowledge of many thingsE) high trade tariffsAnswer: BDiff: 2Learning Outcome:Compare and contrast different sourcing strategies including outsourcingand insourcing5) A(n) ________ is a global network of organizations and activities that supply afirm withgoods and services.Answer: supply chainDiff: 1Learning Outcome: Compare and contrast different sourcing strategies including outsourcingand insourcing6) Competition in the 21st century is no longer between companies; it is between ________.Answer: supply chainsDiff: 2Learning Outcome: Compare and contrast differentsourcing strategies including outsourcingand insourcing7) Identify up to four phenomena that foster specialization and worldwide supply chains.Answer: (1) a more technologically oriented society, (2) specialized expert knowledge, (3)instant communication, and (4) cheaper transportationDiff: 2Learning Outcome: Compare and contrast different sourcing strategies including outsourcingand insourcing

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7Section 4Why Study OM?1) One reason to study operations management is to learn how people organizethemselves forproductive enterprise.Answer: TRUEDiff: 1Objective: LO 1.1 Define operations managementLearning Outcome: Discuss operations and operations management as a competitive advantagefor the organization2) Reasons to study operations management include:A) studying how people organize themselves for productive enterprise.B) knowing how goods and services are consumed.C) understanding what human resourcemanagers do.D)learning about a costly part of the enterprise.E) A and DAnswer: EDiff: 2Objective: LO 1.1 Define operations managementLearning Outcome: Discuss operations and operations management as a competitive advantagefor the organization3) Reasons to study operations management include learning about:A) how people organize themselves for productive enterprise.B) how goods and services are produced.C) what operations managers do.D) a costly part of the enterprise.E) all of these.Answer: EDiff: 1Objective: LO 1.1 Define operations managementLearning Outcome: Discuss operations and operations management as a competitive advantagefor the organization

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84) Brandon Production is a small firm focused on the assembly and sale of custom computers.The firm is facing stiff competition from low-priced alternatives, and is looking at varioussolutions to remain competitive and profitable. Current financials for the firm are shown in thetable below. In the first option, marketing will increase sales (and costs) by 50%. The next optionis Vendor (Supplier) changes, which would result in a decrease of 12% in the cost of inputs.Finally, there is an OM option, which would reduce production costs by 25%. Which of theoptions would you recommendto the firm if itcan only pursue one option? In addition, commenton the feasibility of each option.Business FunctionCurrent ValueCost of Inputs$50,000Production Costs$30,000Revenue$83,000Answer: Marketing would increase sales to $124,500 ($83,000∗1.5) but increase cost of inputsand production costs to $120,000 (($50,000 + $30,000)∗1.5). This would net an additional$1,500 of profit ($124,500-$120,000-current profit of $3,000). Vendor (Supplier) changeswould decrease cost of inputs to$44,000 ($50,000∗.88), resulting in $6,000 of additional profit(savings) ($50,000-$44,000). Finally, the OM option would save $7,500 ($30,000-$30,000∗.75), resulting in an additional $7,500 of profit. Thus, the OM option is the most profitable.Comments on feasibility should center on the near impossibility of increasing revenue by 50%,while noting the other two options are difficult but not impossible.Diff: 2AACSB: Analytical thinkingLearning Outcome: Discuss operations and operations management as a competitive advantagefor the organizationSection 5What Operations Managers Do1)The operations manager performs the management activities of planning, organizing, staffing,leading, and controlling of the OM function.Answer: TRUEDiff:2Objective: LO 1.1 Define operations managementLearning Outcome: Discuss operations and operations management as a competitive advantagefor the organization2) "Considers inventory ordering and holding decisions" is within the strategic operationsmanagement decision area ofmanaging quality.Answer: FALSEDiff: 1Objective: LO 1.2 Identify the10 strategic decisions of operations managementLearning Outcome: Discuss operations and operations management as a competitive advantagefor the organization

