Question 1

To an operations manager, the "critical customer" is:

Accepted Answer

A) The person who buys a product. 
B) The person who has the greatest impact on design, sales, and growth opportunities for the product. 
C) The Echelon 1 customer. 
D) The person who uses the product. The critical customer is one who has the greatest impact on design, sales, and growth opportunities.

Question 2

Physical goods can be differentiated from services in the operations management process by:

Accepted Answer

A) Longer lead times and they can be inventoried. 
B) More capital intensive and short lead times. 
C) More labor intensive and longer lead times. 
D) More expensive and easier to control. Physical goods typically have longer lead times than services and can be inventoried (services typically cannot).

Question 3

Which of the following groups are NOT likely to be stakeholders for operations in a local bank?

Accepted Answer

A) Customers 
B) Regulators 
C) Employees 
D) All of the above are likely to be stakeholders

Question 4

An example of strategic planning is:

Accepted Answer

A) Deciding where to locate a new manufacturing plant. 
B) Forecasting next week's demand of a given product item. 
C) Targeting customer demand for aggregate product families. 
D) Setting inventory levels for a given product. Strategic planning addresses long-term decisions involving large amounts of money.

Question 5

Which of the following factors is NOT a major change driver that supply chain managers are concerned about?

Accepted Answer

A) Technology changes 
B) Regulatory changes 
C) Global political changes 
D) Supply chain managers are concerned about All of these changes. Supply chain managers also track market changes, including social issues such as sustainability.

Question 6

What kinds of questions does an operations manager who is responsible for strategic level planning address?

Accepted Answer

A) Which employees should work the day shift tomorrow? 
B) How should this process be organized? 
C) How many manufacturing plants should the company operate? 
D) Should we make this part or buy it?

Question 7

Suppose that you are the general manager of a hotel.For which of the following issues would you first seek help from an operations manager in your firm?

Accepted Answer

A) Our prices seem to be too high. 
B) Customers complaints are rising. 
C) We need a new insurance policy. 
D) We are running out of cash.

Question 8

Every organization operates which of the following types of supply chains?

Accepted Answer

A) Product and tangible goods supply chains. 
B) Information and personnel supply chains. 
C) Direct and indirect supply chains. 
D) Product and resource/technology supply chains. Product supply chains manage flows of goods and services.Resource/technology supply chains manage acquisitions and flows of equipment, facilities, workers, product designs, and so on.

Question 9

Which functional activities are the most closely related to operations managers' attempts to manage the flow of materials and information in a firm?

Accepted Answer

A) Finance, accounting, and supply management 
B) Logistics, finance and supply management 
C) Logistics, supply, and customer management 
D) Customer, finance, and logistics management Supply management, logistics management, and customer management are the functions most directly related to the flows of both materials and information.Finance and accounting are primarily about managing capital and reporting information.

Question 10

A process is:

Accepted Answer

A) A set of planned steps used to achieve an objective. 
B) A system of activities that transforms inputs into valuable outputs. 
C) A system of decisions. 
D) A combined effort by people who want to get something done. Processes involve transformation, and they may or may not involve people.

Question 11

Jones Manufacturing sells a part to Lear Corporation.Lear puts this part into a radio, which Lear then sells to Ford.From Ford's point of view, Jones Manufacturing is a(n) __________ supplier.

Accepted Answer

A) Echelon 1 
B) Echelon 2 
C) Tier 1 
D) Tier 2 A supplier's supplier is known as a Tier 2 supplier.

Question 12

While there is overlap between operations management and supply chain management, the two are different in that:

Accepted Answer

A) Operations management focuses on production, supply chain management focuses on supply and logistics. 
B) Operations management focuses on tangible goods, supply chain management focuses on services. 
C) Operations management focuses on processes, supply chain management focuses on relationships and flows. 
D) All of these. The key distinction is that supply chain management focuses on relationships and flows, whereas operations management focuses on processes.

Question 13

In working with downstream processes, internal operations managers typically work closely with:

Accepted Answer

A) Marketing and sales managers 
B) Information technology managers 
C) Human resource managers 
D) Government regulators

Question 14

Which of the following is NOT one of the processes included in operations management?

Accepted Answer

A) Design 
B) Finance 
C) Produce 
D) Deliver Design, supply, produce, and deliver are operations management processes.Finance is not.

Question 15

Which of the following statements best describes "process thinking"?

Accepted Answer

A) It is a way to manage thought processes to make better decisions. 
B) It is a way to view business as a system of inter-related activities 
C) It is a way to approach work systematically 
D) It is a way to categorize elements of work activities

Question 16

Johnson Company makes widgets, which it then sends to Smith Company.Smith Company puts the widgets in packages.Smith Company is considered by Johnson to be a:

Accepted Answer

A) Critical customer. 
B) Upstream product supplier. 
C) Aftermarket supplier. 
D) Downstream product supplier. Companies that enhance finished goods are considered downstream product suppliers.

Question 17

Which of the following decisions would NOT be under the direct control of operations managers?

Accepted Answer

A) What resources will be used to satisfy customer demand? 
B) What customers should be targeted with greatest priority? 
C) What suppliers should provide needed inputs? 
D) What mode of transportation should be used to ship products? Customer targeting is primarily the responsibility of the marketing function.

Question 18

Operations management is:

Accepted Answer

A) The management of production. 
B) The management of services. 
C) The management of processes. 
D) The management of physicians. "Processes" comprehends all of the aspects of operations management.The other answers are just possible components of operations management.

Question 19

Fundamental areas of management in supply chain operations management include:

Accepted Answer

A) Quality, Inventories, and Processes. 
B) People, Equipment, and Money. 
C) Markets, Processes, and Sales. 
D) Lean Systems, Quality, and Flexibility. These groups work together to identify and fulfill customers' needs.

Question 20

A supplier of materials used in manufactured goods is a member of:

Accepted Answer

A) A union 
B) The product supply chain 
C) The resource/technology supply chain 
D) The tier 2 supply chain

Exam 1: Introduction to Managing Operations Across the Supply Chain