(Test Bank) Operations Management Processes and Supply Chains

Krajewski,Malhotra, 13

Business

Test Bank

13th Edition

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Author(s): Krajewski, Malhotra

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1 Copyright © 20 22 Pearson Education , Inc. Operations Management: Processes and Supply Chains, 13e (Krajewski) Chapter 1 Using Operations to Create Value 1.1 Role of Operations in an Organization 1) Operations management refers to the direction and control of inputs that transform processes into products and services. Answer: TRUE Difficulty: Easy Keywords: operations management, inputs, process, transformation Learning Outcome: Discuss operations and operations management as a competitive advantage for the organization AACSB: Application of Knowledge Learning Objective: Describe the role of operations in an organization and its historical evolution over time. 2) An operation is a group of resources performing all or part of one or more processes. Answer: TRUE Difficulty: Ea sy Keywords: operations management, inputs, process, transformation Learning Outcome: Discuss operations and operations management as a competitive advantage for the organization AACSB: Application of Knowledge Learning Objective: Describe the role of operations in an organization and its historical evolution over time. 3) The three main line functions of any business include Operations, Finance and Marketing. Answer: TRUE Difficulty: Easy Keywords: operations, finance, marketing Learning Outcome: Discuss operations and operations management as a competitive advantage for the organization AACSB: Application of Knowledge Learning Objective: Describe the role of operations in an organization and its historical evolution over time. 4) The scope of supply chain management is restricted to the synchronization of the process among the various business functions within the firm. Answer: FALSE Difficulty: Easy Keywords: supply chain management, processes Learning Outcome: Discuss operations and opera tions management as a competitive advantage for the organization AACSB: Application of Knowledge Learning Objective: Describe the role of operations in an organization and its historical evolution over time. 5) Regardless of how departments like Accounting, Engineering, Finance, and Marketing function in an organization, they are all linked together through: A) management. B) processes. C) customers. D) stakeholders. Answer: B Difficulty: Moderate Keywords: departments, functions, process es Learning Outcome: Discuss operations and operations management as a competitive advantage for the organization AACSB: Application of Knowledge Learning Objective: Describe the role of operations in an organization and its historical evolution over ti me. 2 Copyright © 20 22 Pearson Education , Inc. 6) The foundations of modern manufacturing and technological breakthroughs were inspired by the creation of the mechanical computer by: A) Charles Babbage. B) James Watt. C) Eli Whitney. D) Frederick Taylor. Answer: A Difficulty: Moderate Keywords: Charles Babbage Learning Outcome: Discuss operations and operations management as a competitive advantage for the organization AACSB: Application of Knowledge Learning Objective: Describe the role of operations in an organization and its historical evolution over time. 7) Which of these Great Moments in Operations and Supply Chain Management did not occur in the twentieth century? A) invention of the assembly line B) publication of the Toyota Production Systems book C) establishment of ra ilroads D) strategic planning for achieving product variety Answer: C Difficulty: Moderate Keywords: history, railroad Learning Outcome: Discuss operations and operations management as a competitive advantage for the organization AACSB: Application of Knowledge Learning Objective: Describe the role of operations in an organization and its historical evolution over time. 8) The three main line functions of any business include: A) operations. B) marketing. C) finance. D) information systems. E) all of the above F) only A), B) and C) above Answer: F Difficulty: Moderate Keywords: operations, finance, marketing Learning Outcome: Discuss operations and operations management as a competitive advantage for the organization AACSB: Application of Knowledge Learning Objective: Describe the role of operations in an organization and its historical evolution over time. 9) Operations management refers to the systematic design, direction, and control of ________ that transform ________ into products and services. Answer: processes, inputs Difficulty: Moderate Keywords: process, input, transform, product, service Learning Outcome: Discuss operations and operations management as a competitive advantage for the organization AACSB: Applicati on of Knowledge Learning Objective: Describe the role of operations in an organization and its historical evolution over time. 3 Copyright © 20 22 Pearson Education , Inc. 10) The three mainline functions of any business are ________, ________, and ________. Answer: operations, finance, marketin g Difficulty: Moderate Keywords: operations, finance, marketing, functions of a firm Learning Outcome: Discuss operations and operations management as a competitive advantage for the organization AACSB: Application of Knowledge Learning Objective: Des cribe the role of operations in an organization and its historical evolution over time. 11) Supply chain management is the synchronization of a firm's processes with those of its ________ and ________ to match the flow of materials, services, and