Deck 1: Introduction to Managing Global Operations and Supply Chains

Question 1

13)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

Answer 1

B

Question 2

10)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

Answer 2

A

Question 3

15)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

Answer 3

A

Question 4

22)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

Question 5

20)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

Question 6

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

A)A supply chain refers to the organizations to which a company either offshores or outsources production or other operations.
B)A supply chain includes all organizations that contribute to the development,manufacture,and shipping of products to a consumer.
C)A company that does not offshore or outsource production or other operations is said not to have a supply chain.
D)A supply chain focuses on the organizations involved in transforming raw materials to finished products but does not include the handling and management of products returned by customers.

Question 7

17)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
C)it is primarily capital (and not labor)intensive
D)a service needs to be consumed as it is produced

Question 8

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%

Question 9

9)Which of the following statements is true about logistics operations?

A)Logistics is the transformation of raw materials into finished products.
B)Logistics refers to the transportation and activities associated with transportation of raw materials and finished goods.
C)Logistics are usually the first operations activity to be offshored.
D)Logistics are usually the first operations to be outsourced.

Question 10

4)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 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.

Question 11

11)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

Question 12

16)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

Question 13

6)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

Question 14

14)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 (i.e.,produced and used later)
D)always requires a high degree of customer contact

Question 15

5)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 10% by 2008
B)increased from about 10% after World War II to 30% by 2008
C)declined from about 65% after World War II to 45% by 2010
D)increased from about 45% after World War II to 65% by 2010

Question 16

3)The benefits of offshoring include ______.

A)availability of skilled human resources
B)increased labor costs
C)high processing costs
D)availability of child labor

Question 17

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

A)Managing supply chains has become difficult over the years,as it involves working with a large number of organizations.
B)Managing supply chains has become easier,as a large number of operations are outsourced to other companies.
C)The difficulty of managing supply chains has remained about the same.
D)Managing supply chains has become easier,as an organization can function simply by offshoring all its operations.

Question 18

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

A)Raw materials and finished goods are considered part of the transportation process.
B)Labor,capital,and energy are considered as inputs into the system.
C)Finished products and services are in the middle stage of the transformation process.
D)The communication from inputs to outputs is considered a feedback loop.

Question 19

12)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

Question 20

21)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

Question 21

37)Which of the following statements is true with regard to storage?

A)Outbound storage refers to the storage of materials that,if not available,will impede manufacturing flow.
B)Inbound storage refers to the storage of products and services after production and prior to shipment to customer.
C)Inbound storage is one of the first operations activities to be outsourced.
D)Outbound warehousing refers to storing finished goods prior to their shipment to a wholesale or retail destination.

Question 22

36)Which of the following is true with regard to primary firms,first-tier suppliers,and second-tier suppliers?

A)A first-tier supplier is the primary firm to a second-tier supplier.
B)A second-tier supplier is the primary firm to a first-tier supplier.
C)Second-tier suppliers are not as important as first-tier suppliers.
D)To a primary firm,a first-tier supplier supplies finished goods and a second-tier supplier supplies raw materials.

Question 23

23)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

Question 24

26)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

Question 25

27)Which of the following is a challenge that an organization will face in managing global supply chains?

A)deciding which functions that should be outsourced and functions which 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

Question 26

29)See the operations profile on Zara.How does Zara attract customers?

A)speed to market
B)poor quality
C)keeping styles available for extended periods
D)slow turnaround

Question 27

38)Which of the following statements is false with regard to storage?

A)Storage refers to the warehousing function that organizations use.
B)Outbound storage refers to the storage of products and services after production and prior to shipment to customer.
C)Each manufacturer may have multiple storage facilities.
D)Only the primary firm (not first- or second-tier suppliers)have storage facilities.

Question 28

33)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

Question 29

28)See the operations profile on Zara.The phrase fashion doesn't sleep refers to ______.

A)fashionable garments for daytime wear
B)the dynamic nature of the fashion industry
C)the fact that operations management in the fashion industry is a 24/7 undertaking
D)Zara needs to design clothing that can be worn 24/7

Question 30

42)In the operations profile on Apple,the phrase putting all its eggs in one basket refers to ______.

A)focusing only on the iPhone as a source of revenues for the company
B)contracting with Intel to produce the microprocessor on which iPhone runs
C)depending on one supplier to produce the sapphire screen
D)relying on one single market for sale of its products

Question 31

24)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

Question 32

30)See the operations profile on Zara.The secret to Zara's success is a well-developed supply chain that includes ______.

