Test Bank For
Operations & Supply Chain Management 8th Canadian Edition By William J Stevenson, Hydeh
Mottaghi, Behrouz Bakhtiari
Chapter 1-18 Answers are at the End of Each Chapter
Chapter 1
Student name:__________
TRUE/FALSE - Write 'T' if the statement is true and 'F' if the statement is false.
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
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
,7) Value-added refers to the cost of the inputs required to produce goods and services.
⊚ 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
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
13) An example of an operations control decision is the choice of location.
⊚ true
⊚ false
14) Scheduling jobs is a system design decision and not a planning decision.
⊚ true
⊚ false
15) Design decisions are usually strategic and long term, while planning decisions are 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 services are
action-oriented and manufacturing is goods-oriented.
⊚ true
⊚ false
18) Service involves a much higher degree of customer contact than the production of goods.
⊚ true
⊚ false
19) Service often requires a higher labour content, whereas the production of goods is more
capital intensive.
⊚ true
⊚ false
20) Measurement of productivity in service is more straightforward than in goods production due
to the high degree of uniformity of inputs.
⊚ true
⊚ false
21) Models are simplified representations of something and thus ignore important aspects of a
situation.
⊚ true
⊚ false
22) Quantitative techniques are often quick and practical techniques for many decisions.
⊚ true
⊚ false
23) A systems approach emphasizes interrelationships among subsystems, but its main theme is
that the whole is greater than the sum of its individual parts.
⊚ true
⊚ false
24) Queuing techniques are useful for analyzing situations in which waiting lines form.
⊚ true
⊚ false
, 25) It is essential to use the systems approach when something is being designed, redesigned,
implemented, improved, or otherwise changed.
⊚ true
⊚ false
26) A systems approach is to concentrate on efficiency within a subsystem and thereby achieve
overall efficiency.
⊚ true
⊚ false
27) Many operations management decisions can be described as trade-offs.
⊚ true
⊚ false
28) The Pareto phenomenon is one of the most important and pervasive concepts that can be
applied at all levels of management.
⊚ true
⊚ false
29) Operations managers, who usually use quantitative approaches, have no responsibility to
make ethical decisions.
⊚ true
⊚ false
30) Prior to the Industrial Revolution, goods were produced primarily by craftsmen or their
apprentices using custom made parts.
⊚ true
⊚ false
31) Frederick Taylor spearheaded the scientific management movement in America.
⊚ true
⊚ false
32) The Human Relations Movement, which emphasized the importance of the human element in
job design, was replaced by the more technical aspects of Scientific Management.
⊚ true
⊚ false
Operations & Supply Chain Management 8th Canadian Edition By William J Stevenson, Hydeh
Mottaghi, Behrouz Bakhtiari
Chapter 1-18 Answers are at the End of Each Chapter
Chapter 1
Student name:__________
TRUE/FALSE - Write 'T' if the statement is true and 'F' if the statement is false.
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
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
,7) Value-added refers to the cost of the inputs required to produce goods and services.
⊚ 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
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
13) An example of an operations control decision is the choice of location.
⊚ true
⊚ false
14) Scheduling jobs is a system design decision and not a planning decision.
⊚ true
⊚ false
15) Design decisions are usually strategic and long term, while planning decisions are 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 services are
action-oriented and manufacturing is goods-oriented.
⊚ true
⊚ false
18) Service involves a much higher degree of customer contact than the production of goods.
⊚ true
⊚ false
19) Service often requires a higher labour content, whereas the production of goods is more
capital intensive.
⊚ true
⊚ false
20) Measurement of productivity in service is more straightforward than in goods production due
to the high degree of uniformity of inputs.
⊚ true
⊚ false
21) Models are simplified representations of something and thus ignore important aspects of a
situation.
⊚ true
⊚ false
22) Quantitative techniques are often quick and practical techniques for many decisions.
⊚ true
⊚ false
23) A systems approach emphasizes interrelationships among subsystems, but its main theme is
that the whole is greater than the sum of its individual parts.
⊚ true
⊚ false
24) Queuing techniques are useful for analyzing situations in which waiting lines form.
⊚ true
⊚ false
, 25) It is essential to use the systems approach when something is being designed, redesigned,
implemented, improved, or otherwise changed.
⊚ true
⊚ false
26) A systems approach is to concentrate on efficiency within a subsystem and thereby achieve
overall efficiency.
⊚ true
⊚ false
27) Many operations management decisions can be described as trade-offs.
⊚ true
⊚ false
28) The Pareto phenomenon is one of the most important and pervasive concepts that can be
applied at all levels of management.
⊚ true
⊚ false
29) Operations managers, who usually use quantitative approaches, have no responsibility to
make ethical decisions.
⊚ true
⊚ false
30) Prior to the Industrial Revolution, goods were produced primarily by craftsmen or their
apprentices using custom made parts.
⊚ true
⊚ false
31) Frederick Taylor spearheaded the scientific management movement in America.
⊚ true
⊚ false
32) The Human Relations Movement, which emphasized the importance of the human element in
job design, was replaced by the more technical aspects of Scientific Management.
⊚ true
⊚ false
