1.Anoperationsandsupplychainstrategymustbeintegratedwiththeorganization'scorporatestrategy

Chapter02TestBankStatic

1.Anoperationsandsupplychainstrategymustbeintegratedwiththeorganization'scorporatestrategy.

TRUE

Operationsandsupplychainstrategyisconcernedwithsettingbroadpoliciesandplansforusingtheresourcesofafirmandmustbeintegratedwithcorporatestrategy.

AACSB:Analytic

Blooms:Remember

Difficulty:1Easy

LearningObjective:02-01Knowwhatasustainablebusinessstrategyisandhowitrelatestooperationsandsupplychainmanagement.

Topic:WhatIsOperationsandSupplyChainStrategy?

2.Oneofthecompetitivedimensionsthatformthecompetitivepositionofacompanywhenplanningitsstrategiesiscost.

TRUE

Themajorcompetitivedimensionsthatformthecompetitivepositionofafirmincludecost(orprice).

AACSB:Analytic

Blooms:Remember

Difficulty:1Easy

LearningObjective:02-02Defineoperationsandsupplychainstrategy.

Topic:WhatIsOperationsandSupplyChainStrategy?

3.Oneofthecompetitivedimensionsthatformthecompetitivepositionofacompanywhenplanningitsstrategiesisdeliveryspeed.

TRUE

Themajorcompetitivedimensionsthatformthecompetitivepositionofafirmincludedeliveryspeed.

AACSB:Analytic

Blooms:Remember

Difficulty:1Easy

LearningObjective:02-02Defineoperationsandsupplychainstrategy.

Topic:WhatIsOperationsandSupplyChainStrategy?

4.Oneofthecompetitivedimensionsthatformthecompetitivepositionofacompanywhenplanningitsstrategiesismakingthebesttrade-off.

FALSE

Themajorcompetitivedimensionsthatformthecompetitivepositionofafirmdonotincludemakingthebesttrade-off.

AACSB:Analytic

Blooms:Remember

Difficulty:1Easy

LearningObjective:02-02Defineoperationsandsupplychainstrategy.

Topic:WhatIsOperationsandSupplyChainStrategy?

5.Theprocesswhenacompanyseekstomatchthebenefitsofasuccessfulpositionwhilemaintainingitsexistingpositionbyaddingnewfeatures,services,andtechnologiesintoitscurrentportfolioiscalledflexibility.

FALSE

Straddlingoccurswhenacompanyseekstomatchthebenefitsofasuccessfulpositionwhilemaintainingitsexistingposition.

AACSB:Analytic

Blooms:Remember

Difficulty:1Easy

LearningObjective:02-02Defineoperationsandsupplychainstrategy.

Topic:WhatIsOperationsandSupplyChainStrategy?

6.Theprocesswhenacompanyseekstomatchthebenefitsofasuccessfulpositionwhilemaintainingitsexistingpositionbyaddingnewfeatures,services,andtechnologiesintoitscurrentportfolioitiscalledstraddling.

TRUE

Straddlingoccurswhenacompanyseekstomatchthebenefitsofasuccessfulpositionwhilemaintainingitsexistingposition.

AACSB:Analytic

Blooms:Remember

Difficulty:1Easy

LearningObjective:02-02Defineoperationsandsupplychainstrategy.

Topic:WhatIsOperationsandSupplyChainStrategy?

7.Byfollowingastraddlingstrategy,firmscanbroadentheircapabilitiesandeffectivelycompetewithmorefocusedfirmsinmarketsrequiringlowcostforsuccess.

FALSE

Straddlingisariskystrategythatoftenresultsinfailure.Morefocusedfirmscaneffectivelycompetewithastraddlingfirmineachsegmentthestraddlingfirmenters.

AACSB:Analytic

Blooms:Remember

Difficulty:2Medium

LearningObjective:02-02Defineoperationsandsupplychainstrategy.

Topic:WhatIsOperationsandSupplyChainStrategy?

8.Anorderwinnerisasetofcriteriathatdifferentiatestheproductsorservicesofonefirmfromanother.

TRUE

Anorderwinnerisacriterionthatdifferentiatestheproductsorservicesofonefirmfromthoseofanother.

AACSB:Analytic

Blooms:Remember

Difficulty:1Easy

LearningObjective:02-02Defineoperationsandsupplychainstrategy.

Topic:WhatIsOperationsandSupplyChainStrategy?

