(Test Bank) Operations Management, Managing Global Supply Chains

Venkataraman, 2

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Author(s): Venkataraman

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Venkataraman, Operations Management, 2e SAGE Publishing, 2020 Chapter 1: Introduction to Managing Global Operations and Supply Chains Test Bank Multiple Choice 1. The proportion of businesses that operate in global markets is ______. A. not known B. about 50% C. less than 58% D. more than 65% Ans: D KEY: Learning Objective: 1.1: Explain how globalization has influenced the management of supply chains and their operations. REF: Cognitive Domain: Knowledge Answer Location: Supply chains and operations management in the global economy Difficulty Level: Easy TOP: AACSB: Systems and processes in organizations 2. The benefits of offshoring include ______. A. availability of skilled human resources B. increased labor costs C. high processing costs D. availability of child labor Ans: A KEY: Learning Objective: 1.1: Explain how globalization has influenced the management of supply chains and their operations. REF: Cognitive Domain: Knowledge Answer Location: Offshoring and Outsourcing Difficulty Level: Easy TOP: AACSB: Systems and processes in organizations 3. Which of the following is a risk that a company faces when it outsources its operations? A. The third-party provider may not have the degree of expertise in in-house operations that the outsourcing company has. B. The cost of labor for the outsourcing company may decline. C. If the outsourcing operation is too profitable, the outsourcing company may want to acquire the third-party provider. D. If the outsourcing operation is too successful, the third-party provider may want to acquire the outsourcing company. Ans: A Venkataraman, Operations Management, 2e SAGE Publishing, 2020 KEY: Learning Objective: 1.1: Explain how globalization has influenced the management of supply chains and their operations. REF: Cognitive Domain: Analysis Answer Location: Offshoring and Outsourcing Difficulty Level: Hard TOP: AACSB: Analytical thinking 4. Thanks to the benefits of outsourcing and offshoring, manufacturing in the United States, as a percentage of GDP, has ______. A. declined from about 30% after World War II to 12% by 2017 B. increased from about 12% after World War II to 30% by 2017 C. declined from about 65% after World War II to 30% by 2017 D. increased from about 30% after World War II to 65% by 2017 Ans: A KEY: Learning Objective: 1.1: Explain how globalization has influenced the management of supply chains and their operations. REF: Cognitive Domain: Analysis Answer Location: Offshoring and Outsourcing Difficulty Level: Hard TOP: AACSB: Analytical thinking 5. Which of the following strategies can American manufacturers follow to survive the drain of manufacturing operations to other countries? A. develop cutting-edge technologies that are difficult to replicate B. reduce prices C. switch to new products that are not manufactured elsewhere D. reduce quality with a view to reduce costs Ans: A KEY: Learning Objective: 1.1: Explain how globalization has influenced the management of supply chains and their operations. REF: Cognitive Domain: Analysis Answer Location: Consider This 1.1: Is American Manufacturing Dead? Difficulty Level: Hard TOP: AACSB: Analytical thinking 6. Which of the following are reasons a company may outsource its operations? A. to access specialized skills B. to have greater control over its operations C. to comply with foreign government regulations D. to avoid trade barriers Ans: A KEY: Learning Objective: 1.2: Describe the role of operations management within a company and in society. REF: Cognitive Domain: Comprehension Answer Location: Offshoring and Outsourcing Difficulty Level: Easy Venkataraman, Operations Management, 2e SAGE Publishing, 2020 TOP: AACSB: Economic, political, regulatory, legal, technological, and social contexts of organizations in a global society 7. The growth of the service sector in the United States has ______. A. limited the number of career possibilities for professionals in supply chain management B. been about the same as the growth in manufacturing sector C. led to the decline in importance for supply chain management as this is relevant only to physical goods and services D. increased career opportunities for professionals in supply chain management Ans: D KEY: Learning Objective: 1.2: Describe the role of operations management within a company and in society. REF: Cognitive Domain: Application Answer Location: Globalization, Supply Chains, and Operations Management Difficulty Level: Medium TOP: AACSB: Application of knowledge 8. Contracting with a third party or an external company to manufacture a good or deliver a service is known as ______. A. offshoring B. outsourcing C. domestic production D. internalization Ans: B KEY: Learning Objective: 1.2: Describe the role of operations management within a company and in society. REF: Cognitive Domain: Comprehension Answer Location: Offshoring and Outsourcing Difficulty