CHAPTER 1 True/False 1a. Operations management is only concerned with the day-to-day operations of a firm’s productive systems. Ans: False (see definition below)1b. Operations management designs, operates, and improves marketing systems. Ans: False (not marketing systems but productive systems)Operations Management definition – The design, operation, and improvement of productive systems.1c. Operations management is concerned with the _________ of a firm’s productive systems. a. design b. operation c. improvement d. All of these answer choices are correct. Ans: D1c. A(n) ____________ strategy involves a series of integrated decisions on processes, facilities, technology, quality, capacity, etc. a. finance b. marketing c. operations d. None of these answer choices is correct. Ans: C1d. Which of the following is not one of the four primary functional areas of a firm? 1e. The ____________ function helps strategy evolve by creating new ways of delivering a firm’s competitive priorities. 2a. A warehouse operation is an example of a physical transformation process. 2b. A retail operation is an example of an exchange transformation process. Physical: manufacturing operationsLocational: Transportation or warehouse operationsExchange: Retail operationsPhysiological: Health Care1 | P a g e
Psychological: EntertainmentInformational: Communication 2c. The transformation processassociated with health care is best described as a. locational b. exchange c. physiological d. informational 2d. All of the following are transformation processesdiscussed in the text except a. physiological. b. locational. c. exchange. d. spiritual. 3a. A supply chainis a series of activities from supplier to customer that adds value to a product or service. 3b. The set of activities that creates and delivers products to the customer is known as the supply chain. 4a. Human resources management provides product demand estimates that are used in production decisions. 4b. The four primary functional areas of a firm are marketing, finance, operations, and legal. Operations consist of:Marketing & Sales – Product/Service availability, lead-time estimates, status order, delivery schedules, sales forecasts, customer orders, customer feedback, promotions Finance & Accounting-production and inventory data, capital budgeting requests, capacity expansion and technology plans, budgets, cost analysis, capital investments, stockholder requirementsHuman Resources-personnel needs, skills sets, performance evaluations, job design, work measurements, hiring and firing, training, legal requirements, union contract negotiationsSuppliers-orders for materials, production and delivery schedules, quality requirements, design and performance specs, material availability, quality data, delivery schedules, designs.