9.Anorderwinnerisasetofscreeningcriteriathatpermitsafirm'sproductstobeconsideredaspossiblecandidatesforpurchase.

FALSE

Anorderqualifierisascreeningcriterionthatpermitsafirm'sproductstoevenbeconsideredaspossiblecandidatesforpurchase.

AACSB:Analytic

Blooms:Remember

Difficulty:1Easy

LearningObjective:02-02Defineoperationsandsupplychainstrategy.

Topic:WhatIsOperationsandSupplyChainStrategy?

10.Anorderqualifierisasetofscreeningcriteriathatpermitsafirm'sproductstobeconsideredaspossiblecandidatesforpurchase.

TRUE

Anorderqualifierisascreeningcriterionthatpermitsafirm'sproductstoevenbeconsideredaspossiblecandidatesforpurchase.

AACSB:Analytic

Blooms:Remember

Difficulty:1Easy

LearningObjective:02-02Defineoperationsandsupplychainstrategy.

Topic:WhatIsOperationsandSupplyChainStrategy?

11.Activity-systemmapsshowhowacompany'sstrategyisdeliveredthroughasetoftailoredactivities.

TRUE

AACSB:Analytic

Blooms:Remember

Difficulty:1Easy

LearningObjective:02-03Explainhowoperationsandsupplychainstrategiesareimplemented.

Topic:StrategiesAreImplementedUsingOperationsandSupplyChainActivities-IKEASStrategy

12.Activity-systemmapsareusefulinunderstandinghowwellasystemofactivitiesfitstheoverallcompany'sstrategy.

TRUE

Thistypeofmapcanbeusefulinunderstandinghowgoodthefitisbetweenthesystemofactivitiesandthecompany'sstrategy.

AACSB:Analytic

Blooms:Remember

Difficulty:1Easy

LearningObjective:02-03Explainhowoperationsandsupplychainstrategiesareimplemented.

Topic:StrategiesAreImplementedUsingOperationsandSupplyChainActivities-IKEASStrategy

13.Activity-systemmapsdepictthegeographicreachofacompany'sbusinessstrategies.

FALSE

Activity-systemmapsareconceptualhavenothingtodowiththephysicalgeographicreachofacompany.

AACSB: Analytic

Blooms: Remember

Difficulty: 1 Easy

Learning Objective: 02-03 Explain how operations and supply chain strategies are implemented.

Topic: Strategies Are Implemented Using Operations and Supply Chain Activities-IKEA S Strategy

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14.Anoperationsstrategymustresistchangebecauseofthelong-termnatureofequipmentandpersonnelinvestments.

FALSE

Becausethegoalsofthelargerorganizationchangeovertime,theoperationsstrategymustbedesignedtoanticipatefutureneeds.

AACSB:Analytic

Blooms:Understand

Difficulty:1Easy

LearningObjective:02-02Defineoperationsandsupplychainstrategy.

Topic:WhatIsOperationsandSupplyChainStrategy?

15.Operationsandsupplystrategycanbeviewedaspartofaplanningprocessthatcoordinatesoperationalgoalswiththoseofthelargerorganization.

TRUE

Operationsandsupplychainstrategycanbeviewedaspartofaplanningprocessthatcoordinatesoperationalgoalswiththoseofthelargerorganization.

AACSB:Analytic

Blooms:Remember

Difficulty:1Easy

LearningObjective:02-02Defineoperationsandsupplychainstrategy.

Topic:WhatIsOperationsandSupplyChainStrategy?

16.Infrastructuredecisionswithinoperationsstrategyincludetheselectionoftheappropriatetechnology,theroleofinventory,andthelocationoffacilities.

FALSE

Processdesignincludesselectingtheappropriatetechnology,sizingtheprocessovertime,determiningtheroleofinventoryintheprocess,andlocatingtheprocess.

AACSB:Analytic

Blooms:Remember

Difficulty:2Medium

LearningObjective:02-02Defineoperationsandsupplychainstrategy.

Topic:WhatIsOperationsandSupplyChainStrategy?

17.Infrastructuredecisionswithinoperationsstrategyincludetheselectionofthelogicassociatedwiththeplanningandcontrolsystems

TRUE

Theinfrastructuredecisionsinvolvethelogicassociatedwiththeplanningandcontrolsystems,qualityassuranceandcontrolapproaches,workpaymentstructure,andorganizationoftheoperationsandsupplyfunctions.

