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1. An operations and supply chain strategy must be integrated with the organization’s corporate strategy.
TRUE
Operations and supply chain strategy is concerned with setting broad policies and plans for using the resources of a firm
and must be integrated with corporate strategy.
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
Bloom’s: Remember
Difficulty: 1 Easy
Learning Objective: 02-01
Topic: What is Operations and Supply Chain Strategy?
2. One of the competitive dimensions that form the competitive position of a company when planning their strategies is
cost.
TRUE
The major competitive dimensions that form the competitive position of a firm include cost (or price).
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
Bloom’s: Remember
Difficulty: 1 Easy
Learning Objective: 02-02
Topic: What is Operations and Supply Chain Strategy?
3. One of the competitive dimensions that form the competitive position of a company when planning their
strategies is delivery speed.
TRUE
The major competitive dimensions that form the competitive position of a firm include delivery speed.
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
Bloom’s: Remember
Difficulty: 1 Easy
Learning Objective: 02-02
Topic: What is Operations and Supply Chain Strategy?
4. One of the competitive dimensions that form the competitive position of a company when planning their strategies is
making the best trade-off.
FALSE
The major competitive dimensions that form the competitive position of a firm do not include making the best trade-off.
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
Bloom’s: Remember
Difficulty: 1 Easy
Learning Objective: 02-02
Topic: What is Operations and Supply Chain Strategy?
5. The process when a company seeks to match the benefits of a successful position while maintaining its existing
position by adding new features, services, and technologies into its current portfolio is called flexibility.
FALSE
Straddling occurs when a company seeks to match the benefits of a successful position while maintaining its existing
position.
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
Bloom’s: Remember
Difficulty: 1 Easy
Learning Objective: 02-02
Topic: What is Operations and Supply Chain Strategy?
6. The process when a company seeks to match the benefits of a successful position while maintaining its existing position
by adding new features, services, and technologies into its current portfolio it is called straddling.
TRUE
Straddling occurs when a company seeks to match the benefits of a successful position while maintaining its existing
position.
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
Bloom’s: Remember
Difficulty: 1 Easy
Learning Objective: 02-02
Topic: What is Operations and Supply Chain Strategy?
7. By following a straddling strategy, firms can broaden their capabilities and effectively compete with more focused firms
in markets requiring low cost for success.
FALSE
Straddling is a risky strategy that often results in failure. More focused firms can effectively compete with a straddling
firm in each segment the straddling firm enters.
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
Bloom’s: Remember
Difficulty: 2 Medium
Learning Objective: 02-02
Topic: What is Operations and Supply Chain Strategy?
8. An order winner is a set of criteria that differentiates the products or services of one firm from another.
TRUE
An order winner is a criterion that differentiates the products or services of one firm from those of another.
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
Bloom’s: Remember
Difficulty: 1 Easy
Learning Objective: 02-02
Topic: What is Operations and Supply Chain Strategy?
9. An order winner is a set of screening criteria that permits a firm’s products to be considered as possible candidates for
purchase.
FALSE
An order qualifier is a screening criterion that permits a firm’s products to even be considered as possible candidates
for purchase.
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
Bloom’s: Remember
Difficulty: 1 Easy
Learning Objective: 02-02
Topic: What is Operations and Supply Chain Strategy?
10. An order qualifier is a set of screening criteria that permits a firm’s products to be considered as possible candidates
for purchase.
TRUE
An order qualifier is a screening criterion that permits a firm’s products to even be considered as possible candidates
for purchase.
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
Bloom’s: Remember
Difficulty: 1 Easy
Learning Objective: 02-02
Topic: What is Operations and Supply Chain Strategy?
11. Activity-system maps show how a company’s strategy is delivered through a set of tailored activities.
TRUE
Activity-system maps such as the one for IKEA show how a company’s strategy is delivered through a set of tailored
activities.
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
Bloom’s: Remember
Difficulty: 1 Easy
Learning Objective: 02-03
Topic: Strategies Are Implemented Using Operations and Supply Chain Activities— IKEA’S Strategy
12. (p. 34) Activity-system maps are useful in understanding how well a system of activities fits the overall
company’s strategy.
TRUE
This type of map can be useful in understanding how good the fit is between the system of activities and the company’s
strategy.
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
Difficulty: 1 Easy
Learning Objective: 02-03
Topic: Strategies Are Implemented Using Operations and Supply Chain Activities— IKEA’S Strategy
13. Activity-system maps depict the geographic reach of a company’s business strategies.
FALSE
Activity system maps are conceptual have nothing to do with the physical geographic reach of a company.
