Question 1

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. A

Question 2

A supply chain is a global network of organizations and activities involved in:

Accepted Answer

A)  Producing, buying, servicing, and disposing of goods and services.
B)  Designing, transforming, consuming, and disposing of goods and services.
C)  Financing, producing, and marketing of goods and services.
D)  Designing, financing, selling, and disposing of goods and services. B

Question 3

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 D

Question 4

Customer service management connects what functional groups?

Accepted Answer

A)  Supply management, marketing, and finance.
B)  Logistics management, sales and distribution, and product engineering.
C)  Marketing, logistics management, and sales and distribution.
D)  Human resources management, marketing, and finance.

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.

Question 6

Structural operations management decisions include:

Accepted Answer

A)  Workforce, capacity, and facilities.
B)  Workforce, production planning, and materials controls.
C)  Capacity, facilities, and technology.
D)  Materials controls, supply chain, and value definition.

Question 7

During the "mass production" era, operations management focused primarily on:

Accepted Answer

A)  Production and design.
B)  Internal production.
C)  The global supply chain.
D)  Sales, production and design.

Question 8

Which functional activities are the most related to operations management 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

Question 9

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.

Question 10

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.

Question 11

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

Accepted Answer

A)  Design
B)  Finance
C)  Produce
D)  Deliver

Question 12

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.

Question 13

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.

Question 14

Growth of the supply chain management perspective in operations management results from the advent of:

Accepted Answer

A)  Technology and infrastructure advances.
B)  Collaborative networks.
C)  A focus on core capabilities.
D)  All of these.

Question 15

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.

Question 16

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.

Question 17

Which of the following statements is NOT true regarding supply chain management?

Accepted Answer

A)  Globalization has slowed the growth of supply chain management.
B)  Supply chain management is a way of viewing operations management.
C)  Supply chain management has grown as a result of a focus on core competencies.
D)  Supply chain management is about making the most of relationships with suppliers.

Question 18

Which of the following statements about operations management processes is NOT true?

Accepted Answer

A)  Inputs to operations management processes can be materials, people, and/or information.
B)  Outputs of operations management processes are always tangible goods.
C)  Operations management processes involve transformation of inputs into valuable outputs.
D)  Design of operations processes should reflect what customers want.

Question 19

Which of the following statements are reasons why operations management is important?

Accepted Answer

A)  Efficient and productive operations drive the economic well-being of nations.
B)  Operations management is responsible for much of the value created by organizations.
C)  Operations management is a key source of competitive differentiation among firms.
D)  All of these are reasons why operations management is important.

Question 20

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?

Exam 1: Introduction to Managing Operations Across the Supply Chain