(Test Bank) Operations And Supply Chain Management

Russell,Taylor, 10

Business

Test Bank

10th Edition

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Author(s): Russell, Taylor

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Russell & Taylor / Operations & Supply Chain Management, 10th edition Test Bank Copyright © 2020 John Wiley & Sons, Inc. 1-1 Chapter 1: Operations Management True/ False 1. Operations management is only concerned with the day -to-day operations of a firm’s productive system s. Ans: False , LO: 1, Bloom: K, Difficulty: Easy , AACSB : None 2. A warehouse operation is an example of a ph ysical transformation process. Ans: False, LO: 1, Bloom: K, Difficulty: Easy , AACSB : None 3. A supply chain is a series of activities from supplier to customer that add s value to a product or service. Ans: True , LO: 1, Bloom: K, Difficulty: Moderate , AACSB : None 4. Human resources management provides product demand estimates that are used in production decisions. Ans: False, LO: 1, Bloom: K, Difficulty: Moderate , AACSB : None 5. A retail operation is an example of an ex change transformation process. Ans: True, LO: 1, Bloom: K, Difficulty: Easy , AACSB : None 6. Which of the following is a functional areas of operations management? a. information technology b. legal c. compliance d. human resources Ans: False, LO: 1, Bloom: C, Difficulty: Eas y, AACSB: None 7. Operations management designs, operates, and improves marketing systems. Ans: False , LO: 1, Bloom: K, Difficulty: Easy , AACSB : None 8. An operations manager benefits from an integrated v iew of business organizations. Ans: True, LO: 1, Bloom: K, Difficulty: Easy , AACSB : None 9. The systematic analysis of work methods is known as operations research . Ans: False , LO: 2, Bloom: K, Difficulty: Easy , AACSB : None Russell & Taylor / Operations & Supply Chain Management, 10th edition Test Bank Copyright © 2020 John Wiley & Sons, Inc. 1-2 10. Which of the following best fits the definition of lean production? a. a system that prizes efficiency and quantity b. a system that prizes efficiency and quality c. a system that prizes flexibility and quantity d. a system that prizes flexibility and quality Ans: D, LO: 2, Bloom: K, Difficulty: Easy, AACSB: None 11. The ada ptation 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 12. 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 13. Sustainability is concerned with the fol lowing a. profits b. global supply chains c. sustain the health of people in the long term d. increasing market share Ans: C, LO: 2, Bloom: K, Difficulty: Moderate, AACSB: None 14. An effective strategic positioning strategy considers all of the following expect a. strengths and weaknesses of the organization b. needs of the marketplace c. the strategic management team d. positions of competitors Ans: True, LO: 2, Bloom: K, Difficulty: Moderate, AACSB: None 15. Globalization requires that firms compete only on cost and not qua lity, speed or flexibility. Ans: False, LO: 3, Bloom: K, Difficulty: Moderate , AACSB : None 16. Companies pursue globalization for all of the following reasons except a. gain access to global markets b. increase shipping costs c. be more responsive to changes in demand d. build reliable sources of supply Ans: C, LO: 3, Bloom: C, Difficulty: Moderate, AACSB: None Russell & Taylor / Operations & Supply Chain Management, 10th edition Test Bank Copyright © 2020 John Wiley & Sons, Inc. 1-3 17. 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 18. 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 19. Globalization has affected manufacturing but not service operations. Ans: False , LO: 3, Bloom: K, Difficulty: Easy, AACSB: None 20. Two-thirds of today’s businesses operate globally . Ans: True, LO: 3, Bloom: K, Difficulty: Moderate , AACSB : None 21. In 2010, the US surpassed China as the world’s largest manufacturer. Ans: False, LO: 2, Bloom: K, Difficulty: Moderate, AACSB: None 22. China has reshaped the way firms compete globally . Ans: True, LO: 3, Bloom: K, Difficulty: Easy, AACSB: None 23. Increases in productivity enable a nation to raise its standard of living. Ans: True, LO: 4, Bloom: K, Difficulty: Easy, AACSB: None 24. What is the most common measure of competitiveness? a. GDP b. wage rates c. productivity d. manufacturing output Ans: True, LO: 4, Bloom: K, Difficulty: Easy, AACSB: None 25. Multifactor productivity is best defined as a. a single output and a single input b. multiple outputs and a single input Russell & Taylor / Operations & Supply Chain Management, 10th edition