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93) In order to have a career in operations management, one must have a degree in statistics orquantitative methods.Answer: FALSEDiff: 1Objective: LO 1.3 Identify career opportunities in operations managementLearning Outcome: Discuss operations and operations management as a competitive advantagefor the organization4) What are the five elements in the management process?A) plan, direct, update, lead, and superviseB) accounting, finance, marketing, operations, and managementC) organize, plan, control, staff, and manageD) plan, organize, staff, lead, and controlE) plan, lead, organize,manage, and controlAnswer: DDiff: 2Learning Outcome: Discuss operations and operations management as a competitive advantagefor the organization5)Which of the following is NOT an element of the management process?A) controllingB) leadingC) planningD) pricingE) staffingAnswer: DDiff: 2Objective: LO 1.4 Explain the distinction between goods and servicesLearning Outcome: Discuss operationsand operations management as a competitive advantagefor the organization6) An operations manager is NOT likely to be involved in:A)the design of goods and services to satisfy customers' wants and needs.B) the quality of goods and services to satisfy customers' wants and needs.C) the identification of customers' wants and needs.D) work scheduling to meet the due dates promised to customers.E) maintenance schedules.Answer: CDiff: 1Objective: LO 1.2 Identify the 10 strategic decisions of operations managementLearning Outcome: Discuss operations and operations management as a competitive advantagefor the organization

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107) All ofthe following decisions fall within the scope of operations management EXCEPT for:A) creating the company income statement.B) design of goods and services.C) location strategies.D) managing quality and statistical process control.E)human resources, job design and work measurement.Answer: ADiff: 1Objective: LO 1.2 Identify the 10 strategic decisions of operationsmanagementLearning Outcome: Discuss operations and operations management as a competitive advantagefor the organization8) The 10 strategic operations management decisions include:A) layout strategies.B) maintenance.C) process and capacity strategies.D) managing quality.E) all of these.Answer: EDiff: 1Objective: LO 1.2 Identify the 10 strategic decisions ofoperations managementLearning Outcome: Discuss operations and operations management as a competitive advantagefor the organization9)Which of the following is NOT one of the 10 strategic operations management decisions?A) layout strategiesB) maintenanceC) process and capacity strategiesD) mass customizationE) supply chain managementAnswer: DDiff: 2Objective: LO 1.2 Identify the 10 strategic decisions of operations managementLearning Outcome: Discuss operations and operations management as acompetitive advantagefor the organization10) Which of the following is one of the 10 strategic operations management decisions?A) depreciation policy for tax returnsB) advertisingC) process and capacity strategiesD) pricingE)debt/equity ratioAnswer: CDiff: 1Objective: LO 1.2 Identify the 10 strategic decisions of operations managementLearning Outcome: Discuss operations andoperations management as a competitive advantagefor the organization

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1111) Which of the followingare among the 10 strategic operations management decisions?I.design of goods and servicesII.managing qualityIII.layout strategiesIV.marketingV.pricing of goods and servicesA) I, II, VB) I, II, IVC) II, III, VD) I, II, IIIE) I, II, III, IV,VAnswer: DDiff: 2Objective: LO 1.2 Identify the 10 strategic decisions of operations managementLearning Outcome: Discuss operations and operations management as a competitive advantagefor the organization12) Which of the following influences layout design?A) inventory requirementsB) capacity needsC) personnel levelsD) technologyE) All of these influence layout decisions.Answer: EDiff: 2Objective:LO 1.2 Identify the 10 strategic decisions of operations managementLearning Outcome: Discuss operations and operations management as a competitive advantagefor the organization13) Which of the following is NOT a strategic operations management decision?A) maintenanceB) priceC) layoutD) qualityE) inventoryAnswer: BDiff: 2Objective: LO 1.2 Identify the 10 strategic decisions of operations managementLearning Outcome: Discuss operations and operations management as a competitive advantagefor the organization