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
Bloom’s: Remember
Difficulty: 1 Easy
Learning Objective: 02-03
Topic: Strategies Are Implemented Using Operations and Supply Chain Activities— IKEA’S Strategy
14. An operations strategy must resist change because of the long term nature of equipment and personnel investments.
FALSE
Since the goals of the larger organization change over time, the operations strategy must be designed to anticipate
future needs.
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
Bloom’s: Understand
Difficulty: 1 Easy
Learning Objective: 02-02
Topic: What is Operations and Supply Chain Strategy?
15. Operations and supply strategy can be viewed as part of a planning process that coordinates operational goals with
those of the larger organization.
TRUE
Operations and supply chain strategy can be viewed as part of a planning process that coordinates operational goals with
those of the larger organization.
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
Bloom’s: Remember
Difficulty: 1 Easy
Learning Objective: 02-02
Topic: What is Operations and Supply Chain Strategy?
16. Infrastructure decisions within operations strategy include the selection of the appropriate technology, the role of
inventory, and the location of facilities.
FALSE
Process design includes selecting the appropriate technology, sizing the process over time, determining the role of
inventory in the process, and locating the process.
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
Bloom’s: Remember
Difficulty: 2 Medium
Learning Objective: 02-02
Topic: What is Operations and Supply Chain Strategy?
17. Infrastructure decisions within operations strategy include the selection of the logic associated with the planning and
control systems
TRUE
The infrastructure decisions involve the logic associated with the planning and control systems, quality assurance and
control approaches, work payment structure, and organization of the operations and supply functions.
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
Bloom’s: Remember
Difficulty: 2 Medium
Learning Objective: 02-02
Topic: What is Operations and Supply Chain Strategy?
18. Once an operations strategy is adopted and articulated, the primary emphasis becomes perfecting the system of
activities that make up the strategy through detailed refinements over a long period of time.
FALSE
A firm’s operations capabilities can be viewed as a portfolio best suited to adapting to the changing product and/or
service needs of a firm’s customers.
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
Bloom’s: Remember
Difficulty: 2 Medium
Learning Objective: 02-02
Topic: What is Operations and Supply Chain Strategy?
19. The job of operations and supply chain strategy is to deliver the most feature-rich, highest quality product at the lowest
price within specified parameters of delivery time and customization.
FALSE
Operations and supply chain strategy is concerned with setting broad policies and plans for using the resources of a firm
and must be integrated with corporate strategy.
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
Bloom’s: Remember
Difficulty: 2 Medium
Learning Objective: 02-01
Topic: What is Operations and Supply Chain Strategy?
20. Productivity is a relative measure.
TRUE
Productivity is what we call a relative measure. In other words, to be meaningful, it needs to be compared with something
else.
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
Bloom’s: Remember
Difficulty: 1 Easy
Learning Objective: 02-05
Topic: Productivity Measurement
21. In a partial measure of productivity the denominator of the ratio would include all resources used or all inputs.
FALSE
In a partial measure of productivity the denominator includes only a single input.
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
Bloom’s: Remember
Difficulty: 1 Easy
Learning Objective: 02-05
Topic: Productivity Measurement
22. In a multifactor measure of productivity the numerator of the ratio would include all resources used or all inputs.
FALSE
In a multi-factor measure of productivity the denominator includes several but not all inputs.
23.
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
Bloom’s: Remember
Difficulty: 1 Easy
Learning Objective: 02-05
Topic: Productivity Measurement
The triple bottom line considers evaluating the firm against social, economic, and environmental criteria.
TRUE
The triple bottom line considers evaluating the firm against social, economic, and environmental criteria.
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
Bloom’s: Remember
Difficulty: 1 Easy
Learning Objective: 02-01
Topic: A Sustainable Operations and Supply Chain Strategy
24. Sustainability means meeting a firm’s current needs without excessively compromising the ability of future generations
to meet their own needs.
FALSE
By adding “sustainability” to the concept (of strategy), we add the requirement to meet these current needs without
compromising the ability of future generations to meet their own needs. (Excessively is not mentioned.)
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
Bloom’s: Remember
Difficulty: 2 Medium
Learning Objective: 02-01
Topic: A Sustainable Operations and Supply Chain Strategy
25. The social impact of the triple bottom line concept pertains to fair and beneficial business practices toward labor, the
community, and the region in which a firm conducts its business.
TRUE
“Social” pertains to fair and beneficial business practices toward labor, the community, and the region in which a firm
conducts its business.
