Test Bank for Introduction to Materials Management, 9th Edition by Chapman Arnold

Introduction to Materials Management, 9e (Chapman)
Chapter 1 Introduction to Materials Management

1) Select the best answer to the following:
A) traditionally the supply-production-distribution functions have reported to different
departments
B) the supply, production and distribution functions are part of a total system
C) materials flow into an organization, are processed in some way and distributed to the
consumer
D) all the above are correct
E) none of the above is correct
Answer: D

2) Manufacturing is important to the economy because:
A) it generates wealth
B) it supports service industries
C) it adds value to products
D) all of the above
E) none of the above
Answer: D

3) Which of the following is the best statement about the operating environment in which
operations management functions?
A) Most organizations do not need to worry about competition
B) Customers are more demanding
C) Government regulation is not important for companies
D) Price is more important than quality
E) None of the above is true
Answer: B

4) Which of the following statements is best regarding order winners?
A) They persuade a company's customers to choose its product
B) They are the same in every market
C) They are the same as order qualifiers, only better
D) They are present in every product
E) All the above are true
Answer: A

5) Which of the following strategies has the shortest delivery lead time and the least customer
input?
A) Engineer-to-order
B) Make-to-order
C) Assemble-to-order
D) Make-to-stock
Answer: D



1

,6) Which of the following statements is best?
A) The supply chain includes all activities and processes to provide a product or service to a
customer
B) Material in the supply chain usually flows from producer to customer
C) The supply chain contains only one supplier
D) All of the above are true
E) A and B only are true
Answer: E

7) Companies A and B supply company C, which supplies customers D and E. Which of the
following statements is best?
A) The supply chain for company A includes B, C, D, and E
B) The supply chain for company B includes A, C, D and E
C) The supply chain for company C includes A, B, D, and E
D) All the above are true
Answer: C

8) Which of the following statements is best?
A) The basic elements of a supply chain are supply, production, and distribution
B) The elements of a supply chain are interdependent
C) Design information generally flows from customer to supplier
D) All the above are true
Answer: D

9) Which of the following is the best statement about the environment in which operations
management functions?
A) Most organizations do not need to worry about competition
B) World-wide competition is not significant for most companies
C) Government regulation is not important for companies
D) Customers are more demanding
E) None of the above is true
Answer: E

10) If a firm wishes to maximize profit, which of the following objectives are in conflict?
I. Maximize customer service
II. Minimize production costs
III. Minimize inventory costs
IV. Minimize distribution costs
A) All the above
B) None of the above
C) I and II only
D) I and III only
E) II and III only
Answer: A




2

,11) Which of the following statements is best?
I. The conflict between marketing, finance and production centers on customer service,
disruption to production, and inventory levels
II. Marketing's objectives can be met with higher inventories
III. Finance's objectives can be met with higher inventories
IV. Production's objectives can be met with higher inventories
A) All of the above are true
B) I and II only
C) I, II, and III only
D) I, II, and IV only
E) II, III, and IV only
Answer: D

12) Which of the following is normally a major activity of materials management?
I. Manufacturing planning and control
II. Physical supply/distribution
A) Both I and II
B) Neither I nor II
C) I only
D) II only
Answer: A

13) The objective of materials management is to:
I. Provide the required level of customer service
II. Maximize the use of the firm's resources
A) I only
B) II only
C) I and II
D) neither I nor II
Answer: C

14) Which of the following is/are primary activities of manufacturing planning and control?
I. Production planning
II. Implementation and control
III. Inventory management
A) I and II only
B) II and III only
C) I and III only
D) All the above are primary activities
Answer: D




3
Copyright © 2023

, 15) Which of the following is (are) input(s) to manufacturing planning and control?
A) Product description
B) Process description
C) Available facilities
D) Quantities to be produced
E) All the above are inputs
Answer: E

16) Which of the following is NOT an activity of physical supply/distribution?
A) Transportation
B) Factory inventory
C) Warehousing
D) Packaging
E) Materials handling
Answer: B

17) Materials management can be considered a balancing act because:
I. there are trade-offs between customer service and the cost of providing the service
II. priority and capacity must be balanced
A) neither I nor II
B) I only
C) II only
D) I and II
Answer: D

18) If the cost of manufacturing (direct labor and materials) is 50% of sales and profit is 15% of
sales, what would the profit percentage be if the direct costs of manufacturing was reduced from
50% to 47%?
A) 3%
B) 6%
C) 12%
D) 15%
E) 18%
Answer: E

19) Which of the following are generally considered overall objectives of an organization?
I. Providing good customer service
II. Maintaining low levels of inventory investment
III. Optimizing use of resources
IV. Providing sufficient return on investment
A) I and II only
B) I, II, and III only
C) I, III, and IV only
D) All the above
Answer: D



4
Copyright © 2023