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P. 614
588 PART 6 Managing Business Operations, Management Information Systems, and the Digital Enterprise
Test Prepper
You’ve read the chapter, studied the key terms, and the exam is any day now. Think you are ready to ace it? Take
this sample test to gauge your comprehension of chapter material. You can check your answers at the back of
the book.
True/False Questions 2. Goods and services can be differentiated
Please indicate if the following statements are true or along all the following characteristics
false: a. customer contact and knowledge.
1. The production system of a law firm is an b. inventory and work-in-process.
example of a service system. c. customer contact and participation.
d. quality of design and conformance.
2. Watching a movie at a movie theater would
e. price and cost.
be an example of a storage transformation
process. 3. The assembly line concept combined two
key elements:
3. Operations management is the
management of the indirect resources that a. analysis and improvement of work
are involved in the production system of a methods.
business organization. b. skilled workers and custom-fitted parts.
c. interchangeable parts and division of
4. Services are tangible and goods are not.
labor.
5. The three dimensions where operations
d. unskilled workers and specialized parts.
management can help businesses compete
e. craft production and the cottage system.
are cost, quality, and service.
4. When designing goods, products that
6. The Industrial Revolution introduced a type
perform well under a wide variety of
of production system called the cottage
conditions are said to have a
system.
a. good design for manufacturing.
7. Planning decisions have medium-term
b. good design for assembly.
implications and are typically made using a
c. good design for recycling.
time horizon of months.
d. robust design.
8. A project process is used when the product e. modular design.
is produced in low volumes and requires a
5. A job process is used when the product is
high level of customization.
produced
9. To achieve an appropriate inventory level,
a. in relatively low volumes and at relatively
the operations manager needs to consider
high levels of customization.
ordering and holding costs.
b. at medium volume and customization
10. Quality of design and quality of levels.
conformance are synonymous concepts. c. in low volumes and at high levels of
customization.
Multiple-Choice Questions
d. in relatively high volumes and at
Choose the best answer. relatively low levels of customization.
1. A production system can be modeled as a e. in very large volumes but with very little
system that takes inputs and creates customization.
outputs via a transformation process. In 6. Consider the capacity example using
this model, some of the inputs include decision trees. What would be the expected
a. materials, land, and labor. value of the medium-capacity design if the
b. the desired goods or services. demand outcomes for high, medium, and
c. location, information, and exchange. low demand, respectively, changed to
d. machines, equipment, and storage. $100,000, $50,000, and $0?
e. information, money, and people. a. $78,000
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