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
Bloom’s: Remember
Difficulty: 2 Medium
Learning Objective: 02-01
Topic: A Sustainable Operations and Supply Chain Strategy
26. A firm’s business practices toward its labor force pertain mainly to the economic aspect of the triple bottom line
concept.
FALSE
“Social” pertains to fair and beneficial business practices toward labor, the community, and the region in which a firm
conducts its business.
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
Bloom’s: Remember
Difficulty: 2 Medium
Learning Objective: 02-01
Topic: A Sustainable Operations and Supply Chain Strategy
27. According to the economic aspect of the triple bottom line concept, the firm is required to compensate shareholders by
paying dividends and growing the value of their common stock faster than their competitors.
FALSE
The firm is obligated to compensate shareholders who provide capital through stock purchases and other financial
instruments via a competitive return on investment.
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
Bloom’s: Remember
Difficulty: 2 Medium
Learning Objective: 02-01
Topic: A Sustainable Operations and Supply Chain Strategy
28. Within a sustainability framework, the economic dimension of the triple bottom line concept goes beyond just profit
for the firm but also provides lasting economic benefit to society.
TRUE
Within a sustainability framework, this (economic) dimension goes beyond just profit for the firm but also provides
lasting economic benefit to society.
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
Bloom’s: Remember
Difficulty: 2 Medium
Learning Objective: 02-01
Topic: A Sustainable Operations and Supply Chain Strategy
29. Within a sustainability framework, the environmental dimension of the triple bottom line concept has to do with
labor, the community, and the region in which a firm conducts its business.
FALSE
“Social” pertains to fair and beneficial business practices toward labor, the community, and the region in which a firm
conducts its business.
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
Bloom’s: Remember
Difficulty: 2 Medium
Learning Objective: 02-01
Topic: A Sustainable Operations and Supply Chain Strategy
30. Which of the following is not a major strategic operational competitive dimension that forms a company’s competitive
position?
A. Cost or price
B. Delivery speed
C. Delivery reliability
D. Management acumen
E. Coping with changes in demand
The operational competitive dimensions that form a company’s competitive position are listed in the text.
Management acumen is not mentioned.
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
Bloom’s: Remember
Difficulty: 2 Medium
Learning Objective: 02-02
Topic: What is Operations and Supply Chain Strategy?
31. A major competitive dimension that forms a company’s strategic operational competitive position in their strategic
planning is which of the following?
A. Cost or price
B. Focus
C. Automation
D. Straddling
E. Activity-system mapping
Cost or Price is one of the competitive dimensions mentioned in the text.
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
Bloom’s: Remember
Difficulty: 2 Medium
Learning Objective: 02-02
Topic: What is Operations and Supply Chain Strategy?
32. When developing an operations and supply chain strategy, which of the following is an important product-specific
criterion to consider?
A. Technical liaison
B. Learning curve
C. Competitor’s product performance
D. Production lot-size
E. Total quality management
Technical liaison and support. A supplier may be expected to provide technical assistance for product
development, particularly during the early stages of design and manufacturing.
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
Bloom’s: Remember
Difficulty: 2 Medium
Learning Objective: 02-02
Topic: What is Operations and Supply Chain Strategy?
33. In development of an operations and supply chain strategy, which of the following may be an important product-specific
criteria to consider?
A. Focus
B. Production lot-size
C. Supplier after-sale support
D. Learning curve
E. Total quality management
An important competitive dimension may be the ability of a firm to support its product after the sale
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
Bloom’s: Remember
Difficulty: 2 Medium
Learning Objective: 02-02
Topic: What is Operations and Supply Chain Strategy?
34. When a company seeks to match the benefits of a successful position while maintaining its existing position in offering
customers a variety of differing services, what is this process called?
A. Operations capability analysis
B. Straddling
C. Order qualifying
D. Order winning
E. Inter-functional analysis
Straddling occurs when a company seeks to match the benefits of a successful position while maintaining its existing
position.
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
Bloom’s: Remember
Difficulty: 1 Easy
Learning Objective: 02-02
Topic: What is Operations and Supply Chain Strategy?
35. (p. 34) An activity-system map is which of the following?
A. A network guide to route airlines
B. A listing of activities that make up a project
C. A diagram that shows how a company’s strategy is delivered to customers
D. A facility layout schematic noting what is done where
E. A timeline displaying major planned events
Activity-system maps show how a company’s strategy is delivered through a set of tailored activities.
