2020 John Wiley Sons, Inc.All rights reserved. TB 1-3

© 2020 John Wiley & Sons, Inc.All rights reserved. TB 1-3

• accounting, finance, and marketing
• engineering, finance, and operations management
• accounting, purchasing, and human resources
• accounting, engineering, and marketing
• finance, marketing, and operations management

Ans: e

Solution: Every business is managed through three major functions: finance, marketing, and operations management.

Section Ref: What Is Operations Management?

Sub Section Ref: n/a

Level: Easy

Bloom’s: Knowledge

Learning Objective 1: Define operations management.

AACSB: Knowledge

Time on Task: 1 min

• Which business function is responsible for managing cash flow, current assets, and capital

investments?

• accounting
• finance
• marketing
• operations management
• purchasing

Ans: b

Solution: Finance is the function responsible for managing cash flow, current assets, and capital investments.

Section Ref: What Is Operations Management?

Sub Section Ref: n/a

Level: Easy

Bloom’s: Knowledge

Learning Objective 1: Define operations management.

AACSB: Knowledge

Time on Task: 1 min

Chapter 1: Introduction to Operations Management

Multiple Choice 1.Every business is managed through what three major functions?Operations Management An Integrated Approach 7e Reid, Sanders (Test Bank All Chapters, 100% Original Verified, A+ Grade) 1 / 4

Reid & Sanders / Operations Management, 7th edition Test Bank © 2020 John Wiley & Sons, Inc. All rights reserved. TB 1-4

• The finance function is responsible for
• sales, generating customer demand, and understanding customer wants and needs.
• planning and coordinating all the resources needed to design, produce, and deliver the

merchandise to its various retail locations.

• planning, coordinating, and controlling the resources needed to produce a company’s products

and services.

• managing cash flow, current assets, and capital investments.
• efficiency and costs.

Ans: d

Solution: The financial function is responsible for managing cash flow, current assets, and capital investments.

Section Ref: What Is Operations Management?

Sub Section Ref: n/a

Level: Easy

Bloom’s: Knowledge

Learning Objective 1: Define operations management.

AACSB: Knowledge

Time on Task: 1 min

• Which business function is responsible for sales, generating customer demand, and

understanding customer wants and needs?

• finance
• human resources
• marketing
• operations management
• purchasing

Ans: c

Solution: Marketing is responsible for sales, generating customer demand, and understanding customer wants and needs.

Section Ref: What Is Operations Management?

Sub Section Ref: n/a

Level: Easy

Bloom’s: Knowledge

Learning Objective 1: Define operations management.

AACSB: Knowledge

Time on Task: 1 min

• / 4

Reid & Sanders / Operations Management, 7th edition Test Bank © 2020 John Wiley & Sons, Inc. All rights reserved. TB 1-5

• Which business function is responsible for planning, coordinating, and controlling the

resources needed to produce a company’s products and services?

• engineering
• finance
• human resources
• marketing
• operations management

Ans: e

Solution: Operations management is the business function that plans, organizes, coordinates, and controls the resources needed to produce a company’s goods and services.

Section Ref: What Is Operations Management?

Sub Section Ref: n/a

Level: Easy

Bloom’s: Knowledge

Learning Objective 1: Define operations management.

AACSB: Knowledge

Time on Task: 1 min

• All of the following are true for business process reengineering EXCEPT
• it can increase efficiency.
• it cannot be used to improve quality.
• it can reduce costs.
• it involves asking why things are done in a certain way.
• it involves redesigning processes.

Ans: b

Solution: Business process reengineering means redesigning a company’s processes to increase efficiency, improving quality, and reducing costs. Reengineering requires asking why things are done in a certain way, questioning assumptions, and then redesigning the processes.

Section Ref: Historical Development

Sub Section Ref: Business Process Reengineering

Level: Easy

Bloom’s: Comprehension

Learning Objective 4: Identify major historical developments in operations management.

AACSB: Knowledge

Time on Task: 1 min

• / 4

Reid & Sanders / Operations Management, 7th edition Test Bank © 2020 John Wiley & Sons, Inc. All rights reserved. TB 1-6

• At the retailer The Gap, which function plans and coordinates all the resources needed to

design, produce, and deliver the merchandise to its various retail locations?

• engineering
• human resources
• marketing
• operations management
• purchasing

Ans: d

Solution: The Gap sells casual apparel. It is the operations function that plans and coordinates all the resources needed to design, produce, and deliver the merchandise to the various retail locations.

Section Ref: What Is Operations Management?

Sub Section Ref: n/a

Level: Easy

Bloom’s: Comprehension

Learning Objective 1: Define operations management.

AACSB: Knowledge

Time on Task: 1 min

• Operations management is responsible for increasing the organization’s efficiency, which

means the company will be able to

• add to the engineering process.
• take for granted current operations.
• increase the number of positions under the manager’s position.
• eliminate activities that do not add value.
• increase purchasing opportunities.

Ans: d

Solution: An important role of operations is to analyze all activities, eliminate those that do no add value, the restructure processes and jobs to achieve greater efficiency.

Section Ref: What Is Operations Management?

Sub Section Ref: n/a

Level: Easy

Bloom’s: Comprehension

Learning Objective 1: Define operations management.

AACSB: Knowledge

Time on Task: 1 min

• / 4