Test Bank For Operations Management: Sustainability and Supply Chain Management, 13th Edition

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Operations Management
Thirteenth Edition
Principles of
Operations Management
Eleventh Edition
Jay Heizer
Barry Render
Chuck Munson
Test Bank (Download only) for
Operations Management &
Principles of Operations
Management: Sustainability and
Supply Chain Management
Revised by Jianli Hu

1
Operations Management, 13e (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
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
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
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,
not services, by transforming inputs into outputs.
Answer: FALSE
Diff: 1
Objective: LO 1.1 Define operations management
Learning Outcome: Discuss operations and operations management as a competitive advantage
for the organization
5) Production is the creation of goods and services.
Answer: TRUE
Diff: 2
Objective: LO 1.1 Define operations management
Learning Outcome: Discuss operations and operations management as a competitive advantage
for the organization

2
6) 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
Learning Outcome: Discuss operations and operations management as a competitive advantage
for the organization
7) 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) creating the company income statement.
D) preparing employee schedules.
E) overseeing financial reports.
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
8) 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
Learning Outcome: Discuss operations and operations management as a competitive advantage
for the organization
9) ________ 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
Learning Outcome: Discuss operations and operations management as a competitive advantage
for the organization

3
10) 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
Learning Outcome: Discuss operations and operations management as a competitive advantage
for the organization
11) 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
Learning Outcome: Discuss operations and operations management as a competitive advantage
for the organization
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
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
Learning Outcome: Discuss operations and operations management as a competitive advantage
for the organization

4
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
Learning Outcome: Discuss operations and operations management as a competitive advantage
for the organization
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
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
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
Learning Outcome: Discuss operations and operations management as a competitive advantage
for the organization

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5
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
Learning Outcome: Discuss operations and operations management as a competitive advantage
for the organization
8) Marketing, production/operations, and ________ are the three functions that all organizations
must perform to create goods and services.
Answer: finance/accounting
Diff: 1
Objective: LO 1.1 Define operations management
Learning Outcome: Discuss operations and operations management as a competitive advantage
for the organization
Section 3 The Supply Chain
1) Competition in the 21st century is no longer between companies; it is between supply chains.
Answer: TRUE
Diff: 2
Learning Outcome: Discuss operations and operations management as a competitive advantage
for the organization
2) An accounting firm that provides tax services for a company would not be considered to be
part of that company's supply chain.
Answer: FALSE
Diff: 2
AACSB: Reflective thinking
Learning Outcome: Compare and contrast different sourcing strategies including outsourcing
and insourcing

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6
3) What is a global network of organizations and activities that supply a firm with goods and
services?
A) supply tree
B) provider network
C) supply chain
D) vendor network
E) vendor tree
Answer: C
Diff: 1
Learning Outcome: Compare and contrast different sourcing strategies including outsourcing
and insourcing
4) Which of the following fosters specialization and worldwide supply chains?
A) more expensive transportation
B) instant communication
C) economies of scope
D) managers with a broad knowledge of many things
E) high trade tariffs
Answer: B
Diff: 2
Learning Outcome: Compare and contrast different sourcing strategies including outsourcing
and insourcing
5) A(n) ________ is a global network of organizations and activities that supply a firm with
goods and services.
Answer: supply chain
Diff: 1
Learning Outcome: Compare and contrast different sourcing strategies including outsourcing
and insourcing
6) Competition in the 21st century is no longer between companies; it is between ________.
Answer: supply chains
Diff: 2
Learning Outcome: Compare and contrast different sourcing strategies including outsourcing
and insourcing
7) Identify up to four phenomena that foster specialization and worldwide supply chains.
Answer: (1) a more technologically oriented society, (2) specialized expert knowledge, (3)
instant communication, and (4) cheaper transportation
Diff: 2
Learning Outcome: Compare and contrast different sourcing strategies including outsourcing
and insourcing

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7
Section 4 Why Study OM?
1) One reason to study operations management is to learn how people organize themselves for
productive enterprise.
Answer: TRUE
Diff: 1
Objective: LO 1.1 Define operations management
Learning Outcome: Discuss operations and operations management as a competitive advantage
for the organization
2) Reasons to study operations management include:
A) studying how people organize themselves for productive enterprise.
B) knowing how goods and services are consumed.
C) understanding what human resource managers do.
D) learning about a costly part of the enterprise.
E) A and D
Answer: E
Diff: 2
Objective: LO 1.1 Define operations management
Learning Outcome: Discuss operations and operations management as a competitive advantage
for the organization
3) Reasons to study operations management include learning about:
A) how people organize themselves for productive enterprise.
B) how goods and services are produced.
C) what operations managers do.
D) a costly part of the enterprise.
E) all of these.
Answer: E
Diff: 1
Objective: LO 1.1 Define operations management
Learning Outcome: Discuss operations and operations management as a competitive advantage
for the organization