AACSB:Analytic

Blooms:Remember

Difficulty:2Medium

LearningObjective:02-02Defineoperationsandsupplychainstrategy.

Topic:WhatIsOperationsandSupplyChainStrategy?

18.Onceanoperationsstrategyisadoptedandarticulated,theprimaryemphasisbecomesperfectingthesystemofactivitiesthatmakeupthestrategythroughdetailedrefinementsoveralongperiodoftime.

FALSE

SeethediscussionaroundExhibit2.2.Operationsstrategyiscontinuallyrevised,re-planned,andcoordinatedwiththeever-changingcorporatestrategy.

AACSB:Analytic

Blooms:Remember

Difficulty:2Medium

LearningObjective:02-02Defineoperationsandsupplychainstrategy.

Topic:WhatIsOperationsandSupplyChainStrategy?

19.Thejobofoperationsandsupplychainstrategyistodeliverthemostfeature-rich,highestqualityproductatthelowestpricewithinspecifiedparametersofdeliverytimeandcustomization.

FALSE

Operationsandsupplychainstrategyisconcernedwithsettingbroadpoliciesandplansforusingtheresourcesofafirmandmustbeintegratedwithcorporatestrategy.

AACSB: Analytic

Blooms: Remember

Difficulty: 2 Medium

Learning Objective: 02-01 Know what a sustainable business strategy is and how it relates to operations and supply chain management.

Topic: What Is Operations and Supply Chain Strategy?

20.Productivityisarelativemeasure.

TRUE

Productivityiswhatwecallarelativemeasure.Inotherwords,tobemeaningful,itneedstobecomparedwithsomethingelse.

AACSB: Analytic

Blooms: Remember

Difficulty: 1 Easy

Learning Objective: 02-05 Evaluate productivity in operations and supply chain management.

Topic: Productivity Measurement

21.Inapartialmeasureofproductivity,thedenominatoroftheratiowouldincludeallresourcesusedorallinputs.

FALSE

Inapartialmeasureofproductivity,thedenominatorincludesonlyasingleinput.

AACSB: Analytic

Blooms: Remember

Difficulty: 1 Easy

Learning Objective: 02-05 Evaluate productivity in operations and supply chain management.

Topic: Productivity Measurement

22.Inamultifactormeasureofproductivity,thenumeratoroftheratiowouldincludeallresourcesusedorallinputs.

FALSE

Inamultifactormeasureofproductivity,thedenominatorincludesseveralbutnotallinputs.

AACSB: Analytic

Blooms: Remember

Difficulty: 1 Easy

Learning Objective: 02-05 Evaluate productivity in operations and supply chain management.

Topic: Productivity Measurement

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McGraw-Hill Education.

23.Thetriplebottomlineconsidersevaluatingthefirmagainstsocial,economic,andenvironmentalcriteria.

TRUE

Thetriplebottomlineconsidersevaluatingthefirmagainstsocial,economic,andenvironmentalcriteria.

AACSB:Analytic

Blooms:Remember

Difficulty:1Easy

LearningObjective:02-01Knowwhatasustainablebusinessstrategyisandhowitrelatestooperationsandsupplychainmanagement.

Topic:ASustainableOperationsandSupplyChainStrategy

24.Sustainabilitymeansmeetingafirm'scurrentneedswithoutexcessivelycompromisingtheabilityoffuturegenerationstomeettheirownneeds.

FALSE

Byadding"sustainability"totheconcept(ofstrategy),weaddtherequirementtomeetthesecurrentneedswithoutcompromisingtheabilityoffuturegenerationstomeettheirownneeds.(Excessivelyisnotmentioned.)

AACSB:Analytic

Blooms:Remember

Difficulty:2Medium

LearningObjective:02-01Knowwhatasustainablebusinessstrategyisandhowitrelatestooperationsandsupplychainmanagement.

Topic:ASustainableOperationsandSupplyChainStrategy

25.Thesocialimpactofthetriplebottomlineconceptpertainstofairandbeneficialbusinesspracticestowardlabor,thecommunity,andtheregioninwhichafirmconductsitsbusiness.

TRUE

"Social"pertainstofairandbeneficialbusinesspracticestowardlabor,thecommunity,andtheregioninwhichafirmconductsitsbusiness.

AACSB: Analytic

Blooms: Remember

Difficulty: 2 Medium

Learning Objective: 02-01 Know what a sustainable business strategy is and how it relates to operations and supply chain management.