Test Bank Copyright © 2020 John Wiley & Sons, Inc. 1-4 c. a single output and multiple inputs d. multiple outputs and multiple inputs Ans: C, LO: 4, Bloom: C, Difficulty: Moderate, AACSB: None 26. Deployment is a step in strategy formulation that evaluates the alignment between core competencies and or der winners. Ans: False, LO: 5, Bloom: K, Difficulty: Easy , AACSB : None 27. Positioning is a step in strategy formulation that defines how firms will compete in the marketplace. Ans: True, LO: 5, Bloom: K, Difficulty: Moderate , AACSB : None 28. Which of the following best describes order qualifier? a. the lowest cost product b. the product with the most features c. the features that make an item considered for purchase d. the features that wins orders in the marketplace Ans: C, LO: 5, Bloom: K, Difficulty: Easy, AACS B: None 29. An order qualifier is the characteristic of a product that wins order s in the marketplace . Ans: False, LO: 5, Bloom: K, Difficulty: Easy , AACSB : None 30. Core competencies tend to be processes and not products or technologies. Ans: True, LO: 5, Bloom: K, Difficulty: Easy , AACSB : None 31. Which of the following is the first step in strategy formulation? a. defining a primary task b. assessing core competencies c. determining order winners and order qualifiers d. positioning the firm Ans: A, LO: 5, Bloom: K, Difficulty: Easy, AACSB: None 32. Identify the option below that is associated with strategy deployment a. unveiling strategies with fanfare Russell & Taylor / Operations & Supply Chain Management, 10th edition Test Bank Copyright © 2020 John Wiley & Sons, Inc. 1-5 b. creating plans that are more than 5 years in the future c. converting the firm’s order winners and qualifiers int specific performance requirements d. developing plans that have a variety of meanings to different departments and functional areas Ans: C, LO: 6, Bloom: C, Difficulty: Moderate, AACSB: None 33. Companies that compete on innovation establish a corporate culture that do es the following except a. discourages risk taking b. challenges the status quo c. accepts failure as part of the learning process d. celebrates success Ans: A, LO: 5, Bloom: K, Difficulty: Moderate, AACSB: None 34. Firms compete in the marketplace based on cost, speed, quality and flexibility. Ans: True, LO: 5, Bloom: K, Difficulty: Easy , AACSB : None Multiple Choice 35. Operations management is concerned with the _________ of a firm’s productive systems. a. design b. operation c. improvement d. All of these answer choices are correct. Ans: D, LO: 1, Bloom: K, Difficulty: Easy , AACSB : None 36. The transformation process associated with health care is best described as a. locational b. exchange c. physiological d. informational Ans: C, LO: 1, Bloom: K, Difficulty: Easy , AACSB : None 37. Which of the following is not one of the four primary functional areas of a firm? a. human resources b. legal c. marketing Russell & Taylor / Operations & Supply Chain Management, 10th edition Test Bank Copyright © 2020 John Wiley & Sons, Inc. 1-6 d. operations Ans: B, LO: 1, Bloom: K, Difficulty: Easy, AACSB: None 38. All of the following are responsibilities of operations managers except a. acquiring financial resources b. managing inventories c. planning production d. scheduling production Ans: A, LO: 1, Bloom: K, Difficulty: Easy , AACSB : None 39. Which of the following is not an event or concept associated with the quality revolution? a. TQM (total quality management) b. Internet c. Six Sigma d. JIT Ans: B, LO: 2, Bloom: K, Difficulty: Moderate , AACSB : None 40. Linear programming, waiting line, simulation, and PERT/CPM are all elements of which era of operations and supply chain management? a) Quality Research b) Operations Research c) Internet Revolution d) Globalization Ans: B, LO: 2, Bloom: K, Difficulty: Moderate , AACSB : None 41. Dividing a job into a series of small tasks , each performed by a different worker , is known as a. craft production b. scientific management c. division of labor d. interchangeable parts Ans: C, LO: 2, Bloom: K, Difficulty: Moderate, AACSB: None 42. The most recent era in the evolution of operations and supply chain management is a. Internet Revolution b. Sustainability c. Globalization Russell & Taylor / Operations & Supply Chain Management, 10th edition Test Bank Copyright © 2020 John Wiley & Sons, Inc. 1-7 d. Quality Revolution Ans: B, LO: 2, Bloom: K, Difficulty: Moderate, AACSB: None 43. Sustainability, in its broadest sense , include (s) a. using resources wisely. b. treating workers with respect. c. establishing