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WorksheetsChapter 1 - Intro to Operations Management
Total questions: 20
Worksheet time: 10mins
1. What is the primary responsibility of operations in an organization?
Marketing the goods and services
Producing goods and/or providing services
Securing financial resources
Conducting employee training
Which of the following is NOT one of the three basic functions of business organizations?
Finance
Operations
Marketing
Research and Development
Which business function is responsible for securing financial resources and budgeting?
Operations
Finance
Marketing
Human Resources
How does the production of goods differ from the delivery of services?
Goods are tangible, while services are intangible
Services do not require labor, while goods do
Goods are always more expensive than services
There is no difference between them
What is operations management?
The process of hiring employees for business functions
Managing systems that create goods and/or provide services
The strategic selling of goods and services
The study of financial investments
What factor makes service operations more variable than manufacturing operations?
Higher degree of customer contact
Use of technology in production
Standardized processes
Large inventories
Which of the following best describes a supply chain?
The marketing strategies used to promote products
The financial resources needed for operations
The sequence of organizations, facilities, and activities involved in producing and delivering a product/service
The network of employees working in a single organization
What makes productivity measurement in service operations more difficult compared to manufacturing?
Variability in demand and job requirements
High degree of automation
Consistency in service delivery
Fixed production schedules
Which of the following is an example of a goods-producing operation?
hospital
bank
car manufacturing plant
restaurant
Which of the following is an example of a service operation?
shoe factory
construction company
law firm
textile manufacturer
Why is quality assurance more challenging in services than in manufacturing?
Because services are delivered and consumed simultaneously
Because services require less customer interaction
Because errors in services can be corrected before reaching customers
Because service providers do not need to meet customer expectations
Which business function focuses on assessing customer needs and promoting goods and services?
Finance
Operations
Marketing
Information Technology
What is the term for buying goods or services rather than producing them in-house?
Inventory management
Supply chain management
Outsourcing
Logistics
What does agility in operations management refer to?
The ability to maintain high inventory levels
The ability to respond quickly to changes in demand or offerings
The ability to cut down production costs
The ability to eliminate customer interactions
Which of the following statements about manufacturing and service operations is true?
Both involve design and operating decisions
Manufacturing involves more customer contact than service operations
Services typically have lower variability than manufacturing
Manufacturing requires fewer location decisions than service operations
Why do manufacturing organizations typically have more inventory than service organizations?
Manufacturing relies on raw materials, work-in-progress, and finished goods
Service organizations require more storage space
Manufacturing organizations have fewer suppliers
Service firms do not need any inventory
What major business trend has been influenced by advances in information technology?
Decline in global competition
Growth of e-commerce and e-business
Reduction in outsourcing
Decrease in supply chain complexity
What is the significance of location decisions in operations management?
It helps reduce the number of employees needed
It determines where to build facilities for optimal efficiency
It eliminates the need for supply chains
It ensures that the company avoids global competition
What does globalization in operations management refer to?
Increasing use of local suppliers only
Expanding supply chains and business operations worldwide
Reducing trade between nations
Eliminating technology in business processes
Why is it important for business students to study operations management?
It is required for all finance majors
Over half of all jobs are related to operations management
It helps them specialize only in production-related careers
Operations management is only relevant for large businesses
