1. A company buys electronic components, assembles them into PCs, and then ships them to customers. In this case the
electronic components are _____ for the company.
a.
outputs
b.
products
c.
processes
d.
inputs
e.
services
2. The total set of managerial activities an organization uses to transform resource inputs into products and services is
called _____.
a.
technology management
b.
strategic management
c.
project management
d.
operations management
e.
self-management
Easy
p. 459
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The Nature of Operations Management
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3. If the product is a physical good, operations create value and provide _____ utility by combining many dissimilar
inputs to make something that is more valuable than the actual cost of the inputs used to create it.
a.
time
b.
form
c.
place
d.
service
e.
statistical
Easy
p. 459
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4. Operations management was once called _____.
a.
service management
b.
process management
c.
waste management
d.
production management
e.
output management
management used to be called production management.
Easy
p. 460
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5. Fast food restaurants that assemble breads, spreads, and fillings as per the customers’ preference belong to the _____
industry.
a.
b.
c.
d.
e.
outcomes that are then sold to others.
Challenging
p. 460
MGMT.GRIF.16. 15-1 – LO: 15-1
p. 459
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6. An organization that transforms resources into an intangible output in order to create time or place utility for its
customers is known as _____ company.
a.
an outsourcing
b.
a service
c.
a manufacturing
d.
the International Organization for Standardization 9000
e.
total quality management
p. 460
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United States – BUSPROG – Analytic – Business knowledge and analytic skills
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The Nature of Operations Management
Bloom’s: Knowledge
7. During the 1970s in the United States, manufacturing entered a long period of decline. Which of the following is the
primary reason for this decline?
a.
Modernization of plants
b.
Rise in unemployment
c.
Growth in the service sector
d.
Foreign competition
e.
Recession
p. 460
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8. A convenience store at the gas station provides utility for customers because it makes it easy for them to purchase a few
essentials when they stop for gasoline. The convenience store belongs to the _____ industry.
a.
b.
c.
d.
e.
9. During the decline of the manufacturing sector, a tremendous growth in the _____ sector kept the U.S. economy from
declining at the same rate.
a.
coal
b.
service
c.
agriculture
d.
steel
e.
electronics
Easy
p. 460
10. A(n) _____ organization is one that transforms resources into an intangible output and creates time and place utility
for its customers.
a.
b.
c.
d.
e.
a
Challenging
p. 460
11. In the United States, which of the following steps did the manufacturing companies take to recover from the long
period of decline?
a.
They increased their workforces dramatically.
b.
They opened more plants.
c.
They changed their market.
d.
They modernized their plants.
e.
They changed their sector.
unnecessary plants, and modernized their remaining plants.
Easy
p. 460
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12. _____ is a form of business that combines and transforms resources into tangible outcomes that are then sold to others.
a.
Service
b.
Manufacturing
c.
Outsourcing
d.
Licensing
e.
Exporting
Easy
p. 460
c
time or place utility for its customers.
Easy
p. 460
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13. A highest-possible-quality strategy will stress on _____.
a.
the lowest possible cost regardless of quality
b.
quality regardless of cost
c.
low quality at low cost
d.
large quantities at low cost
e.
productivity regardless of quality
technology and rigorous control of product design and materials specifications.
p. 461
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The Nature of Operations Management
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14. Which of the following questions is addressed by product-service mix decisions?
a.
How the services need to be provided?
b.
How many different products need to be offered?
c.
What quantity of a product needs to be produced?
d.
Where the products need to be distributed?
e.
How products need to be produced?
p. 462
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15. A Canadian insurance company provides only one kind of insurance. It insures athletes who have multimillion-dollar
contracts and pays them a sum of money when they are injured or unable to play. Athletes buy the insurance policies as a
way to protect themselves. The insurance company’s decision to specialize in this type of insurance addresses their
decision regarding _____.
a.
product-service mix
b.
capacity
c.
layout
d.
location
e.
human resource
16. Which of the following is addressed when considering making a capacity decision?
a.
Amount of products to be manufactured
b.
Location for storage of product
c.
Type of products manufactured
d.
Quality of products to be manufactured
e.
Geographic site of facilities
a
Easy
p. 462
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17. Upsilon Inc. manufactures leather handbags. It later adds leather accessories, shoes, and clothing to its production line.