a business model of shared values. d. All of these answer choices are correct. Ans: D, LO: 2, Bloom: K, Difficulty: Moderate, AACSB: None 44. Mass production is well suited to all of the following except a. producing large volumes of goods quickly . b. adapting quickly to changes in market demand . c. producing st andardized products for a large market . d. All of these answer choices are correct. Ans: B, LO: 2, Bloom: K, Difficulty: Easy, AACSB: None 45. The major factors impacting globalization of the supply chain include all the following except a. falling trade barriers. b. the Internet . c. declining union membership. d. All these answer choices are correct. Ans: C, LO: 3, Bloom: K, Difficulty: Hard , AACSB : None 46. Companies go global to a. take advantage of favorable costs . b. keep abreast of trends and access new technologie s. c. build reliable sources of supply . d. All of these answer choices are correct . Ans: D, LO: 3, Bloom: K, Difficulty: Moderate , AACSB : None 47. A manager of a global supply chain is concerned with all the following except a. timeliness. b. quality. c. social issues . d. All of the se answer choices are correct. Ans: D, LO: 3, Bloom: K, Difficulty: Moderate , AACSB : None Russell & Taylor / Operations & Supply Chain Management, 10th edition Test Bank Copyright © 2020 John Wiley & Sons, Inc. 1-8 48. The ratio of a firm’s monthly output to the number of labor hours used in the same month would be a measure of a. labor productivity . b. capital productivity . c. machine productivity . d. multifactor productivity . Ans: A, LO: 4, Bloom: K, Difficulty: Moderate, AACSB: None 49. The production system t hat prizes flexibility and quality over efficiency and quantity is known as a. mass production . b. craft production . c. lean production . d. electronic commerce . Ans: C, LO: 4, Bloom: K, Difficulty: Moderate, AACSB: None 50. Telco Inc ., a manufacturing firm , is calculating its monthly productivity report. From the following data calculate the labor productivity. Labor rate $20 Machine rate $15 Units produced 50,000 Labor hours 4,000 Machine hours 2,000 Cost of materials $20,000 Cost of energy $5,000 a. 0.370 b. 0.625 c. 1.500 d. 1.667 Ans: B, LO: 4, Bloom: K, Difficulty: Easy, AACSB: None Solution: Labor productivity=50,000/80,000 =0.625 51. Telco Inc., a manufacturing firm , is calculating its monthly productivity report. From the following da ta calculate the machine productivity. Labor rate $20 Machine rate $15 Units produced 50,000 Labor hours 4,000 Machine hours 2,000 Cost of materials $20,000 Cost of energy $5,000 a. 0..370 b. 0.625 Russell & Taylor / Operations & Supply Chain Management, 10th edition Test Bank Copyright © 2020 John Wiley & Sons, Inc. 1-9 c. 1.500 d. 1.667 Ans: D, LO: 4 , Bloom: K, Difficulty: Easy, AACSB: None Solution: Machine productivity=50,000/30000=1.667 52. Telco Inc., a manufacturing firm , is calculating its monthly productivity report. From the following raw data calculate the multifactor productivity. Labor rate $20 Machine rate $15 Units produced 50,000 Labor hours 4,000 Machine hours 2,000 Cost of materials $20,000 Cost of energy $5,000 a. 0.370 b. 0.625 c. 1.500 d. 1.667 Ans: A, LO: 4 , Bloom: K, Difficulty: Easy, AACSB: None Multi -factor productivity=50,000/135,000=0.37 0 53. Snacknow, a food service firm , is calculating its monthly productivity report. From the following raw data calculate the labor productivity. Labor rate $10 Units produced 10,000 Labor hours 1,000 Cost of materials $2000 Cost of energy $500 a. 0.220 b. 0.476 c. 0.800 d. 1.000 Ans: D, LO: 4 , Bloom: K, Difficulty: Easy, AACSB: None Solution: Labor productivity=10,000/10,000=1.000 54. Snacknow, a food service firm , is calculating its monthly productivity report. From the following data calculate the energy productivity. Labor rate $10 Units produced 10,000 Labor hours 1,000 Cost of materials $2000 Cost of energy $500 a. 0.220 b. 2 Russell & Taylor / Operations & Supply Chain Management, 10th edition Test Bank Copyright © 2020 John Wiley & Sons, Inc. 1-10 c. 10 d. 20 Ans: D, LO: 4 , Bloom: K, Difficulty: Easy, AACSB: None Energy productivity=10,000/500=20 55. Snacknow, a food service firm , is calculating its monthly productivity report. From the following data calculate the multifactor productivity. Labor rate $20 Units produced 10,000 Labor hours 1,000 Cost of materials $2000 Cost of energy $500 a. 0.220 b. 0.476 c. 0.800 d. 1.000 Ans: C, LO: 4 , Bloom: K, Difficulty: Easy, AACSB: None Multi -factor productivity= 10,000/12,500= 0.800 56. _____________ is