Test Bank forIntroduction to Operations and Supply Chain Management, 5th Edition by Cecil.

Introduction to Operations & Supply Chain Management, 5e (Bozarth) Chapter 1 Introduction to Operations and Supply Chain Management 1.1 Why Study Operations and Supply Chain Management? 1) The collection of people, technology, and systems within an organization that has primary responsibility for providing the organization's products or services is called: A) the supply chain. B) the operations function. C) the factory set. D) relationship management. Answer: B Diff: 2 Reference: 1.1 Why Study Operations and Supply Chain Management? Keywords: operations function AACSB: Application of Knowledge LO: 1.1: Describe what the operations function is and why it is critical to an organization's survival.

2) Which of these is NOT a component of the operations function in an organization? A) people B) technology C) systems D) information Answer: D Diff: 1 Reference: 1.1 Why Study Operations and Supply Chain Management? Keywords: operations function, people AACSB: Application of Knowledge LO: 1.1: Describe what the operations function is and why it is critical to an organization's survival.

3) is an example of an output of the transformation process. A) Material B) Information C) Satisfied customers D) Intangible needs Answer: C Diff: 2 Reference: 1.1 Why Study Operations and Supply Chain Management? Keywords: output, transformation, process, customer AACSB: Application of Knowledge LO: 1.1: Describe what the operations function is and why it is critical to an organization's survival.

4) Typical inputs to the transformation process include: A) tangible goods. B) satisfied customers. C) intangible needs. D) fulfilled needs. Answer: C Diff: 2 Reference: 1.1 Why Study Operations and Supply Chain Management? Keywords: intangible needs, inputs, transformation process AACSB: Application of Knowledge LO: 1.1: Describe what the operations function is and why it is critical to an organization's survival.

5) Which of the following statements about the operations function is NOT correct? A) Inputs to operations can take many different forms. B) Nearly all operations activities require coordination with other business functions. C) The outputs of an operations function are always tangible. D) Operations management activities are information and decision intensive. Answer: C Diff: 2 Reference: 1.1 Why Study Operations and Supply Chain Management? Keywords: operations function, tangible outputs AACSB: Application of Knowledge LO: 1.1: Describe what the operations function is and why it is critical to an organization's survival.

6) Which of the following is NOT a flow typically found in a supply chain? A) physical B) information C) monetary D) risk Answer: D Diff: 2 Reference: 1.1 Why Study Operations and Supply Chain Management? Keywords: supply chain, flow AACSB: Application of Knowledge LO: 1.2: Describe what a supply chain is and how it relates to a particular organization's operations function.

7) Which of the following is primarily a supply chain management decision? A) from whom to purchase materials B) how many of each item should be produced C) the mix of labor skill and automation D) the location of the plant Answer: A Diff: 3 Reference: 1.1 Why Study Operations and Supply Chain Management? Keywords: supply chain, decision, supplier AACSB: Application of Knowledge LO: 1.2: Describe what a supply chain is and how it relates to a particular organization's operations function.

8) Which of these statements about flows in a supply chain is best? A) Information and monetary flows move upstream and downstream, but physical flows move downstream only. B) Information flows move upstream and downstream, monetary flows move upstream only, and physical flows move downstream only. C) Information and monetary flows move upstream only and physical flows move downstream only. D) Information, physical and monetary flows move both upstream and downstream. Answer: D Diff: 2 Reference: 1.1 Why Study Operations and Supply Chain Management? Keywords: information flows, physical flows, monetary flows AACSB: Application of Knowledge LO: 1.2: Describe what a supply chain is and how it relates to a particular organization's operations function.

9) Which of the following statements regarding the supply chain is TRUE? A) A second-tier supplier is downstream from a first-tier supplier. B) A first-tier supplier is upstream from a second-tier supplier. C) A first-tier supplier is downstream from a second-tier supplier. D) A customer is upstream from a first-tier supplier. Answer: C Diff: 2 Reference: 1.1 Why Study Operations and Supply Chain Management? Keywords: downstream, upstream, tier, supplier, customer AACSB: Application of Knowledge LO: 1.2: Describe what a supply chain is and how it relates to a particular organization's operations function.

10) In the Sweet Action! supply chain, the flowers produce the nectar which is collected by the bees. The busy bees take this nectar and produce honey, which is collected by the beekeeper, who puts it in quart jars and supplies it to the baker. The baker produces a lovely array of confections, which are purchased by the local restaurant. The restaurant sells these confections to their loyal diners, who gleefully consume them and nag the chef for his recipe. Which of these statements about this supply chain is best? A) The busy bees are a first-tier supplier of the local restaurant. B) The beekeeper is a first-tier supplier of the local restaurant. C) The baker is a first-tier supplier of the local restaurant. D) The local restaurant is a first-tier supplier of the loyal diners. Answer: C Diff: 3 Reference: 1.1 Why Study Operations and Supply Chain Management? Keywords: downstream, first-tier, supplier, customer AACSB: Application of Knowledge LO: 1.2: Describe what a supply chain is and how it relates to a particular organization's operations function.

11) In the Sweet Action! supply chain, the flowers produce the nectar which is collected by the bees. The busy bees take this nectar and produce honey, which is collected by the beekeeper, who puts it in quart jars and supplies it to the baker. The baker produces a lovely array of confections, which are purchased by the local restaurant. The restaurant sells these confections to their loyal diners, who gleefully consume them and nag the chef for his recipe. Which of these statements about this supply chain is best? A) The busy bees are a second-tier supplier of the local restaurant. B) The beekeeper is a second-tier supplier of the local restaurant. C) The baker is a second-tier supplier of the local restaurant. D) The local restaurant is a second-tier supplier of the loyal diners. Answer: B Diff: 2 Reference: 1.1 Why Study Operations and Supply Chain Management? Keywords: downstream, second-tier, supplier, customer AACSB: Application of Knowledge LO: 1.2: Describe what a supply chain is and how it relates to a particular organization's operations function.

12) In the Sweet Action! supply chain, the flowers produce the nectar which is collected by the bees. The busy bees take this nectar and produce honey, which is collected by the beekeeper, who puts it in quart jars and supplies it to the baker. The baker produces a lovely array of confections, which are purchased by the local restaurant. The restaurant sells these confections to their loyal diners, who gleefully consume them and nag the chef for his recipe. Which of these statements about this supply chain is best? A) The busy bees are within the span of the SCOR model of the local restaurant. B) The beekeeper is within the span of the SCOR model of the local restaurant. C) The loyal patrons are within the span of the SCOR model of the beekeeper. D) The loyal patrons are within the span of the SCOR model of the busy bees. Answer: B Diff: 2 Reference: 1.1 Why Study Operations and Supply Chain Management? Keywords: SCOR model, supply chain AACSB: Application of Knowledge LO: 1.2: Describe what a supply chain is and how it relates to a particular organization's operations function.

13) In the Sweet Action! supply chain, the flowers produce the nectar which is collected by the bees. The busy bees take this nectar and produce honey, which is collected by the beekeeper, who puts it in quart jars and supplies it to the baker. The baker produces a lovely array of confections, which are purchased by the local restaurant. The restaurant sells these confections to their loyal diners, who gleefully consume them and nag the chef for his recipe. Which of these statements about this supply chain is best? A) There is only one first-tier supplier in this supply chain. B) There are only two first-tier suppliers in this supply chain. C) There are only three first-tier suppliers in this supply chain. D) There are four first-tier suppliers in this supply chains. Answer: D Diff: 2 Reference: 1.1 Why Study Operations and Supply Chain Management? Keywords: downstream, first-tier, supplier, customer AACSB: Application of Knowledge LO: 1.2: Describe what a supply chain is and how it relates to a particular organization's operations function.

14) Which of the following lists is in correct supply chain order? A) first-tier supplier – manufacturer – distributor B) distributor – manufacturer – retailer C) first-tier supplier – second-tier supplier – third-tier supplier D) customer – retailer – distributor Answer: A Diff: 2 Reference: 1.1 Why Study Operations and Supply Chain Management? Keywords: downstream, tier, supplier, distributor, customer AACSB: Application of Knowledge LO: 1.2: Describe what a supply chain is and how it relates to a particular organization's operations function.

15) Which of these is NOT an element of the SCOR model? A) Operate B) Plan C) Source D) Return Answer: A Diff: 2 Reference: 1.1 Why Study Operations and Supply Chain Management? Keywords: SCOR model AACSB: Application of Knowledge LO: 1.2: Describe what a supply chain is and how it relates to a particular organization's operations function.

16) Which of these statements is best? A) Supply chains are linked by two types of flows: physical and monetary. B) An operations function contains several supply chains. C) Very few organizations are actually members of a supply chain. D) Every organization has an operations function. Answer: D Diff: 2 Reference: 1.1 Why Study Operations and Supply Chain Management? Keywords: supply chain, operations function AACSB: Application of Knowledge LO: 1.3: Discuss what is meant by operations management and supply chain management.

17) Every organization has an operations function. Answer: TRUE Diff: 1 Reference: 1.1 Why Study Operations and Supply Chain Management? Keywords: organization, operations function AACSB: Application of Knowledge LO: 1.1: Describe what the operations function is and why it is critical to an organization's survival.

18) Information and materials are two examples of inputs to the transformation process. Answer: TRUE Diff: 1 Reference: 1.1 Why Study Operations and Supply Chain Management? Keywords: information, materials, input, transformation process AACSB: Application of Knowledge SOURCE: Browsegrades.net LO: 1.1: Describe what the operations function is and why it is critical to an organization's survival.

19) In general, operations management activities are information and decision intensive. Answer: TRUE Diff: 2 Reference: 1.1 Why Study Operations and Supply Chain Management? Keywords: information, decisions, operations management AACSB: Application of Knowledge LO: 1.1: Describe what the operations function is and why it is critical to an organization's survival.

20) Most organizations function as part of a larger supply chain. Answer: TRUE Diff: 1 Reference: 1.1 Why Study Operations and Supply Chain Management? Keywords: organization, supply chain AACSB: Application of Knowledge LO: 1.2: Describe what a supply chain is and how it relates to a particular organization's operations function.

21) The supply chain is a network of manufacturers and service providers that work together to create products or services needed by end users. Answer: TRUE Diff: 1 Reference: 1.1 Why Study Operations and Supply Chain Management? Keywords: organization, supply chain, network AACSB: Application of Knowledge LO: 1.2: Describe what a supply chain is and how it relates to a particular organization's operations function.

