Student name:__________

TRUE/FALSE - Write 'T' if the statement is true and 'F'

if the statement is false.
1) An operations and supply chain strategy must be
integrated with the organization's corporate strategy.

⊚ true
⊚ false

2) One of the competitive dimensions that form the

competitive position of a company when planning their
strategies is cost.

⊚ true
⊚ false

3) One of the competitive dimensions that form the

competitive position of a company when planning their
strategies is delivery speed.

⊚ true
⊚ false

4) One of the competitive dimensions that form the

competitive position of a company when planning their
strategies is making the best trade-off.

⊚ true ⊚ false

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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.

⊚ true
⊚ false

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
⊚ false

7) Following a straddling strategy, firms can broaden

their capabilities and effectively compete with more focused
firms in markets requiring low cost for success.

⊚ true
⊚ false

8) An order winner is a set of criteria that differentiates

the products or services of one firm from another.

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 ⊚ true ⊚ false

9) An order winner is a set of screening criteria that

permits a firm's products to be considered as possible
candidates for purchase.

⊚ true
⊚ false

10) An order qualifier is a screening criterion that permits

a firm's products to even be considered as possible candidates
for purchase.

⊚ true
⊚ false

11) Activity-system maps show how a company's strategy

is delivered through a set of tailored activities.

⊚ true
⊚ false

12) Activity-system maps are useful in understanding how

well a system of activities fits the overall company's strategy.

⊚ true ⊚ false

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13) Activity-system maps depict the geographic reach of a
company's business strategies.

⊚ true
⊚ false

14) An operations strategy must resist change because of

the long-term nature of equipment and personnel investments.

⊚ true
⊚ false

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
⊚ false

16) Infrastructure decisions within operations strategy

include the selection of the appropriate technology, the role of
inventory, and the location of facilities.

⊚ true
⊚ false

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17) Infrastructure decisions within operations strategy
include the selection of the logic associated with the planning
and control systems.

⊚ true
⊚ false

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.

⊚ true
⊚ false

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.

⊚ true
⊚ false

20) Productivity is a relative measure.

⊚ true
⊚ false

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21) In a partial measure in productivity, the denominator
of the ratio would include all resources used or all inputs.

⊚ true
⊚ false

22) In a multifactor measure in productivity, the

numerator of the ratio would include all resources used or all
inputs.

⊚ true
⊚ false

23) The triple bottom line considers evaluating the firm

against social, economic, and environmental criteria.

⊚ true
⊚ false

24) Sustainability means meeting a firm's current needs

without excessively compromising the ability of future
generations to meet their own needs.

⊚ true
⊚ false

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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
⊚ false

26) A firm's business practices toward its labor force

pertain mainly to the economic aspect of the triple bottom line
concept.

⊚ true
⊚ false

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.

⊚ true
⊚ false

28) Within a
sustainability framework,
the economic dimension of
the triple bottom line

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concept goes beyond just profit for the firm but also provides lasting economic benefit to
society.

⊚ true
⊚ false

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.

⊚ true
⊚ false

MULTIPLE CHOICE - Choose the one alternative that

best completes the statement or answers the question.
30) Which of the following is not a major strategic
operational competitive dimension that forms a company's
competitive position?

D) Delivery speed.
A) Management acumen. E) Delivery
B) Coping with changes in demand. reliability.
C) Cost or price.

31) Which of the following major competitive dimension

forms a company's strategic operational competitive position
in their strategic planning?

A) Cost or price.

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 E) Activity-system
B) Focus. mapping.
C) Automation.
D) Straddling.

32) When developing an operations and supply chain

strategy, which of the following is an important product-
specific criterion to consider?

E) Total quality
A) Technical liaison. management.
B) Learning curve.
C) Competitor's product performance.
D) Production lot-size.

33) In development of an operations and supply chain

strategy, which of the following may be an important product-
specific criterion to consider?

D) Learning curve.
A) Focus. E) Total quality
B) Production lot-size. management.
C) Supplier after-sale support.

34) A company seeks to match the benefits of a successful

position while maintaining its existing position in offering
customers a variety of differing services. How is this process
called?

D) Order winning.
A) Operations capability analysis. E) Inter-functional
B) Straddling. analysis.
C) Order qualifying.

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35) Which of the following is an activity-system map?

where.
A) A network guide to route airlines. E) A timeline
B) A listing of activities that make up a project. displaying major planned
C) A diagram that shows how a company's strategy is events.
delivered to customers.
D) A facility layout schematic noting what is done

36) Which of the following is a partial measure of C. Output / All resources

productivity? used
A. Output / Materials
D. Output / Inputs
B. Output / (Labor + Capital + Energy)

D) Choice D
A) Choice A E) All of these
B) Choice B
C) Choice C

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

D) Choice D
A) Choice A E) All of these
B) Choice B
C) Choice C

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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

D) Choice D
A) Choice A E) All of these
B) Choice B
C) Choice C

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

D) Choice D
A) Choice A E) All of these
B) Choice B
C) Choice C

40) If all you knew about a production system was that total daily output was 400

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units and the total labor necessary to produce the 400 units
was 350 hours, and the total materials used were 425 units, B. Multifactor measure
what kind of productivity measure could you use to compute
productivity? C. Total measure
A. Partial measure

D) Choice A and B
A) Choice A E) Choice B and C
B) Choice B
C) Choice C

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?

