Chapter 01 - The Operations FunctionChapter 01 The Operations Function Answer Key Multiple-Choice Questions 1. Why is operations management a more encompassing term than production management? A. Operations management is concerned with multiple products and services.B. Operations management refers to service as well as manufacturing organizations.C. Operations management is broader including the financing and marketing functions.D. Operations management makes use of the tools of quantitative analysis and computer systems.LO: 1.1Topic: Definition of Operations and Supply Chain ManagementDifficulty: 2 ModerateAACSB: Reflective thinkingBloom's: UnderstandFeedback: Production management was changed to operations management to include services. 2. Which of the following functions is responsible for the actual movement of goods and/or services across organizations? A. LogisticsB. OperationsC. PurchasingD. None of theseLO: 1.1Topic: Definition of Operations and Supply Chain ManagementDifficulty: 1 EasyAACSB: Reflective thinkingBloom's: RememberFeedback: Logistics is responsible for the movement of goods / services. 3. Approximately what percentage of the American workforce works in service industries? A. 20%B. 40%C. 80%D. 90%LO: 1.1Topic: Definition of Operations and Supply Chain ManagementDifficulty: 2 ModerateAACSB: Reflective thinkingBloom's: UnderstandFeedback: The U.S. Census reports more than 80% of the workforce is employed in services.1-1Chapter 01 - The Operations Function 4. The five decision areas in operations management are A. planning, technology, inventory, control, and services.B. process, quality, capacity, inventory, and supply chain.C. process, quality, technology, capacity, and production.D. none of these.LO: 1.2Topic: Operations Decisions Difficulty: 1 EasyAACSB: Reflective thinkingBloom's: RememberFeedback: Process, quality, capacity, inventory, and supply chain are the five decision areas. 5. A productive process approach A. views operations as a separate organizational function.B. must provide feedback information for control of process inputs and technology.C. is of limited use in service organizations.D. disregards human and social concerns.LO: 1.4Topic: Operations as a ProcessDifficulty: 3 HardAACSB: Reflective thinkingBloom's: UnderstandFeedback: The model of operations as a productive system includes a feedback loop. 6. Capacity decisions A. include staffing and scheduling.B. include inventory control.C. include defining product specifications.D. are none of these.LO: 1.2Topic: Operations DecisionsDifficulty: 2 ModerateAACSB: Reflective thinkingBloom's: UnderstandFeedback: Capacity decisions include staffing levels and scheduling, but not inventory or specifications. 1-2Chapter 01 - The Operations Function7. Inventory decisions involve A. determining what to order, how much to order, and when to order.B. tracking the flow of materials.C. managing the finished goods inventories.D. all of these.LO: 1.2Topic: Operations DecisionsDifficulty: 1 EasyAACSB: Reflective thinkingBloom's: RememberFeedback: Ordering decisions, finished goods inventory decisions, and inventory tracking are all included in the inventory decision area.8. Challenges facing operations and supply chain managers signify that A. more emphasis should be placed on manufacturing than on service industries.B. every operation should be externally directed to meet the customers' requirements.C. operations decisions should precede decisions in other functions in an organization.D. to be competitive, strategies for operations should have a narrow focus such as consideration of the effects of industry changes only.LO: 1.5Topic: Challenges Facing Operations and Supply Chain ManagersDifficulty: 3 HardAACSB: Reflective thinkingBloom's: UnderstandFeedback: A, C, and D are not correct; increasing need to meet customer requirements is a current challenge.9. The essence of operations management can be described by A. process, capacity, and people.B. decisions, function, and process.C. planning, control, and organization.D. integrated planning and control. LO: 1.1Topic: Definition of Operations and Supply Chain ManagementDifficulty: 2 ModerateAACSB: Reflective thinkingBloom's: UnderstandFeedback: Operations decisions, operations as a function, and process orientation are the heart of operations. 1-3Chapter 01 - The Operations Function10. Which of the following is NOT a new challenge facing operations? A. Globalization of operationsB. Responding to the voice of the customerC. Quality teamsD. Environmental concernsLO: 1.5Topic: Challenges Facing Operations and Supply Chain ManagersDifficulty: 3 HardAACSB: Reflective thinkingBloom's: UnderstandFeedback: A, B, and C are included, along with integration of decisions and services in the list of five challenges.11. The three primary functions that exist in most business organizations are A. operations, accounting, and finance.B. operations, production, and finance.C. production, marketing, and human resources.D. operations, finance, and marketing.LO: 1.3Topic: Cross-Functional Decision MakingDifficulty: 2 ModerateAACSB: Reflective thinkingBloom's: RememberFeedback: Operations, finance, and marketing are the core functions in most businesses.12. The three major functions of business organizations A. are mutually exclusive.B. function independently of each other.C. interface with each other.D. do not interface with each other.LO: 1.3Topic: Cross-Functional Decision MakingDifficulty: 1 EasyAACSB: Reflective thinkingBloom's: RememberFeedback: Each core function must integrate decisions with each other. 1-4Chapter 01 - The Operations Function13. Which one of the following would NOT generally be classified under the heading of inputin a university system? A. StaffB. EquipmentC. FacilitiesD. KnowledgeE. ResearchLO: 1.4Topic: Operations as a ProcessDifficulty: 3 HardAACSB: Reflective thinkingBloom's: UnderstandFeedback: Research would be an output of a university system. 14. The five major decision responsibilities of operations management are A. process, quality, capacity, sourcing, and human resources.B. process, quality, human resources, logistics, and inventory.C. quality, inventory, human resources, capacity, and supply chain.D. process, capacity, quality, supply chain, and inventory.LO: 1.2Topic: Operations DecisionsDifficulty: 1 EasyAACSB: Reflective thinkingBloom's: RememberFeedback: The five decision areas are process, quality, capacity, inventory, and supply