informat ion. Answer: suppliers, customers Difficulty: Moderate Keywords: supply chain management, suppliers, customers Learning Outcome: Discuss operations and operations management as a competitive advantage for the organization AACSB: Application of Knowled ge Learning Objective: Describe the role of operations in an organization and its historical evolution over time. 12) What are the three key functions of a firm and what is each responsible for? Answer: The three main functions of a firm are operations, finance, and marketing. The operations function transforms material and service inputs into product and service outputs. The finance function generates resources, capital and funds from investors and sales of the firm's goods and services in the marketpla ce. The marketing function is responsible for producing sales revenue of the outputs. Difficulty: Moderate Keywords: manufacturing process, service process Learning Outcome: Discuss operations and operations management as a competitive advantage for the organization AACSB: Application of Knowledge Learning Objective: Describe the role of operations in an organization and its historical evolution over time. 1.2 A Process View 1) A process involves transforming inputs into outputs. Answer: TRUE Difficulty: Easy Keywords: process, inputs, outputs Learning Outcome: Describe the main types of operations processes and layouts in manufacturing and in services AACSB: Application of Knowledge Learning Objective: Describe the process view of operations in terms of inputs, processes, outputs, information flows, suppliers, and customers. 2) Every process has a customer. Answer: TRUE Difficulty: Easy Keywords: process, customer relationship Learning Outcome: Describe the main types of operations processes and layouts in manufacturing and in services AACSB: Application of Knowledge Learning Objective: Describe the process view of operations in terms of inputs, processes, outputs, information flows, suppliers, and customers. 4 Copyright © 20 22 Pearson Education , Inc. 3) Departments within a firm typically have a common set of objectives, and share resources among them to achieve those objectives. Answer: FALSE Difficulty: Moderate Keywords: functions, departments Learning Outcome: Describe the main types of opera tions processes and layouts in manufacturing and in services AACSB: Application of Knowledge Learning Objective: Describe the process view of operations in terms of inputs, processes, outputs, information flows, suppliers, and customers. 4) At the level of the firm, service providers offer just services and manufacturers offer just products. Answer: FALSE Difficulty: Moderate Keywords: manufacturing, service, similarity, goods, services Learning Outcome: Describe the main types of operations pro cesses and layouts in manufacturing and in services AACSB: Application of Knowledge Learning Objective: Describe the process view of operations in terms of inputs, processes, outputs, information flows, suppliers, and customers. 5) The outputs of servic e processes typically cannot be held in a finished goods inventory. Answer: TRUE Difficulty: Easy Keywords: manufacturing, service, similarity, goods, services Learning Outcome: Describe the main types of operations processes and layouts in manufacturi ng and in services AACSB: Application of Knowledge Learning Objective: Describe the process view of operations in terms of inputs, processes, outputs, information flows, suppliers, and customers. 6) Manufacturing processes tend to be capital intensive. Answer: TRUE Difficulty: Easy Keywords: manufacturing process, service process, capital intensive, labor intensive Learning Outcome: Describe the main types of operations processes and layouts in manufacturing and in services AACSB: Application of Kno wledge Learning Objective: Describe the process view of operations in terms of inputs, processes, outputs, information flows, suppliers, and customers. 7) Quality is more easily measured in a service process than in a manufacturing process. Answer: FALSE Difficulty: Moderate Keywords: manufacturing process, service process, quality Learning Outcome: Describe the main types of operations processes and layouts in manufacturing and in services AACSB: Application of Knowledge Learning Objective: Describe the process view of operations in terms of inputs, processes, outputs, information flows, suppliers, and customers. 5 Copyright © 20 22 Pearson Education , Inc. 8) Contact with the customer is usually higher in a manufacturing process than in a service process. Answer: FALSE Difficulty: Easy Keywords: manufacturing process, service process, customer contact Learning Outcome: Describe the main types of operations processes and layouts in manufacturing and in services AACSB: Application of Knowledge Learning Objective: Desc ribe the process view of operations in terms of inputs, processes, outputs, information flows, suppliers, and customers. 9) The outputs from manufacturing processes can be produced, stored, and transported in anticipation of future demand. Answer: TRUE Difficulty: Easy Keywords: manufacturing, service, similarity, goods, services Learning Outcome: Describe the main types of operations processes and layouts in manufacturing and in services AACSB: Application of Knowledge Learning Objective: Describe t he process view of operations in terms of inputs, processes, outputs, information flows, suppliers, and customers. 