Topic: A Sustainable Operations and Supply Chain Strategy

26.Afirm'sbusinesspracticestowarditslaborforcepertainmainlytotheeconomicaspectofthetriplebottomlineconcept.

FALSE

AACSB: Analytic

Blooms: Remember

Difficulty: 2 Medium

Learning Objective: 02-01 Know what a sustainable business strategy is and how it relates to operations and supply chain management.

Topic: A Sustainable Operations and Supply Chain Strategy

27.Accordingtotheeconomicaspectofthetriplebottomlineconcept,thefirmisrequiredtocompensateshareholdersbypayingdividendsandgrowingthevalueoftheircommonstockfasterthantheircompetitors.

FALSE

Thefirmisobligatedtocompensateshareholderswhoprovidecapitalthroughstockpurchasesandotherfinancialinstrumentsviaacompetitivereturnoninvestment.

AACSB: Analytic

Blooms: Remember

Difficulty: 2 Medium

Learning Objective: 02-01 Know what a sustainable business strategy is and how it relates to operations and supply chain management.

Topic: A Sustainable Operations and Supply Chain Strategy

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28.Withinasustainabilityframework,theeconomicdimensionofthetriplebottomlineconceptgoesbeyondjustprofitforthefirmbutalsoprovideslastingeconomicbenefittosociety.

TRUE

Withinasustainabilityframework,this(economic)dimensiongoesbeyondjustprofitforthefirmbutalsoprovideslastingeconomicbenefittosociety.

AACSB:Analytic

Blooms:Remember

Difficulty:2Medium

LearningObjective:02-01Knowwhatasustainablebusinessstrategyisandhowitrelatestooperationsandsupplychainmanagement.

Topic:ASustainableOperationsandSupplyChainStrategy

29.Withinasustainabilityframework,theenvironmentaldimensionofthetriplebottomlineconcepthastodowithlabor,thecommunity,andtheregioninwhichafirmconductsitsbusiness.

FALSE

Socialcriteriapertainstofairandbeneficialbusinesspracticestowardlabor,thecommunity,andtheregioninwhichafirmconductsitsbusiness.

AACSB:Analytic

Blooms:Remember

Difficulty:2Medium

LearningObjective:02-01Knowwhatasustainablebusinessstrategyisandhowitrelatestooperationsandsupplychainmanagement.

Topic:ASustainableOperationsandSupplyChainStrategy

30.Whichofthefollowingisnotamajorstrategicoperationalcompetitivedimensionthatformsacompany'scompetitiveposition?

A.Costorprice

B.Deliveryspeed

C.Deliveryreliability

D.Managementacumen

E.Copingwithchangesindemand

Theoperationalcompetitivedimensionsthatformacompany'scompetitivepositionarelistedinthetext.Managementacumenisnotmentioned.

AACSB:Analytic

Blooms:Remember

Difficulty:2Medium

LearningObjective:02-02Defineoperationsandsupplychainstrategy.

Topic:WhatIsOperationsandSupplyChainStrategy?

31.Amajorcompetitivedimensionthatformsacompany'sstrategicoperationalcompetitivepositionintheirstrategicplanningiswhichofthefollowing?

A.Costorprice

B.Focus

C.Automation

D.Straddling

E.Activity-systemmapping

Costorpriceisoneofthecompetitivedimensionsmentionedinthetext.

AACSB: Analytic

Blooms: Remember

Difficulty: 2 Medium

Learning Objective: 02-02 Define operations and supply chain strategy.

Topic: What Is Operations and Supply Chain Strategy?

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32.Whendevelopinganoperationsandsupplychainstrategy,whichofthefollowingisanimportantproduct-specificcriteriontoconsider?

A.Technicalliaison

B.Learningcurve

C.Competitor'sproductperformance

D.Productionlotsize

E.Totalqualitymanagement

Technicalliaisonandsupport.Asuppliermaybeexpectedtoprovidetechnicalassistanceforproductdevelopment,particularlyduringtheearlystagesofdesignandmanufacturing.

AACSB:Analytic

Blooms:Remember

Difficulty:2Medium

LearningObjective:02-02Defineoperationsandsupplychainstrategy.

Topic:WhatIsOperationsandSupplyChainStrategy?

33.Indevelopmentofanoperationsandsupplychainstrategy,whichofthefollowingmaybeanimportantproduct-specificcriteriatoconsider?

