Question 1

By effective operations management,we can______.

Accepted Answer

Effective operations management focuses on maximizing efficiency and productivity in the production and delivery of goods and services. This can lead to improved quality, faster delivery times, and reduced costs, all of which can enhance customer satisfaction and loyalty. It does not necessarily lead to increased costs, reduced aesthetics or slower delivery times.

Question 2

Which of the following are reasons a company may outsource its operations?

Accepted Answer

To access specialized skills is a reason a company may outsource its operations.

Question 3

Which of the following is a characteristic of a service (i.e.,not a product or good)?

Accepted Answer

Services are typically labor-intensive, as they involve a direct interaction between the provider and the consumer. This is in contrast to goods, which can be manufactured using machines and technology.

Question 4

In the context of a global supply chain,which of the following players does the operations management function bring together?

Accepted Answer

Operations management function brings together the individual firm and its global suppliers in order to manage the flow of goods and services in a global supply chain.

Question 5

The following are pairs of transformation types with examples of the transformation.Which of these is correctly paired?

Accepted Answer

Psychological transformation involves changes in people's mental state or emotions, which is what entertainment aims to achieve by engaging or amusing the audience.

Question 6

Which of the following statements about a supply chain is true?

Accepted Answer

A supply chain includes all organizations that are involved in the development, manufacturing, and shipping of products to customers. It includes both onshore and offshore operations. It also involves the handling and management of products returned by customers, making option D incorrect. Option A is too restrictive and does not encompass the entire supply chain. Option C is incorrect as all companies have a supply chain, even if they do not offshore or outsource any operations.

Question 7

The nature of services is such that ______.

Accepted Answer

The answer of The nature of services is such that...

Question 8

The proportion of businesses that operate in global markets is ______.

Accepted Answer

The proportion of businesses that operate in global markets is more than 65%.

Question 9

Which of the following statements is true about logistics operations?

Accepted Answer

Logistics operations involve the transportation of raw materials and finished goods, as well as the activities associated with that transportation. Choices A, C, and D are incorrect as they do not accurately describe logistics operations.

Question 10

Which of the following is a risk that a company faces when it outsources its operations?

Accepted Answer

When a company outsources its operations to a third-party provider, it is giving control of that aspect of the business to someone else. This can lead to risks such as the third-party provider not having the same level of expertise as the outsourcing company or not having as strong a commitment to the success of the business. This can lead to lower quality output and potential damage to the reputation of the outsourcing company. Option B is incorrect because a decline in the cost of labor for the outsourcing company would actually be a benefit rather than a risk. Options C and D are unlikely risks as they involve acquisition, which is not typically a likely or expected outcome of outsourcing.

Question 11

The growth of the service sector in the United States has ______.

Accepted Answer

The growth of the service sector in the United States has increased career opportunities for professionals in supply chain management as the service sector also requires effective and efficient supply chain management to ensure timely delivery and customer satisfaction.

Question 12

The fact that services cannot be stored for future use leads to services being described as ______.

Accepted Answer

Services cannot be stored for future use and therefore are time-perishable. This means they have a limited timeframe in which they can be provided and must be consumed within that timeframe.

Question 13

Which of the following strategies can American manufacturers follow to survive the drain of manufacturing operations to other countries?

Accepted Answer

The answer of Which of the following strategies can American...

Question 14

Which of the following is a characteristic of a product or good (i.e.,not a service)?

Accepted Answer

A product or good can be inventoried, meaning that it can be produced and stored for later use. Services, on the other hand, cannot be inventoried as they are typically consumed as they are produced. Choices A and D are characteristics of services, not products. Choice B is a characteristic of a service or intangible good, not a tangible product.

Question 15

Thanks to the benefits of outsourcing and offshoring,manufacturing in the United States,as a percentage of GDP,has ______.

Accepted Answer

Over the years, outsourcing and offshoring have led to a decline in the percentage of GDP that manufacturing contributes in the United States. After World War II, manufacturing accounted for about 30% of GDP, but by 2008, it had declined to about 10%.

Question 16

The benefits of offshoring include ______.

Accepted Answer

Offshoring allows businesses to tap into a global pool of skilled workers, which can increase efficiency, innovation, and profitability. However, child labor is unethical and illegal, and high processing and labor costs can offset the benefits of offshoring.

Question 17

Which of the following statements about managing a supply chain is true?

Accepted Answer

Managing supply chains has become increasingly difficult over the years due to the globalization of businesses and the need to work with a large number of organizations in different countries with varying laws, regulations, and cultural practices. It requires coordination and collaboration among various stakeholders, which can be challenging. The rise of e-commerce and the expectation for faster and more efficient deliveries have also added to the complexity of managing a supply chain. Outsourcing some functions to other companies may make it easier in some aspects, but it still requires careful management and oversight. Simply offshoring all operations is not a viable solution as it may lead to other issues such as quality control, communication barriers, and ethical concerns.

Question 18

Which of the following statements is true when we consider operations as a transformation system?

Accepted Answer

In the context of a transformation system, inputs can be categorized into three categories: labor, capital, and energy. Therefore, option B is true. Option A is incorrect because raw materials and finished goods are not part of the transportation process but rather inputs and outputs of the transformation process, respectively. Option C is incorrect because finished products and services are considered outputs of the transformation process, not a middle stage. Option D is incorrect because communication is not considered a feedback loop in the transformation system. Feedback loops represent the information flow from outputs back to inputs to make necessary adjustments to the system.

Question 19

Contracting with a third party or an external company to manufacture a good or deliver a service is known as ______.

Accepted Answer

Outsourcing involves contracting with an external company or third party to manufacture a good or deliver a service. Offshoring specifically refers to outsourcing to a foreign country, while domestic production involves manufacturing goods in-house within the same country. Internalization involves expanding a business by acquiring or creating new operations internally rather than outsourcing.

Question 20

The operations management function ______.

Accepted Answer

The operations management function is responsible for designing, operating, and improving the processes used to produce goods and services that the final consumer values. It involves the transformation of inputs such as materials, energy, and labor into useful products and services. Option C refers to financial management, and option D refers to marketing management.

Quiz 1: Introduction to Managing Global Operations and Supply Chains