Chapter 01 - Operations and Supply Chain Management

Chapter 01
Operations and Supply Chain Management

True / False Questions

1. Efficiency means doing the right things to create the most value for the company.
True False

. Effectiveness means doing the right things to create the most value for the company.
True False

!. " doctor completes a surgical procedure on a patient #ithout error. The patient dies
any#ay. $n operations management terms% #e could refer to this doctor as &eing efficient &ut
not effective.
True False

'. " #or(er can &e efficient #ithout &eing effective.
True False

). " process can &e effective #ithout &eing efficient.
True False

*. Operations and supply chain management is defined as the design% operation% and
improvement of the systems that create and deliver the firm+s primary products and services.
True False

,. The term -value- refers to the relationship &et#een .uality and the price paid &y the
consumer.
True False

1-1
Chapter 01 - Operations and Supply Chain Management
/. "ttempting to &alance the desire to efficiently use resources #hile providing a highly
effective service may create conflict &et#een the t#o goals.
True False

0. Central to the concept of operations strategy are the notions of operations focus and trade-
offs.
True False

10. Fashion retailers% in particular% need to have plenty of inventory on hand &ecause demand
is so unpredicta&le.
True False

11. Today+s leading retailers use operations and supply chain management techni.ues to
match supply and demand as closely and .uic(ly as possi&le.
True False

1. -Concept-to-cash- refers to the idea of generating revenue from licensing of patent rights
or other intellectual property.
True False

1!. OSCM is concerned #ith management of the tric(iest parts of the system that produces a
good or delivers a service.
True False

1'. OSCM is a functional field of &usiness #ith clear line management responsi&ilities.
True False

1-
Chapter 01 - Operations and Supply Chain Management
1). The supply net#or( can &e thought of as a pipeline through #hich cash% material and
information flo#s.
True False

1*. Supply net#or(s cannot &e constructed for every product or service.
True False

1,. -Operations- refers to manufacturing and service processes used to transform resources
employed &y a firm into products desired &y customers.
True False

1/. -Supply Chain- refers to supply chain processes that move information and material to
and from the manufacturing and service processes of the firm.
True False

10. -Supply Chain- includes in&ound freight and inventory only.
True False

0. $t is critical that a sustaina&le strategy meet the needs of shareholders and employees. $t is
also highly desira&le that it preserves the environment.
True False

1. Supply and demand planning is needed to coordinate the manufacturing% service% and
supply chain processes.
True False

1-!
Chapter 01 - Operations and Supply Chain Management
. Supply and demand planning involves forecasting demand% ma(ing intermediate term
plans for ho# demand #ill &e met% controlling different types of inventory% &ut not the
detailed #ee(ly scheduling of processes.
True False

!. "ll managers should understand the &asic principles that guide the design of
transformation processes.
True False

'. Operations and supply management changes constantly &ecause of the dynamic nature of
competing in glo&al &usiness and the constant evolution of information technology.
True False

). $nternet technology has made the sharing of relia&le real-time information e1pensive.
True False

*. 2se of systems li(e point-of-sale% radio-fre.uency identification tags% &ar-code scanners%
and automatic recognition has made it more difficult to understand #hat all the information is
saying.
True False

,. Operations and supply chain processes can &e conveniently categori3ed as planning%
sourcing% ma(ing% and delivering.
True False

/. " ma4or aspect of planning involves developing a set of metrics to monitor the supply
chain.
True False

1-'
Chapter 01 - Operations and Supply Chain Management
0. 5eturning involves processes for receiving #orn-out% defective% and e1cess products &ac(
from customers &ut does not involve support for customers #ho have pro&lems #ith the
product.
True False

!0. 6elivering is not considered in supply chain analysis #hen outside carriers are contracted
to move products to customers.
True False

!1. Services are intangi&le processes that cannot &e #eighed or measured.
True False

!. Service innovations can &e patented.
True False

!!. Services are homogeneous.
True False

!'. Services are defined and evaluated as a pac(age of features that affect the five senses.
True False

!). "utomo&iles and appliances are classified as -pure goods.-
True False

!*. Core service providers integrate tangi&le goods into their product.
True False

1-)
Chapter 01 - Operations and Supply Chain Management
!,. Serviti3ation refers to a company &uilding service activities into its product offerings for
current users.
True False

!/. Serviti3ation is a nonsense #ord invented to descri&e the disappearance of manufacturing
from the 2S economy.
True False

!0. $n contrast to careers in finance and mar(eting% careers in OSCM involve hands-on
involvement #ith people and processes.
True False

'0. " &an( &ranch manager position is not an OSM-type of 4o&.
True False

'1. " supply chain manager is an OSCM 4o& #hile a purchasing manager is not.
True False

'. 7ust in time 87$T9 production #as a ma4or &rea(through in manufacturing philosophy
pioneered &y the 7apanese.
True False

'!. :ean manufacturing refers to 4ust in time production coupled #ith total .uality control.
True False

''. The ;aldrige <ational =uality "#ard #as started under the direction of the <ational
$nstitute of Standards and Technology.
True False

1-*
Chapter 01 - Operations and Supply Chain Management
'). The approach that advocates ma(ing revolutionary changes as opposed to evolutionary
changes is called creation theory.
True False

'*. The approach that advocates ma(ing revolutionary changes as opposed to evolutionary
changes is called -&usiness process reengineering.-
True False

',. ;usiness process reengineering is contrasted to total .uality management #hich
commonly advocates incremental change.
True False

'/. The -triple &ottom line- relates to the economic% employee% and environmental impact of a
firm+s strategy.
True False

'0. Sustaina&ility is the a&ility to maintain profits in a system.
True False

)0. 5aising senior management a#areness of operations as a competitive #eapon is not an
issue on OSCM.
True False

)1. ->reen &elt- programs are coordinated pu&lic #or(s pro4ects aimed at placing an
environmentally friendly 3one around ma4or cities.
True False

1-,
Chapter 01 - Operations and Supply Chain Management
). >reen and &lac( &elt programs teach si1-sigma .uality tools to managers at many
corporations.
True False

)!. The central idea of supply chain management is to apply a total system approach to
managing the flo# of information% materials% and services from ra# material suppliers
through factories and #arehouses to the end customer.
True False

)'. The term -electronic commerce- refers to the &uying and selling of electronic products
and devices.
True False

)). The term -electronic commerce- refers to the use of the $nternet as an essential element of
&usiness activity.
True False

)*. SSME is an acronym standing for -Service Sector Management Economics.-
True False

),. Science Management and Engineering aims to apply the latest concepts in information
technology to continue to improve service productivity of technology-&ased organi3ations.
True False


Multiple Choice Questions

1-/
Chapter 01 - Operations and Supply Chain Management
)/. " reason for studying operations and supply chain management 8OSCM9 is #hich of the
follo#ing?
". OSCM is essential for understanding organi3ational &ehavior.
;. Most &usiness graduates do OSCM #or( regardless of their 4o& title.
C. "ll managers should understand the &asic principles that guide the design of
transformation processes.
6. OSCM is a re.uired course in all &usiness degree programs.
E. OS@M is the most rigorous &usiness discipline.

