Deck 1: Operations and Supply Chain Management

Question 1

A process can be effective without being efficient.

Answer 1

True

Question 2

The supply chain processes mentioned in the textbook are: planning, sourcing, delivering, and returning.

Answer 2

False

Question 3

Supply networks cannot be constructed for every product or service.

Answer 3

False

Question 4

A worker can be efficient without being effective.

Question 5

Operations and supply chain management is defined as the design, operation, and improvement of the systems that create and deliver the firm's primary products and services.

Question 6

Planning is where a firm must determine how anticipated demand will be met with available resources.

Question 7

Attempting to balance the desire to efficiently use resources while providing a highly effective service may create conflict between the two goals.

Question 8

The supply network as can be thought of as a pipeline through which cash, material, and information flows.

Question 9

OSCM is a functional field of business with clear line management responsibilities.

Question 10

Effectiveness means doing the right things to create the most value for the company.

Question 11

"Supply Chain" refers to processes that move information and material to and from the manufacturing and service processes of the firm.

Question 12

It is critical that a sustainable strategy meet the needs of shareholders and employees. It is also highly desirable that it preserves the environment.

Question 13

Efficiency means doing the right things to create the most value for the company.

Question 14

"Operations" refers to manufacturing and service processes used to transform resources employed by a firm into products desired by customers.

Question 15

The term "value" refers to the relationship between quality and the price paid by the consumer.

Question 16

Central to the concept of operations strategy are the concepts of operations focus and trade-offs.

Question 17

Although planning involves determining how the various supply chain processes (sourcing, making, delivering, and returning) will be met, planning itself is not considered a supply chain process.

Question 18

OSCM is concerned with management of the trickiest parts of the system that produces a good or delivers a service.

Question 19

"Supply Chain" includes only inbound freight and inventory.

Question 20

A doctor completes a surgical procedure on a patient without error. The patient dies anyway. In operations management terms, we could refer to this doctor as being efficient but not effective.

Question 21

Capturing information directly from the source through such systems as point-of-sale, radio-frequency identification tags, bar-code scanners, and automatic recognition has had little impact on Operations and Supply Chain Management.

Question 22

A bank branch manager position is not an OSCM-type of job.

Question 23

Automobiles and appliances are classified as "pure goods."

Question 24

Operations and supply management changes constantly because of the dynamic nature of competing in global business and the constant evolution of information technology.

Question 25

"Product-service bundling" refers to a company building service activities into its product offerings for its customers.

Question 26

Use of systems like point-of-sale, radio-frequency identification tags, bar-code scanners, and automatic recognition has made it more difficult to understand what all the information is saying.

Question 27

Operations and supply chain processes can be conveniently categorized as planning, sourcing, making, and delivering.

Question 28

Just in time (JIT) production was a major breakthrough in manufacturing philosophy pioneered by the Japanese.

Question 29

Internet technology has made the sharing of reliable real-time information expensive.

Question 30

All managers should understand the basic principles that guide the design of transformation processes.

Question 31

Delivering is not considered in supply chain analysis when outside carriers are contracted to move products to customers.

Question 32

Services are defined and evaluated as a package of features that affect the five senses.

Question 33

Services are intangible processes that cannot be weighed or measured.

Question 34

Services are homogeneous.

Question 35

A major aspect of planning involves developing a set of metrics to monitor the supply chain.

Question 36

Core service providers integrate tangible goods into their product.

Question 37

Service innovations can be patented.

Question 38

Returning involves processes for receiving worn-out, defective, and excess products back from customers but does not involve support for customers who have problems with the product.

Question 39

In contrast to careers in finance and marketing, careers in OSCM involve hands-on involvement with people and processes.

Question 40

A supply chain manager is an OSCM job while a purchasing manager is not.

Question 41

The Goods-Services Continuum consists of which set of the following categories?

A) No goods, some goods, even mix, some service, no service
B) Pure goods, core goods, core services, pure services
C) No service, some service, good service, excellent service
D) Self-service, help desk service, face-to-face service, service-with-a-smile
E) None of these

Question 42

The approach that advocates making revolutionary changes as opposed to evolutionary changes is called "business process reengineering."

Question 43

The central idea of supply chain management is to apply a total system approach to managing the flow of information, materials, and services from raw material suppliers through factories and warehouses to the end customer.

Question 44

Sustainability is the ability to maintain profits in a system.

Question 45

"Business Analytics" involves the analysis of data through a unique combination of linear programming, game theory, and queuing theory to better solve business problems.

Question 46

The approach that advocates making revolutionary changes as opposed to evolutionary changes is called creation theory.

Question 47

The "triple bottom line" relates to the economic, employee, and environmental impact of a firm's strategy.