Level: Easy TOP: AACSB: Economic, political, regulatory, legal, technological, and social contexts of organizations in a global society 9. By effective operations management, we can ______. A. increase costs to the consumer B. improve quality of goods and service C. reduce the aesthetic appearance of goods D. deliver products to customer more slowly Ans: B KEY: Learning Objective: 1.2: Describe the role of operations management within a company and in society. REF: Cognitive Domain: Knowledge Answer Location: What Does Operations Management Entail? Difficulty Level: Easy TOP: AACSB: Systems and processes in organizations Venkataraman, Operations Management, 2e SAGE Publishing, 2020 10. Which of the following is a characteristic of a product or good (i.e., not a service)? A. helps to transform the customer physically or psychologically B. is intangible C. can be inventoried D. always requires a high degree of customer contact Ans: C KEY: Learning Objective: 1.2: Describe the role of operations management within a company and in society. REF: Cognitive Domain: Comprehension (Understand) Answer Location: What Does Operations Management Entail? Difficulty Level: Easy TOP: AACSB: Economic, political, regulatory, legal, technological, and social contexts of organizations in a global society 11. Which of the following is a characteristic of a service (i.e., not a product or good)? A. usually labor intensive B. involves the transformation of raw materials C. easy to track and monitor quality D. can be easily stored for future use Ans: A KEY: Learning Objective: 1.2: Describe the role of operations management within a company and in society. REF: Cognitive Domain: Comprehension Answer Location: What Does Operations Management Entail? Difficulty Level: Easy TOP: AACSB: Economic, political, regulatory, legal, technological, and social contexts of organizations in a global society 12. The fact that services cannot be stored for future use leads to services being described as ______. A. time perishable B. readily depreciated C. consumable D. temporary Ans: A KEY: Learning Objective: 1.2: Describe the role of operations management within a company and in society. REF: Cognitive Domain: Comprehension Answer Location: What Does Operations Management Entail? Difficulty Level: Easy TOP: AACSB: Economic, political, regulatory, legal, technological, and social contexts of organizations in a global society 13. The nature of services is such that ______. A. customers need not be involved in the delivery of the service B. a service to one customer can be transferred to another customer Venkataraman, Operations Management, 2e SAGE Publishing, 2020 C. it is primarily capital (and not labor) intensive D. a service needs to be consumed as it is produced Ans: D KEY: Learning Objective: 1.2: Describe the role of operations management within a company and in society. REF: Cognitive Domain: Application Answer Location: What Does Operations Management Entail? Difficulty Level: Medium TOP: AACSB: Application of knowledge 14. The following are pairs of transformation types with examples of the transformation. Which of these is correctly paired? A. Physical transformation, as in teaching and communication B. Locational transformation, as in banking and retail operations C. Psychological transformation, as in entertainment D. Informational transformation, as in transportation and warehouse operations Ans: C KEY: Learning Objective: 1.2: Describe the role of operations management within a company and in society. REF: Cognitive Domain: Application Answer Location: What Does Operations Management Entail? Difficulty Level: Medium TOP: AACSB: Application of knowledge 15. The operations management function ______. A. transforms outputs such as materials and energy and labor into useful products and services B. is responsible for designing, operating, and improving the processes used to produce goods and services that the final consumer values C. refers to the efficient and effective management of capital D. helps the company to identify new markets and what customers in these markets want Ans: B KEY: Learning Objective: 1.2: Describe the role of operations management within a company and in society. REF: Cognitive Domain: Application Answer Location: What Does Operations Management Entail? Difficulty Level: Medium TOP: AACSB: Application of knowledge 16. In the context of a global supply chain, which of the following players does the operations management function bring together? A. the individual firm and its global suppliers B. potential consumers of the firm’s products and local retailers C. sources of finance (e.g., banks) and consumers of capital D. equipment manufacturers and suppliers of equipment parts Venkataraman, Operations Management, 2e SAGE Publishing, 2020 Ans: A KEY: Learning Objective: 1.2: Describe the role of operations management within a company and in society. REF: Cognitive Domain: Application Answer Location: What Does Operations Management Entail? Difficulty Level: Medium TOP: AACSB: Application of knowledge 17. To be responsive to