With this step, Upsilon is taking a _____ decision.
a.
layout
b.
promotion-distribution
c.
capacity
d.
product-service mix
a
Challenging
p. 462
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e.
facility
18. Globe-Mart, a large chain of department stores, strategically places distribution centers throughout the United States.
In this context, Globe-Mart has made a _____ decision.
a.
product layout
b.
facilities location
c.
capacity
d.
product-service mix
e.
process layout
Challenging
p. 462
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Designing Operations Systems
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19. Katina has hurt her hand. She goes to the emergency room. The doctor thinks Katina has a broken wrist, and sends her
for an X-ray. In this example, which type of layout does the hospital have?
a.
Product layout
b.
Cellular layout
c.
Random layout
d.
Fixed-position layout
e.
Process layout
e
Challenging
p. 463
Challenging
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20. A _____ layout is appropriate when large quantities of a single product are needed.
a.
process
b.
cellular
c.
fixed-point
d.
product
e.
distributed
Easy
p. 463
21. _____ layouts are used in operations settings that create or process a variety of products.
a.
Product
b.
Cellular
c.
Random
d.
Fixed-position
e.
Process
e
Easy
p. 463
22. In a toy manufacturing factory, the employees are stationed along the assembly line. As a toy moves along the
assembly line, each employee stationed there adds a particular part to the toy. The toy factory has a _____ layout.
a.
process
b.
cellular
c.
fixed-point
d.
product
e.
distributed
23. Eagle Inc. makes golf clubs. Each set has up to 12 clubs and each club in the set is slightly different from the other.
Which of the following types of layout does Eagle’s manufacturing plant have?
a.
Product layout
b.
Cellular layout
c.
Fixed-position layout
d.
Random layout
e.
Process layout
Cellular layouts are used when families of products can follow similar flow paths.
Challenging
p. 465
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24. Dina works in a residential construction company. She travels to the job site to build a house. The residential
construction company is an example of a _____ layout.
a.
product
b.
cellular
c.
random
d.
fixed-position
e.
process
complex products.
Challenging
p. 463
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25. The _____ layout is used when the organization is creating a few very large and complex products.
a.
product
b.
cellular
c.
fixed-position
d.
process
e.
distributed
c
Easy
p. 465
26. _____ layouts are used when families of products can follow similar flow paths.
a.
Product
b.
Cellular
c.
Random
d.
Fixed-position
e.
Process
Easy
p. 465
Challenging
p. 465
27. In automation, _____ is the flow of information from the machine back to the sensor.
a.
feedback
b.
agrimation
c.
input instruction
d.
design
e.
control mechanism
28. Which of the following is true of automation?
a.
The development of automation has created jobs across all industries.
b.
Automated machines make more errors.
c.
Automation discourages innovation.
d.
Automation helps to improve products and services.
e.
Automation was the earliest step in the development of machines and machine-controlling devices.
Moderate
p. 466
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29. In automation, _____ are the parts of the system that gather information and compare it to preset standards.
a.
feedback systems
b.
sensors
c.
robots
d.
mechanical arms
e.
control mechanisms
a
Feedback is the flow of information from the machine back to the sensor.
Easy
p. 466
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30. In automation, which of the following sends instructions to the automatic machine?
a.
Feedback
b.
Sensors
c.
Agrimation
d.
Steering system
e.
Control mechanism
e
The control mechanism is the device that sends instructions to the automatic machine.
Easy
p. 466
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31. Which of the following uses computers to design parts and complete products and to simulate performance so that
prototypes need not be constructed?
a.
Computer-aided automation
b.
Computerized robotics
c.
Agrimation
d.
Computer-aided design
e.
Flexible manufacturing systems
Easy
p. 467
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Easy
p. 466
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32. Which of the following is true of computer-integrated manufacturing (CIM)?
a.
It is a simple tool.
b.
It is very different from computer-aided manufacturing.
c.
In CIM, adjustment of machine placements and settings is manual.
d.
It is a powerful management control tool.
e.
It is a form of service technology.
Moderate
p. 467
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Digital Story: Connect
33. EduCool is a web-based student information system. It allows parents to follow their child’s performance online. It
includes grades, attendance, assignments, and student data on a daily basis. EduCool is an example of:
a.
advancement in service technology.
b.
advancement in manufacturing technology.
c.
computer-aided manufacturing.
d.
computer aided design.
e.
computer-assisted technology.
a
intangible output and creates time or place utility for its customers.