)0. The >oods-Services Continuum consists of #hich set of the follo#ing categories?
". <o goods% some goods% even mi1% some service% no service
;. Aure goods% core goods% core services% pure services
C. <o service% some service% good service% e1cellent service
6. Self-service% help des( service% face-to-face service% service-#ith-a-simle
E. <one of the a&ove

*0. Bhich of the follo#ing are defined as core goods?
". Chemicals
;. "irlines
C. 6ata storage systems
6. Cotels
E. <one of the a&ove

*1. Current issues in OSCM do not includeD
". Coordinating relationships &et#een organi3ations.
;. Ma(ing senior management a#are that OSCM can &e a competitive #eapon.
C. The triple &ottom line.
6. Managing customer touch points.
E. $ncreasing glo&al serviti3ation net#or(s.

1-0
Chapter 01 - Operations and Supply Chain Management
*. Bhich of the follo#ing is not listed in the te1t as 4o&s in OSCM?
". 6epartment store manager
;. Aro4ect manager
C. Cospital administrator
6. Chief $nformation Officer
E. Call center manager

*!. Bhich of the follo#ing is not a characteristic that distinguishes services from goods?
". Service 4o&s are uns(illed.
;. " service is intangi&le.
C. Services are perisha&le.
6. Services are heterogeneous.
E. <one of the a&ove.

*'. Bhich of the follo#ing is not a #ay that operations and supply processes are categori3ed?
". Alanning
;. 5eturn
C. 6elivery
6. Selecting
E. Ma(ing

*). One of the pac(age of features that ma(e up a service areD
". "ppearance
;. Facilitating goods
C. Aac(aging
6. Cost
E. $mplied use


Fill in the Blank Questions

**. The a&ility to maintain &alance in a system is referred to as EEEEEEEEEEEEEEE.
EEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEE

1-10
Chapter 01 - Operations and Supply Chain Management
*,. Arocesses that are used to transform the resources into products are called
EEEEEEEEEEEEEEEE.
EEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEE

*/. Bhat are the five categories of supply chain processes?
1. EEEEEEEEEEEEEEEEEEE
. EEEEEEEEEEEEEEEEEEE
!. EEEEEEEEEEEEEEEEEEE
'. EEEEEEEEEEEEEEEEEEE
). EEEEEEEEEEEEEEEEEEE
EEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEE

*0. 6oing something at the lo#est possi&le cost is calledD EEEEEEEEEEEEEEEE.
EEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEE

,0. @alue is the ratio of EEEEEEEEEEEEEEEEEE to EEEEEEEEEEEEEEEEEE.
EEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEE

,1. " pipeline through #hich material and information flo#s is a conception of a
EEEEEEEEEEEEEEEEEEEEEEE.
EEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEE

,. :ist five OSCM 4o& titles.
1. EEEEEEEEEEEEEEEEEEE
. EEEEEEEEEEEEEEEEEEE
!. EEEEEEEEEEEEEEEEEEE
'. EEEEEEEEEEEEEEEEEEE
). EEEEEEEEEEEEEEEEEEE
EEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEE

1-11
Chapter 01 - Operations and Supply Chain Management
,!. Bhat are three current issues in operations and supply management?
1. EEEEEEEEEEEEEEEEEEE
. EEEEEEEEEEEEEEEEEEE
!. EEEEEEEEEEEEEEEEEEE
EEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEE

,'. Bhat is a total systems approach to managing the flo# of information% materials% and
services from ra# material suppliers through factories and #arehouses to the end customer
called? EEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEE
EEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEE

,). Bhat is a ma4or industry and university program aiming to apply the latest concepts in
information technology to continue to improve service productivity of technology-&ased
organi3ations called? EEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEE
EEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEE

,*. The use of the $nternet as an essential element of &usiness activity is called #hat?
EEEEEEEEEEEEEEEEEEEEEEEEEEEEEE
EEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEE


Essay Questions

,,. 6iscuss the role of efficiency and effectiveness in the creation of value.




1-1
Chapter 01 - Operations and Supply Chain Management
Chapter 01 Operations and Supply Chain Management "ns#er Fey


True / False Questions

1. (p. 11) Efficiency means doing the right things to create the most value for the company.
F!SE
Efficiency means doing something at the lo#est possi&le cost.

AACSB: Analytic
Bloom's Taxonomy: Remember
Difficulty: asy
!earnin" #b$ecti%e: &1'&( Define efficient an) effecti%e operations
Topic Area: fficiency* ffecti%eness* an) +alue

. (p. 11) Effectiveness means doing the right things to create the most value for the company.
T"#E
Effectiveness means doing the right things to create the most value for the company.

AACSB: Analytic
Bloom's Taxonomy: Remember
Difficulty: asy
!earnin" #b$ecti%e: &1'&( Define efficient an) effecti%e operations
Topic Area: fficiency* ffecti%eness* an) +alue

1-1!
Chapter 01 - Operations and Supply Chain Management
!. (p. 11) " doctor completes a surgical procedure on a patient #ithout error. The patient dies
any#ay. $n operations management terms% #e could refer to this doctor as &eing efficient &ut
not effective.
T"#E
Efficiency means doing something at the lo#est possi&le cost. Effectiveness means doing the
right things to create the most value. The doctor performed the surgery #ithout error. ;ecause
the patient died% no value #as created.

AACSB: Analytic
Bloom's Taxonomy: Analy,e
Difficulty: -e)ium
!earnin" #b$ecti%e: &1'&( Define efficient an) effecti%e operations
Topic Area: fficiency* ffecti%eness* an) +alue

'. (p. 11) " #or(er can &e efficient #ithout &eing effective.
T"#E
Efficiency means doing something at the lo#est possi&le cost. Effectiveness means doing the
right things to create the most value. These are different things.

AACSB: Analytic
Bloom's Taxonomy: .n)erstan)
Difficulty: -e)ium
!earnin" #b$ecti%e: &1'&( Define efficient an) effecti%e operations
Topic Area: fficiency* ffecti%eness* an) +alue

). (p. 11) " process can &e effective #ithout &eing efficient.
T"#E
Often ma1imi3ing effectiveness and efficiency at the same time creates conflict &et#een the
t#o goals. "t the customer service counter at a local store or &an(% &eing efficient means
using the fe#est people possi&le at the counter. ;eing effective% though% means minimi3ing
the amount of time customers need to #ait in line.

AACSB: Analytic
Bloom's Taxonomy: .n)erstan)
Difficulty: -e)ium
!earnin" #b$ecti%e: &1'&( Define efficient an) effecti%e operations
Topic Area: fficiency* ffecti%eness* an) +alue

1-1'
Chapter 01 - Operations and Supply Chain Management
*. (p. /) Operations and supply chain management is defined as the design% operation% and
improvement of the systems that create and deliver the firm+s primary products and services.
T"#E
Operations and supply chain management is defined as the design% operation% and
improvement of the systems that create and deliver the firm+s primary products and services.