22) To participate in a supply chain, a firm must actually handle the physical goods at some point. Answer: FALSE Diff: 2 Reference: 1.1 Why Study Operations and Supply Chain Management? Keywords: supply chain, operations function AACSB: Application of Knowledge LO: 1.2: Describe what a supply chain is and how it relates to a particular organization's operations function.

23) Of the three flows linking organizations in a supply chain, information and monetary flows always move upstream and physical flows always move downstream. Answer: FALSE Diff: 2 Reference: 1.1 Why Study Operations and Supply Chain Management? Keywords: information flows, monetary, physical flows, supply chain AACSB: Application of Knowledge LO: 1.2: Describe what a supply chain is and how it relates to a particular organization's operations function.

24) A second-tier supplier is downstream from a first-tier supplier in a supply chain. Answer: FALSE Diff: 2 Reference: 1.1 Why Study Operations and Supply Chain Management? Keywords: downstream, supply chain, second tier AACSB: Application of Knowledge LO: 1.2: Describe what a supply chain is and how it relates to a particular organization's operations function.

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25) Most of the participants in a supply chain are both suppliers and customers. Answer: TRUE Diff: 2 Reference: 1.1 Why Study Operations and Supply Chain Management? Keywords: supply chain, supplier, customer AACSB: Application of Knowledge LO: 1.2: Describe what a supply chain is and how it relates to a particular organization's operations function.

26) A supply chain is composed of two or more operations functions. Answer: TRUE Diff: 2 Reference: 1.1 Why Study Operations and Supply Chain Management? Keywords: supply chain, operations function AACSB: Application of Knowledge LO: 1.3: Discuss what is meant by operations management and supply chain management.

27) The collection of people, technology, and systems within an organization that has primary responsibility for providing the organization's products or services is the . Answer: operations function Diff: 1 Reference: 1.1 Why Study Operations and Supply Chain Management? Keywords: operations function, product, service AACSB: Application of Knowledge LO: 1.1: Describe what the operations function is and why it is critical to an organization's survival.

28) Operations can be considered a transformation process that takes things like labor, and capital, called , and transforms them into goods or services, called . Answer: inputs; outputs Diff: 1 Reference: 1.1 Why Study Operations and Supply Chain Management? Keywords: operations function, transformation, inputs, outputs AACSB: Application of Knowledge LO: 1.1: Describe what the operations function is and why it is critical to an organization's survival.

29) Most organizations function as part of larger and information flows. Answer: supply chains

that are linked through physical, monetary,

Diff: 1 Reference: 1.1 Why Study Operations and Supply Chain Management? Keywords: supply chain AACSB: Application of Knowledge LO: 1.2: Describe what a supply chain is and how it relates to a particular organization's operations function.

30) An activity or firm that is positioned earlier in the supply chain relative to another activity or firm is said to be . Answer: upstream Diff: 1 Reference: 1.1 Why Study Operations and Supply Chain Management? Keywords: upstream, supply chain AACSB: Application of Knowledge SOURCE: Browsegrades.net LO: 1.2: Describe what a supply chain is and how it relates to a particular organization's operations function.

31) Printing and binding a book takes place publishing supply chain. Answer: downstream

from the conversion of wood to paper pulp in a

Diff: 2 Reference: 1.1 Why Study Operations and Supply Chain Management? Keywords: downstream, supply chain AACSB: Application of Knowledge LO: 1.2: Describe what a supply chain is and how it relates to a particular organization's operations function.

32) The model is used to define the processes, metrics and relationships in supply chain management. Answer: SCOR Diff: 1 Reference: 1.1 Why Study Operations and Supply Chain Management? Keywords: SCOR model, supply chain AACSB: Application of Knowledge LO: 1.2: Describe what a supply chain is and how it relates to a particular organization's operations function.

33) A(n) Answer: first

-tier supplier for Acme sells directly to them.

Diff: 1 Reference: 1.1 Why Study Operations and Supply Chain Management? Keywords: first-tier, supply chain, supplier AACSB: Application of Knowledge LO: 1.2: Describe what a supply chain is and how it relates to a particular organization's operations function.

34) A second-tier supplier is located Answer: upstream

from a first-tier supplier.

Diff: 1 Reference: 1.1 Why Study Operations and Supply Chain Management? Keywords: upstream, supply chain, supplier AACSB: Application of Knowledge LO: 1.2: Describe what a supply chain is and how it relates to a particular organization's operations function.

35) A(n) is a network of manufacturers and service providers that collaborate to create a product or service. Answer: supply chain Diff: 2 Reference: 1.1 Why Study Operations and Supply Chain Management? Keywords: supply chain, operations function AACSB: Application of Knowledge LO: 1.3: Discuss what is meant by operations management and supply chain management.

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36) Describe the operations function's transformation process and provide an example for each element. Answer: The transformation process view of operations management holds that inputs are transformed into outputs. Examples of inputs are raw materials, labor, capital, equipment, information, and intangible needs. The transformation process is the conversion of these inputs using either manufacturing or service operations (and sometimes both). Manufacturing operations might be painting, welding, machining, or assembling. Outputs of the transformation process are tangible goods, services, fulfilled needs, and satisfied customers. Specific examples may vary depending on the company chosen. Diff: 2 Reference: 1.1 Why Study Operations and Supply Chain Management? Keywords: transformation process, operations function, input, output AACSB: Application of Knowledge LO: 1.1: Describe what the operations function is and why it is critical to an organization's survival.

37) Distinguish between upstream and downstream firms in a supply chain and provide an example. Answer: Upstream and downstream are relative terms that describe the position of a supply chain member from one point of reference. A supply chain member that is upstream from a firm is sending their output to the firm for use as an input. A supply chain member that is downstream from a firm is taking the firm's output and using it as an input to their own processes. It is possible for a single member of a supply chain to be both upstream and downstream from one or more members of their supply chain. Examples may vary. Diff: 2 Reference: 1.1 Why Study Operations and Supply Chain Management? Keywords: upstream, downstream, supply chain, input, output AACSB: Application of Knowledge LO: 1.2: Describe what a supply chain is and how it relates to a particular organization's operations function.

38) Distinguish between first-tier and second-tier suppliers in a supply chain and provide an example. Answer: First-tier, second-tier, and any subsequent steps are measured relative to their position from a common point in the supply chain. All companies at a level (call it A) receive inputs from their first-tier suppliers (level B). These first-tier suppliers (at level B) in turn receive their inputs from their own firsttier suppliers (level C). These companies (level C) are considered second-tier suppliers of the companies at level A. Both tiers are upstream from level A, but level B is downstream from level C. Examples will vary. Diff: 2 Reference: 1.1 Why Study Operations and Supply Chain Management? Keywords: first-tier, second-tier, upstream, downstream, supply chain, input, output AACSB: Application of Knowledge LO: 1.2: Describe what a supply chain is and how it relates to a particular organization's operations function.

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39) Supply chains have been in existence for over a century. What is different about supply chains in the 21st century from those in existence 100 years ago? Answer: The active management of supply chain activities is the big difference between supply chains in existence today and those of decades ago. Active management includes relationship management and an examination of the supply chain as a whole to optimize it from a global perspective. In the past, the production managers of each company in the supply chain were more concerned with the operation and financial well-being of their own companies, often to the detriment of other members of the supply chain. Diff: 2 Reference: 1.1 Why Study Operations and Supply Chain Management? Keywords: supply chain AACSB: Application of Knowledge LO: 1.2: Describe what a supply chain is and how it relates to a particular organization's operations function.

40) Offer definitions of the operations function and the supply chain. What is the relationship between operations and supply chain? Answer: The operations function is the collection of people, technology, and systems within an organization that has primary responsibility for providing the organization's products or services. The supply chain is a network of manufacturers and service providers that work together to create products or services needed by end users. These manufacturers and service providers are linked together through physical flows, information flows, and monetary flows. The supply chain has multiple actors, each of which has their own operations function — the output of one operations function is the input to the downstream partner's operations function, and so on across the breadth of the supply chain. Diff: 2 Reference: 1.1 Why Study Operations and Supply Chain Management? Keywords: supply chain, operations function AACSB: Application of Knowledge LO: 1.3: Discuss what is meant by operations management and supply chain management.

41) What are three reasons that the study of operations and supply chain management is important? Answer: One reason that the study of operations management is important is that every organization must make a product or provide a service that someone values. Without this, there is no reason for the existence of the organization. The study of supply chain management is important because most organizations function as part of a larger supply chain. Finally, organizations must carefully manage their operations and supply chains in order to prosper. The better the supply chain and operations functions are coordinated, the greater chance for success of all members. Diff: 1 Reference: 1.1 Why Study Operations and Supply Chain Management? Keywords: organization, operations, supply chain AACSB: Application of Knowledge LO: 1.5: Make a case for studying both operations management and supply chain management.

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1.2 Important Trends 1) An electronic commerce system: A) is used to transmit information upstream only. B) uses computers and telecommunications equipment to conduct business electronically. C) is used to transmit information downstream only. D) links everyone in the supply chain except customers. Answer: B Diff: 2 Reference: 1.2 Important Trends Keywords: e-commerce, business, communications, electronic commerce AACSB: Information Technology LO: 1.5: Make a case for studying both operations management and supply chain management.

2) Efforts to improve cooperation among firms in the supply chain can be characterized as: A) globalization. B) domestic focus. C) relationship management. D) electronic commerce. Answer: C Diff: 2 Reference: 1.2 Important Trends Keywords: relationship management, supply chain AACSB: Application of Knowledge LO: 1.5: Make a case for studying both operations management and supply chain management.

3) Among all supply chain functions, A) production B) logistics C) supplier selection D) relationship management Answer: D

is the most susceptible to breakdown.

Diff: 2 Reference: 1.2 Important Trends Keywords: relationship management, supply chain AACSB: Application of Knowledge LO: 1.5: Make a case for studying both operations management and supply chain management.

4) The greatest impact on business in the last quarter century has been made by information technology. Answer: TRUE Diff: 1 Reference: 1.2 Important Trends Keywords: information technology AACSB: Application of Knowledge LO: 1.5: Make a case for studying both operations management and supply chain management.

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5) Currently, there is a shortage of talented operations and supply chain professionals. Answer: TRUE Diff: 1 Reference: 1.2 Important Trends Keywords: people AACSB: Application of Knowledge LO: 1.5: Make a case for studying both operations management and supply chain management.

