Test Bank for Introduction to Operations and Supply Chain Management

Introduction to Operations and Supply Chain Management Fifth Edition Cecil C. Bozarth Robert B. Handfield Test Bank for Introduction to Operations and Supply Chain Management Geoff Willis 1 / 4

1 Copyright © 2019 Pearson Education, Inc.Introduction to Operations & Supply Chain Management, 5e (Bozarth) Chapter 1 Introduction to Operations and Supply Chain Management

1.1 Why Study Operations and Supply Chain Management?

1) The collection of people, technology, and systems within an organization that has primary

responsibility for providing the organization's products or services is called:

• the supply chain.
• the operations function.
• the factory set.
• relationship management.

Answer: B

Diff: 2

Reference: 1.1 Why Study Operations and Supply Chain Management?

Keywords: operations function

AACSB: Application of Knowledge

LO: 1.1: Describe what the operations function is and why it is critical to an organization's survival.

2) Which of these is NOT a component of the operations function in an organization?

• people
• technology
• systems
• information

Answer: D

Diff: 1

Reference: 1.1 Why Study Operations and Supply Chain Management?

Keywords: operations function, people

AACSB: Application of Knowledge

LO: 1.1: Describe what the operations function is and why it is critical to an organization's survival.

3) ________ is an example of an output of the transformation process.

• Material
• Information
• Satisfied customers
• Intangible needs

Answer: C

Diff: 2

Reference: 1.1 Why Study Operations and Supply Chain Management?

Keywords: output, transformation, process, customer

AACSB: Application of Knowledge

LO: 1.1: Describe what the operations function is and why it is critical to an organization's survival.

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2 Copyright © 2019 Pearson Education, Inc.

4) Typical inputs to the transformation process include:

• tangible goods.
• satisfied customers.
• intangible needs.
• fulfilled needs.

Answer: C

Diff: 2

Reference: 1.1 Why Study Operations and Supply Chain Management?

Keywords: intangible needs, inputs, transformation process

AACSB: Application of Knowledge

LO: 1.1: Describe what the operations function is and why it is critical to an organization's survival.5) Which of the following statements about the operations function is NOT correct?

• Inputs to operations can take many different forms.
• Nearly all operations activities require coordination with other business functions.
• The outputs of an operations function are always tangible.
• Operations management activities are information and decision intensive.

Answer: C

Diff: 2

Reference: 1.1 Why Study Operations and Supply Chain Management?

Keywords: operations function, tangible outputs

AACSB: Application of Knowledge

LO: 1.1: Describe what the operations function is and why it is critical to an organization's survival.

6) Which of the following is NOT a flow typically found in a supply chain?

• physical
• information
• monetary
• risk

Answer: D

Diff: 2

Reference: 1.1 Why Study Operations and Supply Chain Management?

Keywords: supply chain, flow

AACSB: Application of Knowledge

LO: 1.2: Describe what a supply chain is and how it relates to a particular organization's operations function.

7) Which of the following is primarily a supply chain management decision?

• from whom to purchase materials
• how many of each item should be produced
• the mix of labor skill and automation
• the location of the plant

Answer: A

Diff: 3

Reference: 1.1 Why Study Operations and Supply Chain Management?

Keywords: supply chain, decision, supplier

AACSB: Application of Knowledge

LO: 1.2: Describe what a supply chain is and how it relates to a particular organization's operations function.

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3 Copyright © 2019 Pearson Education, Inc.8) Which of these statements about flows in a supply chain is best?

• Information and monetary flows move upstream and downstream, but physical flows move

downstream only.

• Information flows move upstream and downstream, monetary flows move upstream only, and

physical flows move downstream only.

• Information and monetary flows move upstream only and physical flows move downstream only.
• Information, physical and monetary flows move both upstream and downstream.

Answer: D

Diff: 2

Reference: 1.1 Why Study Operations and Supply Chain Management?

Keywords: information flows, physical flows, monetary flows

AACSB: Application of Knowledge

LO: 1.2: Describe what a supply chain is and how it relates to a particular organization's operations function.9) Which of the following statements regarding the supply chain is TRUE?

• A second-tier supplier is downstream from a first-tier supplier.
• A first-tier supplier is upstream from a second-tier supplier.
• A first-tier supplier is downstream from a second-tier supplier.
• A customer is upstream from a first-tier supplier.

Answer: C

Diff: 2

Reference: 1.1 Why Study Operations and Supply Chain Management?

Keywords: downstream, upstream, tier, supplier, customer

AACSB: Application of Knowledge

LO: 1.2: Describe what a supply chain is and how it relates to a particular organization's operations function.

10) In the Sweet Action! supply chain, the flowers produce the nectar which is collected by the bees. The busy bees take this nectar and produce honey, which is collected by the beekeeper, who puts it in quart jars and supplies it to the baker. The baker produces a lovely array of confections, which are purchased by the local restaurant. The restaurant sells these confections to their loyal diners, who gleefully consume them and nag the chef for his recipe. Which of these statements about this supply chain is best?

• The busy bees are a first-tier supplier of the local restaurant.
• The beekeeper is a first-tier supplier of the local restaurant.
• The baker is a first-tier supplier of the local restaurant.
• The local restaurant is a first-tier supplier of the loyal diners.

Answer: C

Diff: 3

Reference: 1.1 Why Study Operations and Supply Chain Management?

Keywords: downstream, first-tier, supplier, customer

AACSB: Application of Knowledge

LO: 1.2: Describe what a supply chain is and how it relates to a particular organization's operations function.

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