Question 1

The process of comparing outputs to previously established standards to determine if corrective action is needed is called:

Accepted Answer

A)   planning.
B)   directing.
C)   controlling.
D)   budgeting.
E)   disciplining.F) B) and D)
G) C) and E) C

Question 2

The greater the degree of customer involvement, the more challenging the design and management of operations.

Accepted Answer

A) True 
 B)False

Question 3

Which of the following would tend to increase the importance of supply chain management?

Accepted Answer

A)   increased supply chain stability
B)   lower levels of outsourcing
C)   reduced competitive pressures
D)   increased globalization
E)   greater emphasis on local marketsF) C) and D)
G) All of the above

Question 4

Which of the following does not relate to system design?

Accepted Answer

A)   altering the system capacity
B)   location of facilities
C)   inventory management
D)   selection and acquisition of equipment
E)   physical arrangement of departmentsF) All of the above
G) B) and C)

Question 5

Modern firms increasingly rely on other firms to supply goods and services instead of doing these tasks themselves. This increased level of _____________ is leading to increased emphasis on ____________ management.

Accepted Answer

A)   outsourcing; supply chain
B)   offshoring; lean
C)   downsizing; total quality
D)   optimizing; inventory
E)   internationalization; interculturalF) A) and B)
G) A) and C)

Question 6

One concern in the design of production systems is the degree of standardization.

Accepted Answer

A) True 
 B)False  True

Question 7

The word "technology" is used only to refer to "information technology."

Accepted Answer

A) True 
 B)False

Question 8

Operations and sales are the two functional areas that exist to support activities in other functions such as accounting, finance, IT, and human resources.

Accepted Answer

A) True 
 B)False  False

Question 9

The fact that a few improvements in a few key areas of operations will have more impact than many improvements in many other areas is consistent with the:

Accepted Answer

A)   Irwin phenomenon.
B)   Pareto phenomenon.
C)   Stevenson phenomenon.
D)   Tellier phenomenon.
E)   Adam Smith phenomenon.F) A) and D)
G) D) and E)

Question 10

Managers should most often rely on quantitative techniques for important decisions since quantitative approaches result in more accurate decisions.

Accepted Answer

A) True 
 B)False

Question 11

Which of the following is not a characteristic of service operations?

Accepted Answer

A)   intangible output
B)   high customer contact
C)   high labor content
D)   easy measurement of productivity
E)   low uniformity of inputF) A) and C)
G) A) and E)

Question 12

Which of the following is not a benefit of using models in decision making?

Accepted Answer

A)   They provide a standardized format for analyzing a problem.
B)   They serve as a consistent tool for evaluation.
C)   They are easy to use and less expensive than dealing with the actual situation.
D)   They force the decision maker to take into account qualitative issues such as personalities and emotions.
E)   They offer insights into fundamental issues at play in a decision-making setting.F) B) and D)
G) A) and E)

Question 13

The use of models will guarantee the best possible decisions.

Accepted Answer

A) True 
 B)False

Question 14

Value added by definition is always a positive number since "added" implies increases.

Accepted Answer

A) True 
 B)False

Question 15

Elton Mayo's Hawthorne experiments were significant contributions to the human relations movement, which emphasized the importance of the human element in job design.

Accepted Answer

A) True 
 B)False

Question 16

Buying goods or services instead of producing or providing them in-house is called:

Accepted Answer

A)   downsizing.
B)   outsourcing.
C)   internationalization.
D)   vertical integration.
E)   entrepreneurship.F) C) and D)
G) A) and B)

Question 17

Which of the following is not an ongoing trend in manufacturing?

Accepted Answer

A)   globalization
B)   quality improvement
C)   flexibility and agility
D)   mass production for greater economies of scale
E)   technological advancesF) B) and D)
G) A) and E)

Question 18

Which of the following is essential to consider with respect to managing a process to meet demand?

Accepted Answer

A)   advertising
B)   trends in fashion
C)   global economic trends
D)   financial reporting standards
E)   capacityF) B) and E)
G) A) and B)

Question 19

Prior to the Industrial Revolution, goods were produced primarily by craftsmen or their apprentices using custom-made parts.

Accepted Answer

A) True 
 B)False

Question 20

Service operations require additional inventory because of the unpredictability of consumer demand.

Accepted Answer

A) True 
 B)False

Exam 1: Introduction to Operations Management

The process of comparing outputs to previously established standards to determine if corrective action is needed is called:

Correct AnswerverifiedC

The greater the degree of customer involvement, the more challenging the design and management of operations.

Correct AnswerverifiedShow Answer

Which of the following would tend to increase the importance of supply chain management?

Correct AnswerverifiedShow Answer

Which of the following does not relate to system design?

Correct AnswerverifiedShow Answer

Modern firms increasingly rely on other firms to supply goods and services instead of doing these tasks themselves. This increased level of _____________ is leading to increased emphasis on ____________ management.

Correct AnswerverifiedShow Answer

One concern in the design of production systems is the degree of standardization.

Correct AnswerverifiedTrue

The word "technology" is used only to refer to "information technology."

Correct AnswerverifiedShow Answer

Operations and sales are the two functional areas that exist to support activities in other functions such as accounting, finance, IT, and human resources.

Correct AnswerverifiedFalse

The fact that a few improvements in a few key areas of operations will have more impact than many improvements in many other areas is consistent with the:

Correct AnswerverifiedShow Answer

Managers should most often rely on quantitative techniques for important decisions since quantitative approaches result in more accurate decisions.

Correct AnswerverifiedShow Answer

Which of the following is not a characteristic of service operations?

Correct AnswerverifiedShow Answer

Which of the following is not a benefit of using models in decision making?

Correct AnswerverifiedShow Answer

The use of models will guarantee the best possible decisions.

Correct AnswerverifiedShow Answer

Value added by definition is always a positive number since "added" implies increases.

Correct AnswerverifiedShow Answer

Elton Mayo's Hawthorne experiments were significant contributions to the human relations movement, which emphasized the importance of the human element in job design.

Correct AnswerverifiedShow Answer

Buying goods or services instead of producing or providing them in-house is called:

Correct AnswerverifiedShow Answer

Which of the following is not an ongoing trend in manufacturing?

Correct AnswerverifiedShow Answer

Which of the following is essential to consider with respect to managing a process to meet demand?

Correct AnswerverifiedShow Answer

Prior to the Industrial Revolution, goods were produced primarily by craftsmen or their apprentices using custom-made parts.

Correct AnswerverifiedShow Answer

Service operations require additional inventory because of the unpredictability of consumer demand.

Correct AnswerverifiedShow Answer

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C

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Modern firms increasingly rely on other firms to supply goods and services instead of doing these tasks themselves. This increased level of _ is leading to increased emphasis on management.

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True

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False

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