Operations and Supply Chain Management, 15th edition Heizer
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,Operations and Supply Chain Management, 15e (Heizer / Render / Munson)
Chapter 1 Operations and Productivity
Section 1 What Is Operations Management?
1) Some of the operations-related activities of Hard Rock Café include designing music
instruments and analyzing them for cost and labor requirements.
Answer: FALSE
Diff: 1
Objective: LO 1.1 Define operations management
AACSB: Reflective thinking
Learning Outcome: Discuss operations and operations management as a competitive advantage
for the organization
2) Because Hard Rock Cafés are themed restaurants, operations managers focus their layout
design efforts on attractiveness while paying little attention to efficiency.
Answer: FALSE
Diff: 1
Objective: LO 1.1 Define operations management
AACSB: Reflective thinking
Learning Outcome: Discuss operations and operations management as a competitive advantage
for the organization
3) All organizations, including service firms such as banks and hospitals, have a production
function.
Answer: TRUE
Diff: 2
Objective: LO 1.1 Define operations management
AACSB: Application of knowledge
Learning Outcome: Discuss operations and operations management as a competitive advantage
for the organization
4) Operations management is the set of activities that creates value in the form of tangible goods,
and intangible outputs like services, by transforming inputs into outputs.
Answer: TRUE
Diff: 1
Objective: LO 1.1 Define operations management
AACSB: Application of knowledge
Learning Outcome: Discuss operations and operations management as a competitive advantage
for the organization
1
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,5) Production is the creation of goods and services.
Answer: TRUE
Diff: 2
Objective: LO 1.1 Define operations management
AACSB: Application of knowledge
Learning Outcome: Discuss operations and operations management as a competitive advantage
for the organization
6) An operations manager's job is to enable a firm to efficiently transform inputs into products
and services.
Answer: TRUE
Diff: 1
Objective: LO 1.1 Define operations management
AACSB: Application of knowledge
Learning Outcome: Discuss operations and operations management as a competitive advantage
for the organization
7) At Hard Rock Café, tasks that reflect operations or operations management include:
A) designing efficient layouts.
B) providing meals.
C) receiving ingredients.
D) preparing effective employee schedules.
E) all of these.
Answer: E
Diff: 1
Objective: LO 1.1 Define operations management
AACSB: Reflective thinking
Learning Outcome: Discuss operations and operations management as a competitive advantage
for the organization
8) An operations task performed at Hard Rock Café is:
A) borrowing funds to build a new restaurant.
B) advertising changes in the restaurant menu.
C) designing efficient kitchen layouts.
D) managing the payroll for employees.
E) overseeing financial reports.
Answer: C
Diff: 2
Objective: LO 1.1 Define operations management
AACSB: Reflective thinking
Learning Outcome: Discuss operations and operations management as a competitive advantage
for the organization
2
Copyright © 2026 Pearson Education, Inc.
,9) Operations management is applicable:
A) mostly to the service sector.
B) to services exclusively.
C) mostly to the manufacturing sector.
D) to all firms, whether manufacturing or service.
E) to the manufacturing sector exclusively.
Answer: D
Diff: 2
Objective: LO 1.1 Define operations management
AACSB: Application of knowledge
Learning Outcome: Discuss operations and operations management as a competitive advantage
for the organization
10) ________ is the set of activities that creates value in the form of goods and services by
transforming inputs into outputs.
Answer: Operations management
Diff: 1
Objective: LO 1.1 Define operations management
AACSB: Application of knowledge
Learning Outcome: Discuss operations and operations management as a competitive advantage
for the organization
11) Operations management is the set of activities that creates value in the form of goods and
services by transforming ________ into ________.
Answer: inputs; outputs
Diff: 2
Objective: LO 1.1 Define operations management
AACSB: Application of knowledge
Learning Outcome: Discuss operations and operations management as a competitive advantage
for the organization
12) Identify three or more operations-related tasks carried out by Hard Rock Café.
Answer: Providing custom meals; designing, testing, and costing meals; acquiring, receiving,
and storing supplies; recruiting and training employees; preparing employee schedules;
designing efficient restaurant layouts.
Diff: 1
Objective: LO 1.1 Define operations management
AACSB: Integration of real-world business experiences
Learning Outcome: Discuss operations and operations management as a competitive advantage
for the organization
3
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,13) Define operations management. Will your definition accommodate both manufacturing and
service operations?
Answer: Operations management can be defined as the management of all activities directly
related to the creation of goods and/or services through the transformation of inputs into outputs.