10) Which of these statements about processes is not true? A) A process can have its own set of objectives. B) A process can involve work fl ow that cuts across departmental boundaries. C) A process can require resources from several departments. D) A process can exist without customers. Answer: D Difficulty: Moderate Keywords: process, customer relationship Learning Outcome: Describe the main types of operations processes and layouts in manufacturing and in services AACSB: Application of Knowledge Learning Objective: Describe the process view of operations in terms of inputs, processes, outputs, information flows, suppliers, and cust omers. 11) Operations management is part of a production system that can be described in the following manner: Organization: inputs →processes →outputs. Which one of the following correctly describes a production system? A) Airline: pilots →planes→transportation B) Bank: tellers →computer equipment →deposits C) Furniture manufacturer: wood →sanding→chair D) Telephone company: satellites →cables→communication Answer: C Difficulty: Moderate Keywords: production system, input, process, output Learning O utcome: Describe the main types of operations processes and layouts in manufacturing and in services AACSB: Reflective Thinking Learning Objective: Describe the process view of operations in terms of inputs, processes, outputs, information flows, suppli ers, and customers. 6 Copyright © 20 22 Pearson Education , Inc. Figure 1.1 You are the Production Manager for the toy manufacturing process at the ABC Company. 12) Use the information provided in Table 1.1. An example of an internal customer is: A) the lumber company. B) the Receiving Department at ABC. C) the Shipping Department at ABC. D) the toy store at the mall. Answer: C Difficulty: Moderate Keywords: internal customer Learning Outcome: Describe the main types of operations processes and layouts in manufacturing and in services AACSB: Reflective Thinking Learning Objective: Describe the process view of operations in terms of inputs, processes, outputs, information flows, suppliers, and customers. 13) Use the information provided in Table 1.1. An example of an internal supplier is: A) the lumber company. B) the Receiving Department at ABC. C) the Shipping Department at ABC. D) the toy store at the mall. Answer: B Difficulty: Moderate Keywords: internal supplier Learning Outcome: Describe the main types of op erations processes and layouts in manufacturing and in services AACSB: Reflective Thinking Learning Objective: Describe the process view of operations in terms of inputs, processes, outputs, information flows, suppliers, and customers. 14) Use the infor mation provided in Table 1.1. An example of an external customer is: A) the lumber company. B) the Customer Service Department at ABC. C) the Shipping Department at ABC. D) the toy store at the mall. Answer: D Difficulty: Moderate Keywords: external customer Learning Outcome: Describe the main types of operations processes and layouts in manufacturing and in services AACSB: Reflective Thinking Learning Objective: Describe the process view of operations in terms of inputs, processes, output s, information flows, suppliers, and customers. 7 Copyright © 20 22 Pearson Education , Inc. 15) Use the information provided in Table 1.1. An example of an external supplier is: A) the lumber company. B) the Receiving Department at ABC. C) the Customer Service Department at ABC. D) the toy store at the mall. Answer: A Difficulty: Moderate Keywords: external supplier Learning Outcome: Describe the main types of operations processes and layouts in manufacturing and in services AACSB: Reflective Thinking Learning Objective: Describe the process view of operations in terms of inputs, processes, outputs, information flows, suppliers, and customers. 16) Which of the following is an example of a nested process? A) At the start of the new semester, a student first pays tuition and then goes to the b ookstore. B) A customer service representative verifies a caller's account information. C) A candidate's intent to graduate is checked for financial holds by the Bursar and for degree requirements by Advising before the diploma mill prints their sheepskin. D) A stockbroker calls a client and advises her to sell silver short. Answer: C Difficulty: Easy Keywords: nested process Learning Outcome: Describe the main types of operations processes and layouts in manufacturing and in services AACSB: Application of Knowledge Learning Objective: Describe the process view of operations in terms of inputs, processes, outputs, information flows, suppliers, and customers. 17) Which of the following statements is more of a general characteristic of a manufacturing organization, as compared to a service organization? A) Short -term demand tends to be highly variable. B) Operations are more capital intensive. C) Outputs are more intangible. D) Quality is more difficult to measure. Answ er: B Difficulty: Moderate Keywords: manufacturing organization, service organization, capital intensity Learning Outcome: Describe the main types of operations processes and layouts in manufacturing and in services AACSB: Application of Knowledge Learning Objective: Describe the process view of operations in terms of inputs, processes, outputs, information flows, suppliers, and customers. 8 Copyright © 20 22 Pearson Education , Inc. 18) Which one of the following statements is more of a general characteristic of a service organization, as compared to a manufacturing organization? A) Output can be inventoried. B) The response time is longer. C) There is less customer contact. D) Quality is not easily measured. Answer: D Difficulty: Moderate Keywords: manufacturing organization, service orga nization, facilities Learning Outcome: Describe the main types of operations processes and layouts in manufacturing and in services AACSB: Application of Knowledge Learning Objective: Describe the process view of operations in terms of inputs, processes , outputs, information flows, suppliers, and customers. 