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SCM 302 EXAM 1 STUDY GUIDE

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SCM 302 EXAM 1 STUDY GUIDE

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SCM 302 EXAM 1 STUDY GUIDE
Chapter 1: Operations and Productivity

Concept Question 1.1: Which of the following tasks would NOT typically represent
an operations management activity at Hard Rock Café?
A. Receiving a shipment of incoming food ingredients
B. Designing an efficient layout
C. Preparing an employee schedule
D. Filing a tax return

Concept Question 1.2: The creation of goods and services is referred to as:
A. Transformation
B. Formation
C. Production
D. Design

Concept Question 1.3: Which of the following is an example of a hidden production
function?
A. Transplanting a liver
B. Assembling a motorcycle
C. Producing a computer
D. Manufacturing a television

Concept Question 1.4: The production process at Hard Rock Café does NOT include
which of the following activities?
A. Cooking
B. Placing raw materials in cold storage
C. Advertising
D. Receiving

Concept Question 2.1: Which of the following is NOT considered to be one of the
three primary functions that all organizations perform?
A. Finance/accounting
B. Research and development
C. Marketing
D. Production/operations

Concept Question 2.2: Which of the following activities at a commercial bank is NOT
an operations activity?
A. Auditing
B. Maintenance
C. Security
D. Check clearing

,Concept Question 2.3: Which of the following activities at an airline is NOT an
operations activity?
A. Sales
B. Catering
C. Crew Scheduling
D. Flying

Concept Question 2.4: Which operations function at a manufacturing facility strives
for the efficient use of machines, space, and personnel?
A. Production and inventory control
B. Industrial engineering
C. Design
D. Process analysis

Concept Question 2.6: Outsourcing is simply an extension of long-standing practice
of:
A. Importing
B. Subcontracting
C. E-procurement
D. Postponement
E. Exporting

Concept Question 2.5: The term maquiladora is most synonymous with:
A. Chinese forced labor camps
B. Areas that do not meet U.S. standards for the workplace safety and pollution
C. Home-based or cottage industry
D. Free trade zones in Mexico
E. Tax breaks provided by some South American countries to other South
American countries

Concept question 2.6: Porter’s Five Forces Model contains which of the following?
A. Customers
B. Potential entrants
C. Immediate rivals
D. Suppliers
E. All of the above

, Concept Question 2.8: Which of the following is the best example of competing on
low-cost leadership?
A. A firm’s products are introduced into the market faster than its competitors’
products are
B. A firm advertises more than its competitors do
C. A firm’s research and development department generates many ideas for
new products
D. A firm produces its product with less raw material waste than its
competitors do
E. A firm offers more reliable products that its competitors do

Concept Question 2.9: According to the authors, which of the following strategic
concepts allows firms to achieve their missions?
A. Differentiation, distinctive competency, quality leadership, and capacity
B. Distinctive competency, cost leadership, and experience
C. Productivity, efficiency, and quality leadership
D. Differentiation, cost leadership, and response
E. Differentiation, quality leadership, and response

Concept Question 3.1: A global network of organizations and activities that supply a
firm with goods and services is referred to as
A. Operations management
B. Production
C. Business functions
D. A supply chain

Concept Question 3.2: Which of the following is NOT one of the factors that fosters
specialization and worldwide supply chains?
A. Marketing
B. Cheaper transportation
C. Instant communication
D. Specialized expert knowledge

Concept Question 3.3: Competition in the 21st century is no longer between
companies; it is between
A. Supply chains
B. Countries
C. Individuals
D. Technologies

Concept Question 3.4: In general, the supply chain starts with
A. The provider of basic raw materials
B. Research and Development
C. Final customers at the retail store
D. A distributor

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