A.Focus

B.Productionlotsize

C.Supplierafter-salesupport

D.Learningcurve

E.Totalqualitymanagement

Animportantcompetitivedimensionmaybetheabilityofafirmtosupportitsproductafterthesale.

AACSB:Analytic

Blooms:Remember

Difficulty:2Medium

LearningObjective:02-02Defineoperationsandsupplychainstrategy.

Topic:WhatIsOperationsandSupplyChainStrategy?

34.Whenacompanyseekstomatchthebenefitsofasuccessfulpositionwhilemaintainingitsexistingpositioninofferingcustomersavarietyofdifferingservices,whatisthisprocesscalled?

A.Operationscapabilityanalysis

B.Straddling

C.Orderqualifying

D.Orderwinning

E.Inter-functionalanalysis

Straddlingoccurswhenacompanyseekstomatchthebenefitsofasuccessfulpositionwhilemaintainingitsexistingposition.

AACSB:Analytic

Blooms:Remember

Difficulty:1Easy

LearningObjective:02-02Defineoperationsandsupplychainstrategy.

Topic:WhatIsOperationsandSupplyChainStrategy?

35.Anactivity-systemmapiswhichofthefollowing?

A.Anetworkguidetorouteairlines

B.Alistingofactivitiesthatmakeupaproject

C.Adiagramthatshowshowacompany'sstrategyisdeliveredtocustomers

D.Afacilitylayoutschematicnotingwhatisdonewhere

E.Atimelinedisplayingmajorplannedevents

Activity-systemmapssuchastheoneforIKEAshowhowacompany'sstrategyisdeliveredthroughasetoftailoredactivities.

AACSB:Analytic

Blooms:Remember

Difficulty:1Easy

LearningObjective:02-03Explainhowoperationsandsupplychainstrategiesareimplemented.

Topic:StrategiesAreImplementedUsingOperationsandSupplyChainActivities-IKEASStrategy

36.Whichofthefollowingisapartialmeasureofproductivity?

A.Output/Materials

B.Output/(Labor+Capital+Energy)

C.Output/Allresourcesused

D.Output/Inputs

E.Allofthese

AACSB:Analytic

Blooms:Remember

Difficulty:2Medium

LearningObjective:02-05Evaluateproductivityinoperationsandsupplychainmanagement.

Topic:ProductivityMeasurement

37.Whichofthefollowingisamultifactormeasureofproductivity?

A.Output/(Materials)

B.Output/(Labor+Capital+Energy)

C.Output/Allresourcesused

D.Output/Inputs

E.Allofthese

AACSB:Analytic

Blooms:Remember

Difficulty:2Medium

LearningObjective:02-05Evaluateproductivityinoperationsandsupplychainmanagement.

Topic:ProductivityMeasurement

38.Whichofthefollowingisatotalmeasureofproductivity?

A.Output/Materials

B.Output/(Labor+Capital+Energy)

C.Output/Labor

D.Output/Inputs

E.Allofthese

AACSB:Analytic

Blooms:Remember

Difficulty:1Easy

LearningObjective:02-05Evaluateproductivityinoperationsandsupplychainmanagement.

Topic:ProductivityMeasurement

39.Ifallyouknewaboutaproductionsystemwasthattotaldailyoutputwas400unitsandthetotallabornecessarytoproducethe400unitswas350hours,whatkindofproductivitymeasurecouldyouusetocomputeproductivity?

A.Partialmeasure

B.Multifactormeasure

C.Totalmeasure

D.Globalmeasure

E.Allofthese

Partialmeasureiscorrect.Withoutmeasuresofotherinputsonlyapartialoutputmeasureispossible.

AACSB:Analytic

Blooms:Analyze

Difficulty:1Easy

LearningObjective:02-05Evaluateproductivityinoperationsandsupplychainmanagement.

Topic:ProductivityMeasurement

40.Ifallyouknewaboutaproductionsystemwasthattotaldailyoutputwas400unitsandthetotallabornecessarytoproducethe400unitswas350hours,andthetotalmaterialsusedwere425units,whatkindofproductivitymeasurecouldyouusetocomputeproductivity?

A.Partialmeasure

B.Multifactormeasure

C.Totalmeasure

D.PartialmeasureandMultifactormeasure

E.MultifactormeasureandTotalmeasure

Partialmeasureandmultifactormeasureisthemostcorrectoftheanswers.Youcoulduseeitherapartialoramultifactormeasureorbothkindsofmeasure.