A)the firm's hand-picked employees
B)the firm's design and manufacturing center
C)the firm's sources of capital
D)providers of high-quality raw materials

Question 33

41)In the operations profile on Apple,the book indicates that when Apple makes a product announcement ______.

A)it does not have an impact on the company's stock price,as Apple produces many different products the consequence of one single product is negligible
B)technology used in the product need not be verified,as Apple can always issue a product recall
C)it does not have to bother with checking the raw materials used by its suppliers,as this is the responsibility of the suppliers
D)it needs to ensure that suppliers have been certified

Question 34

35)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

Question 35

31)See the operations profile on Zara.Which of the following is NOT one of the techniques by which Zara is able to get products quickly to the customer?

A)Zara presses and wraps clothing.
B)Zara facilitates the process by which retailers get the products onto shelves and displays.
C)Zara uses express shipping to get products quickly to customers.
D)Zara tags all clothing and puts it on hangers at their distribution centers.

Question 36

25)The scope of the operations function ______.

A)is restricted to areas within the firm
B)is applicable only to manufacturing
C)is applicable only to services
D)applies both within and outside the firm

Question 37

39)Which of the following statements is true with regard to the primary firm,wholesalers,and retailers?

A)A primary firm may have many wholesalers and retailers.
B)Retailers receive goods directly from the primary firm and sell to wholesalers.
C)Wholesalers sell directly to customers.
D)A primary firm does not sell directly to customers.

Question 38

32)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
C)distribution centers
D)suppliers of partly assembled products and other inputs

Question 39

34)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

Question 40

43)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,second-tier suppliers
B)corporate,business,functional decisions
C)strategic,tactical,operational decisions
D)logistics,transportation,warehousing decisions

Question 41

45)Which of the following is true with respect to strategic decisions?

A)Each strategic decision is independent of other decisions.
B)Master production scheduling and material requirements planning are examples of strategic decisions.
C)In the hierarchy of decisions,strategic decisions follow operational decisions.
D)Strategic decisions are long-term in nature.

Question 42

52)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 of America
C)Austria
D)Bangladesh

Question 43

46)Which of the following is true with respect to strategic,tactical,and operational decisions?

A)Tactical and operational decisions have to conform to their higher-order,strategic choices.
B)The hierarchy of decisions suggests that strategic,tactical,and operational decisions are independent of each other.
C)Customer relationship planning is often considered a strategic decision.
D)Tactical and operational decisions are clearly delineated.

Question 44

50)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

Question 45

59)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

Question 46

56)Which of the following is NOT one of the functions of operations strategy?

A)It uses an organization's resources efficiently to gain a competitive edge in the marketplace.
B)It helps achieve key objectives related to cost,service,and innovation.
C)It facilitates identifying whether sales can be improved through rebates or advertising.
D)It helps achieve key objectives related to product quality,delivery.

Question 47

63)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
C)agile manufacturing: using technology to integrate different operations
D)TQM: expediting rework

Question 48

48)Which of the following is true with regard to operations interfaces in a product supply chain?

A)Upstream interfaces typically include individuals or companies that buy and use the firm's finished products.
B)Downstream interfaces typically include suppliers that provide raw materials,components,and parts required in downstream operations.
C)Vertical interfaces include technology management and service support.
D)Horizontal interfaces include the company's relations with its competitors.

Question 49

55)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

Question 50

58)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

Question 51

47)Which of the following is true with regard to operations interfaces in a product supply chain?

A)Operations interfaces refer to the interrelationships between the primary firm and its first-tier and second-tier suppliers.
B)The interfaces include upstream,downstream,and vertical interfaces.
C)Downstream interfaces refer to supplier management.
D)Upstream interfaces refer to customer management.

Question 52

44)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

Question 53

49)Which of the following statements is true with regard to technology management and service support functions?

A)Technology management and service support functions refer to management issues outside the firm
B)With technology management,we are continuously looking for ways to improve the design of facilities and engineer our processes to make our production more efficient.
C)Interfaces with respect to technology management are more challenging than those of interfaces with first-tier suppliers.
D)Interfaces with respect to first-tier suppliers are more challenging than those of interfaces with second-tier suppliers.

Question 54

51)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

Question 55

57)As a result of global competition,many companies ______.