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8
4) Brandon Production is a small firm focused on the assembly and sale of custom computers.
The firm is facing stiff competition from low-priced alternatives, and is looking at various
solutions to remain competitive and profitable. Current financials for the firm are shown in the
table below. In the first option, marketing will increase sales (and costs) by 50%. The next option
is Vendor (Supplier) changes, which would result in a decrease of 12% in the cost of inputs.
Finally, there is an OM option, which would reduce production costs by 25%. Which of the
options would you recommend to the firm if it can only pursue one option? In addition, comment
on the feasibility of each option.
Business Function Current Value
Cost of Inputs $50,000
Production Costs $30,000
Revenue $83,000
Answer: Marketing would increase sales to $124,500 ($83,000 ∗ 1.5) but increase cost of inputs
and production costs to $120,000 (($50,000 + $30,000) ∗ 1.5). This would net an additional
$1,500 of profit ($124,500 - $120,000 - current profit of $3,000). Vendor (Supplier) changes
would decrease cost of inputs to $44,000 ($50,000 ∗ .88), resulting in $6,000 of additional profit
(savings) ($50,000 - $44,000). Finally, the OM option would save $7,500 ($30,000 - $30,000 ∗
.75), resulting in an additional $7,500 of profit. Thus, the OM option is the most profitable.
Comments on feasibility should center on the near impossibility of increasing revenue by 50%,
while noting the other two options are difficult but not impossible.
Diff: 2
AACSB: Analytical thinking
Learning Outcome: Discuss operations and operations management as a competitive advantage
for the organization
Section 5 What Operations Managers Do
1) The operations manager performs the management activities of planning, organizing, staffing,
leading, and controlling of the OM function.
Answer: TRUE
Diff: 2
Objective: LO 1.1 Define operations management
Learning Outcome: Discuss operations and operations management as a competitive advantage
for the organization
2) "Considers inventory ordering and holding decisions" is within the strategic operations
management decision area of managing quality.
Answer: FALSE
Diff: 1
Objective: LO 1.2 Identify the 10 strategic decisions of operations management
Learning Outcome: Discuss operations and operations management as a competitive advantage
for the organization

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9
3) In order to have a career in operations management, one must have a degree in statistics or
quantitative methods.
Answer: FALSE
Diff: 1
Objective: LO 1.3 Identify career opportunities in operations management
Learning Outcome: Discuss operations and operations management as a competitive advantage
for the organization
4) What are the five elements in the management process?
A) plan, direct, update, lead, and supervise
B) accounting, finance, marketing, operations, and management
C) organize, plan, control, staff, and manage
D) plan, organize, staff, lead, and control
E) plan, lead, organize, manage, and control
Answer: D
Diff: 2
Learning Outcome: Discuss operations and operations management as a competitive advantage
for the organization
5) Which of the following is NOT an element of the management process?
A) controlling
B) leading
C) planning
D) pricing
E) staffing
Answer: D
Diff: 2
Objective: LO 1.4 Explain the distinction between goods and services
Learning Outcome: Discuss operations and operations management as a competitive advantage
for the organization
6) An operations manager is NOT likely to be involved in:
A) the design of goods and services to satisfy customers' wants and needs.
B) the quality of goods and services to satisfy customers' wants and needs.
C) the identification of customers' wants and needs.
D) work scheduling to meet the due dates promised to customers.
E) maintenance schedules.
Answer: C
Diff: 1
Objective: LO 1.2 Identify the 10 strategic decisions of operations management
Learning Outcome: Discuss operations and operations management as a competitive advantage
for the organization

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10
7) All of the following decisions fall within the scope of operations management EXCEPT for:
A) creating the company income statement.
B) design of goods and services.
C) location strategies.
D) managing quality and statistical process control.
E) human resources, job design and work measurement.
Answer: A
Diff: 1
Objective: LO 1.2 Identify the 10 strategic decisions of operations management
Learning Outcome: Discuss operations and operations management as a competitive advantage
for the organization
8) The 10 strategic operations management decisions include:
A) layout strategies.
B) maintenance.
C) process and capacity strategies.
D) managing quality.
E) all of these.
Answer: E
Diff: 1
Objective: LO 1.2 Identify the 10 strategic decisions of operations management
Learning Outcome: Discuss operations and operations management as a competitive advantage
for the organization
9) Which of the following is NOT one of the 10 strategic operations management decisions?
A) layout strategies
B) maintenance
C) process and capacity strategies
D) mass customization
E) supply chain management
Answer: D
Diff: 2
Objective: LO 1.2 Identify the 10 strategic decisions of operations management
Learning Outcome: Discuss operations and operations management as a competitive advantage
for the organization
10) Which of the following is one of the 10 strategic operations management decisions?
A) depreciation policy for tax returns
B) advertising
C) process and capacity strategies
D) pricing
E) debt/equity ratio
Answer: C
Diff: 1
Objective: LO 1.2 Identify the 10 strategic decisions of operations management
Learning Outcome: Discuss operations and operations management as a competitive advantage
for the organization

