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Chapter 1 Introduction to Operations Management True/False 1. Operations managers are responsible for assessing consumer wants and needs and selling and promoting the organization's goods or services. Answer: False Page: 4 Difficulty: Easy 2. Often, the collective success or failure of companies' operations functions will impact the ability of a nation to compete with other nations. Answer: True Page: 4 Difficulty: Easy 3. Companies are either producing goods or delivering services. This means that only one of the two types of operations management strategies are used. Answer: False Page: 6 Difficulty: Medium 4. Operations, marketing, and finance function independently of each other in most organizations. Answer: False Page: 4 Difficulty: Medium 5. The greater the degree of customer involvement, the more challenging the design and management of operations. Answer: True Page: 7 Difficulty: Easy 6. Goods producing organizations are not involved in service activities Answer: False Page: 13 Difficulty: Medium 7. Service operations require additional inventory because of the unpredictability of consumer demand. Answer: False Page: 9 Difficulty: Easy 8. The value of outputs is measured by the prices customers are willing to pay for goods or services. Answer: True Page: 5 Difficulty: Easy 9. The use of models will guarantee the best possible decisions. Answer: False Page: 15 Difficulty: Medium 10. People who work in the field of operations should have skills that include both knowledge and people skills. Answer: True Page: 27 Difficulty: Medium 1
11. Assembly lines achieved productivity but at the expense of standard of living. Answer: False Page: 22 Difficulty: Hard 12. The operations manager has primary responsibility for making operations system design decisions, such as system capacity and location of facilities. Answer: False Page: 14 Difficulty: Hard 13. The word 'technology' is used only to refer to 'information technology'. Answer: False Page: 25 Difficulty: Easy 14. ‘Value added’ by definition is always a positive number since 'added' implies increases. Answer: False Page: 5 Difficulty: Medium 15. Service often requires a greater labor content, whereas manufacturing is more capital intensive. Answer: True Page: 7 Difficulty: Medium 16. Measurement of productivity in service is more straightforward than in manufacturing since it is not necessary to take into account the cost of materials. Answer: False Page: 7 Difficulty: Medium 17. Outsourcing often involves collaboration with our competitors to prevent partners from taking unfair advantage of us. Answer: False Page: 26 Difficulty: Hard 18. One method of classifying production systems is the degree of standardization. Answer: True
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