how the mission of a firm is accomplished. a. Strategy b. Design c. An operational decision d. None of the se answer choices is correct. Ans: A, LO: 5, Bloom: K, Difficulty: Easy, AACSB: None 57. _____________ represents what the firm is in the business of doing. a. Primary task b. Core competency c. Positioning d. Deploying Ans: A, LO: 5, Bloom: K, Difficulty: Easy, AACSB: None 58. _____________ is what the firm does better than anyone else. a. Primary task b. Core competency c. Positioning d. Deploying Ans: B, LO: 5, Bloom: K, Difficulty: Easy, AACSB: None 59. _____________ are the characteristics of a product that qualify it to be considered for purchase by a customer. a. Order winners Russell & Taylor / Operations & Supply Chain Management, 10th edition Test Bank Copyright © 2020 John Wiley & Sons, Inc. 1-11 b. Order qualifiers c. Core competency d. Positioning Ans: B, LO: 5, Bloom: K, Difficulty: Easy, AACSB: None 60. _____________ is the characteristic of a product that wins the order in the marketplace. a. Order winners b. Order qualifiers c. Core competency d. Positioning Ans: A, LO: 5, Bloom: K, Difficulty: Easy, AACSB: None 61. ______________ focus (es) the organization on common goals that can be translated into measurable objectives. a. Order winners b. Core competency c. Positioning d. Deploying the strategy Ans: D, LO: 5, Bloom: K, Difficulty: Easy, AACSB: None 62. Companies that compete on ______________ are able to produce a wide variety of products in response to customer needs. a. cost b. speed c. flexibility d. quality Ans: C, LO: 5, Bloom: K, Difficulty: Easy, AACSB: None 63. Companies that compete on ______________ pursue the elimination of all waste. a. cost b. speed c. flexibility d. quality Ans: D, LO: 5, Bloom: K, Difficulty: Easy, AACSB: None 64. Companies that compete on ______________ recognize the advantages of time -based competitio n. a. cost b. speed c. flexibility d. quality Ans: B, LO: 4, Bloom: K, Difficulty: Easy, AACSB: None Russell & Taylor / Operations & Supply Chain Management, 10th edition Test Bank Copyright © 2020 John Wiley & Sons, Inc. 1-12 65. Companies that compete on ______________ focus on pleasing customers and satisfying their expectations. a. cost b. speed c. flexibility d. quality Ans: D, LO: 5, Bloom: K, Difficulty: Easy, AACSB: None 66. The balanced scorecard examines a firm’s performance in all the following critical areas except a. finances b. customers c. processes d. All of these answer choices are correct. Ans: D, LO: 5, Bloom: K, Difficulty: Easy, AACSB: None 67. The ____________ function helps strategy evolve by creating new ways of delivering a firm’s competitive priorities. a. finance b. marketing c. operations d. None of the answer choices is correct. Ans: C, LO: 5, Bloom: K, Difficulty: Easy, AACSB: None 68. Companies that compete on _________________ establish a corporate culture that encourages risk. a. Innovation b. Quality c. Flexibility d. Cost Ans: A, LO: 5, Bloom: K, Difficulty: Moderate, AACSB: None 69. A(n) ____________ strategy involves a series of integrated decisions on processes, facilities, technology, quality, capacity, etc. a. finance b. marketing c. operations d. None of the se answer choices is correct. Ans: C, LO: 5, Bloom: K, Difficulty: Easy, AACSB: Non e Russell & Taylor / Operations & Supply Chain Management, 10th edition Test Bank Copyright © 2020 John Wiley & Sons, Inc. 1-13 Short Answer 70. Briefly describe how operations can be viewed as a transformation process. Operations is often defined as a transformation process. Inputs such as raw materials, labor, equipment, and capital are transformed into outputs (goods and services). Customer feedback is used to adjust the transformation process. An objective of the operations manager is to ensure that the transformation process operates efficiently and the outputs of the process have greater value than the sum of the inputs. In this way the transformation process creates value, making it possible to view the transformation process as a value chain extending from supplier to customer. Ans: Essay, LO: 1, Bloom: K, Difficulty: Moderate, AACSB: None 71. Briefly describe the four primary functional areas of a firm. How is operations related to them? The four primary functional areas of a firm are marketing, finance, operations, and human resources. For most firms, operations is the technical core or “hu b” of the organization, interacting with the other functional areas and suppliers to produce goods and services for customers. For example, marketing provides sales forecasts to