AACSB: Analytic
Bloom's Taxonomy: Remember
Difficulty: asy
!earnin" #b$ecti%e: &1'&1 .n)erstan) 01y it is important to stu)y operations an) supply c1ain mana"ement
Topic Area: 21at is #perations an) Supply C1ain -ana"ement3

,. (p. 11) The term -value- refers to the relationship &et#een .uality and the price paid &y the
consumer.
T"#E
5elated to efficiency and effectiveness is the concept of value% #hich can &e metaphorically
defined as .uality divided &y price.

AACSB: Analytic
Bloom's Taxonomy: Remember
Difficulty: asy
!earnin" #b$ecti%e: &1'&( Define efficient an) effecti%e operations
Topic Area: fficiency* ffecti%eness* an) +alue

/. (p. 11) "ttempting to &alance the desire to efficiently use resources #hile providing a highly
effective service may create conflict &et#een the t#o goals.
T"#E
Often ma1imi3ing effectiveness and efficiency at the same time creates conflict &et#een the
t#o goals.

AACSB: Analytic
Bloom's Taxonomy: Analy,e
Difficulty: asy
!earnin" #b$ecti%e: &1'&( Define efficient an) effecti%e operations
Topic Area: fficiency* ffecti%eness* an) +alue

1-1)
Chapter 01 - Operations and Supply Chain Management
0. (p. 14) Central to the concept of operations strategy are the notions of operations focus and
trade-offs.
T"#E
Central to their thin(ing #as the notion of factory focus and manufacturing trade-offs.
;ecause a factory cannot e1cel on all performance measures% its management must devise a
focused strategy% 8to perform9 a limited set of tas(s e1tremely #ell. This re.uires trade-offs.

AACSB: Analytic
Bloom's Taxonomy: Remember
Difficulty: asy
!earnin" #b$ecti%e: &1'&1 .n)erstan) 01y it is important to stu)y operations an) supply c1ain mana"ement
Topic Area: 5istorical De%elopment of #perations an) Supply C1ain -ana"ement

10. (p. /) Fashion retailers% in particular% need to have plenty of inventory on hand &ecause
demand is so unpredicta&le.
F!SE
Fashion retailers% in particular% need to &e agile and fle1i&le. They cannot afford to carry
e1cess inventory.

AACSB: Analytic
Bloom's Taxonomy: Remember
Difficulty: asy
!earnin" #b$ecti%e: &1'&( Define efficient an) effecti%e operations
Topic Area: 21at is #perations an) Supply C1ain -ana"ement3

11. (p. /) Today+s leading retailers use operations and supply chain management techni.ues to
match supply and demand as closely and .uic(ly as possi&le.
T"#E
So today+s leading retailers are using operations and supply chain management techni.ues to
match supply and demand as closely and .uic(ly as possi&le.

AACSB: Analytic
Bloom's Taxonomy: Remember
Difficulty: asy
!earnin" #b$ecti%e: &1'&1 .n)erstan) 01y it is important to stu)y operations an) supply c1ain mana"ement
Topic Area: 21at is #perations an) Supply C1ain -ana"ement3

1-1*
Chapter 01 - Operations and Supply Chain Management
1. (p. /) -Concept-to-cash- refers to the idea of generating revenue from licensing of patent
rights or other intellectual property.
F!SE
2sing operations and supply chain management techni.ues to match supply and demand as
closely and .uic(ly as possi&le. They refer to the strategy as minimi3ing -concept-to-cash-
time and #or( to minimi3e the time &et#een the appearance of a fashion concept and the time
they start receiving revenue from the sales of that concept.

AACSB: Analytic
Bloom's Taxonomy: Remember
Difficulty: asy
!earnin" #b$ecti%e: &1'&1 .n)erstan) 01y it is important to stu)y operations an) supply c1ain mana"ement
Topic Area: 21at is #perations an) Supply C1ain -ana"ement3

1!. (p. /) OSCM is concerned #ith management of the tric(iest parts of the system that
produces a good or delivers a service.
F!SE
OSCM is concerned #ith the management of the entire system that produces a good or
delivers a service.

AACSB: Analytic
Bloom's Taxonomy: Remember
Difficulty: asy
!earnin" #b$ecti%e: &1'&6 Cate"ori,e operations an) supply c1ain processes
Topic Area: 21at is #perations an) Supply C1ain -ana"ement3

1'. (p. /) OSCM is a functional field of &usiness #ith clear line management responsi&ilities.
T"#E
OSCM is a functional field of &usiness #ith clear line management responsi&ilities.

AACSB: Analytic
Bloom's Taxonomy: Remember
Difficulty: asy
!earnin" #b$ecti%e: &1'&6 Cate"ori,e operations an) supply c1ain processes
Topic Area: 21at is #perations an) Supply C1ain -ana"ement3

1-1,
Chapter 01 - Operations and Supply Chain Management
1). (p. /) The supply net#or( can &e thought of as a pipeline through #hich cash% material and
information flo#s.
F!SE
Thin( of the supply net#or( as a pipeline through #hich material and information flo#s.

AACSB: Analytic
Bloom's Taxonomy: .n)erstan)
Difficulty: asy
!earnin" #b$ecti%e: &1'&6 Cate"ori,e operations an) supply c1ain processes
Topic Area: 21at is #perations an) Supply C1ain -ana"ement3

1*. (p. /) Supply net#or(s cannot &e constructed for every product or service.
F!SE
<et#or(s such as this can &e constructed for any product or service.

AACSB: Analytic
Bloom's Taxonomy: .n)erstan)
Difficulty: asy
!earnin" #b$ecti%e: &1'&6 Cate"ori,e operations an) supply c1ain processes
Topic Area: 21at is #perations an) Supply C1ain -ana"ement3

1,. (p. 7) -Operations- refers to manufacturing and service processes used to transform
resources employed &y a firm into products desired &y customers.
T"#E
Operations refers to manufacturing% service% and health care processes that are used to
transform the resources employed &y a firm into products desired &y customers.

AACSB: Analytic
Bloom's Taxonomy: Remember
Difficulty: asy
!earnin" #b$ecti%e: &1'&6 Cate"ori,e operations an) supply c1ain processes
Topic Area: 21at is #perations an) Supply C1ain -ana"ement3

1-1/
Chapter 01 - Operations and Supply Chain Management
1/. (p. 7) -Supply Chain- refers to supply chain processes that move information and material
to and from the manufacturing and service processes of the firm.
T"#E
Supply chain refers to processes that move information and material to and from the
manufacturing and service processes of the firm.

AACSB: Analytic
Bloom's Taxonomy: Remember
Difficulty: asy
!earnin" #b$ecti%e: &1'&6 Cate"ori,e operations an) supply c1ain processes
Topic Area: 21at is #perations an) Supply C1ain -ana"ement3

10. (p. 7) -Supply Chain- includes in&ound freight and inventory only.
F!SE
Supply chain refers to processes that move information and material to and from the
manufacturing and service processes of the firm.

