Test Bank for Operations & Supply Chain Management 8th Canadian Edition
by William J Stevenson, Hydeh Mottaghi A+
Chapter 01 8e Stevenson
1) As a service business, the operations management activities of an airline company have
nothing in common with the operations management activities within a bicycle manufacturing
company.
⊚ true
⊚ false
2) Operations managers are responsible for managing activities and resources that produce
goods and/or provide services.
⊚ true
⊚ false
3) Effectiveness refers to achieving intended goals whereas efficiency refers to minimizing
cost and time.
⊚ true
⊚ false
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4) Operations, marketing, and finance function independently of each other in most
organizations.
⊚ true
⊚ false
5) The operations function exists only in firms that are goods-oriented.
⊚ true
⊚ false
6) Operations management pertains almost exclusively to the management of manufacturing
operations.
⊚ true
⊚ false
8) As long as a product is ready in advance of when customers demand it, the timing of
when a product is manufactured does not influence the value-added.
⊚ true
⊚ false
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9) Storing an item earlier than the scheduled delivery date is an example of a value adding
activity.
⊚ true
⊚ false
10) Management information systems (MIS) are concerned with providing management with
the information it needs to effectively manage.
⊚ true
⊚ false
11) Operations management involves both system design and planning/control decisions.
⊚ true
⊚ false
12) System design decisions have very little impact on planning/control decisions.
⊚ true
⊚ false
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13) An example of an operations control decision is the choice of location.
⊚ true
⊚ false
15) Design decisions are usually strategic and long-term, while planning decisions are usually
tactical and medium-term.
⊚ true
⊚ false
16) Managing inventory levels is considered a planning/control operations decision area.
⊚ true
⊚ false
17) A basic difference between manufacturing and service organizations is that a service is
focused on acts while manufacturing is focused on goods.
⊚ true
⊚ false
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