Question 48

During a recession, efficient firms often have an opportunity to increase market share while maintaining profitability.

Question 49

The term "electronic commerce" refers to the use of the internet as an essential element of business activity.

Question 50

Raising senior management awareness of OSCM as a competitive weapon is not an important issue.

Question 51

Business process reengineering, which seeks revolutionary change, is contrasted with total quality management which commonly advocates incremental change.

Question 52

Operations and supply chain strategy are not important issues to investors who tend to focus on growth, dividends, and earnings per share.

Question 53

The term "electronic commerce" refers to the buying and selling of electronic products and devices.

Question 54

Lean manufacturing refers to just in time production coupled with total quality control.

Question 55

Wall Street analysts are not particularly concerned with how efficient companies are from an operations and supply management view.

Question 56

The Baldrige National Quality Award was started under the direction of the National Institute of Standards and Technology.

Question 57

Green and black belt programs teach six-sigma quality tools to managers at many corporations.

Question 58

One reason for studying operations and supply chain management (OSCM) is which of the following?

A) OSCM is essential for understanding organizational behavior
B) Most business graduates do OSCM work regardless of their job title
C) All managers should understand the basic principles that guide the design of transformation processes.
D) OSCM is a required course in all business degree programs
E) OSCM is the most rigorous business discipline

Question 59

Investors pay close attention to efficiency and productivity measures like net income per employee because they are interested in how well the firm manages its workforce relations.

Question 60

The mathematical results of Business Analytics are used to automate decision making and eliminate the decision maker.

Question 61

Which of the following is the most appropriate regarding Inventory turnover?
A. Inventory turnover increases as average inventory decreases, while other things remain the same.
B. Inventory turnover is an efficiency measure.
C. Inventory turnover is unaffected by changes in annual sales.

A) Choice A
B) Choice B
C) Choice C
D) Choice A and B only.
E) Choice A, B and C will hold.

Question 62

All other things remaining the same, if the revenue or sales decreases, asset turnover ratio will

A) Decrease
B) Increase
C) Stay the same
D) Will decrease, but the amount of change will depend on the profit margin
E) Decrease and Will decrease, but the amount of change will depend on the profit margin

Question 63

When considering the concept of value, how is quality defined?

A) By the price of the product
B) By the producer's reputation in the industry
C) By the weight of the product
D) By the attractiveness of the product considering its features and durability
E) By the product's uniqueness relative to other similar products

Question 64

Which of the following is not a way that operations and supply processes are categorized?

A) Planning
B) Returning
C) Delivering
D) Selecting
E) Making

Question 65

One of the "package of features" that make up a service is:

A) Appearance
B) Facilitating goods
C) Packaging
D) Cost
E) Implied use

Question 66

Which of the following is a measure of operations and supply management efficiency used by Wall Street?

A) Dividend payout ratio
B) Current ratio
C) Receivables turnover
D) Earnings per share growth
E) Financial leverage

Question 67

Identify the most appropriate answer regarding Cash conversion cycle.
A. Is also known as cash-to-cash cycle.
B. Cash conversion cycle goes down if payable period goes up.
C. Cash conversion cycle goes up if average inventory goes up.

A) Choice A
B) Choice B
C) Choice C
D) Choice A and B are correct.
E) Choice A, B and C are all correct.

Question 68

Current issues in OSCM do not include:

A) Coordinating relationships between organizations
B) Making senior management aware that OSCM can be a competitive weapon
C) Managing customer touch points
D) Increasing global supply chain employment

Question 69

Managing customer touch points becomes a concern under current issues in OCSM when

A) complaints arise about shaking hands with customers in cultures that is frowned upon.
B) firms striving to become superefficient begin to scrimp on staffing and training customer support personnel.
C) a firm has a workforce trained in specifically diverse situations and the correct level of service may be hard to discern.
D) firms market global products.
E) senior executives fail to recognize the contribution OCSM can make to their success.

Question 70

Which of the following is not a characteristic that distinguishes services from goods?

A) Service jobs are unskilled
B) A service is intangible
C) Services are perishable
D) Services are heterogeneous
E) None of these

Question 71

Which of the following are defined as core goods?

A) Chemicals
B) Airlines
C) Data storage systems
D) Hotels
E) None of these

Question 72

Which of the following are not listed in the text as jobs in OSCM?

A) Department store manager
B) Project manager
C) Hospital administrator
D) Data Center manager
E) Call center manager

Question 73

Which of the following is not a measure of operations and supply chain management efficiency used by Wall Street?

A) Inventory turnover
B) Revenue per employee
C) Receivable turnover
D) Earnings per share
E) Asset turnover