6) Electronic commerce refers to the use of information technology solutions to automate business transactions. Answer: TRUE Diff: 1 Reference: 1.2 Important Trends Keywords: electronic commerce, e-commerce, information, technology AACSB: Information Technology LO: 1.5: Make a case for studying both operations management and supply chain management.

7) The drive for efficiency has decreased the level of globalization in the world economy. Answer: FALSE Diff: 2 Reference: 1.2 Important Trends Keywords: globalization AACSB: Application of Knowledge LO: 1.5: Make a case for studying both operations management and supply chain management.

8) E-commerce is the component of a supply chain that is the most susceptible to breakdown. Answer: FALSE Diff: 2 Reference: 1.2 Important Trends Keywords: e-commerce, electronic commerce, supply chain, relationship management AACSB: Information Technology LO: 1.5: Make a case for studying both operations management and supply chain management.

9) To avoid supply chain problems, firms must manage relationships with their downstream suppliers as well as their upstream customers. Answer: FALSE Diff: 2 Reference: 1.2 Important Trends Keywords: customer, relationship management, downstream, upstream AACSB: Application of Knowledge LO: 1.5: Make a case for studying both operations management and supply chain management.

10) is the ability to recalculate plans in the face of market, demand, and supply volatility and deliver the same or comparable cost, quality and customer service. Answer: Agility Diff: 2 Reference: 1.2 Important Trends Keywords: agility AACSB: Application of Knowledge LO: 1.5: Make a case for studying both operations management and supply chain management.

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11) is the use of information technology solutions to conduct business via electronic transfer of data and documents. Answer: Electronic commerce Diff: 1 Reference: 1.2 Important Trends Keywords: electronic commerce, e-commerce AACSB: Information Technology LO: 1.5: Make a case for studying both operations management and supply chain management.

12) is the term that describes efforts to improve operations by increasing supply chain members' willingness to cooperate. Answer: Relationship management Diff: 2 Reference: 1.2 Important Trends Keywords: relationship, relationship management, supply chain AACSB: Application of Knowledge LO: 1.5: Make a case for studying both operations management and supply chain management.

13) What is the meaning of agility to the operations and supply chain function? Answer: Agility is the ability to recalculate plans in the face of market, demand, and supply volatility and deliver the same or comparable cost, quality and customer service. Diff: 1 Reference: 1.2 Important Trends Keywords: agility AACSB: Application of Knowledge LO: 1.5: Make a case for studying both operations management and supply chain management.

14) What are some examples of agility for the operations and supply chain function? Answer: Examples will vary. Some say that quickly adjusting production levels is one example of agility. Agility can also include the ability to quickly respond to interruptions in the supply chain, reconfigure the supply chain to include new partners, or even the ability to launch new products and services based on changing market conditions, all while simultaneously minimizing negative impacts on operational and financial performance. Diff: 2 Reference: 1.2 Important Trends Keywords: agility AACSB: Application of Knowledge LO: 1.5: Make a case for studying both operations management and supply chain management.

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15) Briefly discuss the three important trends in business that have focused attention on operations and supply chain management. Answer: The three trends are agility, information technologies, and people. Agility is the ability to recalculate plans in the face of market, demand, and supply volatility and deliver the same or comparable cost, quality and customer service. Electronic commerce is the use of information technology, e.g., computer and telecommunications technologies, to conduct business via electronic transfer of data and documents. People refers specifically to the shortage of talented operations and supply chain professionals and the importance of relationship management. Diff: 2 Reference: 1.2 Important Trends Keywords: e-commerce, agility AACSB: Application of Knowledge LO: 1.5: Make a case for studying both operations management and supply chain management.

16) What is the most impactful trend in supply chain management over the last quarter century? Justify your choice. Answer: The authors name electronic commerce as the greatest influence on business. Electronic commerce is the use of information technology solutions to automate business transactions. E-commerce promises to improve the speed, quality, and cost of business communications and can be used to coordinate a supply chain. Entire industries and countless business have developed thanks to the Internet and e-commerce. In the entertainment industry alone, Netflix has moved from a distributor of DVDs to a streaming service and the music industry has undergone a sea change in how new music is marketed and distributed. Answers may vary. Diff: 2 Reference: 1.2 Important Trends Keywords: e-commerce, supply chain AACSB: Reflective Thinking LO: 1.5: Make a case for studying both operations management and supply chain management.

17) Of all the activities of supply chain management, which poses the greatest challenge and why? Cite examples in popular media. Answer: The authors indicate that relationship management is the most difficult and therefore the most susceptible to breakdown. Poor relationships with any link in the supply chain can have disastrous consequences for all other supply chain members. An unreliable supplier can starve a plant, leading to inflated lead times and resulting in problems across the chain, all the way to the final customer. If organizations do not manage relationships with both upstream supply chain members as well as with their customers, they run this risk. If supply chain partners are separated geographically or culturally, or both, it is easy to have misunderstandings. In some cases, many components can be purchased only through foreign suppliers with proprietary knowledge. Examples will vary as time passes. Diff: 2 Reference: 1.2 Important Trends Keywords: relationship management, supply chain AACSB: Application of Knowledge LO: 1.5: Make a case for studying both operations management and supply chain management.

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1.3 Operations and Supply Chain Management and You 1) Which of these operations and supply chain activities deals only with suppliers as interorganizational participants? A) process selection B) forecasting C) inventory management D) purchasing Answer: D Diff: 2 Reference: 1.3 Operations and Supply Chain Management and You Keywords: supply management, purchasing, interorganizational participants AACSB: Application of Knowledge LO: 1.4: Identify some of the major operations and supply chain activities, as well as career opportunities in these areas.

2) Which of these operations and supply chain activities deals only with customers as interorganizational participants? A) process selection B) forecasting C) inventory management D) purchasing Answer: A Diff: 2 Reference: 1.3 Operations and Supply Chain Management and You Keywords: supply management, process selection, interorganizational participants AACSB: Application of Knowledge LO: 1.4: Identify some of the major operations and supply chain activities, as well as career opportunities in these areas.

3) Which of these operations and supply chain activities involves the greatest number of interfunctional participants? A) process selection B) forecasting C) inventory management D) purchasing Answer: A Diff: 3 Reference: 1.3 Operations and Supply Chain Management and You Keywords: supply management, process selection, interorganizational participants AACSB: Application of Knowledge LO: 1.4: Identify some of the major operations and supply chain activities, as well as career opportunities in these areas.

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4) The organization that provides national and institutional leadership in purchasing and materials management is: A) APICS. B) ISM. C) CLM. D) ASQ. Answer: B Diff: 3 Reference: 1.3 Operations and Supply Chain Management and You Keywords: supply management, purchasing, ISM, Institute for Supply Management AACSB: Application of Knowledge LO: 1.4: Identify some of the major operations and supply chain activities, as well as career opportunities in these areas.

5) Which job title would be given to someone responsible for planning and controlling production in a manufacturing setting? A) supply chain manager B) production manager C) supplier development manager D) purchasing manager Answer: B Diff: 1 Reference: 1.3 Operations and Supply Chain Management and You Keywords: operations, production, manufacturing, manager AACSB: Application of Knowledge LO: 1.4: Identify some of the major operations and supply chain activities, as well as career opportunities in these areas.

6) Which job title would be given to someone responsible for managing the physical movement of goods throughout the supply chain? A) supply chain manager B) production manager C) supplier development manager D) international logistics manager Answer: D Diff: 1 Reference: 1.3 Operations and Supply Chain Management and You Keywords: logistics, manager AACSB: Application of Knowledge LO: 1.4: Identify some of the major operations and supply chain activities, as well as career opportunities in these areas.

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7) What are the primary duties of a transportation manager? A) creating timely, cost effective import/export supply chains B) managing private, third party and contract carriage systems to ensure timely delivery and costeffective transportation C) using analytical and quantitative methods to understand, predict and improve processes D) identifying global sources of materials, selecting suppliers and managing ongoing relationships Answer: B Diff: 1 Reference: 1.3 Operations and Supply Chain Management and You Keywords: logistics, transportation manager r AACSB: Application of Knowledge LO: 1.4: Identify some of the major operations and supply chain activities, as well as career opportunities in these areas.

8) Which department is least likely to interact with the purchasing function? A) Engineering B) Finance C) Human resources D) Operations Answer: C Diff: 3 Reference: 1.3 Operations and Supply Chain Management and You Keywords: marketing, purchasing, finance, engineering AACSB: Application of Knowledge LO: 1.4: Identify some of the major operations and supply chain activities, as well as career opportunities in these areas.

9) The professional society for persons interested in operations and supply chain management is called APICS. Answer: TRUE Diff: 2 Reference: 1.3 Operations and Supply Chain Management and You Keywords: APICS, professional organization AACSB: Application of Knowledge LO: 1.4: Identify some of the major operations and supply chain activities, as well as career opportunities in these areas.

10) The Institute for Systems Management, ISM, is the branch of APICS dedicated to ecommerce and enterprise systems. Answer: FALSE Diff: 2 Reference: 1.3 Operations and Supply Chain Management and You Keywords: ISM, institute for supply management AACSB: Application of Knowledge LO: 1.4: Identify some of the major operations and supply chain activities, as well as career opportunities in these areas.

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11) Customers are key interfunctional participants in the operations and supply chain activity of capacity planning. Answer: FALSE Diff: 2 Reference: 1.3 Operations and Supply Chain Management and You Keywords: capacity planning, interfunctional participants AACSB: Application of Knowledge LO: 1.4: Identify some of the major operations and supply chain activities, as well as career opportunities in these areas.

12) Suppliers are key interorganizational participants in the operations and supply chain logistics activity. Answer: TRUE Diff: 2 Reference: 1.3 Operations and Supply Chain Management and You Keywords: logistics, interorganizational participants AACSB: Application of Knowledge LO: 1.4: Identify some of the major operations and supply chain activities, as well as career opportunities in these areas.

13) The purchasing activity identifies and qualifies suppliers of goods and services and manages the ongoing buyer-supplier relationships. Answer: TRUE Diff: 1 Reference: 1.3 Operations and Supply Chain Management and You Keywords: purchasing AACSB: Application of Knowledge LO: 1.4: Identify some of the major operations and supply chain activities, as well as career opportunities in these areas.

