Test Bank for - th edition Test Bank Copyright ©2020 John Wile...

Test Bank for Operations and Supply Chain Management, 10e Russell, Taylor (All Chapters) 1 / 4

Russell & Taylor / Operations & Supply Chain Management, 10 th edition Test Bank Copyright ©2020 John Wiley & Sons, Inc. 1-1

Chapter 1:

Operations Management

True/False

• Operations management is only concerned with the day-to-day operations of a firm’s

productive systems.Ans: False, LO: 1, Bloom: K, Difficulty: Easy, AACSB: None

• A warehouse operation is an example of a physical transformation process.

Ans: False, LO: 1, Bloom: K, Difficulty: Easy, AACSB: None

• A supply chain is a series of activities from supplier to customer that adds value to a

product or service.Ans: True, LO: 1, Bloom: K, Difficulty: Moderate, AACSB: None

• Human resources management provides product demand estimates that are used in

production decisions.Ans: False, LO: 1, Bloom: K, Difficulty: Moderate, AACSB: None

• A retail operation is an example of an exchange transformation process.

Ans: True, LO: 1, Bloom: K, Difficulty: Easy, AACSB: None

• Which of the following is a functional areas of operations management?
• information technology
• legal
• compliance
• human resources

Ans: False, LO: 1, Bloom: C, Difficulty: Easy, AACSB: None

• Operations management designs, operates, and improves marketing systems.

Ans: False, LO: 1, Bloom: K, Difficulty: Easy, AACSB: None

• An operations manager benefits from an integrated view of business organizations.

Ans: True, LO: 1, Bloom: K, Difficulty: Easy, AACSB: None

• The systematic analysis of work methods is known as operations research.

Ans: False, LO: 2, Bloom: K, Difficulty: Easy, AACSB: None

• / 4

Russell & Taylor / Operations & Supply Chain Management, 10 th edition Test Bank Copyright ©2020 John Wiley & Sons, Inc. 1-2

• Which of the following best fits the definition of lean production?
• a system that prizes efficiency and quantity
• a system that prizes efficiency and quality
• a system that prizes flexibility and quantity
• a system that prizes flexibility and quality

Ans: D, LO: 2, Bloom: K, Difficulty: Easy, AACSB: None

• The adaptation of mass production to emphasize quality and flexibility, rather than

efficiency, is known as lean production.Ans: True, LO: 2, Bloom: K, Difficulty: Moderate, AACSB: None

• Because of a global recession in the late 2000s ,companies started focusing on the

most critical factors to sustain their business during the downturn.Ans: True, LO: 2, Bloom: K, Difficulty: Moderate, AACSB: None

• Sustainability is concerned with the following
• profits
• global supply chains
• sustain the health of people in the long term
• increasing market share

Ans: C, LO: 2, Bloom: K, Difficulty: Moderate, AACSB: None

• An effective strategic positioning strategy considers all of the following expect
• strengths and weaknesses of the organization
• needs of the marketplace
• the strategic management team
• positions of competitors

Ans: True, LO: 2, Bloom: K, Difficulty: Moderate, AACSB: None

• Globalization requires that firms compete only on cost and not quality, speed or

flexibility.Ans: False, LO: 3, Bloom: K, Difficulty: Moderate, AACSB: None

• Companies pursue globalization for all of the following reasons except
• gain access to global markets
• increase shipping costs
• be more responsive to changes in demand
• build reliable sources of supply

Ans: C, LO: 3, Bloom: C, Difficulty: Moderate, AACSB: None

• / 4

Russell & Taylor / Operations & Supply Chain Management, 10 th edition Test Bank Copyright ©2020 John Wiley & Sons, Inc. 1-3

• The European Union requires that strict quality and environmental standards be met

before companies can do business with member countries.Ans: True, LO: 3, Bloom: K, Difficulty: Moderate, AACSB: None

• A major challenge and opportunity for many firms is the globalization of the supply

chain.Ans: True, LO: 3, Bloom: K, Difficulty: Easy, AACSB: None

• Globalization has affected manufacturing but not service operations.

Ans: False, LO: 3, Bloom: K, Difficulty: Easy, AACSB: None

• Two-thirds of today’s businesses operate globally.

Ans: True, LO: 3, Bloom: K, Difficulty: Moderate, AACSB: None

• In 2010, the US surpassed China as the world’s largest manufacturer.

Ans: False, LO: 2, Bloom: K, Difficulty: Moderate, AACSB: None

• China has reshaped the way firms compete globally.

Ans: True, LO: 3, Bloom: K, Difficulty: Easy, AACSB: None

• Increases in productivity enable a nation to raise its standard of living.

Ans: True, LO: 4, Bloom: K, Difficulty: Easy, AACSB: None

• What is the most common measure of competitiveness?
• GDP
• wage rates
• productivity
• manufacturing output

Ans: True, LO: 4, Bloom: K, Difficulty: Easy, AACSB: None

• Multifactor productivity is best defined as
• a single output and a single input
• multiple outputs and a single input
• / 4