operations and operations provides marketing with product availability inform ation, lead time estimates and delivery schedules. Operations provides finance with inventory and production data, capital budgeting and equipment requests, and technology plans. Finance provides the capital resources for financing inventory and securing more capital equipment. Operations relies on human resources to meet its personnel needs —hiring, training, and evaluating workers. Ans: Essay, LO: 1, Bloom: K, Difficulty: Moderate, AACSB: None 72. What is productivity and how is it measured? Productivi ty is the ratio of output to input. Output can be expressed in units or dollars. Single factor productivity compares output to individual inputs, such as labor hours, investment in equipment, or material usage. Multifactor productivity relates output to a combination of inputs, such as labor and capital. Total factor productivity compares the quantity of goods and services produced with all the inputs used to produce them. Ans: Essay, LO: 4, Bloom: K, Difficulty: Moderate, AACSB: None 73. What can lead to increases in productivity? Russell & Taylor / Operations & Supply Chain Management, 10th edition Test Bank Copyright © 2020 John Wiley & Sons, Inc. 1-14 Productivity increases when firms become more efficient, expand, achieve breakthroughs that enable output increases to occur with reduced inputs, downsize while maintaining output with fewer inputs, and retrench with output and i nputs decreasing , but inputs decreasing at a faster rate than output. Ans: Essay, LO: 4, Bloom: K, Difficulty: Moderate, AACSB: None Additional M/C questions: 74. Scientific management is __________. a. the management of scientists working in a company b. the management of scientific experiments so that they will align with the company’s strategy c. the use of observation, measurement, and analysis to identify the best method to perform a job d. another name for the division of labor Ans: C, LO: 2, Bloom: K, Difficul ty: Easy, AACSB: None 75. Henry Ford famously appli ed __________. a. interchangeable parts b. linear programing c. theories of motivation d. mass production Ans: D, LO: 2, Bloom: K, Difficulty: Easy, AACSB: None 76. Supply chain management is aimed at managing the flow of __________. a. information b. products c. services d. All of these answer choices are correct Ans: D, LO: 3, Bloom: K, Difficulty: Easy, AACSB: None 77. Globalization has__________ the risk of disruptions in operations and supply chain activities; it has also provided __________ flexibility in responding to disruptions. a. decreased; less b. increased; less c. decreased; more d. increased; more Ans: D, LO: 3, Bloom: K, Difficulty: Easy, AACSB: None 78. Today , approximately ____% of businesses operate globally through global markets, global operations, global financing a. 67 b. 75 c. 85 Russell & Taylor / Operations & Supply Chain Management, 10th edition Test Bank Copyright © 2020 John Wiley & Sons, Inc. 1-15 d. 90 Ans: A, LO: 3, Bloom: K, Difficulty: Easy, AACSB: None 79. If the units produced by a factory increased by 10% and the labor hours decreased by 10%, then the labor productivity __________. a. decreased by 20% b. increased by 20% c. increased by 21 % d. increased by 22% Ans: D, LO: 3, Bloom: K, Difficulty: Medium , AACSB: None 80. If the units produced by a factory increased by 10% and the labor productivity increased by 25%, then the labor hours __________. a. decreased by 15% b. decreased by 13% c. decreased by 12% d. decreased by 11% Ans: C, LO: 3, Bloom: K, Difficulty: Hard , AACSB: None 81. If the units produced by a factory decreased by 10% and the labor productivity increased by 25%, then the labor hours __________. a. decreased by 15% b. decreased by 26% c. decreased by 28% d. decreased by 35% Ans: C, LO: 3, Bloom: K, Difficulty: Hard , AACSB: None 82. If the units produced by a factory decreased by 10% and the labor productivity decreased by 25%, then the labor hours __________. a. decreased by 15% b. increased by 15% c. increased by 17% d. increased by 20% Ans: D, LO: 3, Bloom: K, Difficulty: Hard , AACSB: None 83. The labor productivity of a factory fell by 5% during each of three consecutive quarters. The labor hours didn’t show any significant change during this period. A new COO is committed to recover the existi ng level before the loss of productivity , and her goal is to achieve this by the end of next quarter, even though the labor hours will be 5 % less. The COO’s goal is to increase the number of units produced by ____%. a. 15.0 b. 14.3 c. 10.0