14) Forecasting counts suppliers and customers among its key interorganizational participants. Answer: TRUE Diff: 2 Reference: 1.3 Operations and Supply Chain Management and You Keywords: forecasting AACSB: Application of Knowledge LO: 1.4: Identify some of the major operations and supply chain activities, as well as career opportunities in these areas.

15) Scheduling and managing the flow of work through an organization and supply chain belongs to the logistics function of a supply chain. Answer: FALSE Diff: 2 Reference: 1.3 Operations and Supply Chain Management and You Keywords: logistics, planning and control AACSB: Application of Knowledge LO: 1.4: Identify some of the major operations and supply chain activities, as well as career opportunities in these areas.

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16) There is no need for an organizational interface between the finance function and the operations and supply chain management function. Answer: FALSE Diff: 2 Reference: 1.3 Operations and Supply Chain Management and You Keywords: interface, finance, operations AACSB: Application of Knowledge LO: 1.4: Identify some of the major operations and supply chain activities, as well as career opportunities in these areas.

17) A(n) acquires knowledge in a specific market in which the organization purchases significant quantities of materials and services. Answer: commodity manager Diff: 3 Reference: 1.3 Operations and Supply Chain Management and You Keywords: commodity manager, commodity AACSB: Application of Knowledge LO: 1.4: Identify some of the major operations and supply chain activities, as well as career opportunities in these areas.

18) A(n) plans and controls production in a manufacturing setting. Answer: production manager Diff: 1 Reference: 1.3 Operations and Supply Chain Management and You Keywords: production manager, production AACSB: Application of Knowledge LO: 1.4: Identify some of the major operations and supply chain activities, as well as career opportunities in these areas.

19) This organization, , is a leader in education and all aspects of quality improvement. Answer: ASQ or American Society for Quality Diff: 2 Reference: 1.3 Operations and Supply Chain Management and You Keywords: quality, ASQ, professional organizations and American Society for Quality AACSB: Application of Knowledge LO: 1.4: Identify some of the major operations and supply chain activities, as well as career opportunities in these areas.

20) is an operations activity with the purpose of designing and implementing the transformation processes that best meet the needs of the customer and firm. Answer: Process selection Diff: 3 Reference: 1.3 Operations and Supply Chain Management and You Keywords: process selection AACSB: Application of Knowledge LO: 1.4: Identify some of the major operations and supply chain activities, as well as career opportunities in these areas.

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21) The function of an organization manages the movement of physical goods throughout the supply chain. Answer: logistics Diff: 2 Reference: 1.3 Operations and Supply Chain Management and You Keywords: logistics, supply chain AACSB: Application of Knowledge LO: 1.4: Identify some of the major operations and supply chain activities, as well as career opportunities in these areas.

22) Describe the involvement of the engineering, IT and human resources functions as the operations and supply chain team are engaged in process selection. Answer: The engineering and IT functions help identify the technologies needed. Human resources will help identify the people skills and training programs necessary to make the systems work. Diff: 2 Reference: 1.3 Operations and Supply Chain Management and You Keywords: process selection, human resources, engineering, IT AACSB: Application of Knowledge LO: 1.4: Identify some of the major operations and supply chain activities, as well as career opportunities in these areas.

23) Choose any two non-operations business functions. Provide examples of an operations or supply chain activity that interfaces directly with each business function you have chosen. Answer: The marketing function interfaces with operations and supply chain management during process selection, forecasting, capacity planning, planning and control, purchasing, and logistics. The finance function works closely with operations and supply chain management in process selection, forecasting, capacity planning, inventory management, and purchasing. The human resource function works directly with operations and supply chain management when making process selection, capacity planning decisions. The accounting function works with operations and supply chain management when capacity planning and forecasting is being performed. The IT function is involved with operations and supply chain management while process selection, inventory management, and planning and control are taking place. Examples will vary. Diff: 3 Reference: 1.3 Operations and Supply Chain Management and You Keywords: interfunctional participants, supply chain AACSB: Application of Knowledge LO: 1.4: Identify some of the major operations and supply chain activities, as well as career opportunities in these areas.

24) Which of the major operations and supply chain activities do not deal directly with customers? Explain why this is so. Answer: The sole operations and supply chain activity that does not work directly with a customer is the purchasing function. Purchasing reaches upstream, i.e., in the opposite direction from the customer. Diff: 2 Reference: 1.3 Operations and Supply Chain Management and You Keywords: purchasing AACSB: Application of Knowledge LO: 1.4: Identify some of the major operations and supply chain activities, as well as career opportunities in these areas.

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1.4 Employability Skills 1) There are no questions in this section.

1.5 Purpose and Organization of This Book 1) Transportation and warehousing are examples of logistics activities. Answer: TRUE Diff: 2 Reference: 1.5 Purpose and Organization of This Book Keywords: logistics, transportation, warehousing AACSB: Application of Knowledge LO: 1.3: Discuss what is meant by operations management and supply chain management.

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Introduction to Operations & Supply Chain Management, 5e (Bozarth) Chapter 2 Operations and Supply Chain Strategies 2.1 Elements of the Business 1) Structural elements of a business include: A) policies. B) people. C) decision rules. D) computer systems. Answer: D Diff: 1 Reference: 2.1 Elements of the Business Keywords: structural AACSB: Application of Knowledge LO: 2.1: Explain the relationship between business strategies and functional strategies and the difference between structural and infrastructural elements of the business.

2) A(n) is an example of an infrastructural element. A) building B) organizational structure C) office equipment D) fleet of delivery trucks Answer: B Diff: 1 Reference: 2.1 Elements of the Business Keywords: infrastructural AACSB: Application of Knowledge LO: 2.1: Explain the relationship between business strategies and functional strategies and the difference between structural and infrastructural elements of the business.

3) A business is defined by its structural and infrastructural elements. Answer: TRUE Diff: 1 Reference: 2.1 Elements of the Business Keywords: structural, infrastructural AACSB: Application of Knowledge LO: 2.1: Explain the relationship between business strategies and functional strategies and the difference between structural and infrastructural elements of the business.

4) Policies and decision rules are infrastructural elements. Answer: TRUE Diff: 2 Reference: 2.1 Elements of the Business Keywords: infrastructural, policy, decision rule AACSB: Application of Knowledge LO: 2.1: Explain the relationship between business strategies and functional strategies and the difference between structural and infrastructural elements of the business.

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5) Tangible resources are infrastructural elements in an organization. Answer: FALSE Diff: 1 Reference: 2.1 Elements of the Business Keywords: strategy, operations, supply chain, infrastructural AACSB: Application of Knowledge LO: 2.2: Describe the main operations and supply chain decision categories.

6) are tangible resources such as buildings, equipment, and computer systems. Answer: Structural elements Diff: 1 Reference: 2.1 Elements of the Business Keywords: structural element AACSB: Application of Knowledge LO: 2.1: Explain the relationship between business strategies and functional strategies and the difference between structural and infrastructural elements of the business.

7) are the people, policies, and organizational structure choices made by a firm. Answer: Infrastructural elements Diff: 1 Reference: 2.1 Elements of the Business Keywords: infrastructural element AACSB: Application of Knowledge LO: 2.1: Explain the relationship between business strategies and functional strategies and the difference between structural and infrastructural elements of the business.

8) Define and describe the differences between structural and infrastructural elements of a business. Answer: Structural elements are tangible resources, such as buildings, equipment, and information technology. These resources typically require large capital investments that are difficult to reverse. Because of their cost and inflexibility, such elements are changed infrequently and only after much deliberation. In contrast, infrastructural elements are the people, policies, decision rules, and organizational structure choices made by the firm. These elements are, by definition, not as visible as structural elements, but they are just as important. Diff: 3 Reference: 2.1 Elements of the Business Keywords: infrastructural element, structural element AACSB: Application of Knowledge LO: 2.1: Explain the relationship between business strategies and functional strategies and the difference between structural and infrastructural elements of the business.

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2.2 Strategy 1) The firm's targeted customers, time frames, and performance objectives are identified by their: A) mission statement. B) core competencies. C) business strategy. D) functional strategy. Answer: C Diff: 1 Reference: 2.2 Strategy Keywords: business strategy AACSB: Application of Knowledge LO: 2.1: Explain the relationship between business strategies and functional strategies and the difference between structural and infrastructural elements of the business.

2) Core competencies can be described as: A) a declaration of mission that is focused on specific skills. B) organizational strengths and abilities that have been developed over time. C) only those processes that create products or provide services. D) elements of the supply chain that create value. Answer: B Diff: 2 Reference: 2.2 Strategy Keywords: core competency AACSB: Application of Knowledge LO: 2.1: Explain the relationship between business strategies and functional strategies and the difference between structural and infrastructural elements of the business.

3) The success of a strategy depends on doing many things well and: A) adjusting the company mission to match what you excel at. B) performing at a high level. C) doing them better than your competitors. D) integrating among them. Answer: D Diff: 2 Reference: 2.2 Strategy Keywords: strategy AACSB: Application of Knowledge LO: 2.1: Explain the relationship between business strategies and functional strategies and the difference between structural and infrastructural elements of the business.

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4) Which of the following statements about functional strategies is best? A) Functional strategies determine the mission statement. B) Functional strategies determine the overall business strategy. C) Many functional level strategies could readily be described as cross-functional. D) A firm's operations and supply chain strategy is more important than their marketing, finance and engineering strategies. Answer: C Diff: 2 Reference: 2.2 Strategy Keywords: functional strategy, cross-functional AACSB: Application of Knowledge LO: 2.1: Explain the relationship between business strategies and functional strategies and the difference between structural and infrastructural elements of the business.

5) No one could turn around a failing restaurant as expertly as Gordon, whose experience and cadre of trained professionals was available at a moment's notice should his services be needed. This ability, some might call it a gift, was developed to such a level that other restaurant consultants were unable to match his results. This ability is best described as his: A) business strategy. B) core competency. C) mission statement. D) operations and supply chain strategy. Answer: B Diff: 2 Reference: 2.2 Strategy Keywords: core competency AACSB: Application of Knowledge LO: 2.1: Explain the relationship between business strategies and functional strategies and the difference between structural and infrastructural elements of the business.

6) A mechanism that identifies a firm's targeted customers and sets time frames and performance objectives for the business is called a mission statement. Answer: FALSE Diff: 2 Reference: 2.2 Strategy Keywords: strategy, mission statement AACSB: Application of Knowledge LO: 2.1: Explain the relationship between business strategies and functional strategies and the difference between structural and infrastructural elements of the business.