changes in customer demands, technology, competition, and resources, ______. A. the operations management function must be careful about choosing the right area in which to function B. the operations management function must be dynamic C. the operations management function must be cost conscious to ensure that change is not too expensive D. the operations management function must seek to outsource more of its operations Ans: B KEY: Learning Objective: 1.2: Describe the role of operations management within a company and in society. REF: Cognitive Domain: Analysis Answer Location: What Does Operations Management Entail? Difficulty Level: Hard TOP: AACSB: Analytical thinking 18. The following are different organizational functions paired with a description of the function. Which of these is correctly paired? A. Finance function: gathers market intelligence and can provide the operations group with meaningful ideas for product-improvement programs. B. Marketing function: provides the operations group with technical information support. C. Information technology function: provides funding that allows a firm’s operations group to produce products and invest in new production equipment. D. Human resources function: provides the recruitment, hiring, and training of operations personnel as well as health-and-safety compliance training and advice related to current environmental and regulatory issues. Ans: D KEY: Learning Objective: 1.2: Describe the role of operations management within a company and in society. REF: Cognitive Domain: Comprehension Answer Location: What Does Operations Management Entail? Difficulty Level: Easy TOP: AACSB: Economic, political, regulatory, legal, technological, and social contexts of organizations in a global society 19. The scope of the operations function ______. A. is restricted to areas within the firm B. is applicable only to manufacturing Venkataraman, Operations Management, 2e SAGE Publishing, 2020 C. is applicable only to services D. applies both within and outside the firm Ans: D KEY: Learning Objective: 1.2: Describe the role of operations management within a company and in society. REF: Cognitive Domain: Comprehension Answer Location: What Does Operations Management Entail? Difficulty Level: Easy TOP: AACSB: Economic, political, regulatory, legal, technological, and social contexts of organizations in a global society 20. The operations function needs to interface with which organizations? A. government agencies or regulatory organizations to comply with given rules and regulations B. competitors so as to be able to fix prices to ensure good margins on products and services C. the agencies of the United Nations to ensure compliance with global regulations D. agencies representing consumers to ensure that consumer wants are satisfied Ans: A KEY: Learning Objective: 1.2: Describe the role of operations management within a company and in society. REF: Cognitive Domain: Comprehension Answer Location: What Does Operations Management Entail? Difficulty Level: Easy TOP: AACSB: Economic, political, regulatory, legal, technological, and social contexts of organizations in a global society 21. Which of the following is a challenge that an organization will face in managing global supply chains? A. deciding which functions should be outsourced and which functions should be performed in-house B. deciding the sources and uses of capital C. identifying new markets for its products D. recruiting employees for global operations Ans: A KEY: Learning Objective: 1.1: Explain how globalization has influenced the management of supply chains and their operations. REF: Cognitive Domain: Comprehension Answer Location: What Does Operations Management Entail? Difficulty Level: Easy TOP: AACSB: Economic, political, regulatory, legal, technological, and social contexts of organizations in a global society 22. Which of the following is part of the outbound portion of a company’s supply chain? A. local or foreign suppliers of product ideas and designs B. suppliers of raw materials Venkataraman, Operations Management, 2e SAGE Publishing, 2020 C. distribution centers D. suppliers of partly assembled products and other inputs Ans: C KEY: Learning Objective: 1.4: Explain why it is important to have an integrated view of operations from a larger supply chain framework. REF: Cognitive Domain: Application Answer Location: Supply Chain Structures and Partners Difficulty Level: Medium TOP: AACSB: Application of knowledge 23. Which of the following is part of the inbound portion of a company’s supply chain? A. retailers B. basic raw materials and components, transportation links, and warehouses C. wholesalers D. regulatory organizations and government agencies Ans: B KEY: Learning Objective: 1.4: Explain why it is important to have an integrated view of operations from a larger supply chain framework. REF: Cognitive Domain: Application Answer Location: Supply Chain Structures and Partners Difficulty Level: Medium TOP: AACSB: Application of knowledge 24. First-tier suppliers refers to ______. A. suppliers who provide