19) Manufacturing processes usually have: A) physical, durable output. B) high levels of customer contact. C) output that cannot be inventoried. D) low levels of capital intensity. Answer: A Difficulty: Moderate Keywords: manufacturing organization, service organization, physical output Learning Outcome: Describe the main types of operations processes and layouts in manufacturing and in services AACSB: Application of Knowledge Learning Obj ective: Describe the process view of operations in terms of inputs, processes, outputs, information flows, suppliers, and customers. 20) Service processes usually have: A) physical, durable output. B) low levels of customer contact. C) output that can be inventoried. D) shorter response times. Answer: D Difficulty: Moderate Keywords: manufacturing organization, service organization, capital intensity Learning Outcome: Describe the main types of operations processes and layouts in manufacturing and i n services AACSB: Application of Knowledge Learning Objective: Describe the process view of operations in terms of inputs, processes, outputs, information flows, suppliers, and customers. 21) A(n) ________ is any activity or group of activities that tak es one or more inputs, transforms and adds value to them, and provides one or more outputs for its customers. Answer: process Difficulty: Moderate Keywords: process, activity, input, value Learning Outcome: Describe the main types of operations process es and layouts in manufacturing and in services AACSB: Application of Knowledge Learning Objective: Describe the process view of operations in terms of inputs, processes, outputs, information flows, suppliers, and customers. 9 Copyright © 20 22 Pearson Education , Inc. 22) Service processes tend to produce ________, ________ outputs. Answer: intangible, perishable Difficulty: Moderate Keywords: manufacturing, service, similarity, goods, services Learning Outcome: Describe the main types of operations processes and layouts in man ufacturing and in services AACSB: Application of Knowledge Learning Objective: Describe the process view of operations in terms of inputs, processes, outputs, information flows, suppliers, and customers. 23) List and briefly describe five differences be tween services and manufacturing. Processes provide examples to illustrate your arguments. Answer: Manufacturing Processes Service Processes Physical, durable products Intangible, perishable products Output can be produced, stored, and transported Can' t be stored and transported Low customer contact Customers can be part of the input and part of the process Have days to deliver Must be offered within minutes Capital intensive Labor intensive Quality easily measured Quality not easily measured Examples will vary. Difficulty: Moderate Keywords: manufacturing process, service process Learning Outcome: Describe the main types of operations processes and layouts in manufacturing and in services AACSB: Application of Knowledge Learning Objective: Describe the process view of operations in terms of inputs, processes, outputs, information flows, suppliers, and customers. 24) Identify a large employer in your hometown. Describe this organization's inputs, processes, and outputs. Answer: Answers will vary based on the employer selected. Difficulty: Moderate Keywords: input, process, output Learning Outcome: Describe the main types of operations processes and layouts in manufacturing and in services AACSB: Application of Knowle dge Learning Objective: Describe the process view of operations in terms of inputs, processes, outputs, information flows, suppliers, and customers. 10 Copyright © 20 22 Pearson Education , Inc. 1.3 A Supply Chain View 1) The customer relationship process includes the activities required to prod uce and deliver the service or product to the external customer. Answer: FALSE Difficulty: Moderate Keywords: customer relationship process, order fulfillment process Learning Outcome: Compare common approaches to supply chain design AACSB: Applicatio n of Knowledge Learning Objective: Describe the supply chain view of operations in terms of linkages between core and support processes. 2) The supplier relationship process selects the suppliers of services, materials and information, while the order fu lfillment process facilitates the timely and efficient flow of these items into the firm. Answer: FALSE Difficulty: Moderate Keywords: supplier relationship, process, order fulfillment process Learning Outcome: Compare common approaches to supply chain design AACSB: Application of Knowledge Learning Objective: Describe the supply chain view of operations in terms of linkages between core and support processes. 3) One distinction between core processes and support processes is that core process can cu t across the organization while support processes do not. Answer: FALSE Difficulty: Moderate Keywords: core process, process analysis Learning Outcome: Compare common approaches to supply chain design AACSB: Application of Knowledge Learning Objective: Describe the supply chain view of operations in terms of linkages between core and support processes. 