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1. Operations management is the set of activities that create value

in the form of goods and services by transforming inputs into outputs. 
a) False 
b) True 
2. Customer interaction is often high for manufacturing processes, but low for services. _ 
a) False 
b) True 
3. An example of a "hidden" production function is money transfers at banks. ___ 
a) False 
b) True 
4. 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 and service 
e. to the manufacturing sector exclusively 
5. The marketing function's main concern is 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 
6. Reasons to study Operations Management include learning about 
a. why 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 the above 
7. 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 
8. The Ten Critical Decisions of Operations Management include 
a. Layout strategy 
b. Maintenance 
c. Process and capacity design 
d. Managing quality 
e. all of the above 
9. The field of operations management is shaped by advances in which of the following fields? 
a. chemistry and physics 
b. industrial engineering and management science 
c. biology and anatomy 
d. information technology 
e. all of the above 
10. Which of the following statements is true? 
a. Almost all services and almost all goods are a mixture of a service and a tangible product. 
b. A pure good has no tangible product component. 
c. A pure service has only a tangible product component. 
d. There is no such thing as a pure good. 
e. None of the above is a true statement 

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