AACSB:Analytic

Blooms:Analyze

Difficulty:1Easy

LearningObjective:02-05Evaluateproductivityinoperationsandsupplychainmanagement.

Topic:ProductivityMeasurement

41.Thetotaloutputfromaproductionsysteminonedayis500unitsandthetotallabornecessarytoproducethe500unitsis350hours.Usingtheappropriateproductivitymeasure,whichofthefollowingnumbersrepresentstheresultingproductivityratio?

A.1.000

B.1.428

C.0.700

D.0.411

E.Noneofthese

500unitsdividedby350hoursequals1.428.

AACSB: Analytic

Blooms: Analyze

Difficulty: 2 Medium

Learning Objective: 02-05 Evaluate productivity in operations and supply chain management.

Topic: Productivity Measurement

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McGraw-Hill Education.

42.Thetotaloutputfromaproductionsysteminonedayis900unitsandthetotallabornecessarytoproducethe900unitsis900hours.Usingtheappropriateproductivitymeasure,whatistheresultingproductivityratio?

A.1.000

B.1.428

C.0.700

D.0.411

E.Noneofthese

900unitsdividedby900hoursequals1.0unitsperhour.

AACSB:Analytic

Blooms:Analyze

Difficulty:2Medium

LearningObjective:02-05Evaluateproductivityinoperationsandsupplychainmanagement.

Topic:ProductivityMeasurement

43.Larry'sAutoBodyRepairShophadrevenuesthataveraged$60,000perweekinApriland$50,000perweekinMay.Duringbothmonths,theshopemployedsixfull-time(40hours/week)workers.InAprilthefirmalsohadfourpart-timeworkersworking25hoursperweek,butinMaytherewereonlytwopart-timeworkersandtheyonlyworked10hoursperweek.WhatisthepercentagechangeinlaborproductivityfromApriltoMayforLarry'sAutoBodyRepair?

A.-20.00%

B.-15.82%

C.8.98%

D.2.3%

E.-25.00%

Laborproductivityisoutput(revenue)dividedbyhoursoflaborinput.ForApril,revenueperweekwas$60,000andlaborhourswere4x[(40x6)+(25x4)].Thisis60,000/1,360or44.12dollarsperhouroflabor.ForMay,revenueperweekwas$50,000andlaborhourswere4x[(40x6)+(10x2)]Thisis50,000/1,040or48.08dollarsperhouroflaboradifferenceof$3.96perhour.ThepercentagechangeinproductivitybetweenAprilandMay,then,is3.96/44.12=0.0898x100=8.98%.(Note:thisanalysisassumesfourweeksineachmonthandequalproductivityforeachhourworked.)

AACSB:Analytic

Blooms:Analyze

Difficulty:3Hard

LearningObjective:02-05Evaluateproductivityinoperationsandsupplychainmanagement.

Topic:ProductivityMeasurement

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44.VariousfinancialdataforSunPathManufacturingfor2012and2013follow.

WhatisthepercentagechangeinSunPath'stotalproductivitymeasurebetween2012and2013?

A.-9.22

B.2.33

C.-0.53

D.2.88

E.10.39

Totalproductivityfor2012is$300,000dividedbythesum$40,000+$45,000+$10,000+$250,000+$2,000or0.8646.Totalproductivityfor2013is$330,000dividedbythesumof$43,000+$51,000+$9,000+262,000+$6,000or0.8895.Thedifferencebetween2012and2013is0.0249andthepercentagedifferenceis0.0249dividedby0.8646=0.0288or2.88%.

AACSB:Analytic

Blooms:Analyze

Difficulty:3Hard

LearningObjective:02-05Evaluateproductivityinoperationsandsupplychainmanagement.

Topic:ProductivityMeasurement

45.VariousfinancialdataforSunPathManufacturingfor2012and2013follow.

WhatisthepercentagechangeintheenergypartialproductivitymeasureforSunPathbetween2012and2013?

A.-9.22%

B.2.33%

C.-0.53%

D.2.88%

E.22.2%

Theenergypartialproductivitymeasurefor2012is$300,000dividedby$10,000or30.For2013itis$330,000dividedby$9,000or36.66.Thepercentagechangebetween2012and2013thenis(36.66 - 30)/30or6.66dividedby30=22.2%.

AACSB:Analytic

Blooms:Analyze

Difficulty:2Medium

LearningObjective:02-05Evaluateproductivityinoperationsandsupplychainmanagement.