Yes.
Diff: 1
Objective: LO 1.1 Define operations management
AACSB: Application of knowledge
Learning Outcome: Discuss operations and operations management as a competitive advantage
for the organization
4
Copyright © 2026 Pearson Education, Inc.
,Section 2 Organizing to Produce Goods and Services
1) Which of the following are the primary functions of all organizations?
A) production/operations, marketing, and human resources
B) marketing, human resources, and finance/accounting
C) sales, quality control, and production/operations
D) marketing, production/operations, and finance/accounting
E) research and development, finance/accounting, and purchasing
Answer: D
Diff: 2
Objective: LO 1.1 Define operations management
AACSB: Application of knowledge
Learning Outcome: Discuss operations and operations management as a competitive advantage
for the organization
2) Which of the following tasks within a manufacturing firm is performed by the operations
function?
A) market research
B) borrowing funds
C) sales promotion
D) stock issue
E) quality assurance and control
Answer: E
Diff: 2
Objective: LO 1.1 Define operations management
AACSB: Application of knowledge
Learning Outcome: Discuss operations and operations management as a competitive advantage
for the organization
3) Which of the following would NOT be an operations function in a commercial bank?
A) auditing
B) teller scheduling
C) maintenance
D) collection
E) check clearing
Answer: A
Diff: 2
Objective: LO 1.1 Define operations management
AACSB: Application of knowledge
Learning Outcome: Discuss operations and operations management as a competitive advantage
for the organization
5
Copyright © 2026 Pearson Education, Inc.
,4) The marketing function is concerned with:
A) producing goods or providing services.
B) procuring materials, supplies, and equipment.
C) building and maintaining a positive image.
D) generating the demand for the organization's products or services.
E) securing monetary resources.
Answer: D
Diff: 2
Objective: LO 1.1 Define operations management
AACSB: Application of knowledge
Learning Outcome: Discuss operations and operations management as a competitive advantage
for the organization
5) The purchasing function is concerned with:
A) producing goods or providing services.
B) procuring materials, supplies, and equipment.
C) building and maintaining a positive image.
D) generating the demand for the organization's products or services.
E) securing monetary resources.
Answer: B
Diff: 2
Objective: LO 1.1 Define operations management
AACSB: Application of knowledge
Learning Outcome: Discuss operations and operations management as a competitive advantage
for the organization
6) The finance function is concerned with:
A) producing goods or providing services.
B) procuring materials, supplies, and equipment.
C) building and maintaining a positive image.
D) generating the demand for the organization's products or services.
E) securing monetary resources.
Answer: E
Diff: 2
Objective: LO 1.1 Define operations management
AACSB: Application of knowledge
Learning Outcome: Discuss operations and operations management as a competitive advantage
for the organization
6
Copyright © 2026 Pearson Education, Inc.
,7) Which of the following tasks within an airline company is related to operations?
A) crew scheduling
B) international monetary exchange
C) sales
D) advertising
E) accounts payable
Answer: A
Diff: 2
Objective: LO 1.1 Define operations management
AACSB: Reflective thinking
Learning Outcome: Discuss operations and operations management as a competitive advantage
for the organization
8) For a commercial bank, the operations function will involve:
A) teller scheduling.
B) advertising new loan products.
C) auditing financial transactions.
D) accounting expenses incurred.
E) accounts payable.
Answer: A
Diff: 2
Objective: LO 1.1 Define operations management
AACSB: Reflective thinking
Learning Outcome: Discuss operations and operations management as a competitive advantage
for the organization
9) For an airline, the marketing function will involve:
A) crew scheduling.
B) managing general ledger.
C) cash control.
D) pricing tickets.
E) dispatching crew.
Answer: D
Diff: 2
Objective: LO 1.1 Define operations management
AACSB: Reflective thinking
Learning Outcome: Discuss operations and operations management as a competitive advantage
for the organization
10) Marketing, ________, and finance/accounting are the three functions that all organizations
must perform to create goods and services.
Answer: production/operations
Diff: 2
Objective: LO 1.1 Define operations management
AACSB: Application of knowledge
Learning Outcome: Discuss operations and operations management as a competitive advantage
for the organization
7
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, 11) Production is dependent on marketing to ________, before creating, producing and
delivering a product.
Answer: generate demand
Diff: 1
Objective: LO 1.1 Define operations management
AACSB: Application of knowledge
Learning Outcome: Discuss operations and operations management as a competitive advantage
for the organization
8
Copyright © 2026 Pearson Education, Inc.