components, systems, or finished goods and services to the primary firm B. suppliers who provide components, systems, or finished goods and services that are of high quality C. suppliers who provide components, systems, or finished goods and services at the lowest cost D. suppliers who provide components, systems, or finished goods and services at the highest cost Ans: A KEY: Learning Objective: 1.4: Explain why it is important to have an integrated view of operations from a larger supply chain framework. REF: Cognitive Domain: Comprehension Answer Location: First-Tier Suppliers Difficulty Level: Easy TOP: AACSB: Economic, political, regulatory, legal, technological, and social contexts of organizations in a global society 25. First-tier suppliers are those who ______. A. depend on the primary firm for certain supplies or raw materials B. depend on other suppliers for certain supplies or raw materials C. charge the highest prices D. charge the lowest prices Venkataraman, Operations Management, 2e SAGE Publishing, 2020 Ans: B KEY: Learning Objective: 1.4: Explain why it is important to have an integrated view of operations from a larger supply chain framework. REF: Cognitive Domain: Application Answer Location: First-Tier Suppliers Difficulty Level: Medium TOP: AACSB: Application of knowledge 26. Final consumers are ______. A. those people and firms who actually consume the goods produced by the primary firm B. also known as intermediate users C. those people and firms who make the decision to purchase the product D. those people and firms involved in financing the purchase of the product Ans: A KEY: Learning Objective: 1.4: Explain why it is important to have an integrated view of operations from a larger supply chain framework. REF: Cognitive Domain: Application Answer Location: Final Consumers Difficulty Level: Medium TOP: AACSB: Application of knowledge 27. The three general types of decisions with regard to the operations and supply chain function include ______. A. decisions related to the primary firm, first-tier suppliers, and second-tier suppliers B. corporate, business, and functional decisions C. strategic, tactical, and operational decisions D. logistics, transportation, and warehousing decisions Ans: C KEY: Learning Objective: 1.4: Explain why it is important to have an integrated view of operations from a larger supply chain framework. REF: Cognitive Domain: Application Answer Location: Decisions in Operations and Supply Chain Management Difficulty Level: Medium TOP: AACSB: Application of knowledge 28. Which of the following represents the correct pairing of one of the three general types of decisions with regard to the operations and supply chain function with its description? A. strategic: medium-term decisions B. tactical: long-term decisions C. operational: decisions with respect to day-to-day operations D. functional: decisions with regard to diversification of the firm Ans: C KEY: Learning Objective: 1.4: Explain why it is important to have an integrated view of operations from a larger supply chain framework. Venkataraman, Operations Management, 2e SAGE Publishing, 2020 REF: Cognitive Domain: Application Answer Location: Decisions in Operations and Supply Chain Management Difficulty Level: Medium TOP: AACSB: Application of knowledge 29. A service supply chain ______. A. is a stand-alone organization (i.e., not connected to other organizations) B. uses resources and transforms inputs (skills and knowledge) into services C. is involved in processing the financing and other services associated with a supply chain for products D. is less demanding of operations management than a supply chain for products Ans: B KEY: Learning Objective: 1.4: Explain why it is important to have an integrated view of operations from a larger supply chain framework. REF: Cognitive Domain: Application Answer Location: Operations Interfaces in a Service Supply Chain Difficulty Level: Medium TOP: AACSB: Application of knowledge 30. In a service supply chain, ______. A. activities such as supplier relationship management, demand management, and customer relationship management are very different from those that exist in a product supply chain B. the main similarity with the product supply chain is the degree of interaction between the value provider and the customer C. there is a greater distance between the supplier and consumer of the service in comparison to a product supply chain D. the interfaces and activities such as supplier relationship management, demand management, and customer relationship management are identical to those that exist in a product supply chain Ans: D KEY: Learning Objective: 1.4: Explain why it is important to have an integrated view of operations from a larger supply chain framework. REF: Cognitive Domain: Application Answer Location: Operations Interfaces in a Service Supply Chain Difficulty Level: Medium TOP: AACSB: Application of knowledge 31. If we look back in history and reflect on the great civilizations, we can find early examples of production accomplishments in ______. A. China B. the United States