,Operations and Supply Chain Management
Chapter 01
Operations and Supply Chain Management
Learning Objectives for Chapter 1
1. Understand why it is important to study operations and supply chain
management.
2. Define efficient and effective operations.
3. Categorize operations and supply chain processes.
4. Contrast differences between services and goods producing
processes.
5. Identify operations and supply chain management career
opportunities.
6. Describe how the field has developed over time.
True / False Questions
1. Efficiency means doing the right things to create the most value for the company.
True False
2. Effectiveness means doing the right things to create the most value for the company.
True False
3. A doctor completes a surgical procedure on a patient without error. The patient dies
anyway. In operations management terms, we could refer to this doctor as being efficient but
not effective.
True False
1-1
,Operations and Supply Chain Management
4. A worker can be efficient without being effective.
True False
5. A process can be effective without being efficient.
True False
6. Operations and supply 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
7. The term "value" refers to the relationship between quality and the price paid by the
consumer.
True False
1-2
, Operations and Supply Chain Management
8. Attempting to balance the desire to efficiently use resources while providing a highly
effective service may create conflict between the two goals.
True False
9. 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 because demand
is so unpredictable.
True False
11. Today's leading retailers use operations and supply chain management techniques to
match supply and demand as closely and quickly as possible.
True False
12. "Concept-to-cash" refers to the idea of generating revenue from licensing of patent rights
or other intellectual property.
True False
13. OSM is concerned with management of the trickiest parts of the system that produces a
good or delivers a service.
True False
14. OSM is a functional field of business with clear line management responsibilities.
True False
1-3
Chapter 01
Operations and Supply Chain Management
Learning Objectives for Chapter 1
1. Understand why it is important to study operations and supply chain
management.
2. Define efficient and effective operations.
3. Categorize operations and supply chain processes.
4. Contrast differences between services and goods producing
processes.
5. Identify operations and supply chain management career
opportunities.
6. Describe how the field has developed over time.
True / False Questions
1. Efficiency means doing the right things to create the most value for the company.
True False
2. Effectiveness means doing the right things to create the most value for the company.
True False
3. A doctor completes a surgical procedure on a patient without error. The patient dies
anyway. In operations management terms, we could refer to this doctor as being efficient but
not effective.
True False
1-1
,Operations and Supply Chain Management
4. A worker can be efficient without being effective.
True False
5. A process can be effective without being efficient.
True False
6. Operations and supply 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
7. The term "value" refers to the relationship between quality and the price paid by the
consumer.
True False
1-2
, Operations and Supply Chain Management
8. Attempting to balance the desire to efficiently use resources while providing a highly
effective service may create conflict between the two goals.
True False
9. 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 because demand
is so unpredictable.
True False
11. Today's leading retailers use operations and supply chain management techniques to
match supply and demand as closely and quickly as possible.
True False
12. "Concept-to-cash" refers to the idea of generating revenue from licensing of patent rights
or other intellectual property.
True False
13. OSM is concerned with management of the trickiest parts of the system that produces a
good or delivers a service.
True False
14. OSM is a functional field of business with clear line management responsibilities.
True False
1-3