Challenging
p. 468
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34. A(n) _____ is any artificial device that is able to perform functions ordinarily thought to be appropriate for human
beings.
a.
transformer
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b.
expert system
c.
resistor
d.
robot
e.
just-in-time inventory system
35. _____ include robotic work units or workstations, assembly lines, and robotic carts or some other form of computer-
controlled transport system to move material as needed from one part of the system to another.
a.
Agrimations
b.
Flexible manufacturing systems
c.
Call-center systems
d.
Computer-aided design technologies
e.
Expert systems
Easy
p. 468
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36. Which of the following statements about manufacturing technology is true?
a.
Computer-assisted manufacturing generates resistance.
b.
Computer-aided design systems are always reliable.
c.
Computer-integrated manufacturing systems are inexpensive.
d.
Computer-aided design systems are very simple.
e.
Computer-assisted manufacturing is the same as automation.
a
fundamental change, they also generate resistance.
Easy
p. 468
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37. Which of the following uses robot harvesters to pick fruit from a variety of trees?
a.
Agrimation
b.
Flexible manufacturing systems
c.
Supply chain management
d.
Computer—assisted manufacturing
e.
Benchmarking
a
Easy
p. 468
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38. _____ is the process of managing operations control, resource acquisition and purchasing, and inventory to
improve overall efficiency and effectiveness.
a.
Supply-chain management
b.
Technology management
c.
Design management
d.
Quality control
e.
Productivity control
a
effectiveness.
Easy
MGMT.GRIF.16. 15-4 – LO: 15-4
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United States – AK – DISC: Operations Management
Moderate
p. 468
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39. _____ is also called procurement.
a.
Automation
b.
Purchasing management
c.
Inventory Management
d.
Materials control
e.
Quality control
Purchasing management is also called procurement.
Easy
p. 471
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40. Which of the following is concerned with buying the materials and resources needed to produce products and
services?
a.
Automation
b.
Purchasing management
c.
Inventory Management
d.
Materials control
e.
Quality control
produce products and services.
Easy
p. 471
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41. Which of the following is also called inventory control?
a.
Technology control
b.
Purchasing management
c.
Procurement
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d.
Materials control
e.
Quality control
42. Which of the following involves managing the organization’s raw materials, work in process, finished goods, and
products in transit?
a.
Technology control
b.
Purchasing management
c.
Inventory control
d.
Procurement
e.
Quality control
c
Easy
p. 472
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43. Which of the following inventory types provides the components needed to make the product?
a.
Raw materials
b.
Work-in-process
c.
Merchandise
d.
Finished goods
e.
In-transit
a
Raw materials provide the materials needed to make the product.
Easy
p. 472
MGMT.GRIF.16. 15-4 – LO: 15-4
Inventory control is also called materials control.
Easy
p. 472
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44. The purpose of a work-in-process inventory is to:
a.
provide the materials needed to make the product.
b.
enable overall production to be divided into stages of manageable size.
c.
reduces the organization’s investment in storage space.
d.
provide ready supply of products on customer demand and enable long, efficient production runs.
e.
distribute products to customers.
Moderate
p. 472
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45. Which of the following is a source of control for raw materials?
a.
Shop floor control systems
b.
High-level production scheduling systems
c.
Marketing
d.
Distribution control systems
e.
Purchasing models and systems
e
Purchasing models and systems is a source of control for raw materials.
Easy
p. 472
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46. Which of the following inventory types provides ready supply of products on customer demand and enables long,
efficient production runs?
a.
Raw materials inventory
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b.
Work-in-process inventory
c.
Procurements inventory
d.
Finished goods inventory
e.
In-transit inventory
47. Which of the following is a source of control for in-transit inventory?
a.
Shop floor control systems
b.
High-level production scheduling systems
c.
Marketing
d.
Distribution control systems
e.
Purchasing models and systems
Distribution control systems is a source of control for in-transit inventory.
Easy
p. 472
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48. The purpose of in-transit inventory is to:
a.
provide the materials needed to make the product.
b.
enable overall production to be divided into stages of manageable size.
c.
reduce the organization’s investment on storage space.
d.
provide ready supply of products on customer demand.
e.
distribute products to customers.
e
The purpose of in-transit inventory is to distribute products to customers.
Moderate
p. 472
Easy
p. 472
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