AACSB: Analytic
Bloom's Taxonomy: .n)erstan)
Difficulty: -e)ium
!earnin" #b$ecti%e: &1'&6 Cate"ori,e operations an) supply c1ain processes
Topic Area: 21at is #perations an) Supply C1ain -ana"ement3

0. (p. 7) $t is critical that a sustaina&le strategy meet the needs of shareholders and employees.
$t is also highly desira&le that it preserves the environment.
F!SE
" sustaina&le strategy that meets the needs of shareholders and employees #hile preserving
the environment is critical.

AACSB: Analytic
Bloom's Taxonomy: .n)erstan)
Difficulty: -e)ium
!earnin" #b$ecti%e: &1'&6 Cate"ori,e operations an) supply c1ain processes
Topic Area: 21at is #perations an) Supply C1ain -ana"ement3

1-10
Chapter 01 - Operations and Supply Chain Management
1. (p. 7) Supply and demand planning is needed to coordinate the manufacturing% service% and
supply chain processes.
T"#E
"nother element of OSCM is the supply and demand planning needed to manage and
coordinate the manufacturing% service% and supply chain processes.

AACSB: Analytic
Bloom's Taxonomy: .n)erstan)
Difficulty: asy
!earnin" #b$ecti%e: &1'&6 Cate"ori,e operations an) supply c1ain processes
Topic Area: 21at is #perations an) Supply C1ain -ana"ement3

. (p. 7) Supply and demand planning involves forecasting demand% ma(ing intermediate term
plans for ho# demand #ill &e met% controlling different types of inventory% &ut not the
detailed #ee(ly scheduling of processes.
F!SE
Supply and demand planning needed to manage and coordinate the manufacturing% service%
and supply chain processes. These involve forecasting demand% ma(ing intermediate-term
plans for ho# demand #ill &e met% controlling different types of inventory% and detailed
#ee(ly scheduling of processes.

AACSB: Analytic
Bloom's Taxonomy: .n)erstan)
Difficulty: asy
!earnin" #b$ecti%e: &1'&6 Cate"ori,e operations an) supply c1ain processes
Topic Area: 21at is #perations an) Supply C1ain -ana"ement3

!. (p. 7) "ll managers should understand the &asic principles that guide the design of
transformation processes.
T"#E
"ll managers should understand the &asic principles that guide the design of transformation
processes.

AACSB: Analytic
Bloom's Taxonomy: Remember
Difficulty: asy
!earnin" #b$ecti%e: &1'&1 .n)erstan) 01y it is important to stu)y operations an) supply c1ain mana"ement
Topic Area: 21at is #perations an) Supply C1ain -ana"ement3

1-0
Chapter 01 - Operations and Supply Chain Management
'. (p. 8) Operations and supply management changes constantly &ecause of the dynamic nature
of competing in glo&al &usiness and the constant evolution of information technology.
T"#E
The field of operations and supply management is ever changing due to the dynamic nature of
competing in glo&al &usiness and the constant evolution of information technology.

AACSB: Analytic
Bloom's Taxonomy: Remember
Difficulty: asy
!earnin" #b$ecti%e: &1'&4 9)entify operations an) supply c1ain mana"ement career opportunities
Topic Area: #perations an) Supply C1ain :rocesses

). (p. 8) $nternet technology has made the sharing of relia&le real-time information e1pensive.
F!SE
$nternet technology has made the sharing of relia&le real-time information ine1pensive.

AACSB: Analytic
Bloom's Taxonomy: Remember
Difficulty: asy
!earnin" #b$ecti%e: &1'&4 9)entify operations an) supply c1ain mana"ement career opportunities
Topic Area: 21at is #perations an) Supply C1ain -ana"ement3

*. (p. 8) 2se of systems li(e point-of-sale% radio-fre.uency identification tags% &ar-code
scanners% and automatic recognition has made it more difficult to understand #hat all the
information is saying.
F!SE
Capturing information directly from the source through such systems as point-of-sale% radio-
fre.uency identification tags% &ar-code scanners% and automatic recognition has changed the
focus to one of understanding #hat all the information is saying and ho# good decisions can
&e made using it.

AACSB: Analytic
Bloom's Taxonomy: .n)erstan)
Difficulty: asy
!earnin" #b$ecti%e: &1'&4 9)entify operations an) supply c1ain mana"ement career opportunities
Topic Area: 21at is #perations an) Supply C1ain -ana"ement3

1-1
Chapter 01 - Operations and Supply Chain Management
,. (p. 8) Operations and supply chain processes can &e conveniently categori3ed as planning%
sourcing% ma(ing% and delivering.
F!SE
Operations and supply chain processes can &e conveniently categori3ed as planning% sourcing%
ma(ing% delivering% and returning.

AACSB: Analytic
Bloom's Taxonomy: Remember
Difficulty: -e)ium
!earnin" #b$ecti%e: &1'&6 Cate"ori,e operations an) supply c1ain processes
Topic Area: #perations an) Supply C1ain :rocesses

/. (p. 8) " ma4or aspect of planning involves developing a set of metrics to monitor the supply
chain.
T"#E
" ma4or aspect of planning is developing a set of metrics to monitor the supply chain so that it
is efficient and delivers high .uality and value to customers.

AACSB: Analytic
Bloom's Taxonomy: Remember
Difficulty: asy
!earnin" #b$ecti%e: &1'&6 Cate"ori,e operations an) supply c1ain processes
Topic Area: #perations an) Supply C1ain :rocesses

0. (p. ;) 5eturning involves processes for receiving #orn-out% defective% and e1cess products
&ac( from customers &ut does not involve support for customers #ho have pro&lems #ith the
product.
F!SE
5eturning involves the processes for receiving #orn-out% defective% and e1cess products &ac(
from customers and support for customers #ho have pro&lems #ith delivered products.

AACSB: Analytic
Bloom's Taxonomy: Remember
Difficulty: asy
!earnin" #b$ecti%e: &1'&6 Cate"ori,e operations an) supply c1ain processes
Topic Area: #perations an) Supply C1ain :rocesses

1-
Chapter 01 - Operations and Supply Chain Management
!0. (p. ;) 6elivering is not considered in supply chain analysis #hen outside carriers are
contracted to move products to customers.
F!SE
6elivering is also referred to as logistics processes. Carriers are pic(ed to move products to
#arehouses and customers% coordinate and schedule the movement of goods and information
through the supply net#or(% develop and operate a net#or( of #arehouses% and run the
information systems that manage the receipt of orders from customers% and invoicing systems
to collect payments from customers.

AACSB: Analytic
Bloom's Taxonomy: Remember
Difficulty: asy
!earnin" #b$ecti%e: &1'&6 Cate"ori,e operations an) supply c1ain processes
Topic Area: #perations an) Supply C1ain :rocesses

!1. (p. ;) Services are intangi&le processes that cannot &e #eighed or measured.
T"#E
There are five essential differences &et#een services and goods. The first is that a service is
an intangi&le process that cannot &e #eighed or measured% #hereas a good is a tangi&le output
of a process that has physical dimensions.

AACSB: Analytic
Bloom's Taxonomy: Remember
Difficulty: asy
!earnin" #b$ecti%e: &1'&/ Contrast )ifferences bet0een ser%ices an) "oo)s pro)ucin" processes
Topic Area: Differences bet0een Ser%ices an) <oo)s

!. (p. ;) Service innovations can &e patented.
F!SE
" service innovation% unli(e a product innovation% cannot &e patented.