A)lost their competitive edge and market share
B)realized the importance of operations strategies
C)adopted total quality management
D)all of these

Question 56

53)Organized and large-scale production of consumer goods began______.

A)during the Industrial Revolution
B)around 300 BCE
C)only in the early 20th century
D)after World War II

Question 57

62)Which one of the following is NOT one of the approaches with regard to quality improvement?

A)lean manufacturing
B)agile manufacturing
C)total rework
D)Six Sigma

Question 58

60)The application of Six Sigma is least likely to be appropriate for ______.

A)manufacturing
B)services
C)supply chain
D)creative works like painting

Question 59

61)Six Sigma was introduced by ______.

A)General Electric
B)Toyota
C)Motorola
D)Pennril Datacom

Question 60

54)Most of the innovations in operations management occurred during the ______ century.

A)18th
B)early 19th
C)late 19th
D)20th

Question 61

74)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

Question 62

65)Which of the following statements is false with regard to enterprise resource planning (ERP)?

A)ERP systems were developed in the early 1960s.
B)An ERP system is an information system that integrates information across all departments of an organization,such as finance,accounting,manufacturing,sales,and service.
C)The purpose of an ERP system is to manage the flow of information across all functions.
D)The purpose of an ERP system is to manage the flow of information with its external stakeholders.

Question 63

76)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

Question 64

73)Which of the following is NOT a response to managing challenges in the supply chain?

A)Supply chains are being broken up into smaller fragments to make them more flexible.
B)Manufacturing facilities are reconfigured to focus on a narrower scope of production.
C)There is a reduction of outsourcing.
D)There is a reduction of offshoring.

Question 65

71)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

Question 66

72)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

Question 67

75)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

Question 68

69)Which of the following is NOT one of the consequences of globalization?

A)an increase in strategic partnerships among global business partners
B)an increase in joint ventures,licensing arrangements
C)the formation of global supply chains
D)an increase in consolidation of businesses

Question 69

68)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

Question 70

64)Which of the following statements is true with regard to business process reengineering (BPR)?

A)BPR is an aggressive methodology that focuses primarily on reducing defects in a process.
B)BPR is the radical redesign of a firm's existing workflows and resources to reduce operational costs.
C)Many U.S.companies had adopted BPR by the early 1960s.
D)BPR is also known as business process management (BPM).

Question 71

79)The fact that people around the world can watch MTV,wear Levi's,or eat at Pizza Hut points primarily to ______.

A)the ability of consumers to buy products or services from firms,regardless of where the firms or the customers are located
B)economies of scale in production
C)the increase in global offshoring
D)the increase in global outsourcing

Question 72

67)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

Question 73

66)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

Question 74

77)Outsourcing refers to contracting a portion of operations to a third party.Such outsourcing ______.

A)refers to third-party contracting for manufacturing only
B)refers to third-party contracting when the third party is located in a different country
C)is applicable only for services
D)can improve operational flexibility

Question 75

78)Companies that take a creative and proactive approach to incorporating sustainability into their operations and supply chains ______.

A)can reduce reliance on external resources
B)craft legal contracts that will penalize suppliers in case of failure to meet the company's supply requirements
C)can reduce costs and mitigate risks
D)can charge high prices for products of poor quality

Question 76

80)Which of the following is NOT an implication of globalization of business?

A)Globalization means a business can sell in a foreign country.
B)Globalization means a business can manufacture products in a foreign land.
C)Globalization means a business can buy materials from overseas suppliers.
D)Globalization means a business can avoid payment of tariffs on goods and services.

Question 77

83)A career in operations management is facilitated by ______.

A)membership in the WTO
B)an undergraduate or graduate degree in operations management
C)membership in the GATT
D)an interest in manufacturing rather than services

Question 78

82)Which of the following statements is true with respect to offshoring and outsourcing?

A)Offshoring is a subset of outsourcing.
B)Outsourcing is a subset of offshoring.
C)Companies typically engage in either outsourcing or offshoring but not both.
D)Offshoring practices are common in the early stages of the product life cycle.

Question 79

81)A supply chain ______.

A)is also known as a customer chain as it provides value to the customer
B)includes reverse logistics (process by which customers return products that are sent back to manufacturer)
C)is an area that has always received a lot of attention from senior management
D)includes other operational areas such as manufacturing

Question 80

70)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.