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11
11) Which of the following are among the 10 strategic operations management decisions?
I. design of goods and services
II. managing quality
III. layout strategies
IV. marketing
V. pricing of goods and services
A) I, II, V
B) I, II, IV
C) II, III, V
D) I, II, III
E) I, II, III, IV, V
Answer: D
Diff: 2
Objective: LO 1.2 Identify the 10 strategic decisions of operations management
Learning Outcome: Discuss operations and operations management as a competitive advantage
for the organization
12) Which of the following influences layout design?
A) inventory requirements
B) capacity needs
C) personnel levels
D) technology
E) All of these influence layout decisions.
Answer: E
Diff: 2
Objective: LO 1.2 Identify the 10 strategic decisions of operations management
Learning Outcome: Discuss operations and operations management as a competitive advantage
for the organization
13) Which of the following is NOT a strategic operations management decision?
A) maintenance
B) price
C) layout
D) quality
E) inventory
Answer: B
Diff: 2
Objective: LO 1.2 Identify the 10 strategic decisions of operations management
Learning Outcome: Discuss operations and operations management as a competitive advantage
for the organization

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12
14) Identify two operations-related tasks carried out by Hard Rock Café. Match each to its
related area of the 10 strategic operations management decisions.
Answer: Providing custom meals: design of goods and services; designing, testing, and costing
meals: design of goods and services; acquiring, receiving, and storing supplies: supply chain
management; recruiting and training employees: human resources, job design and measurement;
preparing employee schedules: scheduling; designing efficient restaurant layouts: layout
strategies.
Diff: 2
Objective: LO 1.2 Identify the 10 strategic decisions of operations management
AACSB: Reflective thinking
Learning Outcome: Discuss operations and operations management as a competitive advantage
for the organization
15) Identify the 10 strategic OM decisions.
Answer: Design of goods and services, managing quality, process strategies, location strategies,
layout strategies, human resources, supply chain management, inventory management,
scheduling, and maintenance.
Diff: 3
Objective: LO 1.2 Identify the 10 strategic decisions of operations management
Learning Outcome: Discuss operations and operations management as a competitive advantage
for the organization
Section 6 The Heritage of Operations Management
1) Henry Ford is known as the Father of Scientific Management.
Answer: FALSE
Diff: 1
Learning Outcome: Discuss operations and operations management as a competitive advantage
for the organization
2) Shewhart's contributions to operations management came during the Scientific Management
Era.
Answer: FALSE
Diff: 2
Learning Outcome: Discuss operations and operations management as a competitive advantage
for the organization

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13
3) Walter Shewhart is listed among the important people of operations management because of
his contributions to:
A) assembly line production.
B) measuring productivity in the service sector.
C) just-in-time inventory methods.
D) statistical quality control.
E) information technology.
Answer: D
Diff: 2
Learning Outcome: Discuss operations and operations management as a competitive advantage
for the organization
4) Walter Shewhart, in the ________, provided the foundations for ________ in operations
management.
A) 1920s; statistical sampling
B) United Kingdom; mass production
C) U.S. Army; logistics
D) nineteenth century; interchangeable parts
E) 1900s; queuing theory
Answer: A
Diff: 2
Learning Outcome: Discuss operations and operations management as a competitive advantage
for the organization
5) Eli Whitney, in the ________, provided the foundations for ________ in operations
management.
A) 1920s; statistical sampling
B) United Kingdom; mass production
C) U.S. Army; logistics
D) nineteenth century; interchangeable parts
E) 1890s; queuing theory
Answer: D
Diff: 2
Learning Outcome: Discuss operations and operations management as a competitive advantage
for the organization
6) Who was the person most responsible for popularizing interchangeable parts in
manufacturing?
A) Frederick W. Taylor
B) Henry Ford
C) Eli Whitney
D) Whitney Houston
E) Lillian Gilbreth
Answer: C
Diff: 2
Learning Outcome: Discuss operations and operations management as a competitive advantage
for the organization

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14
7) The "Father of Scientific Management" is:
A) Henry Ford.
B) Frederick W. Taylor.
C) W. Edwards Deming.
D) Frank Gilbreth.
E) just a figure of speech, not a reference to a person.
Answer: B
Diff: 2
Learning Outcome: Discuss operations and operations management as a competitive advantage
for the organization
8) Henry Ford is noted for his contributions to:
A) material requirements planning.
B) statistical quality control.
C) assembly line operations.
D) scientific management.
E) time and motion studies.
Answer: C
Diff: 1
Learning Outcome: Discuss operations and operations management as a competitive advantage
for the organization
9) Who among the following is associated with contributions to quality control in operations
management?
A) Charles Babbage
B) Henry Ford
C) Frank Gilbreth
D) W. Edwards Deming
E) Henri Fayol
Answer: D
Diff: 2
Learning Outcome: Discuss operations and operations management as a competitive advantage
for the organization
10) The field of operations management is shaped by advances in which of the following fields?
A) chemistry and physics
B) industrial engineering and management
C) biology and anatomy
D) information technology
E) all of the these
Answer: E
Diff: 2
Objective: LO 1.1 Define operations management
Learning Outcome: Discuss operations and operations management as a competitive advantage
for the organization

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