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Chapter 01 - The Operations Function
1-1
1. Why is operations management a more encompassing term than production management?
Difficulty: Moderate
2. Which of the following functions is responsible for the actual movement of goods and/or
services across organizations?
Difficulty: Easy
3. Approximately, what percentage of the American workforce works in service industries?
Difficulty: Moderate
Chapter 01 - The Operations Function
1-2
4. The four decision areas in operations management are:
Difficulty: Easy
5. A productive systems approach:
Difficulty: Hard
6. Capacity decisions:
Difficulty: Moderate
7. Inventory decisions involve:
Difficulty: Easy
Chapter 01 - The Operations Function
1-3
8. The contemporary operations themes signify that:
Difficulty: Hard
9. The essence of operations management can be described by:
Difficulty: Moderate
10. Which of the following is not a contemporary theme in operations?
Difficulty: Hard
11. The three primary functions that exist in most business organizations are:
Difficulty: Moderate
Chapter 01 - The Operations Function
1-4
12. The three major functions of business organizations:
Difficulty: Easy
13. Which one of the following would not generally be classified as an input in a university
system?
Difficulty: Hard
14. The four major decision responsibilities of operations management are:
Difficulty: Easy
15. Which of the following is not in the process category of the operations decision
framework?
Difficulty: Hard
Chapter 01 - The Operations Function
1-5
16. Supply chain management includes the integration of:
Difficulty: Moderate
17. The supply chain extends from:
Difficulty: Moderate
18. Supply chain management includes all of the following except:
Difficulty: Easy
19. A comprehensive decision-making framework for operations includes:
Difficulty: Moderate
Chapter 01 - The Operations Function
1-6
20. The transformation view of the Operations function provides a unified approach for
studying the manufacturing and service industries.
Difficulty: Easy
21. The process view provides a basis for viewing an entire business as a system of
interconnected processes.
Difficulty: Moderate
22. "Lean Operations" refers to the task of reducing the defect rates in a firm's products or
services.
Difficulty: Moderate
23. As price increases and benefits remain constant, the value of a product increases.
Difficulty: Moderate
24. Best practices in operations are best for all organizations.
Difficulty: Moderate
Chapter 01 - The Operations Function
1-7
25. The Operations definition emphasizes decision, function and process elements of the
organization. Briefly discuss the need to address these fundamental elements.
Difficulty: Moderate
26. Identify the critical operations decision areas in an organization and discuss the
responsibilities of an operations manager while addressing these decisions.
The critical decision areas in an organization include:
Difficulty: Moderate
Chapter 01 - The Operations Function
1-8
27. What are the five inputs and two outputs of an operations transformation process?
Difficulty: Moderate
28. Why are environmental concerns and sustainability often addressed in the operations function?
Difficulty: Moderate
29. Why are supply chain management and globalization contemporary operations issues?
Difficulty: Moderate