D) 0.411
A) 1.000 E) None of these
B) 1.429
C) 0.700

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?

D) 0.411
A) 1.000 E) None of these
B) 1.428
C) 0.700

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43) Larry's Auto Body Repair Shop had revenues that hours per week. What is
averaged $60,000 per week in April and $50,000 per week in the percentage change in
May. During both months, the shop employed six full-time labor productivity from
(40 hours/week) workers. In April the firm also had four part- April to May for Larry's
time workers working 25 hours per week but in May there Auto Body Repair?
were only two part-time workers and they only worked 10

D) 2.3%
A) −20.00% E) −25.00%
B) −15.82% F) None of these
C) 8.98%

44) Various financial data for SunPath Manufacturing for

2015 and 2016 follow.

2015 2016 Other: $ $

2 6,
Output: Sales $300,00 $330,00 , 00
0 0 0 0
Input: Labor $ $ 0
40,000 43,000 0
Raw Materials: $ $ What is the percentage
45,000 51,000 change in SunPath’s total
Energy: $ $ 9,000 productivity measure
10,000 between 2015 and 2016?
Capital $250,00 $262,00
Employed: 0 0

D) 2.88%
A) − 9.22% E) 10.39%
B) 2.33% F) None of these
C) − 0.53%

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 2015 2016 What is the percentage
change in the energy
Output: Sales $300,00 $330,00
partial productivity
0 0
measure for SunPath
Input: Labor $ $
40,000 43,000
between 2015 and 2016?
Raw Materials: $ $
45,000 51,000
Energy: $ $ 9,000
10,000
Capital $250,00 $262,00
Employed: 0 0
Other: $ 2,000 $ 6,000

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 D) 2.88%
A) −9.22% E) 22.2%
B) 2.33% F) None of these
C) −0.53%

46) Various financial data for SunPath Manufacturing for

2015 and 2016 follow.

2015 2016 Other: $ $

2 6,
Output: Sales $300,00 $330,00 , 00
0 0 0 0
Input: Labor $ $ 0
40,000 43,000 0
Raw Materials: $ $ What is the percentage
45,000 51,000 change in the labor partial
Energy: $ $ 9,000 productivity measure for
10,000 SunPath between 2015 and
Capital $250,00 $262,00
2016?
Employed: 0 0

D) 2.88%
A) −9.22% E) 10.39%
B) 2.27% F) None of these
C) −0.53%

47) Various financial data for SunPath Manufacturing for

2015 and 2016 follow.

2015 2016

Output: Sales $300,00 $330,00

0 0
Input: Labor $ $
40,000 43,000
Raw Materials: $ $
45,000 51,000
Energy: $ $ 9,000
10,000

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 Capital $250,00 $262,00 What is the percentage
Employed: 0 0 change in the multifactor
Other: $ 2,000 $ 6,000 labor and raw materials
productivity measure for
SunPath between 2015 and
2016?

D) −2.88%
A) −9.22% E) 10.39%
B) 2.33% F) None of these
C) −0.51%

48) What is meant by the term "operations effectiveness?"

new and evolving

A) Products produced in sufficient volume to meet conditions.
demand. E) Performing
B) Products produced at the lowest price in the activities in a manner that
industry. best implements strategic
C) Operations that run without error and with no priorities at minimum cost.
surprises for top management.
D) Operations that can adapt quickly and efficiently to

49) Decisions that relate to the design of the processes and

the infrastructure needed to support these processes relate to
which OSCM concept?

with a firm's operational

A) Sustainability. capabilities.
B) Competitive dimensions of OSCM. E) Supply chain
C) Making trade-offs. risk.
D) integrating operations and supply chain strategy

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50) Triple bottom line is a phrase that captures which of
the following?
A. The concept that shareholders like economic,
environmental and societal stewardship affecting shareholders
and stake holders.

B. The concept that firms should consider economic

prosperity, environmental stewardship and social
responsibility affecting shareholders and stake holders.

C. The concept that sustainability, social awareness and

profitability are three important measures for a firm affecting
shareholders and stake holders.

D. The concept that firms should consider economic

prosperity, environmental stewardship and social
responsibility affecting only shareholders.

D) Choice D
A) Choice A E) None of the
B) Choice B above
C) Choice C

51) Which of the following lists contains only competitive flexibility and new product
dimensions of a firm discussed in the text? introduction speed
A. Cost or price, Triple bottom line, order winners
E. Triple bottom line,
B. Delivery speed, delivery reliability, order qualifiers delivery speed, deliver
reliability, supplier after
C. Cost or price, delivery speed, delivery reliability, new sale support
product design

D. Cost or price, delivery speed, delivery reliability,

B) Choice B
A) Choice A C) Choice C

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 D) Choice D E) Choice E

52) Choose the most accurate description in the context of

operations and supply chain from the following lists.
A. Order winners and order qualifiers are two ways of
describing market-oriented dimensions of a product.