AACSB: Analytic
Bloom's Taxonomy: Remember
Difficulty: -e)ium
!earnin" #b$ecti%e: &1'&/ Contrast )ifferences bet0een ser%ices an) "oo)s pro)ucin" processes
Topic Area: Differences bet0een Ser%ices an) <oo)s

1-!
Chapter 01 - Operations and Supply Chain Management
!!. (p. =) Services are homogeneous.
F!SE
The third is that services% are inherently heterogeneous.

AACSB: Analytic
Bloom's Taxonomy: Remember
Difficulty: -e)ium
!earnin" #b$ecti%e: &1'&/ Contrast )ifferences bet0een ser%ices an) "oo)s pro)ucin" processes
Topic Area: Differences bet0een Ser%ices an) <oo)s

!'. (p. =) Services are defined and evaluated as a pac(age of features that affect the five senses.
T"#E
The specifications of a service are defined and evaluated as a pac(age of features that affect
the five senses.

AACSB: Analytic
Bloom's Taxonomy: Remember
Difficulty: asy
!earnin" #b$ecti%e: &1'&/ Contrast )ifferences bet0een ser%ices an) "oo)s pro)ucin" processes
Topic Area: Differences bet0een Ser%ices an) <oo)s

!). (p. =) "utomo&iles and appliances are classified as -pure goods.-
F!SE
$n e1hi&it 1.' automo&iles and appliances are classified as -core goods.-

AACSB: Analytic
Bloom's Taxonomy: Remember
Difficulty: -e)ium
!earnin" #b$ecti%e: &1'&/ Contrast )ifferences bet0een ser%ices an) "oo)s pro)ucin" processes
Topic Area: Differences bet0een Ser%ices an) <oo)s

1-'
Chapter 01 - Operations and Supply Chain Management
!*. (p. 1&) Core service providers integrate tangi&le goods into their product.
T"#E
Core service providers must integrate tangi&le goods.

AACSB: Analytic
Bloom's Taxonomy: Remember
Difficulty: asy
!earnin" #b$ecti%e: &1'&/ Contrast )ifferences bet0een ser%ices an) "oo)s pro)ucin" processes
Topic Area: Differences bet0een Ser%ices an) <oo)s

!,. (p. 1&) Serviti3ation refers to a company &uilding service activities into its product offerings
for current users.
T"#E
Serviti3ation refers to a company &uilding service activities into its product offerings for its
current users% that is% its installed &ase.

AACSB: Analytic
Bloom's Taxonomy: Remember
Difficulty: asy
!earnin" #b$ecti%e: &1'&/ Contrast )ifferences bet0een ser%ices an) "oo)s pro)ucin" processes
Topic Area: Differences bet0een Ser%ices an) <oo)s

!/. (p. 1&) Serviti3ation is a nonsense #ord invented to descri&e the disappearance of
manufacturing from the 2S economy.
F!SE
Serviti3ation refers to a company &uilding service activities into its product offerings for its
current users% that is% its installed &ase.

AACSB: Analytic
Bloom's Taxonomy: Remember
Difficulty: asy
!earnin" #b$ecti%e: &1'&/ Contrast )ifferences bet0een ser%ices an) "oo)s pro)ucin" processes
Topic Area: Differences bet0een Ser%ices an) <oo)s

1-)
Chapter 01 - Operations and Supply Chain Management
!0. (p. 1('16) $n contrast to careers in finance and mar(eting% careers in OSCM involve hands-on
involvement #ith people and processes.
T"#E
Operations and supply chain management 4o&s are hands-on% #or(ing #ith people and
figuring out the &est #ay to do things.

AACSB: Analytic
Bloom's Taxonomy: Remember
Difficulty: asy
!earnin" #b$ecti%e: &1'&4 9)entify operations an) supply c1ain mana"ement career opportunities
Topic Area: Careers in #perations an) Supply C1ain -ana"ement

'0. (p. 16) " &an( &ranch manager position is not an OSM-type of 4o&.
F!SE
;ranch manager 8&an(9. Oversees all aspects of financial transactions at a &ranch.

AACSB: Analytic
Bloom's Taxonomy: Remember
Difficulty: -e)ium
!earnin" #b$ecti%e: &1'&4 9)entify operations an) supply c1ain mana"ement career opportunities
Topic Area: Careers in #perations an) Supply C1ain -ana"ement

'1. (p. 16) " supply chain manager is an OSCM 4o& #hile a purchasing manager is not.
F!SE
;oth supply chain manager and purchasing manager are listed as typical management and
staff 4o&s in operations and supply chain management.

AACSB: Analytic
Bloom's Taxonomy: Remember
Difficulty: -e)ium
!earnin" #b$ecti%e: &1'&4 9)entify operations an) supply c1ain mana"ement career opportunities
Topic Area: Careers in #perations an) Supply C1ain -ana"ement

1-*
Chapter 01 - Operations and Supply Chain Management
'. (p. 1/) 7ust in time 87$T9 production #as a ma4or &rea(through in manufacturing philosophy
pioneered &y the 7apanese.
T"#E
7$T #as pioneered &y the 7apanese.

AACSB: Analytic
Bloom's Taxonomy: Remember
Difficulty: asy
!earnin" #b$ecti%e: &1'&7 Describe 1o0 t1e fiel) 1as )e%elope) o%er time
Topic Area: 5istorical De%elopment of #perations an) Supply C1ain -ana"ement

'!. (p. 1/) :ean manufacturing refers to 4ust in time production coupled #ith total .uality
control.
T"#E
7$T% coupled #ith total .uality control 8T=C9% the term -lean manufacturing- is used to refer
to the8se9 set of concepts.

AACSB: Analytic
Bloom's Taxonomy: Remember
Difficulty: -e)ium
!earnin" #b$ecti%e: &1'&7 Describe 1o0 t1e fiel) 1as )e%elope) o%er time
Topic Area: 5istorical De%elopment of #perations an) Supply C1ain -ana"ement

''. (p. 14) The ;aldrige <ational =uality "#ard #as started under the direction of the <ational
$nstitute of Standards and Technology.
T"#E
Celping the .uality movement along is the ;aldrige <ational =uality "#ard% #hich #as
started in 10/, under the direction of the <ational $nstitute of Standards and Technology.

AACSB: Analytic
Bloom's Taxonomy: Remember
Difficulty: -e)ium
!earnin" #b$ecti%e: &1'&7 Describe 1o0 t1e fiel) 1as )e%elope) o%er time
Topic Area: 5istorical De%elopment of #perations an) Supply C1ain -ana"ement

1-,
Chapter 01 - Operations and Supply Chain Management
'). (p. 14) The approach that advocates ma(ing revolutionary changes as opposed to
evolutionary changes is called creation theory.
F!SE
;usiness Arocess 5eengineering see(s to ma(e revolutionary changes as opposed to
evolutionary changes.