Topic:ProductivityMeasurement

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46.VariousfinancialdataforSunPathManufacturingfor2012and2013follow.

WhatisthepercentagechangeinthelaborpartialproductivitymeasureforSunPathbetween2012and2013?

A.-9.22

B.2.33

C.-0.53

D.2.88

E.10.39

Thelaborpartialproductivitymeasurefor2012is$300,000dividedby$40,000or7.5.For2013itis$330,000dividedby$43,000or7.67.Thepercentagechangebetween2012and2013,then,is(7.67-7.5)/7.5or0.17dividedby7.5=2.33%.

AACSB:Analytic

Blooms:Analyze

Difficulty:2Medium

LearningObjective:02-05Evaluateproductivityinoperationsandsupplychainmanagement.

Topic:ProductivityMeasurement

47.VariousfinancialdataforSunPathManufacturingfor2012and2013follow.

WhatisthepercentagechangeinthemultifactorlaborandrawmaterialsproductivitymeasureforSunPathbetween2012and2013?

A.-9.22

B.2.33

C.-0.53

D.-2.88

E.10.39

Themultifactorlaborandrawmaterialsproductivitymeasurefor2012is$300,000dividedbythesum$40,000+$45,000or3.53.For2013itis$330,000dividedbythesum$51,000+$43,000or3.51.Thepercentagechangebetween2012and2013,thenis(3.511-3.5329)/3.529or-0.018dividedby3.529=-0.53%.

AACSB:Analytic

Blooms:Analyze

Difficulty:3Hard

LearningObjective:02-05Evaluateproductivityinoperationsandsupplychainmanagement.

Topic:ProductivityMeasurement

48. In a firm, if the employees attend a training program, then the time to assemble one unit reduces by 10%. Training program will

A.increase the labor productivity only

B.increase the multifactor productivity only

C. increase both labor and multifactor productivity

D.decrease capital productivity

E.have no effect on productivity.

Labor productivity will increase since it takes less labor. Since labor is one of the components of multifactor productivity, it will also increase. Clearly, it cannot decrease capital productivity. And E is also wrong.

AACSB: Analytic

Blooms: Analyze

Difficulty: 1 Easy

Learning Objective: 02-05 Evaluate productivity in operations and supply chain management.

Topic: Productivity Measurement

49. Order winners and order qualifiers are

A.two identical ways to define characteristics of a product or services

B.order winner is a screening criterion

C. order qualifier is a differentiating criterion

D.both B and C are true

E.order winner is a differentiating criterion and order qualifier is a screening criterion

Marketing – operations link.descrbing order winner as a differentiator from competition and order qualifier as a screen that permits the product or service to be even considered.

AACSB: Analytic

Blooms: Understand

Difficulty: 2 Moderate

Learning Objective: 02-02 Define operations and supply chain strategy.

Topic: What Is Operations and Supply Chain Strategy?

50. In a firm, all other things remaining the same, if the material usage per unit of final product decreases to half of the current usage, then the firm will

A.double the material productivity

B.increase the multifactor productivity

C. both A and B

D.decrease capital productivity

E.have no effect on productivity.

Labor productivity will not change. Material productivity doubles, since the denominator is halved. Has no effect on capital productivity. Affects overall productivity.

AACSB: Analytic

Blooms: Analyze

Difficulty: 2 Medium

Learning Objective: 02-05 Evaluate productivity in operations and supply chain management.

Topic: Productivity Measurement

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Chapter 02 Test Bank - Static Summary

Category / # of Questions
AACSB: Analytic / 4750
Blooms: Analyze / 911
Blooms: Remember / 37
Blooms: Understand / 12
Difficulty: 1 Easy / 2324
Difficulty: 2 Medium / 2122
Difficulty: 3 Hard / 3
Learning Objective: 02-01 Know what a sustainable business strategy is and how it relates to operations and supply chain management. / 9
Learning Objective: 02-02 Define operations and supply chain strategy. / 1920
Learning Objective: 02-03 Explain how operations and supply chain strategies are implemented. / 4
Learning Objective: 02-05 Evaluate productivity in operations and supply chain management. / 1517
Topic: A Sustainable Operations and Supply Chain Strategy / 78
Topic: Productivity Measurement / 1517
Topic: Strategies Are Implemented Using Operations and Supply Chain Activities-IKEA S Strategy / 4
Topic: What Is Operations and Supply Chain Strategy? / 21

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