Operations Management Test Questions

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Chapter 1
Introduction to Operations Management

True/False

1. Operations managers are responsible for assessing consumer wants and needs and selling and promoting the organization's goods or services. Answer: False  Page: 4 Difficulty: Easy

2. Often, the collective success or failure of companies' operations functions will impact the ability of a nation to compete with other nations. Answer: True Page: 4  Difficulty: Easy

3. Companies are either producing goods or delivering services. This means that only one of the two types of operations management strategies are used. Answer: False Page: 6 Difficulty: Medium

4. Operations, marketing, and finance function independently of each other in most organizations. Answer: False  Page: 4 Difficulty: Medium

5. The greater the degree of customer involvement, the more challenging the design and management of operations. Answer: True Page: 7 Difficulty: Easy

6. Goods producing organizations are not involved in service activities Answer: False  Page: 13 Difficulty: Medium

7. Service operations require additional inventory because of the unpredictability of consumer demand. Answer: False  Page: 9 Difficulty: Easy

8. The value of outputs is measured by the prices customers are willing to pay for goods or services. Answer: True  Page: 5 Difficulty: Easy

9. The use of models will guarantee the best possible decisions. Answer: False Page: 15 Difficulty: Medium

10. People who work in the field of operations should have skills that include both knowledge and people skills. Answer: True Page: 27 Difficulty: Medium
11. Assembly lines achieved productivity but at the expense of standard of living. Answer: False Page: 22 Difficulty: Hard

12. The operations manager has primary responsibility for making operations system design decisions, such as system capacity and location of facilities. Answer: False Page: 14 Difficulty: Hard

13. The word 'technology' is used only to refer to 'information technology'. Answer: False Page: 25 Difficulty: Easy

14. ‘Value added’ by definition is always a positive number since 'added' implies increases. Answer: False Page: 5 Difficulty: Medium

15. Service often requires a greater labor content, whereas manufacturing is more capital intensive. Answer: True Page: 7 Difficulty: Medium

16. Measurement of productivity in service is more straightforward than in manufacturing since it is not necessary to take into account the cost of materials. Answer: False Page: 7 Difficulty: Medium

17. Outsourcing often involves collaboration with our competitors to prevent partners from taking unfair advantage of us. Answer: False Page: 26 Difficulty: Hard

18. One method of classifying production systems is the degree of standardization. Answer: True Page: 7 Difficulty: Easy

19. Most people encounter operations only in profit-making organizations. Answer: False Page: 6 Difficulty: Medium

20. Service involves a much higher degree of customer contact than manufacturing. Answer: True  Page: 9 Difficulty: Easy

21. A systems approach emphasizes interrelationships among subsystems, but its main theme is that the whole is greater than the sum of its individual parts. Answer: True  Page: 16 Difficulty: Medium

22. The Pareto phenomenon is one of the most important and pervasive concepts that can be applied at all levels of management. Answer: True Page: 17 Difficulty: Medium
23. Operations managers, who usually use quantitative approaches, are not really concerned with ethical decision-making. Answer: False  Page: 18 Difficulty: Medium

24. The optimal solutions produced by quantitative techniques should always be evaluated in terms of the larger...
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