Introduction to Operations and Supply Chain Management, 4e (Bozarth/Handfield)
Chapter 1 Introduction to Operations and Supply Chain Management
Learning Objective 1-1
1) Every organization has an operations function.
2) Most organizations function as part of a larger supply chain.
3) The supply chain is a network of manufacturers and service providers that work together to
create products or services needed by end users.
4) To participate in a supply chain, a firm must actually handle the physical goods at some point.
5) Information and materials are two examples of inputs to the transformation process.
6) In general, operations management activities are information and decision intensive.
7) Of the three flows linking organizations in a supply chain, information and monetary flows
always move upstream and physical flows always move downstream.
8) A second-tier supplier is downstream from a first-tier supplier in a supply chain.
9) Most of the participants in a supply chain are both suppliers and customers.
10) Transportation and warehousing are examples of logistics activities.
11) The collection of people, technology, and systems within an organization that has primary
responsibility for providing the organization’s products or services is called:
A) the supply chain.
B) the operations function.
C) the evoked set.
D) relationship management.
12) Which of these is NOT a component of the operations function in an organization?
A) People
B) Technology
C) Systems
D) Information
13) Which of the following is NOT a flow typically found in a supply chain?
A) physical
B) information
C) monetary
D) risk
14) Which of the following is primarily a supply chain management decision?
A) from whom to purchase materials
B) how many of each item should be produced
C) the mix of labor skill and automation
D) the location of the plant
15) ________ is an example of an output of the transformation process.
A) Material
B) Information
C) Satisfied customers
D) Intangible needs
16) Typical inputs to the transformation process include:
A) tangible goods.
B) satisfied customers.
C) intangible needs.
D) fulfilled needs.
17) Which of the following statements about the operations function is NOT correct?
A) Inputs to operations can take many different forms.
B) Nearly all operations activities require coordination with other business functions.
C) The outputs of an operations function are always tangible.
D) Operations management activities are information and decision intensive.
18) Which of these statements about flows in a supply chain is best?
A) Information and monetary flows move upstream and downstream, but physical flows move
downstream only.
B) Information flows move upstream and downstream, monetary flows move upstream only, and
physical flows move downstream only.
C) Information and monetary flows move upstream only and physical flows move downstream
only.
D) Information, physical and monetary flows move both upstream and downstream.
19) Which of the following statements regarding the supply chain is TRUE?
A) A second-tier supplier is downstream from a first-tier supplier.
B) A first-tier supplier is upstream from a second-tier supplier.
C) A first-tier supplier is downstream from a second-tier supplier.
D) A customer is upstream from a first-tier supplier.
20) In the Sweet Action! supply chain, the flowers produce the nectar which is collected by the
bees. The busy bees take this nectar and produce honey, which is collected by the beekeeper,
who puts it in quart jars and supplies it to the baker. The baker produces a lovely array of
confections, which are purchased by the local restaurant. The restaurant sells these confections to
their loyal diners, who gleefully consume them and nag the chef for his recipe. Which of these
statements about this supply chain is best?
A) The busy bees are a first-tier supplier of the local restaurant.
B) The beekeeper is a first-tier supplier of the local restaurant.
C) The baker is a first-tier supplier of the local restaurant.
D) The local restaurant is a first-tier supplier of the loyal diners.
21) In the Sweet Action! supply chain, the flowers produce the nectar which is collected by the
bees. The busy bees take this nectar and produce honey, which is collected by the beekeeper,
who puts it in quart jars and supplies it to the baker. The baker produces a lovely array of
confections, which are purchased by the local restaurant. The restaurant sells these confections to
their loyal diners, who gleefully consume them and nag the chef for his recipe. Which of these
statements about this supply chain is best?
A) The busy bees are a second-tier supplier of the local restaurant.
B) The beekeeper is a second-tier supplier of the local restaurant.
C) The baker is a second-tier supplier of the local restaurant.
D) The local restaurant is a second-tier supplier of the loyal diners.
22) In the Sweet Action! supply chain, the flowers produce the nectar which is collected by the
bees. The busy bees take this nectar and produce honey, which is collected by the beekeeper,
who puts it in quart jars and supplies it to the baker. The baker produces a lovely array of
confections, which are purchased by the local restaurant. The restaurant sells these confections to
their loyal diners, who gleefully consume them and nag the chef for his recipe. Which of these
statements about this supply chain is best?
A) The busy bees are within the span of the SCOR model of the local restaurant.
B) The beekeeper is within the span of the SCOR model of the local restaurant.
C) The loyal patrons are within the span of the SCOR model of the beekeeper.
D) The loyal patrons are within the span of the SCOR model of the busy bees.
23) In the Sweet Action! supply chain, the flowers produce the nectar which is collected by the
bees. The busy bees take this nectar and produce honey, which is collected by the beekeeper,
who puts it in quart jars and supplies it to the baker. The baker produces a lovely array of
confections, which are purchased by the local restaurant. The restaurant sells these confections to
their loyal diners, who gleefully consume them and nag the chef for his recipe. Which of these
statements about this supply chain is best?
A) There is only one first-tier supplier in this supply chain.
B) There are only two first-tier suppliers in this supply chain.
C) There are only three first-tier suppliers in this supply chain.
D) There are four first-tier suppliers in this supply chains.
24) Which of the following lists is in correct supply chain order?
A) first-tier supplier — manufacturer — distributor
B) distributor — manufacturer — retailer
C) first-tier supplier — second-tier supplier — third-tier supplier
D) customer — retailer — distributor
25) Which of these is NOT an element of the SCOR model?
A) Operate
B) Plan
C) Source
D) Return
26) The collection of people, technology, and systems within an organization that has primary
responsibility for providing the organization’s products or services is ________.
27) Most organizations function as part of larger ________ that are linked through physical,
monetary, and information flows.
28) Operations can be considered a transformation process that takes things like materials, labor,
and capital, called ________, and transforms them into goods or services, called ________.
29) An activity or firm that is positioned earlier in the supply chain relative to another activity or
firm is said to be ________.
30) Printing and binding a book take place ________ from the conversion of wood to paper pulp
in a publishing supply chain.
31) The ________ model is used to define processes and relationships in supply chain
management.
32) A(n) ________-tier supplier for Acme sells directly to them.
33) A second-tier supplier is located ________ from a first-tier supplier.
34) What are three reasons that the study of operations and supply chain management is
important?
35) Describe the operations function’s transformation process and provide an example for each
element.
36) Distinguish between upstream and downstream firms in a supply chain and provide an
example.