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
Difficulty: 1 Easy
Learning Objective: 02-03
Topic: Strategies Are Implemented Using Operations and Supply Chain Activities— IKEA’S Strategy
36. Which of the following is a partial measure of productivity?
A. Output / Materials
B. Output / (Labor + Capital + Energy)
C. Output / All resources used
D. Output / Inputs
E. All of these
Answer A is correct. Answer B is a multifactor measure of productivity while C & D are measures of total productivity.
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
Bloom’s: Remember
Difficulty: 2 Medium
Learning Objective: 02-05
Topic: Productivity Measurement
37. Which of the following is a multifactor measure of productivity?
A. Output / (Materials)
B. Output / (Labor + Capital + Energy)
C. Output / All resources used
D. Output / Inputs
E. All of these
Answer B is correct. Answer A is a partial measure of productivity while C & D are measures of total productivity.
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
Bloom’s: Remember
Difficulty: 2 Medium
Learning Objective: 02-05
Topic: Productivity Measurement
38. Which of the following is a total measure of productivity?
A. Output / Materials
B. Output / (Labor + Capital + Energy)
C. Output / Labor
D. Output / Inputs
E. All of these
Answer D is correct. Answer A is a partial measure of productivity, Answer B is a multifactor measure of productivity
while C is a measure of total productivity.
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
Bloom’s: Remember
Difficulty: 1 Easy
Learning Objective: 02-05
Topic: Productivity Measurement
39. If all you knew about a production system was that total daily output was 400 units and the total labor necessary to
produce the 400 units was 350 hours, what kind of productivity measure could you use to compute productivity?
A. Partial measure
B. Multifactor measure
C. Total measure
D. Global measure
E. All of these
Answer A is correct. Without measures of other inputs only a partial output measure is possible.
AACSB: Analytic
Accessibility: Keyboard Navigation
Bloom’s: Analyze
Difficulty: 1 Easy
Learning Objective: 02-05
Topic: Productivity Measurement
40. If all you knew about a production system was that total daily output was 400 units and the total labor necessary to
produce the 400 units was 350 hours, and the total materials used were 425 units, what kind of productivity measure
could you use to compute productivity?
A. Partial measure
B. Multifactor measure
C. Total measure
D. A and B above
E. B and C above
Answer D is the most correct of the answers. You could use either a partial or a multifactor measure or both kinds of
measure.
AACSB: Analytic
Accessibility: Keyboard Navigation
Bloom’s: Analyze
Difficulty: 1 Easy
Learning Objective: 02-05
Topic: Productivity Measurement
41. The total output from a production system in one day is 500 units and the total labor necessary to produce the 500 units
is 350 hours. Using the appropriate productivity measure, which of the following numbers represents the resulting
productivity ratio?
A. 1.000
B. 1.428
C. 0.700
D. 0.411
E. None of these
500 units divided by 350 hours =1.428.
AACSB: Analytic
Accessibility: Keyboard Navigation
Bloom’s: Analyze
Difficulty: 2 Medium
Learning Objective: 02-05
Topic: Productivity Measurement
42. The total output from a production system in one day is 900 units and the total labor necessary to produce the 900
units is 900 hours. Using the appropriate productivity measure, what is the resulting productivity ratio?
A. 1.000
B. 1.428
C. 0.700
D. 0.411
E. None of these
Answer A is 900 units divided by 900 hours equals 1.0 units per hour.
AACSB: Analytic
Accessibility: Keyboard Navigation
Bloom’s: Analyze
Difficulty: 2 Medium
Learning Objective: 02-05
Topic: Productivity Measurement
43. Larry’s Auto Body Repair Shop had revenues that averaged $60,000 per week in April and $50,000 per week in May.
During both months, the shop employed six full-time (40 hours/week) workers. In April the firm also had four part-time
workers working 25 hours per week but in May there were only two part-time workers and they only worked 10 hours
per week. What is the percentage change in labor productivity from April to May for Larry’s Auto Body Repair?
A. -20.00%
B. -15.82%
C. 8.95%
D. 2.3%
E. -25.00%
AACSB: Analytic
Accessibility: Keyboard Navigation
Bloom’s: Analyze
Difficulty: 3 Hard
Learning Objective: 02-05
Topic: Productivity Measurement
44.
Various financial data for SunPath Manufacturing for 2012 and 2013 follow.
2015 2016
Output:Sales $300,000 $330,000
Inputs: Labor $40,000 $43,000
Raw Materials: $45,000 $51,000
Energy: $10,000 $9,000
Capital
$250,000 $262,000
Employed:
Other: $2,000 $6,000
What is the percentage change in SunPath’s total productivity measure between 2015 and 2016?