AACSB: Analytic
Bloom's Taxonomy: Remember
Difficulty: -e)ium
!earnin" #b$ecti%e: &1'&7 Describe 1o0 t1e fiel) 1as )e%elope) o%er time
Topic Area: 5istorical De%elopment of #perations an) Supply C1ain -ana"ement

'*. (p. 14) The approach that advocates ma(ing revolutionary changes as opposed to
evolutionary changes is called -&usiness process reengineering.-
T"#E
;usiness Arocess 5eengineering see(s to ma(e revolutionary changes as opposed to
evolutionary changes.

AACSB: Analytic
Bloom's Taxonomy: Remember
Difficulty: asy
!earnin" #b$ecti%e: &1'&7 Describe 1o0 t1e fiel) 1as )e%elope) o%er time
Topic Area: 5istorical De%elopment of #perations an) Supply C1ain -ana"ement

',. (p. 14) ;usiness process reengineering is contrasted to total .uality management #hich
commonly advocates incremental change.
T"#E
;usiness Arocess 5eengineering see(s to ma(e revolutionary changes as opposed to
evolutionary changes as opposed to evolutionary changes 8#hich are commonly advocated in
T=M9.

AACSB: Analytic
Bloom's Taxonomy: Remember
Difficulty: asy
!earnin" #b$ecti%e: &1'&7 Describe 1o0 t1e fiel) 1as )e%elope) o%er time
Topic Area: 5istorical De%elopment of #perations an) Supply C1ain -ana"ement

1-/
Chapter 01 - Operations and Supply Chain Management
'/. (p. 18) The -triple &ottom line- relates to the economic% employee% and environmental
impact of a firm+s strategy.
T"#E
Management must no# consider the mandates related to the ongoing economic% employee%
and environmental via&ility of the firm 8the triple &ottom line9.

AACSB: Analytic
Bloom's Taxonomy: Remember
Difficulty: asy
!earnin" #b$ecti%e: &1'&7 Describe 1o0 t1e fiel) 1as )e%elope) o%er time
Topic Area: Current 9ssues in #perations an) Supply C1ain -ana"ement

'0. (p. 18) Sustaina&ility is the a&ility to maintain profits in a system.
F!SE
Sustaina&ility is the a&ility to maintain &alance in a system.

AACSB: Analytic
Bloom's Taxonomy: .n)erstan)
Difficulty: asy
!earnin" #b$ecti%e: &1'&7 Describe 1o0 t1e fiel) 1as )e%elope) o%er time
Topic Area: Current 9ssues in #perations an) Supply C1ain -ana"ement

)0. (p. 18) 5aising senior management a#areness of operations as a competitive #eapon is not
an issue on OSCM.
F!SE
Many senior e1ecutives entered the organi3ation through finance% strategy% or mar(eting and
&uilt their reputations on #or( in these areas and% as a result% often ta(e operations for granted.

AACSB: Analytic
Bloom's Taxonomy: .n)erstan)
Difficulty: asy
!earnin" #b$ecti%e: &1'&7 Describe 1o0 t1e fiel) 1as )e%elope) o%er time
Topic Area: Current 9ssues in #perations an) Supply C1ain -ana"ement

1-0
Chapter 01 - Operations and Supply Chain Management
)1. (p. 14) ->reen &elt- programs are coordinated pu&lic #or(s pro4ects aimed at placing an
environmentally friendly 3one around ma4or cities.
F!SE
Originally developed in the 10/0s as part of total .uality management% si1-sigma .uality in
the 1000s sa# a dramatic e1pansion as an e1tensive set of diagnostic tools #as developed.
These tools have &een taught to managers as part of ->reen and ;lac( ;elt Arograms- at
many corporations.

AACSB: Analytic
Bloom's Taxonomy: .n)erstan)
Difficulty: asy
!earnin" #b$ecti%e: &1'&7 Describe 1o0 t1e fiel) 1as )e%elope) o%er time
Topic Area: 5istorical De%elopment of #perations an) Supply C1ain -ana"ement

). (p. 14) >reen and &lac( &elt programs teach si1-sigma .uality tools to managers at many
corporations.
T"#E
Originally developed in the 10/0s as part of total .uality management% si1-sigma .uality in
the 1000s sa# a dramatic e1pansion as an e1tensive set of diagnostic tools #as developed.
These tools have &een taught to managers as part of ->reen and ;lac( ;elt Arograms- at
many corporations.

AACSB: Analytic
Bloom's Taxonomy: .n)erstan)
Difficulty: asy
!earnin" #b$ecti%e: &1'&7 Describe 1o0 t1e fiel) 1as )e%elope) o%er time
Topic Area: 5istorical De%elopment of #perations an) Supply C1ain -ana"ement

1-!0
Chapter 01 - Operations and Supply Chain Management
)!. (p. 17) The central idea of supply chain management is to apply a total system approach to
managing the flo# of information% materials% and services from ra# material suppliers
through factories and #arehouses to the end customer.
T"#E
The central idea of supply chain management is to apply a total system approach to managing
the flo# of information% materials% and services from ra# material suppliers through factories
and #arehouses to the end customer.

AACSB: Analytic
Bloom's Taxonomy: .n)erstan)
Difficulty: asy
!earnin" #b$ecti%e: &1'&7 Describe 1o0 t1e fiel) 1as )e%elope) o%er time
Topic Area: 5istorical De%elopment of #perations an) Supply C1ain -ana"ement

)'. (p. 17) The term -electronic commerce- refers to the &uying and selling of electronic
products and devices.
F!SE
The term electronic commerce refers to the use of the $nternet as an essential element of
&usiness activity.

AACSB: Analytic
Bloom's Taxonomy: .n)erstan)
Difficulty: asy
!earnin" #b$ecti%e: &1'&7 Describe 1o0 t1e fiel) 1as )e%elope) o%er time
Topic Area: 5istorical De%elopment of #perations an) Supply C1ain -ana"ement

)). (p. 17) The term -electronic commerce- refers to the use of the $nternet as an essential
element of &usiness activity.
T"#E
The term electronic commerce refers to the use of the $nternet as an essential element of
&usiness activity.

AACSB: Analytic
Bloom's Taxonomy: .n)erstan)
Difficulty: asy
!earnin" #b$ecti%e: &1'&7 Describe 1o0 t1e fiel) 1as )e%elope) o%er time
Topic Area: 5istorical De%elopment of #perations an) Supply C1ain -ana"ement

1-!1
Chapter 01 - Operations and Supply Chain Management
)*. (p. 17) SSME is an acronym standing for -Service Sector Management Economics.-
F!SE
" direct response to the gro#th of services is the development of a ma4or industry and
university program called Service Science Management and Engineering 8SSME9.

AACSB: Analytic
Bloom's Taxonomy: .n)erstan)
Difficulty: asy
!earnin" #b$ecti%e: &1'&7 Describe 1o0 t1e fiel) 1as )e%elope) o%er time
Topic Area: 5istorical De%elopment of #perations an) Supply C1ain -ana"ement

),. (p. 17) Science Management and Engineering aims to apply the latest concepts in
information technology to continue to improve service productivity of technology-&ased
organi3ations.
T"#E
SSME aims to apply the latest concepts in information technology to continue to improve
service productivity of technology-&ased organi3ations.