7) The mission statement addresses a company's reason for existence, core values, and domain. Answer: TRUE Diff: 2 Reference: 2.2 Strategy Keywords: mission statement AACSB: Application of Knowledge LO: 2.1: Explain the relationship between business strategies and functional strategies and the difference between structural and infrastructural elements of the business.

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8) As long as each functional area in a company operates efficiently, their strategies can be very different. Answer: FALSE Diff: 1 Reference: 2.2 Strategy Keywords: strategy, function, functional area AACSB: Application of Knowledge LO: 2.1: Explain the relationship between business strategies and functional strategies and the difference between structural and infrastructural elements of the business.

9) In general, core competencies drive functional strategies. Answer: TRUE Diff: 2 Reference: 2.2 Strategy Keywords: core competency AACSB: Application of Knowledge LO: 2.6: Define core competencies and give an example of how core competencies in the operations and supply chain areas can be used for competitive advantage.

10) A business's core competencies can shift over time. Answer: TRUE Diff: 2 Reference: 2.2 Strategy Keywords: core competency AACSB: Application of Knowledge LO: 2.6: Define core competencies and give an example of how core competencies in the operations and supply chain areas can be used for competitive advantage.

11) A firm's explains why an organization exists. Answer: mission statement Diff: 1 Reference: 2.2 Strategy Keywords: mission statement AACSB: Application of Knowledge LO: 2.1: Explain the relationship between business strategies and functional strategies and the difference between structural and infrastructural elements of the business.

12) Organizational strengths or abilities, developed over a long period of time that customers find valuable and competitors find difficult or impossible to copy are . Answer: core competencies Diff: 1 Reference: 2.2 Strategy Keywords: core competency, competency AACSB: Application of Knowledge LO: 2.1: Explain the relationship between business strategies and functional strategies and the difference between structural and infrastructural elements of the business.

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13) When you translate an overall business strategy into a level of detail suitable for the marketing area, you create a(n) . Answer: functional strategy Diff: 1 Reference: 2.2 Strategy Keywords: functional strategy AACSB: Application of Knowledge LO: 2.1: Explain the relationship between business strategies and functional strategies and the difference between structural and infrastructural elements of the business.

14) A is an organizational strength that customers value and competitors have great difficulty duplicating. Answer: core competency Diff: 2 Reference: 2.2 Strategy Keywords: closing the loop, strategy, core competencies AACSB: Application of Knowledge LO: 2.6: Define core competencies and give an example of how core competencies in the operations and supply chain areas can be used for competitive advantage.

15) Define mission statement and business strategy and describe the relationship between the two. Answer: A mission statement explains why an organization exists. It describes what is important to the organization, called its core values, and identifies the organization's domain. A business strategy identifies the firm's targeted customers and sets time frames and performance objectives for the business. The mission statement provides a more global picture, while the business strategy addresses who the targeted customers and markets are, areas of sustainable competitive advantage, the role of supply chain partners, and time frames and performance objectives. Diff: 2 Reference: 2.2 Strategy Keywords: mission statement, business strategy, strategy AACSB: Application of Knowledge LO: 2.1: Explain the relationship between business strategies and functional strategies and the difference between structural and infrastructural elements of the business.

16) Offer a definition of the term core competency and explain the core competency of your university. Answer: Core competencies are organizational strengths or abilities, developed over a long period of time, that customers find valuable and competitors find difficult or even impossible to copy. Answers regarding the core competency of the university will vary. Diff: 2 Reference: 2.2 Strategy Keywords: closing the loop, strategy, core competencies AACSB: Application of Knowledge LO: 2.6: Define core competencies and give an example of how core competencies in the operations and supply chain areas can be used for competitive advantage.

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17) What is the core competency of Amazon? Defend your choice. Has Amazon's core competency changed since its founding in the early 1990's? Answer: Answers may vary, but Amazon's core competency seems to be fulfillment, i.e., the ability to deliver what the customer wants in the right amount in a timely fashion. Amazon has a sophisticated warehouse system and distribution network that positions products close to the customer in the United States. In its early years, Amazon provided only books and was known more for low prices than rapid fulfillment. Diff: 2 Reference: 2.2 Strategy Keywords: closing the loop, strategy, core competencies AACSB: Application of Knowledge LO: 2.6: Define core competencies and give an example of how core competencies in the operations and supply chain areas can be used for competitive advantage.

2.3 Operations and Supply Chain Strategies 1) Which of these is NOT one of the primary objectives of an operations and supply chain strategy? A) To help management choose the right mix of structural and infrastructural elements, based on a clear understanding of the performance dimensions valued by customers and the trade-offs involved. B) To ensure that the firm's structural and infrastructural choices are strategically aligned with the firm's business strategy. C) To support the development of core competencies in the firm's operations and supply chains. D) To align structural and infrastructural elements to convert order winners into order qualifiers as determined by the mission statement. Answer: D Diff: 3 Reference: 2.3 Operations and Supply Chain Strategies Keywords: functional strategy, operations, supply chain AACSB: Application of Knowledge LO: 2.1: Explain the relationship between business strategies and functional strategies and the difference between structural and infrastructural elements of the business.

2) Which of these is a major operations and supply chain structural decision category? A) organization B) planning and control C) capacity D) product and service development Answer: C Diff: 2 Reference: 2.3 Operations and Supply Chain Strategies Keywords: structural decision AACSB: Application of Knowledge LO: 2.2: Describe the main operations and supply chain decision categories.

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3) Which of these is a major operations and supply chain infrastructural decision category? A) organization B) facilities C) capacity D) technology Answer: A Diff: 2 Reference: 2.3 Operations and Supply Chain Strategies Keywords: infrastructural decision AACSB: Application of Knowledge LO: 2.2: Describe the main operations and supply chain decision categories.

4) Damron Inc. wants to purchase a shear for their sheet metal shop and chooses dimensions of cost, reliability, and flexibility as critical to their long term success. They evaluate three different shears and rate their performance on each criterion on a scale from 1 (poor) to 5 (excellent). What is the value index for the shear made by Belsky Manufacturing? Dimension Cost Reliability Flexibility

Importance 4 2 3

Belsky Mfg. 1 5 3

Reber Ind. 5 2 3

Floyd Co. 3 1 4

A) 9 B) 18 C) 23 D) 81 Answer: C Diff: 2 Reference: 2.3 Operations and Supply Chain Strategies Keywords: value index AACSB: Analytical Thinking LO: 2.3: Explain the concept of customer value and calculate a value index score.

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5) Damron Inc. wants to purchase a shear for their sheet metal shop and chooses dimensions of cost, reliability, and flexibility as critical to their long term success. They evaluate four different shears and rate their performance on each criterion on a scale from 1 (poor) to 5 (excellent). Which shear should be purchased? Dimension Cost Reliability Flexibility

Importance 4 2 3

Belsky Mfg. 4 3 2

Reber Ind. 4 2 3

Estelle LLC 3 3 3

Floyd Co. 3 1 4

A) Belsky B) Reber C) Estelle D) Floyd Answer: B Diff: 3 Reference: 2.3 Operations and Supply Chain Strategies Keywords: value index AACSB: Analytical Thinking LO: 2.3: Explain the concept of customer value and calculate a value index score.

6) Electra wants to purchase a laptop for use in her MBA program so she can work on assignments and surf the web while the professor drones on endlessly. After consulting with her colleagues, she chooses the dimensions of cost, weight, processor speed, and touchscreen capability as critical to her long term success and amusement. She evaluates four different laptops and rates their performance on each criterion on a scale from 1 (poor) to 5 (excellent). Which laptop should Electra purchase? Dimension Weight Speed Cost Touchscreen

Importance 3 5 2 1

Sir Face 4 4 2 5

Toybook Air 4 4 2 2

Knockoff 3 4 5 3

A) Sir Face B) Toybook Air C) Knockoff D) High Priced Answer: C Diff: 3 Reference: 2.3 Operations and Supply Chain Strategies Keywords: value index AACSB: Analytical Thinking LO: 2.3: Explain the concept of customer value and calculate a value index score.

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High Priced 5 3 1 3

7) Electra wants to purchase a laptop for use in her MBA program so she can work on assignments and surf the web while the professor drones on endlessly. After consulting with her colleagues, she chooses the dimensions of cost, weight, processor speed, and touchscreen capability as critical to her long term success and amusement. She evaluates four different laptops and rates their performance on each criterion on a scale from 1 (poor) to 5 (excellent). She is struggling with her assessment of the importance of the Cost criterion. As an avid lottery player, she is pretty sure that tonight's drawing will mean at least two numbers match on the ticket she bought on the way to class and it could possibly mean a threenumber match. Given her uncertainty, she would like to choose the laptop that performs the best overall across the entire spectrum of possibilities of the outcome of tonight's lottery. Which would you recommend? Dimension Weight Speed Cost Touchscreen

Importance 3 5 ?? 1

Sir Face 4 4 2 5

Toybook Air 4 4 4 2

Knockoff 3 4 5 3

High Priced 5 3 1 3

A) High Priced B) Knockoff C) Toybook Air D) Sir Face Answer: B Diff: 3 Reference: 2.3 Operations and Supply Chain Strategies Keywords: value index AACSB: Analytical Thinking LO: 2.3: Explain the concept of customer value and calculate a value index score.

8) Which of the following is NOT a generic performance dimension of operations and supply chain activities? A) quality B) time C) flexibility D) social responsibility Answer: D Diff: 1 Reference: 2.3 Operations and Supply Chain Strategies Keywords: performance, quality, time, flexibility AACSB: Application of Knowledge LO: 2.3: Explain the concept of customer value and calculate a value index score.

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9) Whether the product was made or service performed to specifications is a question of: A) conformance quality. B) performance quality. C) reliability quality. D) value indices. Answer: A Diff: 2 Reference: 2.3 Operations and Supply Chain Strategies Keywords: conformance quality AACSB: Application of Knowledge LO: 2.3: Explain the concept of customer value and calculate a value index score.

10) Which of these statements about time performance is best? A) A supplier with high delivery speed must have high delivery reliability. B) A customer with a narrow delivery window should have a supplier with high delivery reliability. C) A supplier with low delivery reliability must have low delivery speed. D) A customer with a wide delivery window should have a supplier with low delivery reliability. Answer: B Diff: 2 Reference: 2.3 Operations and Supply Chain Strategies Keywords: delivery reliability, delivery speed AACSB: Application of Knowledge LO: 2.3: Explain the concept of customer value and calculate a value index score.