4) A set of activities that delivers value to external customers is a: A) supply chain. B) core process. C) support process. D) system. Answer: B Difficulty: Moderate Keywords: activity, core process Learning Outcome: Compare common approaches to supply chain design AACSB: Application of Knowledge Learning Objective: Describe the supply chain view of operations in terms of li nkages between core and support processes. 11 Copyright © 20 22 Pearson Education , Inc. 5) Budgeting, recruiting, and scheduling are examples of a: A) development. B) core process. C) support process. D) system. Answer: C Difficulty: Moderate Keywords: activity, support process Learning Outcome : Compare common approaches to supply chain design AACSB: Application of Knowledge Learning Objective: Describe the supply chain view of operations in terms of linkages between core and support processes. 6) The process that facilitates the placement of orders and identifies, attracts, and builds relationships with external customers is called the: A) customer relationship process. B) new service development process. C) order fulfillment process. D) supplier relationship process. Answer: A Difficulty: Moderate Keywords: process, customer relationship Learning Outcome: Compare common approaches to supply chain design AACSB: Application of Knowledge Learning Objective: Describe the supply chain view of operations in terms of linkages betwe en core and support processes. 7) The process that includes the activities required to produce and deliver the service or product to the external customer is called the: A) customer relationship process. B) new service development process. C) order fulfil lment process. D) supplier relationship process. Answer: C Difficulty: Moderate Keywords: process, order fulfillment Learning Outcome: Compare common approaches to supply chain design AACSB: Application of Knowledge Learning Objective: Describe the supply chain view of operations in terms of linkages between core and support processes. 12 Copyright © 20 22 Pearson Education , Inc. 8) The process that that selects the suppliers of services, materials, and information and facilitates the timely and efficient flow of these items int o the firm is called the: A) customer relationship process. B) new service development process. C) order fulfillment process. D) supplier relationship process. Answer: D Difficulty: Moderate Keywords: process, supplier relationship Learning Outcome: Compare common approaches to supply chain design AACSB: Application of Knowledge Learning Objective: Describe the supply chain view of operations in terms of linkages between core and support processes. 9) The cumulative work of the processes of a firm is a(n) ________. Answer: supply chain Difficulty: Moderate Keywords: processes, supply chain Learning Outcome: Compare common approaches to supply chain design AACSB: Application of Knowledge Learning Objective: Describe the supply chain v iew of operations in terms of linkages between core and support processes. 10) ________ provide vital resources and inputs to core processes. Answer: Support processes Difficulty: Moderate Keywords: support process, core process Learning Outcome: Comp are common approaches to supply chain design AACSB: Application of Knowledge Learning Objective: Describe the supply chain view of operations in terms of linkages between core and support processes. 1.4 Operations Strategy 1) A firm's core competencie s reflect the collective learning of the organization, especially in how to coordinate processes and integrate technologies. Answer: TRUE Difficulty: Easy Keywords: core competency, core process Learning Outcome: Discuss operations and operations management as a competitive advantage for the organization AACSB: Application of Knowledge Learning Objective: Define an operations strategy and its linkage to corporate strategy and market analysis. 2) Firm A wants to enter a foreign market and has a skill that is difficult to duplicate. Firm B desires this skill, so Firm A works with Firm B in an arrangement known as a joint venture. Answer: FALSE Difficulty: Moderate Keywords: strategic alliance Learning Outcome: Discuss operations and operations management as a competitive advantage for the organization AACSB: Application of Knowledge Learning Objective: Define an operations strategy and its linkage to corporate strategy and market analysis. 13 Copyright © 20 22 Pearson Education , Inc. 3) The framework for carryi ng out all of an organization's functions is: A) the competitive priority. B) the corporate strategy. C) the market analysis. D) the organizational design. Answer: B Difficulty: Moderate Keywords: corporate strategy Learning Outcome: Discuss operations and operations management as a competitive advantage for the organization AACSB: Application of Knowledge Learning Objective: Define an operations strategy and its linkage to corporate strategy and market analysis. 4) Which element of a firm's core com petency is particularly important in service organizations, where customers come in direct contact with employees? A) workforce B) facilities C) market knowledge D) systems and technology Answer: A Difficulty: Moderate Keywords: core competency, strategy Learning Outcome: Discuss operations and operations management as a competitive advantage for the organization AACSB: Application of Knowledge Learning Objective: Define an operations strategy and its linkage to corporate strategy a nd market analysis. 5) A company realizes that recent layoffs at its primary company reflect potential falling demands for its customers' products, and hence for its own products. The company has engaged in: A) flow strategy. B) market segmentation. C) mi ssion statement redefinition. D) environmental scanning. Answer: D Difficulty: Moderate Keywords: environmental scanning Learning Outcome: Discuss operations and operations management as a competitive advantage for the organization AACSB: Application of Knowledge Learning Objective: Define an operations strategy and its linkage to corporate strategy and market analysis. 