AACSB: Analytic
Bloom's Taxonomy: .n)erstan)
Difficulty: asy
!earnin" #b$ecti%e: &1'&7 Describe 1o0 t1e fiel) 1as )e%elope) o%er time
Topic Area: 5istorical De%elopment of #perations an) Supply C1ain -ana"ement


Multiple Choice Questions

1-!
Chapter 01 - Operations and Supply Chain Management
)/. (p. 7) " reason for studying operations and supply chain management 8OSCM9 is #hich of
the follo#ing?
". OSCM is essential for understanding organi3ational &ehavior.
;. Most &usiness graduates do OSCM #or( regardless of their 4o& title.
C$ "ll managers should understand the &asic principles that guide the design of
transformation processes.
6. OSCM is a re.uired course in all &usiness degree programs.
E. OS@M is the most rigorous &usiness discipline.
"ll managers should understand the &asic principles that guide the design of transformation
processes. 8Aage 1,9 Many senior e1ecutives entered the organi3ation through finance%
strategy% or mar(eting and &uilt their reputations on #or( in these areas and% as a result% often
ta(e operations for granted.

AACSB: Analytic
Bloom's Taxonomy: Remember
Difficulty: asy
!earnin" #b$ecti%e: &1'&1 .n)erstan) 01y it is important to stu)y operations an) supply c1ain mana"ement
Topic Area: 21at is #perations an) Supply C1ain -ana"ement3

)0. (p. =) The >oods-Services Continuum consists of #hich set of the follo#ing categories?
". <o goods% some goods% even mi1% some service% no service
B$ Aure goods% core goods% core services% pure services
C. <o service% some service% good service% e1cellent service
6. Self-service% help des( service% face-to-face service% service-#ith-a-simle
E. <one of the a&ove
See e1hi&it 1.'. ; is the correct ans#er.

AACSB: Analytic
Bloom's Taxonomy: Apply
Difficulty: -e)ium
!earnin" #b$ecti%e: &1'&/ Contrast )ifferences bet0een ser%ices an) "oo)s pro)ucin" processes
Topic Area: Differences bet0een Ser%ices an) <oo)s

1-!!
Chapter 01 - Operations and Supply Chain Management
*0. (p. =) Bhich of the follo#ing are defined as core goods?
". Chemicals
;. "irlines
C$ 6ata storage systems
6. Cotels
E. <one of the a&ove
See e1hi&it 1.'. C is the correct ans#er.

AACSB: Analytic
Bloom's Taxonomy: Apply
Difficulty: -e)ium
!earnin" #b$ecti%e: &1'&/ Contrast )ifferences bet0een ser%ices an) "oo)s pro)ucin" processes
Topic Area: Differences bet0een Ser%ices an) <oo)s

*1. (p. 1& > 18) Current issues in OSCM do not includeD
". Coordinating relationships &et#een organi3ations.
;. Ma(ing senior management a#are that OSCM can &e a competitive #eapon.
C. The triple &ottom line.
6. Managing customer touch points.
E$ $ncreasing glo&al serviti3ation net#or(s.
Serviti3ation is not discussed under -Current issues in OSCM.- $t is discussed on page 10
under the topic -6ifferences &et#een services and goods.-

AACSB: Analytic
Bloom's Taxonomy: Apply
Difficulty: -e)ium
!earnin" #b$ecti%e: &1'&4 9)entify operations an) supply c1ain mana"ement career opportunities
Topic Area: Differences bet0een Ser%ices an) <oo)s > Current 9ssues in #perations an) Supply C1ain -ana"ement

1-!'
Chapter 01 - Operations and Supply Chain Management
*. (p. 16) Bhich of the follo#ing is not listed in the te1t as 4o&s in OSCM?
". 6epartment store manager
;. Aro4ect manager
C$ Cospital administrator
6. Chief $nformation Officer
E. Call center manager
Typical management and staff 4o&s in operations and supply chain management do not list
hospital administrator.

AACSB: Analytic
Bloom's Taxonomy: Apply
Difficulty: -e)ium
!earnin" #b$ecti%e: &1'&4 9)entify operations an) supply c1ain mana"ement career opportunities
Topic Area: Careers in #perations an) Supply C1ain -ana"ement

*!. (p. ;'=) Bhich of the follo#ing is not a characteristic that distinguishes services from
goods?
$ Service 4o&s are uns(illed.
;. " service is intangi&le.
C. Services are perisha&le.
6. Services are heterogeneous.
E. <one of the a&ove.
Many service 4o&s are highly s(illed such as physician% attorney% airline pilot% OSCM
instructor% etc.

AACSB: Analytic
Bloom's Taxonomy: Apply
Difficulty: -e)ium
!earnin" #b$ecti%e: &1'&/ Contrast )ifferences bet0een ser%ices an) "oo)s pro)ucin" processes
Topic Area: Differences bet0een Ser%ices an) <oo)s

1-!)
Chapter 01 - Operations and Supply Chain Management
*'. (p. 8) Bhich of the follo#ing is not a #ay that operations and supply processes are
categori3ed?
". Alanning
;. 5eturn
C. 6elivery
%$ Selecting
E. Ma(ing
Operations and supply chain processes can &e conveniently categori3ed% particularly from the
vie# of a producer of consumer products and services% as planning% sourcing% ma(ing%
delivering% and returning.

AACSB: Analytic
Bloom's Taxonomy: Remember
Difficulty: -e)ium
!earnin" #b$ecti%e: &1'&6 Cate"ori,e operations an) supply c1ain processes
Topic Area: #perations an) Supply C1ain :rocesses

*). (p. =) One of the pac(age of features that ma(e up a service areD
". "ppearance
B$ Facilitating goods
C. Aac(aging
6. Cost
E. $mplied use
The pac(age of features that ma(e up a service is listed on page 0 of the te1t.

AACSB: Analytic
Bloom's Taxonomy: Apply
Difficulty: -e)ium
!earnin" #b$ecti%e: &1'&/ Contrast )ifferences bet0een ser%ices an) "oo)s pro)ucin" processes
Topic Area: Differences bet0een Ser%ices an) <oo)s


Fill in the Blank Questions

1-!*
Chapter 01 - Operations and Supply Chain Management
**. (p. 18) The a&ility to maintain &alance in a system is referred to as EEEEEEEEEEEEEEE.
Sustaina&ility
Sustaina&ility is the a&ility to maintain &alance in a system.

AACSB: Analytic
Bloom's Taxonomy: Remember
Difficulty: asy
!earnin" #b$ecti%e: &1'&7 Describe 1o0 t1e fiel) 1as )e%elope) o%er time
Topic Area: Current 9ssues in #perations an) Supply C1ain -ana"ement

*,. (p. 7) Arocesses that are used to transform the resources into products are called
EEEEEEEEEEEEEEEE.
Operations
Operations refers to manufacturing% service% and health care processes that are used to
transform the resources employed &y a firm into products desired &y customers.