11) Lieutenant Columbo donned his raincoat and hopped into his 1959 Peugeot, hot on the trail of another condescending millionaire murder suspect. The Peugeot always drew stares, not because it was a rare automobile, but because it was an eyesore. It had one redeeming quality; every time he sat behind the wheel and turned the key in the ignition, it would start. Thus, the car scored well on the: A) mix flexibility scale. B) changeover flexibility scale. C) reliability quality scale. D) delivery reliability scale. Answer: C Diff: 2 Reference: 2.3 Operations and Supply Chain Strategies Keywords: reliability quality AACSB: Application of Knowledge LO: 2.3: Explain the concept of customer value and calculate a value index score.

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12) We have all experienced the endless wait for repair technicians to show up at our house. If the cable company would provide an estimate of "Your installer will arrive at your house between 2 pm and 3 pm on Wednesday," instead of "Your installer will arrive at your house between 8 am and 5 pm on Wednesday," we would be impressed with their service and their: A) performance quality. B) delivery speed. C) delivery reliability. D) delivery window. Answer: D Diff: 2 Reference: 2.3 Operations and Supply Chain Strategies Keywords: delivery window AACSB: Application of Knowledge LO: 2.3: Explain the concept of customer value and calculate a value index score.

13) The ability to produce a wide range of products or services is: A) mix flexibility. B) changeover flexibility. C) volume flexibility. D) run flexibility. Answer: A Diff: 1 Reference: 2.3 Operations and Supply Chain Strategies Keywords: mix flexibility AACSB: Application of Knowledge LO: 2.3: Explain the concept of customer value and calculate a value index score.

14) Which type of flexibility would be the most difficult to achieve for a two-chair barbershop? A) mix flexibility B) changeover flexibility C) volume flexibility D) run flexibility Answer: C Diff: 1 Reference: 2.3 Operations and Supply Chain Strategies Keywords: volume flexibility AACSB: Application of Knowledge LO: 2.3: Explain the concept of customer value and calculate a value index score.

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15) Mutt's Amazing Dogs offers a hot dog with mustard and a hot dog with relish and mustard. The difference between the two (the relish) is achieved by flipping a single lever, which changes the dispenser from mustard, to a perfectly proportioned mix of relish and mustard. This lever responds instantly to the feathery touch of Mutt, who provides his customers a high level of: A) mix flexibility. B) volume flexibility. C) delivery flexibility. D) changeover flexibility. Answer: D Diff: 1 Reference: 2.3 Operations and Supply Chain Strategies Keywords: changeover flexibility AACSB: Application of Knowledge LO: 2.3: Explain the concept of customer value and calculate a value index score.

16) Performance dimensions on which customers expect a minimum level of performance are called: A) order winners. B) minimum performers. C) recommended daily allowances. D) order qualifiers. Answer: D Diff: 1 Reference: 2.3 Operations and Supply Chain Strategies Keywords: order qualifier AACSB: Application of Knowledge LO: 2.4: Differentiate between order winners and qualifiers and explain why this difference is important to developing the operations and supply chain strategy for a firm.

17) Four engineering firms completed the request for proposal to develop something called the Arpanet, but the firm of Bolt Beranek and Newman demonstrated a camaraderie and tighter team concept that proved to be the that resulted in their selection to develop a four node network that became the Internet. A) order winners B) minimum performers C) recommended daily allowances D) order qualifiers Answer: A Diff: 1 Reference: 2.3 Operations and Supply Chain Strategies Keywords: order winner AACSB: Application of Knowledge LO: 2.4: Differentiate between order winners and qualifiers and explain why this difference is important to developing the operations and supply chain strategy for a firm.

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18) The latex division of Vandelay Industries provided support after the sale that could not be matched by any of the other players in the latex industry. This unique attribute was responsible for perhaps 60% of their sales volume and could be described as: A) a trade-off. B) a core competency. C) an order winner. D) externally neutral. Answer: C Diff: 1 Reference: 2.3 Operations and Supply Chain Strategies Keywords: order winner AACSB: Application of Knowledge LO: 2.4: Differentiate between order winners and qualifiers and explain why this difference is important to developing the operations and supply chain strategy for a firm.

19) Department chair Robert knew that his Entrepreneurship major was destined to be successful. Yes, he had sacrificed many of the features like qualified faculty and captivating guest speakers for lower course fees that made this the least expensive program in the entire college, which was a popular notion in today's tough economic times. Once enrollment blossomed, he would feel: A) his trade-off was validated. B) his core competency was mix flexibility. C) his order winner was now a qualifier. D) the need for an updated mission statement. Answer: A Diff: 2 Reference: 2.3 Operations and Supply Chain Strategies Keywords: trade-off AACSB: Application of Knowledge LO: 2.5: Discuss the concept of trade-offs and give an example.

20) Which of these strategic moves represents a trade-off? A) Art Vandelay decides to quit exporting and focus just on importing. B) Wealthy industrialist H.E. Pennypacker decides to open a silver mine rather than an iron mine. C) J Peterman opts for delivery speed in lieu of product mix variety in his fall catalog. D) Kenny Bania believes that they should change the name from Ovaltine to Roundtine. Answer: C Diff: 2 Reference: 2.3 Operations and Supply Chain Strategies Keywords: trade-off AACSB: Application of Knowledge LO: 2.5: Discuss the concept of trade-offs and give an example.

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21) Closing the loop in the area of business strategy means that: A) core competencies at the functional level feed back into the business strategy. B) the mission statement is used to develop the business strategy. C) the business strategy is translated into operations and supply chain actions. D) other functional strategies, such as those of the marketing and finance functions are aligned with the operations and supply chain strategy. Answer: A Diff: 2 Reference: 2.3 Operations and Supply Chain Strategies Keywords: closing the loop, business strategy AACSB: Application of Knowledge LO: 2.6: Define core competencies and give an example of how core competencies in the operations and supply chain areas can be used for competitive advantage.

22) When the operations and supply chain areas are not linked with the overall business strategy, but instead follow industry practices, the firm is in this stage of alignment. A) internally neutral B) externally neutral C) internally supportive D) externally supportive Answer: B Diff: 2 Reference: 2.3 Operations and Supply Chain Strategies Keywords: externally neutral, strategy, alignment AACSB: Application of Knowledge LO: 2.7: Explain the importance of strategic alignment and describe the four stages of alignment between the operations and supply chain strategy and the business strategy.

23) Before firms can progress to the fourth stage of alignment, they must not only support business strategies but also: A) exploit core competencies. B) develop a new mission statement. C) develop order winners. D) abandon order qualifiers. Answer: A Diff: 2 Reference: 2.3 Operations and Supply Chain Strategies Keywords: core competency, externally supportive, alignment AACSB: Application of Knowledge LO: 2.7: Explain the importance of strategic alignment and describe the four stages of alignment between the operations and supply chain strategy and the business strategy.

24) An operations and supply chain strategy is a functional strategy that is, by definition, an infrastructural strategy. Answer: FALSE Diff: 2 Reference: 2.3 Operations and Supply Chain Strategies Keywords: strategy, operations, supply chain, infrastructural AACSB: Application of Knowledge LO: 2.2: Describe the main operations and supply chainBrowsegrades.net decision categories. SOURCE:

25) Conformance quality addresses whether the product was made or the service performed to specifications. Answer: TRUE Diff: 1 Reference: 2.3 Operations and Supply Chain Strategies Keywords: conformance quality AACSB: Application of Knowledge LO: 2.3: Explain the concept of customer value and calculate a value index score.

26) If a logistics firm consistently makes deliveries within the agreed-upon delivery window, they are exhibiting delivery reliability. Answer: TRUE Diff: 1 Reference: 2.3 Operations and Supply Chain Strategies Keywords: delivery reliability AACSB: Application of Knowledge LO: 2.3: Explain the concept of customer value and calculate a value index score.

27) Changeover flexibility refers to the ability of a company to change production quickly from one product to another with a minimal downtime in production. Answer: TRUE Diff: 2 Reference: 2.3 Operations and Supply Chain Strategies Keywords: changeover flexibility AACSB: Application of Knowledge LO: 2.3: Explain the concept of customer value and calculate a value index score.

28) Volume flexibility is the term used to describe the ability of a producer to produce a dazzling (wide) array of products or services. Answer: FALSE Diff: 2 Reference: 2.3 Operations and Supply Chain Strategies Keywords: mix flexibility, volume flexibility AACSB: Application of Knowledge LO: 2.3: Explain the concept of customer value and calculate a value index score.

29) "I've never seen flavored marshmallows this size before!" Alice squealed as she emptied the shelves at the local grocery store. The rest of the shoppers would have to make do with the other seventy bags of miniature and standard-size marshmallows during this winter's hot chocolate festival. For Alice, the jumbo size feature is an order winner. Answer: TRUE Diff: 2 Reference: 2.3 Operations and Supply Chain Strategies Keywords: order winner, order qualifier AACSB: Application of Knowledge LO: 2.4: Differentiate between order winners and qualifiers and explain why this difference is important to developing the operations and supply chain strategy for a firm.

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30) Your employer prepares a request for proposal that describes in vivid detail all of the capabilities that a new computer system should possess. A software product that can meet this request for proposal has performance characteristics that can be described as order qualifiers. Answer: TRUE Diff: 2 Reference: 2.3 Operations and Supply Chain Strategies Keywords: order qualifier AACSB: Application of Knowledge LO: 2.4: Differentiate between order winners and qualifiers and explain why this difference is important to developing the operations and supply chain strategy for a firm.

31) Darrell and Dave were fierce competitors, which drove both of them to overpay for many of their inputs, resulting in increased prices at their own stores. Dave realized this, and pondered how he could be recognized as a cost leader by his customers and maintain his reputation for quality merchandise. Sacrificing one element of his strategy at the expense of another is recognized as a trade-off in operations management. Answer: TRUE Diff: 2 Reference: 2.3 Operations and Supply Chain Strategies Keywords: trade-off AACSB: Application of Knowledge LO: 2.5: Discuss the concept of trade-offs and give an example.

