Operations Management Operations and Supply Chain
Management 14th Edition Jacobs Test Bank
Chapter 01
Introduction
True / False Questions
- Efficiency means doing the right things to create the most value for the company.
True False - Effectiveness means doing the right things to create the most value for the company.
True False - 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 False - A worker can be efficient without being effective.
True False - A process can be effective without being efficient.
True False - 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 False - The term “value” refers to the relationship between quality and the price paid by the
consumer.
True False - Attempting to balance the desire to efficiently use resources while providing a highly
effective service may create conflict between the two goals.
True False - Central to the concept of operations strategy are the notions of operations focus and
trade-offs.
True False - OSCM is concerned with management of the trickiest parts of the system that
produces a good or delivers a service.
True False - OSCM is a functional field of business with clear line management responsibilities.
True False - The supply network as can be thought of as a pipeline through which cash, material
and information flows.
True False - Supply networks cannot be constructed for every product or service.
True False - “Operations” refers to manufacturing and service processes used to transform
resources employed by a firm into products desired by customers.
True False - “Supply chain” refers to processes that move information and material to and from
the manufacturing and service processes of the firm.
True False - “Supply chain” includes only inbound freight and inventory.
True False - It is critical that a sustainable strategy meet the needs of shareholders and
employees. It is also highly desirable that it preserves the environment.
True False - Planning is where a firm must determine how anticipated demand will be met with
available resources.
True False - Although planning involves determining how the various supply chain processes
(sourcing, making, delivering, and returning) will be met, planning itself is not
considered a supply chain process.
True False - The supply chain processes mentioned in the textbook are planning, sourcing,
delivering, and returning.
True False - All managers should understand the basic principles that guide the design of
transformation processes.
True False - Operations and supply management changes constantly because of the dynamic
nature of competing in global business and the constant evolution of information
technology.
True False - Internet technology has made the sharing of reliable real-time information expensive.
True False - Capturing information directly from the source through such systems as point-of-sale,
radio-frequency identification tags, bar-code scanners, and automatic recognition has
had little impact on operations and supply chain management.
True False - Use of systems like point-of-sale, radio-frequency identification tags, bar-code
scanners, and automatic recognition has made it more difficult to understand what all
the information is saying.
True False - Operations and supply chain processes can be conveniently categorized as planning,
sourcing, making, and delivering.
True False - A major aspect of planning involves developing a set of metrics to monitor the supply
chain.
True False - Returning involves processes for receiving worn-out, defective, and excess products
back from customers but does not involve support for customers who have problems
with the product.
True False - Delivering is not considered in supply chain analysis when outside carriers are
contracted to move products to customers.
True False - Services are intangible processes that cannot be weighed or measured.
True False - Service innovations can be patented.
True False - Services are homogeneous.
True False - Services are defined and evaluated as a package of features that affect the five
senses.
True False - Automobiles and appliances are classified as “pure goods.”
True False - Core service providers integrate tangible goods into their product.
True False - “Product-service bundling” refers to a company building service activities into its
product offerings for its customers.
True False