AACSB: Analytic
Bloom's Taxonomy: Remember
Difficulty: asy
!earnin" #b$ecti%e: &1'&6 Cate"ori,e operations an) supply c1ain processes
Topic Area: #perations an) Supply C1ain :rocesses

*/. (p. 8';) Bhat are the five categories of supply chain processes?
1. EEEEEEEEEEEEEEEEEEE
. EEEEEEEEEEEEEEEEEEE
!. EEEEEEEEEEEEEEEEEEE
'. EEEEEEEEEEEEEEEEEEE
). EEEEEEEEEEEEEEEEEEE
'lanning( sourcing( making deli)ering( returning$
Alanning% sourcing% ma(ing delivering G returning. This list of operations and supply chain
processes is given on page , G /.

AACSB: Analytic
Bloom's Taxonomy: Remember
Difficulty: -e)ium
!earnin" #b$ecti%e: &1'&6 Cate"ori,e operations an) supply c1ain processes
Topic Area: #perations an) Supply C1ain :rocesses

1-!,
Chapter 01 - Operations and Supply Chain Management
*0. (p. 11) 6oing something at the lo#est possi&le cost is calledD EEEEEEEEEEEEEEEE.
E**iciency
Efficiency means doing something at the lo#est possi&le cost.

AACSB: Analytic
Bloom's Taxonomy: Remember
Difficulty: asy
!earnin" #b$ecti%e: &1'&( Define efficient an) effecti%e operations
Topic Area: fficiency* ffecti%eness* an) +alue

,0. (p. 11) @alue is the ratio of EEEEEEEEEEEEEEEEEE to EEEEEEEEEEEEEEEEEE.
+uality price paid
5elated to efficiency and effectiveness is the concept of value% #hich can &e metaphorically
defined as .uality divided &y price.

AACSB: Analytic
Bloom's Taxonomy: Apply
Difficulty: -e)ium
!earnin" #b$ecti%e: &1'&( Define efficient an) effecti%e operations
Topic Area: fficiency* ffecti%eness* an) +alue

,1. (p. /) " pipeline through #hich material and information flo#s is a conception of a
EEEEEEEEEEEEEEEEEEEEEEE.
Supply net,ork
Thin( of the supply net#or( as a pipeline through #hich material and information flo#s.

AACSB: Analytic
Bloom's Taxonomy: Apply
Difficulty: -e)ium
!earnin" #b$ecti%e: &1'&6 Cate"ori,e operations an) supply c1ain processes
Topic Area: 21at is #perations an) Supply C1ain -ana"ement3

1-!/
Chapter 01 - Operations and Supply Chain Management
,. (p. 16) :ist five OSCM 4o& titles.
1. EEEEEEEEEEEEEEEEEEE
. EEEEEEEEEEEEEEEEEEE
!. EEEEEEEEEEEEEEEEEEE
'. EEEEEEEEEEEEEEEEEEE
). EEEEEEEEEEEEEEEEEEE
ny *i)e *rom the list on page 1- o* the te.t$
" list of OSCM 4o& titles is found on page 1! of the te1t.

AACSB: Analytic
Bloom's Taxonomy: Apply
Difficulty: -e)ium
!earnin" #b$ecti%e: &1'&4 9)entify operations an) supply c1ain mana"ement career opportunities
Topic Area: Careers in #perations an) Supply C1ain -ana"ement

,!. (p. 17'18) Bhat are three current issues in operations and supply management?
1. EEEEEEEEEEEEEEEEEEE
. EEEEEEEEEEEEEEEEEEE
!. EEEEEEEEEEEEEEEEEEE
/any three01 1$ Coordinating relationships &et,een mutually supporti)e &ut separate
organi2ations$3 4$ Optimi2ing glo&al supplier( production( and distri&ution net,orks$3 -$
Managing customer touch points$3 5$ "aising senior management a,areness o*
operations as a signi*icant competiti)e ,eapon$3 6$ Sustaina&ility and the triple &ottom
line$
" list of current issues in OSCM is found on page 1*-1, of the te1t.

AACSB: Analytic
Bloom's Taxonomy: .n)erstan)
Difficulty: 5ar)
!earnin" #b$ecti%e: &1'&7 Describe 1o0 t1e fiel) 1as )e%elope) o%er time
Topic Area: Current 9ssues in #perations an) Supply C1ain -ana"ement

1-!0
Chapter 01 - Operations and Supply Chain Management
,'. (p. 17) Bhat is a total systems approach to managing the flo# of information% materials% and
services from ra# material suppliers through factories and #arehouses to the end customer
called? EEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEE
Supply chain management
The central idea of supply chain management is to apply a total system approach to managing
the flo# of information% materials% and services from ra# material suppliers through factories
and #arehouses to the end customer.

AACSB: Analytic
Bloom's Taxonomy: Remember
Difficulty: -e)ium
!earnin" #b$ecti%e: &1'&( Define efficient an) effecti%e operations
Topic Area: 21at is #perations an) Supply C1ain -ana"ement3

,). (p. 17) Bhat is a ma4or industry and university program aiming to apply the latest concepts
in information technology to continue to improve service productivity of technology-&ased
organi3ations called? EEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEE
Ser)ice Science Management and Engineering
" direct response to the gro#th of services is the development of a ma4or industry and
university program called Service Science Management and Engineering 8SSME9. SSME
aims to apply the latest concepts in information technology to continue to improve service
productivity of technology-&ased organi3ations.

AACSB: Analytic
Bloom's Taxonomy: Remember
Difficulty: -e)ium
!earnin" #b$ecti%e: &1'&/ Contrast )ifferences bet0een ser%ices an) "oo)s pro)ucin" processes
Topic Area: 5istorical De%elopment of #perations an) Supply C1ain -ana"ement

1-'0
Chapter 01 - Operations and Supply Chain Management
,*. (p. 17) The use of the $nternet as an essential element of &usiness activity is called #hat?
EEEEEEEEEEEEEEEEEEEEEEEEEEEEEE
Electronic commerce
The term electronic commerce refers to the use of the $nternet as an essential element of
&usiness activity.

AACSB: Analytic
Bloom's Taxonomy: Remember
Difficulty: -e)ium
!earnin" #b$ecti%e: &1'&/ Contrast )ifferences bet0een ser%ices an) "oo)s pro)ucin" processes
Topic Area: 5istorical De%elopment of #perations an) Supply C1ain -ana"ement


Essay Questions

,,. (p. 11) 6iscuss the role of efficiency and effectiveness in the creation of value.
" successful response to this .uestion re.uires a definition of -value- 8a relationship &et#een
-.uality- or -performance- of a product and its price9 and discussion of the trade-off &et#een
efficiency and effectiveness. Creating value means stri(ing the most appropriate &alance
&et#een efficiency and effectiveness for the mar(et need the product #ill satisfy.

AACSB: Analytic
Bloom's Taxonomy: .n)erstan)
Difficulty: -e)ium
!earnin" #b$ecti%e: &1'&( Define efficient an) effecti%e operations
Topic Area: fficiency* ffecti%eness* an) +alue

1-'1