32) A logical tradeoff is sacrificing an order winner capability in favor of an order qualifier capability. Answer: FALSE Diff: 2 Reference: 2.3 Operations and Supply Chain Strategies Keywords: trade-off AACSB: Application of Knowledge LO: 2.5: Discuss the concept of trade-offs and give an example.

33) The phrase "closing the loop" means that strengths and weaknesses, as well as core competencies are fed back into the mission statement. Answer: FALSE Diff: 3 Reference: 2.3 Operations and Supply Chain Strategies Keywords: closing the loop, strategy, core competencies AACSB: Application of Knowledge LO: 2.6: Define core competencies and give an example of how core competencies in the operations and supply chain areas can be used for competitive advantage.

34) In the internally supportive stage of business strategy alignment, management merely attempts to minimize negative potential in the operations and supply chain area. Answer: FALSE Diff: 2 Reference: 2.3 Operations and Supply Chain Strategies Keywords: strategy, alignment, internally-neutral AACSB: Application of Knowledge LO: 2.7: Explain the importance of strategic alignment and describe the four stages of alignment between the operations and supply chain strategy and the business strategy.

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35) You decide to open a bookstore with a wide selection, comfortable seating, and an internal coffee shop because it has worked very well for other bookstores you have visited. Your strategy could be described as externally neutral. Answer: TRUE Diff: 1 Reference: 2.3 Operations and Supply Chain Strategies Keywords: strategy, alignment, externally neutral AACSB: Application of Knowledge LO: 2.7: Explain the importance of strategic alignment and describe the four stages of alignment between the operations and supply chain strategy and the business strategy.

36) The externally supportive stage of alignment is more desirable than the externally neutral stage of alignment. Answer: TRUE Diff: 1 Reference: 2.3 Operations and Supply Chain Strategies Keywords: strategy, alignment, externally neutral, externally supportive AACSB: Application of Knowledge LO: 2.7: Explain the importance of strategic alignment and describe the four stages of alignment between the operations and supply chain strategy and the business strategy.

37) Decisions about capacity, facilities and technology fall in the Answer: structural

decision category?

Diff: 2 Reference: 2.3 Operations and Supply Chain Strategies Keywords: structural decision AACSB: Application of Knowledge LO: 2.2: Describe the main operations and supply chain decision categories.

38) Decisions about planning and control, sourcing, and quality management fall in the category. Answer: infrastructural

decision

Diff: 2 Reference: 2.3 Operations and Supply Chain Strategies Keywords: infrastructural decision AACSB: Application of Knowledge LO: 2.2: Describe the main operations and supply chain decision categories.

39) One way to quantify the overall value of an item or service to a customer is by using a(n) Answer: value index Diff: 1 Reference: 2.3 Operations and Supply Chain Strategies Keywords: value index AACSB: Application of Knowledge LO: 2.3: Explain the concept of customer value and calculate a value index score.

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.

40) The American-made car I purchased as a starving graduate student was not the sleek, highperformance machine that full professors park in faculty parking, but it performed admirably. For the next twenty years I could count on one thing; every morning it would start when I turned the key. This vehicle had outstanding quality. Answer: reliability Diff: 1 Reference: 2.3 Operations and Supply Chain Strategies Keywords: reliability quality AACSB: Application of Knowledge LO: 2.3: Explain the concept of customer value and calculate a value index score.

41) The ability to produce a wide range of products or services is referred to as Answer: mix flexibility

.

Diff: 2 Reference: 2.3 Operations and Supply Chain Strategies Keywords: mix flexibility AACSB: Application of Knowledge LO: 2.3: Explain the concept of customer value and calculate a value index score.

42) Between order qualifiers and order winners, superior performance on a(n) give a company a competitive advantage. Answer: order qualifier

will not, by itself,

Diff: 3 Reference: 2.3 Operations and Supply Chain Strategies Keywords: order qualifier AACSB: Application of Knowledge LO: 2.4: Differentiate between order winners and qualifiers and explain why this difference is important to developing the operations and supply chain strategy for a firm.

43) A major retailer wants to sell items as cheaply as possible while maintaining an attractive and enjoyable shopping atmosphere. Spending too much on ambience will raise prices and drive away shoppers but spending too little will drive shoppers away also. Clearly, the retailer is faced with a(n) between cost and aesthetic quality. Answer: trade-off Diff: 2 Reference: 2.3 Operations and Supply Chain Strategies Keywords: trade-off AACSB: Application of Knowledge LO: 2.5: Discuss the concept of trade-offs and give an example.

44) A trade-off is at its core, a change in emphasis between two Answer: performance Diff: 2 Reference: 2.3 Operations and Supply Chain Strategies Keywords: trade-off, performance dimension AACSB: Application of Knowledge LO: 2.5: Discuss the concept of trade-offs and give an example.

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dimensions.

45) At the stage of alignment, the business strategy seeks to exploit core competencies found within the operations and supply areas. Answer: externally supportive Diff: 3 Reference: 2.3 Operations and Supply Chain Strategies Keywords: alignment, externally supportive AACSB: Application of Knowledge LO: 2.7: Explain the importance of strategic alignment and describe the four stages of alignment between the operations and supply chain strategy and the business strategy.

46) The operations and supply chain strategy wasn't aligned with the business strategy nor the mission, so management could only hope to minimize the damage the operations function caused. This stage was targeted for improvement next year. Answer: internally neutral Diff: 3 Reference: 2.3 Operations and Supply Chain Strategies Keywords: internally neutral, strategy, alignment AACSB: Application of Knowledge LO: 2.7: Explain the importance of strategic alignment and describe the four stages of alignment between the operations and supply chain strategy and the business strategy.

47) Before firms can think about progressing to the fourth stage of alignment ( develop within the operations and supply chain areas. Answer: externally supportive; core competencies

), they must

Diff: 3 Reference: 2.3 Operations and Supply Chain Strategies Keywords: externally supportive, core competencies, strategy, alignment AACSB: Application of Knowledge LO: 2.7: Explain the importance of strategic alignment and describe the four stages of alignment between the operations and supply chain strategy and the business strategy.

48) What are the three primary objectives of an operations and supply chain strategy? Answer: The three primary objectives of an operations and supply chain strategy are: 1) To help management choose the right mix of structural and infrastructural elements, based on a clear understanding of the performance dimensions valued by customers and the trade-offs involved; 2) To ensure that the firm's structural and infrastructural choices are strategically aligned with the firm's business strategy; and 3) To support the development of core competencies in the firm's operations and supply chains. Diff: 2 Reference: 2.3 Operations and Supply Chain Strategies Keywords: operations, supply chain, strategy AACSB: Application of Knowledge LO: 2.1: Explain the relationship between business strategies and functional strategies and the difference between structural and infrastructural elements of the business.

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49) What are three structural and three infrastructural decision categories in operations and supply chain management? Pick one from each category and provide an example of a choice that an operations and supply chain manager might make. Answer: The authors identify capacity, facilities and technology as the structural decision categories. The authors identify five infrastructural decision categories — organization, sourcing and purchasing process decisions, planning and control, business processes and quality management, and product and service development. Examples will vary; for structural decisions, the manager might decide on building size or the number of locations for capacity; the degree of centralization for facilities; and the level of automation for technology. In the infrastructural category, the decision pairs include organizationcompensation/reward system, sourcing-supplier selection/screening, planning-forecasting, business processes-six sigma, product/service development-supplier roles. Diff: 2 Reference: 2.3 Operations and Supply Chain Strategies Keywords: decision categories AACSB: Application of Knowledge LO: 2.2: Describe the main operations and supply chain decision categories.

50) Which category of decision categories in operations and supply chain management requires the greatest financial investment? Justify your answer. Answer: The greatest financial investment is required for structural elements, which are largely tangible resources. The infrastructural elements are largely policy and decision rules, which in general can be changed on much shorter notice and with substantially smaller financial investment. Diff: 2 Reference: 2.3 Operations and Supply Chain Strategies Keywords: decision categories AACSB: Application of Knowledge LO: 2.2: Describe the main operations and supply chain decision categories.

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51) Modelo, S.A., is considering three providers of automated visual inspection systems for their packaging needs. A team of manufacturing engineers, production managers, and process engineers has developed the following list of criteria and assigned them ratings on a scale of 1 (completely unimportant) to 5 (critical). This team has also rated the candidate products on each of these dimensions using a scale of 1 (poor) to 5 (excellent). Which provider should they choose and what caveats, if any, should go with their recommendation? Dimension 4 megapixels Minimal fringing 15 fps VGA movie mode Minimal shutter lag Works in dim light Water resistant

Importance 5 3 4 2 1 5

Provider A 4 4 4 2 2 5

Provider B 5 3 4 5 3 2

Provider C 5 2 1 5 4 1

Answer: The highest score using the customer value index is obtained by Provider A.

V=

x

VA = 5 × 4 + 3 × 4 + 4 × 4 + 2 × 2 + 1 × 2 + 5 × 5 = 79 VB = 5 × 5 + 3 × 3 + 4 × 4 + 2 × 5 + 1 × 3 + 5 × 2 = 73 VC = 5 × 5 + 3 × 2 + 4 × 1 + 2 × 5 + 1 × 4 + 5 × 1 = 54 Caveats to this technique are the methods used to assign an importance rating to each of the criteria and scores to each of the providers. A slight switch in ratings or scores could swing the choice from Provider A to Provider B, for example, an increase in importance of the Minimal shutter lag criterion from a 2 to a 4 will put the two products in a tie. Diff: 2 Reference: 2.3 Operations and Supply Chain Strategies Keywords: value index AACSB: Analytical Thinking LO: 2.3: Explain the concept of customer value and calculate a value index score.

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52) Electra wants to purchase a laptop for use in her MBA program so she can work on assignments and surf the web while the professor drones on endlessly. After consulting with her colleagues, she chooses the dimensions of cost, weight, processor speed, and touchscreen capability as critical to her long term success and amusement. She evaluates four different laptops and rates their performance on each criterion on a scale from 1 (poor) to 5 (excellent). She is struggling with her assessment of the importance of the Cost criterion. As an avid lottery player, she is pretty sure that tonight's drawing will result in at least a two number match on the ticket she bought on the way to class and it could mean a three-number match. Given her uncertainty, she would like to choose the laptop that performs the best overall across the entire spectrum of possibilities of the outcome of tonight's lottery. Which would you recommend? Dimension Weight Speed Cost Touchscreen

Importance 3 5 ?? 1

Sir Face 4 4 2 5

Toybook Air Knockoff 4 3 4 4 4 5 2 3

High Priced 5 3 1 3

Answer: The most robust choice is the Knockoff, as it is the top-ranked alternative for four of the five possible importance weights for the Cost criterion. Not only does it perform well in four out of the five possible values, but it should be noted that it does so in the most likely outcomes of the lottery drawing this evening. It is highly likely that Electra will not win the lottery, and assuming Electra is a financiallystrapped student, the Cost criterion should probably be weighted as a 5 (losing lottery, so money is tight) than as a 1 (winning lottery and therefore cost is not an important consideration). This table shows the value index for each alternative under the five different importance values for the cost criterion. Highest scores are highlighted.