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1214) Identify two operations-related tasks carried out by Hard Rock Café. Match each to itsrelated area of the 10 strategic operations management decisions.Answer: Providing custom meals: design of goods and services; designing, testing,and costingmeals: design of goods and services; acquiring, receiving, and storing supplies: supply chainmanagement; recruiting and training employees: human resources, job design and measurement;preparing employee schedules: scheduling; designing efficient restaurant layouts: layoutstrategies.Diff: 2Objective: LO 1.2 Identify the 10 strategic decisions of operations managementAACSB: Reflective thinkingLearning Outcome: Discuss operations and operations management as a competitive advantagefor the organization15) Identify the 10 strategic OM decisions.Answer: Design of goods and services, managing quality, process strategies, location strategies,layout strategies, human resources, supply chain management, inventory management,scheduling, and maintenance.Diff: 3Objective: LO 1.2 Identify the 10 strategic decisions of operations managementLearning Outcome:Discuss operations and operations management as a competitive advantagefor the organizationSection 6The Heritage of Operations Management1) Henry Ford is known as the Father of Scientific Management.Answer: FALSEDiff: 1Learning Outcome: Discuss operations and operations management as a competitive advantagefor the organization2) Shewhart's contributions to operations management came during the Scientific ManagementEra.Answer: FALSEDiff: 2Learning Outcome: Discuss operations and operations management as a competitive advantagefor the organization

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133) Walter Shewhart is listed among the important people of operations management because ofhis contributions to:A) assembly line production.B) measuring productivity in the service sector.C) just-in-time inventory methods.D) statistical quality control.E) information technology.Answer: DDiff: 2Learning Outcome: Discuss operations and operations management as a competitive advantagefor the organization4) Walter Shewhart, in the ________, provided the foundations for ________ in operationsmanagement.A) 1920s; statistical samplingB) United Kingdom; massproductionC) U.S. Army; logisticsD) nineteenth century; interchangeable partsE) 1900s; queuing theoryAnswer: ADiff: 2Learning Outcome: Discuss operations and operations management as a competitive advantagefor the organization5) Eli Whitney, inthe ________, provided the foundations for ________ in operationsmanagement.A) 1920s; statistical samplingB) United Kingdom; mass productionC) U.S. Army; logisticsD) nineteenth century; interchangeable partsE) 1890s; queuing theoryAnswer: DDiff: 2Learning Outcome: Discuss operations and operations management as a competitive advantagefor the organization6) Who wasthe person most responsible for popularizing interchangeable parts inmanufacturing?A) Frederick W. TaylorB) Henry FordC) Eli WhitneyD) Whitney HoustonE) Lillian GilbrethAnswer: CDiff: 2Learning Outcome: Discuss operations and operations management as a competitive advantagefor the organization

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147) The "Father of Scientific Management" is:A) Henry Ford.B) Frederick W. Taylor.C) W. Edwards Deming.D) Frank Gilbreth.E)just a figure of speech, not a reference to a person.Answer: BDiff: 2Learning Outcome: Discuss operations and operations management as a competitive advantagefor the organization8) Henry Ford is noted for his contributions to:A) material requirements planning.B) statistical quality control.C) assembly line operations.D) scientific management.E) time and motion studies.Answer: CDiff: 1Learning Outcome: Discuss operations and operations management as a competitive advantagefor the organization9) Who among the following is associated with contributions to quality control in operationsmanagement?A) Charles BabbageB) Henry FordC) Frank GilbrethD) W. Edwards DemingE) Henri FayolAnswer: DDiff: 2Learning Outcome: Discuss operations and operations management as a competitive advantagefor the organization10) The field of operations management is shaped by advances in which of the following fields?A) chemistry and physicsB)industrialengineering and managementC) biology and anatomyD) information technologyE) all of the theseAnswer: EDiff: 2Objective: LO 1.1 Define operations managementLearning Outcome: Discuss operations and operations management as a competitive advantagefor the organization

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