C. Austria D. Bangladesh Ans: A Venkataraman, Operations Management, 2e SAGE Publishing, 2020 KEY: Learning Objective: 1.5: Describe the evolution of operations and supply chain management from the Industrial Revolution to the present. REF: Cognitive Domain: Knowledge Answer Location: The Evolution of Operations and Supply Chain Management Difficulty Level: Easy TOP: AACSB: Systems and processes in organizations 32. Organized and large-scale production of consumer goods began ______. A. during the Industrial Revolution B. around 300 B.C.E C. only in the early 20th century D. after World War II Ans: A KEY: Learning Objective: 1.5: Describe the evolution of operations and supply chain management from the Industrial Revolution to the present. REF: Cognitive Domain: Knowledge Answer Location: The Evolution of Operations and Supply Chain Management Difficulty Level: Easy TOP: AACSB: Systems and processes in organizations 33. Most of the innovations in operations management occurred during the ______ century. A. 18th B. early 19th C. late 19th D. 20th Ans: D KEY: Learning Objective: 1.5: Describe the evolution of operations and supply chain management from the Industrial Revolution to the present. REF: Cognitive Domain: Knowledge Answer Location: The Evolution of Operations and Supply Chain Management Difficulty Level: Easy TOP: AACSB: Systems and processes in organizations 34. The importance of operations strategies was stimulated by ______. A. loss of market share due to global competition B. operations personnel making significant contributions to corporate strategy C. the adoption of operations strategies worldwide D. less emphasis being placed on marketing and finance functions Ans: A KEY: Learning Objective: 1.5: Describe the evolution of operations and supply chain management from the Industrial Revolution to the present. REF: Cognitive Domain: Knowledge Answer Location: The Evolution of Operations and Supply Chain Management Difficulty Level: Easy TOP: AACSB: Systems and processes in organizations Venkataraman, Operations Management, 2e SAGE Publishing, 2020 35. Achieving total quality requires ______. A. the commitment of the organization’s management and employees B. the involvement of the United Nations C. the involvement of the ISO D. the involvement of the U.S. Senate Ans: A KEY: Learning Objective: 1.5: Describe the evolution of operations and supply chain management from the Industrial Revolution to the present. REF: Cognitive Domain: Comprehension Answer Location: The Evolution of Operations and Supply Chain Management Difficulty Level: Easy TOP: AACSB: Economic, political, regulatory, legal, technological, and social contexts of organizations in a global society 36. The Six Sigma approach to quality ______. A. was initiated by Motorola B. was started in 1962 C. was welcomed by all companies D. applies only to manufacturing Ans: A KEY: Learning Objective: 1.5: Describe the evolution of operations and supply chain management from the Industrial Revolution to the present. REF: Cognitive Domain: Comprehension Answer Location: The Evolution of Operations and Supply Chain Management Difficulty Level: Easy TOP: AACSB: Economic, political, regulatory, legal, technological, and social contexts of organizations in a global society 37. The application of Six Sigma is least likely to be appropriate for ______. A. manufacturing B. services C. supply chain D. creative works like painting Ans: D KEY: Learning Objective: 1.5: Describe the evolution of operations and supply chain management from the Industrial Revolution to the present. REF: Cognitive Domain: Comprehension Answer Location: The Evolution of Operations and Supply Chain Management Difficulty Level: Easy TOP: AACSB: Economic, political, regulatory, legal, technological, and social contexts of organizations in a global society 38. Which of the following quality philosophies is correctly paired with its strategy? A. lean: improving quality by reducing the number of defects B. Six Sigma: eliminating waste Venkataraman, Operations Management, 2e SAGE Publishing, 2020 C. agile manufacturing: using technology to integrate different operations D. TQM: expediting rework Ans: C KEY: Learning Objective: 1.5: Describe the evolution of operations and supply chain management from the Industrial Revolution to the present. REF: Cognitive Domain: Application Answer Location: The Evolution of Operations and Supply Chain Management Difficulty Level: Medium TOP: AACSB: Application of knowledge 39. The General Agreement on Tariffs and Trade (GATT) ______. A. is a treaty governing interstate commerce within different countries B. is designed to promote trade between different states within a country C. levies a flat rate or tariff on trade between member countries D. was established in 1947 Ans: D KEY: Learning Objective: 1.5: Describe the evolution of operations and supply chain management from the Industrial Revolution to the present. REF: Cognitive Domain: Comprehension Answer Location: The Evolution of Operations and Supply Chain Management Difficulty Level: Easy TOP: AACSB: Economic, political, regulatory, legal, technological, and social contexts of organizations in a global society 40. The WTO (World Trade Organization) ______. A. replaced the GATT in 1945 B. governs trade in goods but not services C. has opened up markets for regulated industries (e.g., agriculture and textiles) D. is governed by NAFTA Ans: C KEY: Learning Objective: 1.5: Describe the evolution of operations and supply chain management from the Industrial Revolution to the present. REF: Cognitive Domain: Comprehension Answer Location: The Evolution of Operations and Supply Chain Management Difficulty Level: Easy TOP: AACSB: Economic, political, regulatory, legal, technological, and social contexts of organizations in a global society 41. The formation of the European Union ______. A. encouraged trade barriers among European countries B. led to strict quality and environmental standards that companies have to meet in order to do business with member countries. C. was initiated by World War I D. was initiated by World War II Ans: B Venkataraman, Operations Management, 2e SAGE Publishing, 2020 KEY: Learning Objective: 1.5: Describe the evolution of operations and supply chain management from the Industrial Revolution to the present. REF: Cognitive Domain: Comprehension Answer Location: The Evolution of Operations and Supply Chain Management Difficulty Level: Easy TOP: AACSB: Economic, political, regulatory, legal, technological, and social contexts of organizations in a global society 42. Which of the following is a management challenge faced in recent years by supply chain managers? A. The growth in prosperity of developing countries has increased the demand for goods and services from developed nations, causing a strain on managing the distribution to developing countries. B. Managers are now expected to handle a shift from low- to high-volume production. C. Most of the problems faced by supply chain managers are internal to their company’s operations. D. Managers must deal with an increase in trade turbulence. Ans: D KEY: Learning Objective: 1.6: Identify some of the emerging trends in operations and supply chain management. REF: Cognitive Domain: Application Answer Location: Current and Emerging Issues in Operations and Supply Chain Management Difficulty Level: Medium TOP: AACSB: Application of knowledge 43. Risks in global supply chain management are increasing due to ______. A. greater levels of outsourcing and offshoring B. reduction in complexity of products and services C. an increase in domestic resourcing and manufacturing D. emphasis on supporting local manufacturers Ans: A KEY: Learning Objective: 1.6: Identify some of the emerging trends in operations and supply chain management. REF: Cognitive Domain: Application Answer Location: Current and Emerging Issues in Operations and Supply Chain Management Difficulty Level: Medium TOP: AACSB: Application of knowledge 44. Factors that have increased the risk of global supply chain management include the ______. A. reduced financial volatility B. stability of energy prices C. increases in complexity of goods and services produced D. emergence of the European Union as a major economic power Venkataraman, Operations Management, 2e SAGE Publishing, 2020 Ans: C KEY: Learning Objective: 1.6: Identify some of the emerging trends in operations and supply chain management. REF: Cognitive Domain: Application Answer Location: Greater Supply Chain Risks and Supply Chain Restructuring Difficulty Level: Medium TOP: AACSB: Application of knowledge 45. The growing demand for businesses to operate in a socially responsible manner means that ______. A. focusing solely on costs and time efficiency is sufficient to meet sustainability goals B. business strategies should also incorporate responsible labor practices C. operations should maximize the use of the world’s resources before they are used up by others D. governments should reduce emphasis on free trade Ans: B KEY: Learning Objective: 1.6: Identify some of the emerging trends in operations and supply chain management. REF: Cognitive Domain: Application Answer Location: Sustainability Difficulty Level: Medium TOP: AACSB: Application of knowledge 46. The operations function of most businesses focuses ______. A. only on services B. only on goods C. on a mix of goods and services D. on a mix of goods and financing Ans: C KEY: Learning Objective: 1.6: Identify some of the emerging trends in operations and supply chain management. REF: Cognitive Domain: Application Answer Location: What Does Operations Management Entail? Difficulty Level: Medium TOP: AACSB: Application of knowledge 47. Sustainability refers to ______. A. the use of methods, systems, and materials that will not deplete resources or harm natural cycles B. a company’s ability to ensure that suppliers deliver raw materials and other inputs on a timely basis over an extended period C. the financial capability of a firm to maintain its operations without resorting to external funding D. the use of proper methods for maintaining the longevity of machines and other equipment Ans: A