Alternatively, the data in this table can be graphed to illustrate the preference shift as the importance of cost varies.

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Diff: 3 Reference: 2.3 Operations and Supply Chain Strategies Keywords: value index AACSB: Analytical Thinking LO: 2.3: Explain the concept of customer value and calculate a value index score.

53) Discuss the different types of flexibility that a producer can exhibit. Use any company mentioned in the chapter and provide an example of each. Answer: Many firms distinguish among several types of flexibility, including mix flexibility (the ability to produce a wide range of products or services), changeover flexibility (the ability to provide a new product with minimal delay), and volume flexibility (the ability to produce whatever volume the customer needs). Examples will vary. Diff: 1 Reference: 2.3 Operations and Supply Chain Strategies Keywords: mix flexibility, changeover flexibility, volume flexibility AACSB: Application of Knowledge LO: 2.3: Explain the concept of customer value and calculate a value index score.

54) Describe the four generic performance dimensions of operations and supply chain activities. Answer: The four generic performance dimensions of operations and supply chain activities are quality, time, flexibility, and cost. Quality includes all characteristics of a product or service that bear on its ability to satisfy stated or implied needs. Time has two basic characteristics: speed and reliability. Flexibility is a performance dimension that considers how quickly operations and supply chains can respond to the unique needs of customers. Cost covers a wide range of activities that companies categorize in many ways; typical cost categories include labor cost, material cost, engineering cost, and quality-related costs. Diff: 2 Reference: 2.3 Operations and Supply Chain Strategies Keywords: operations, supply chain, performance AACSB: Application of Knowledge SOURCE: Browsegrades.net LO: 2.3: Explain the concept of customer value and calculate a value index score.

55) What are the differences between performance, conformance, and reliability dimensions of quality? Answer: Performance quality addresses the basic operating characteristics of the product or service. Conformance quality addresses whether the product was made or the service performed to specifications. Reliability addresses whether a product will work for a long time without failing or requiring maintenance. Diff: 1 Reference: 2.3 Operations and Supply Chain Strategies Keywords: conformance quality, reliability quality, conformance quality AACSB: Application of Knowledge LO: 2.3: Explain the concept of customer value and calculate a value index score.

56) A university is evaluating options for an enterprise information system to replace their antiquated systems. The CIO has developed the following criteria: At a minimum, the system (or system provider) must be capable of: Technical support available 24/7 Have successfully installed and maintained systems in universities of similar size. Beyond this, systems will be evaluated according to initial cost, annual maintenance and support costs, and ease of use. The three companies that are vying for the university's business supplied the following information about their performance on these criteria. Criterion Tech support 24/7 Installed base Initial cost Annual cost Ease of use

A

B

24/7 3 installations $2.3 million $100K 20 hours training

24/7 7 installations $1.9 million $125K 20 hours training

C 8-5 M-F 1 installation $1.25 million $75K 40 hours training

Create and analyze a graph showing each competitor's performance with regards to order winners and order qualifiers. Which firm should get the business and why? If you were consulting with the three potential system providers, what advice would you give each one? Answer: Graph structure may vary, although all should indicate that provider C fails on the order qualifier regarding technical support. Students may defend company A and Company B as being reasonable choices. While A has a higher initial cost, it takes $25,000 less each year to maintain, a breakeven of 16 years. Company B has a greater installed base of systems, seven to three. Depending on the locations (and possibly identities) of the other installed systems, how funding is secured for the initial investment versus for annual maintenance, one option may be more attractive than another. Company C needs solid advice from a consultant regarding availability of support people; perhaps additional installations can justify increasing the availability of technical support. The amount or effectiveness of user training should also be addressed. Perhaps improved instructional design could reduce the amount of training time needed.

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Diff: 3 Reference: 2.3 Operations and Supply Chain Strategies Keywords: order winner, order qualifier AACSB: Analytical Thinking LO: 2.4: Differentiate between order winners and qualifiers and explain why this difference is important to developing the operations and supply chain strategy for a firm.

57) Provide a specific example of an order winner of a company that has evolved into an order qualifier. Then provide a specific example of an order qualifier that has remained an order qualifier for many years and remains one to this day. Which situation do you think is more natural, the eventual conversion from winner to qualifier or the static status of "once an order winner, always an order winner"? Justify your conclusions. Answer: Answers and examples will vary. Some would argue that there is a gradual conversion of winners to qualifiers thanks to the nature of business competition. Students might also note that the nature of competition and advances in technology make this progression from winner to qualifier a very natural occurrence. Diff: 3 Reference: 2.3 Operations and Supply Chain Strategies Keywords: order winner, order qualifier AACSB: Analytical Thinking LO: 2.4: Differentiate between order winners and qualifiers and explain why this difference is important to developing the operations and supply chain strategy for a firm.

58) What is a trade-off ? Offer a definition and provide an example. Answer: A trade-off is a decision by a firm to emphasize one performance dimension over another, based on the recognition that excellence on some dimensions may conflict with excellence on others. Examples will vary — the authors provide the example of airlines scheduling more flights to increase flexibility at the expense of costs. Diff: 2 Reference: 2.3 Operations and Supply Chain Strategies Keywords: trade-off AACSB: Application of Knowledge SOURCE: Browsegrades.net LO: 2.5: Discuss the concept of trade-offs and give an example.

59) What creates the necessity for trade-offs? Answer: Trade-offs are necessitated by virtue of two phenomena. One factor that causes firms to make trade-offs is the recognition that excellence on some dimensions may conflict with excellence on others. The other factor that creates the need is that firm performance can be enhanced by a change in what they are doing. Diff: 2 Reference: 2.3 Operations and Supply Chain Strategies Keywords: trade-off AACSB: Application of Knowledge LO: 2.5: Discuss the concept of trade-offs and give an example.

60) Describe the four stages of operations and supply chain alignment with business strategy. Answer: The four stages of alignment are internally neutral, externally neutral, internally supportive, and externally supportive. The internally neutral stage is more of a defensive strategy, where management seeks only to minimize any negative potential in the operations and supply chain areas. There is no effort made to link these areas with the business strategy. In the externally neutral stage, industry practice is followed with no effort made to link the operations and supply chain areas with overall business strategy. There is an assumption made that whatever works for competitors will work for the company. The internally supportive stage features recognition that operations and supply chain structural and infrastructural elements must be aligned with the business strategy. Operations and supply chain areas participate in the strategic debate. In the externally supportive stage the operations and supply areas do more than just support the business strategy – the business strategy actively seeks to exploit the core competencies found within these areas. Diff: 3 Reference: 2.3 Operations and Supply Chain Strategies Keywords: internally neutral, externally neutral, internally supportive, externally supportive, alignment AACSB: Application of Knowledge LO: 2.7: Explain the importance of strategic alignment and describe the four stages of alignment between the operations and supply chain strategy and the business strategy.

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Introduction to Operations & Supply Chain Management, 5e (Bozarth) Chapter 3 Process Choice and Layout Decisions in Manufacturing and Services 3.1 Manufacturing Processes 1) Highly automated batch processes that can reduce the cost of making similar groups of products are: A) functional layouts. B) flexible manufacturing systems. C) make-to-stock. D) adjacent processes. Answer: B Diff: 1 Reference: 3.1 Manufacturing Processes Keywords: batch, FMS, flexible manufacturing system AACSB: Application of Knowledge LO: 3.1: Describe the characteristics of the five classic types of manufacturing processes.

2) The time between completions of successive units on a production line is called: A) cycle time. B) takt time. C) elapsed time. D) work time. Answer: A Diff: 1 Reference: 3.1 Manufacturing Processes Keywords: production line, cycle time AACSB: Application of Knowledge LO: 3.1: Describe the characteristics of the five classic types of manufacturing processes.

3) An advantage of a production line process is: A) higher volume of output needed to justify the investment. B) greater degree of flexibility of the process. C) lower per unit cost of items produced on the line. D) higher range of output typically produced on such a process. Answer: C Diff: 2 Reference: 3.1 Manufacturing Processes Keywords: production line AACSB: Application of Knowledge LO: 3.1: Describe the characteristics of the five classic types of manufacturing processes.

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4) The manufacturing process used to make a wide variety of highly customized products in quantities as small as one is a: A) production line. B) continuous flow process. C) job shop. D) batch manufacturing. Answer: C Diff: 2 Reference: 3.1 Manufacturing Processes Keywords: job shop AACSB: Application of Knowledge LO: 3.1: Describe the characteristics of the five classic types of manufacturing processes.

5) Which of these manufacturing processes involves products that cannot be broken into discrete units? A) job shop B) batch C) production line D) continuous flow Answer: D Diff: 2 Reference: 3.1 Manufacturing Processes Keywords: continuous flow AACSB: Application of Knowledge LO: 3.1: Describe the characteristics of the five classic types of manufacturing processes.

6) A sporting apparel manufacturer that produces t-shirts to commemorate significant athletic achievements for proud students and alumni probably uses: A) a fixed position layout. B) batch manufacturing. C) a continuous flow process. D) a production line. Answer: B Diff: 2 Reference: 3.1 Manufacturing Processes Keywords: batch AACSB: Application of Knowledge LO: 3.2: Discuss how different manufacturing process choices support different market requirements.

7) The Devon Tower graces the Oklahoma City skyline and is officially the tallest building in the state. The manufacturing process used to produce this jewel is most likely: A) a fixed-position layout. B) a batch manufacturing process. C) a hybrid process. D) a job shop. Answer: A Diff: 2 Reference: 3.1 Manufacturing Processes Keywords: fixed-position layout AACSB: Application of Knowledge SOURCE: Browsegrades.net LO: 3.2: Discuss how different manufacturing process choices support different market requirements.