A. -9.22
B. 2.33
C. -0.53
D. 2.88
E. 10.39
AACSB: Analytic
Accessibility: Keyboard Navigation
Bloom’s: Analyze
Difficulty: 3 Hard
Learning Objective: 02-05
Topic: Productivity Measurement
45. Various financial data for SunPath Manufacturing for 2015 and 2016 follow.
2015 2016
Output:Sales $300,000 $330,000
Inputs: Labor $40,000 $43,000
Raw Materials: $45,000 $51,000
Energy: $10,000 $9,000
Capital
$250,000 $262,000
Employed:
Other: $2,000 $6,000
What is the percentage change in the energy partial productivity measure for SunPath between 2015 and 2016?
A. -9.22%
B. 2.33%
C. -0.53%
D. 2.88%
E. 22.2%
AACSB: Analytic
Accessibility: Keyboard Navigation
Bloom’s: Analyze
Difficulty: 2 Medium
Learning Objective: 02-05
Topic: Productivity Measurement
46. Various financial data for SunPath Manufacturing for 2015 and 2016 follow.
2015 2016
Output:Sales $300,000 $330,000
Inputs: Labor $40,000 $43,000
Raw Materials: $45,000 $51,000
Energy: $10,000 $9,000
Capital
$250,000 $262,000
Employed:
Other: $2,000 $6,000
What is the percentage change in the labor partial productivity measure for SunPath between 2015 and 2016?
A. -9.22
B. 2.33
C. -0.53
D. 2.88
E. 10.39
AACSB: Analytic
Accessibility: Keyboard Navigation
Bloom’s: Analyze
Difficulty: 2 Medium
Learning Objective: 02-05
Topic: Productivity Measurement
47. Various financial data for SunPath Manufacturing for 2015 and 2016 follow.
2015 2016
Output:Sales $300,000 $330,000
Inputs: Labor $40,000 $43,000
Raw Materials: $45,000 $51,000
Energy: $10,000 $9,000
Capital
$250,000 $262,000
Employed:
Other: $2,000 $6,000
What is the percentage change in the multifactor labor and raw materials productivity measure for SunPath between
2015 and 2016?
A. -9.22
B. 2.33
C. -0.53
D. -2.88
E. 10.39
AACSB: Analytic
Accessibility: Keyboard Navigation
Bloom’s: Analyze
Difficulty: 3 Hard
Learning Objective: 02-05
Topic: Productivity Measurement
48. a What is meant by the term “operations effectiveness?”
A. Products produced in sufficient volume to meet demand
B. Products produced at the lowest price in the industry
C. Operations that run without error and with no surprises for top management
D. Operations that can adapt quickly and efficiently to new and evolving conditions
E. Performing activities in a manner that best implements strategic priorities at minimum cost
Operations effectiveness is performing activities in a manner that best implements strategic priorities at minimum
cost
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
Bloom’s: Remember
Difficulty: 2 Medium
Learning Objective: 02-01
Topic: What is Operations and Supply Chain Strategy?
49. b Decisions that relate to the design of the processes and the infrastructure needed to support these processes relate to
which OSCM concept?
A. Sustainability
B. Competitive dimensions of OSCM
C. Making trade-offs
D. integrating operations and supply chain strategy with a firm’s operational capabilities
E. Supply chain risk
Integrating operations and supply chain strategy with a firm’s operations capabilities involves decisions that relate to
the design of the processes and infrastructure needed to support these processes.
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
Bloom’s: Remember
Difficulty: 2 Medium
Learning Objective: 02-02
Topic: What is Operations and Supply Chain Strategy?
Category # of Questions
AACSB: Analytic 9
AACSB: Reflective Thinking 40
Accessibility: Keyboard Navigation 49
Bloom’s: Analyze 9
Bloom’s: Remember 37
Bloom’s: Understand 1
Difficulty: 1 Easy 23
Difficulty: 2 Medium 23
Difficulty: 3 Hard 3
Learning Objective: 02-01 10
Learning Objective: 02-02 20
Learning Objective: 02-03 4
Learning Objective: 02-05 15
Topic: A Sustainable Operations and Supply Chain Strategy 7
Topic: Productivity Measurement 15
Topic: Strategies Are Implemented Using Operations and Supply Chain Activities— IKEA’S Strategy 4
Topic: What is Operations and Supply Chain Strategy? 23