6) Core competencies are: A) product or service attributes that represent the needs of a particular market segment. B) another name for competitive priorities. C) various flow strategies. D) the unique resources and strengths that management considers when formulating strategy. Answer: D Difficulty: Moderate Keywords: core competency, strategy Learning Outcome: Discuss operations and operations management as a competitive advantage for the organization AACSB: Application of Knowledge Learning Objective: Define an operations strategy and its linkage to corporate strategy and market analysis. 14 Copyright © 20 22 Pearson Education , Inc. 7) Which of the following is an example of a core competency? A) flexibility B) top quality C) low -cost operations D) systems and technology Answer: D Difficulty: Moderate Keywords: core competency Learning Outcome: Discuss operations and operations management as a competitive advantage for the organization AACSB: Application of Knowledge Learning Objective: Define an operations strategy and its linkage to corporate strategy and market analysis. 8) Price, quality, and the degree of customization are all examples of: A) volum e needs. B) other needs. C) product needs. D) delivery system needs. Answer: C Difficulty: Moderate Keywords: needs assessment Learning Outcome: Discuss operations and operations management as a competitive advantage for the organization AACSB: Applic ation of Knowledge Learning Objective: Define an operations strategy and its linkage to corporate strategy and market analysis. 9) The Gap, Inc. has targeted teenagers and young adults in need of casual clothes, and through its GapKids stores, the parents or guardians of infants through 12 -year -olds. This is an example of: A) market segmentation. B) a collaborative effort between the company and its customers. C) a needs assessment. D) a mission statement. Answer: A Difficulty: Moderate Keywords: market segmentation Learning Outcome: Discuss operations and operations management as a competitive advantage for the organization AACSB: Application of Knowledge Learning Objective: Define an operations strategy and its linkage to corporate strategy a nd market analysis. 10) One form of strategic alliance is the ________, in which two firms agree to cooperate to produce a product or service together. Answer: joint venture Difficulty: Moderate Keywords: joint alliance Learning Outcome: Compare common approaches to supply chain design AACSB: Application of Knowledge Learning Objective: Define an operations strategy and its linkage to corporate strategy and market analysis. 15 Copyright © 20 22 Pearson Education , Inc. 11) The process by which managers monitor trends in the exter nal business environment for potential opportunities or threats is known as ________. Answer: environmental scanning Difficulty: Moderate Keywords: environmental scanning, strategy Learning Outcome: Discuss operations and operations management as a com petitive advantage for the organization AACSB: Application of Knowledge Learning Objective: Define an operations strategy and its linkage to corporate strategy and market analysis. 12) What are the four core processes in a firm and how are they related? Answer: The customer relationship process identifies, attracts, and builds relationships with external customers and facilitates the placement of orders. The order fulfillment process includes activities required to produce and deliver the servic e or product to the external customer. The new service/product development process designs and develops new services or products, which may be to customer specifications. The supplier relationship process selects the suppliers of services, materials, and information and facilitates the flow of these items into the firm. All of these processes exist to provide a service or product to the customer. Difficulty: Moderate Keywords: core process, customer relationship, service/product development, order fulfill ment, supplier relationship Learning Outcome: Discuss operations and operations management as a competitive advantage for the organization AACSB: Application of Knowledge Learning Objective: Define an operations strategy and its linkage to corporate str ategy and market analysis. 1.5 Competitive Priorities and Capabilities 1) Competitive priorities are the means by which operations implements the firm's corporate strategies. Answer: FALSE Difficulty: Moderate Keywords: competitive priority, corporat e strategy Learning Outcome: Discuss operations and operations management as a competitive advantage for the organization AACSB: Application of Knowledge Learning Objective: Identify nine competitive priorities used in operations strategy, and explain h ow a consistent pattern of decisions can develop organizational capabilities. 2) Development speed for new product and service introductions is a possible competitive priority for operations management. Answer: TRUE Difficulty: Easy Keywords: time, com petitive priority Learning Outcome: Discuss operations and operations management as a competitive advantage for the organization AACSB: Application of Knowledge Learning Objective: Identify nine competitive priorities used in operations strategy, and ex plain how a consistent pattern of decisions can develop organizational capabilities.