B. Order winners differentiates a product or service from

another while order qualifiers are built in features.

C. Order winners are built in features and order qualifiers are

necessary features.

D. Order qualifier is a screening criterion while order winner

is a differentiating criterion.

E. Order winners may have been order qualifiers before.

D) Choice D
A) Choice A E) Choice E
B) Choice B
C) Choice C

53) In a firm, if the employees attend a training program,

then the time to assemble one unit reduces by 10%. Training D. decrease capital
program will _____________blank. productivity
A. increase the labor productivity only
E. have no effect on
B. increase the multifactor productivity only productivity.

C. increase both labor and multifactor productivity

B) Choice B
A) Choice A C) Choice C

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 D) Choice D E) Choice E

54) 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 _____________blank.

D) decrease capital
A) double the material productivity productivity
B) increase the multifactor productivity E) have no effect
C) double the material productivity and increase the on productivity.
multifactor productivity

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Answer Key

Test name: Chapter 02 Test Bank - Static

1) 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.

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2) TRUE
The major competitive dimensions that form (or price).
the competitive position of a firm include cost
3) TRUE
The major competitive dimensions that form delivery speed.
the competitive position of a firm include
4) FALSE
The major competitive dimensions that form include making the
the competitive position of a firm do not best trade-off.

5) FALSE
Straddling occurs when a company seeks to
match the benefits of a successful position
while maintaining its existing position.

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6) TRUE
Straddling occurs when a company seeks to while maintaining
match the benefits of a successful position its existing position.

7) 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.

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8) TRUE
An order winner is a criteria that differentiates those of another.
the products or services of one firm from
9) FALSE
An order qualifier is a screening criterion that purchase.
permits a firm's products to even be
considered as possible candidates for
10) TRUE
An order qualifier is a screening criterion that purchase.
permits a firm's products to even be
considered as possible candidates for
11) TRUE
Activity-system maps such as the one for delivered through a
IKEA show how a company's strategy is set of tailored
activities.
12) TRUE
This type of map can be useful in strategy.
understanding how good the fit is between the
system of activities and the company's
13) FALSE
Activity system maps are conceptual have reach of a company.
nothing to do with the physical geographic
14) FALSE
Since the goals of the larger organization change over time,

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the operations strategy must be designed to anticipate future
needs.
15) TRUE
Operations and supply chain strategy can be larger organization.
viewed as part of a planning process that
coordinates operational goals with those of the
16) FALSE
Process design includes selecting the the process, and
appropriate technology, sizing the process locating the process.
over time, determining the role of inventory in
17) TRUE
The infrastructure decisions involve the logic organization of the
associated with the planning and control operations and
systems, quality assurance and control supply functions.
approaches, work payment structure, and
18) FALSE
A firm's operations capabilities can be viewed firm's customers.
as a portfolio best suited to adapting to the
changing product and/or service needs of a
19) 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.

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20) TRUE
Productivity is what we call a relative needs to be
measure. In other words, to be meaningful, it compared with
something else.
21) FALSE
In a partial measure of productivity, the
denominator includes only a single input.

22) FALSE
In a multi-factor measure of productivity, the inputs.
denominator includes several but not all
23) TRUE
The triple bottom line considers evaluating the
firm against social, economic, and
environmental criteria.

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24) FALSE
By adding "sustainability" to the concept (of needs. (Excessively
strategy), we add the requirement to meet is not mentioned.)
these current needs without compromising the
ability of future generations to meet their own
25) TRUE
"Social" pertains to fair and beneficial conducts its
business practices toward labor, the business.
community, and the region in which a firm
26) FALSE
"Social" pertains to fair and beneficial conducts its
business practices toward labor, the business.
community, and the region in which a firm
27) FALSE
The firm is obligated to compensate
shareholders who provide capital through
stock purchases and other financial
instruments via a competitive return on
investment.

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28) TRUE
Within a sustainability framework, this benefit to society.
(economic) dimension goes beyond just profit
for the firm but also provides lasting economic
29) FALSE
"Social" pertains to fair and beneficial conducts its
business practices toward labor, the business.
community, and the region in which a firm
30) A
The operational competitive dimensions that mentioned.
form a company's competitive position are
listed in the text. Management acumen is not
31) A
Cost or price is one of the competitive
dimensions mentioned in the text.

32) A
Technical liaison and support. A supplier may early stages of
be expected to provide technical assistance for design and
product development, particularly during the manufacturing.

33) C
An important competitive dimension may be the sale
the ability of a firm to support its product after
34) B

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Straddling occurs when a company seeks to
match the benefits of a successful position
while maintaining its existing position.

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35) C
Activity-system maps show how a company's
strategy is delivered through a set of tailored
activities.
36) A
Answer A is correct. Answer B is a D are measures of
multifactor measure of productivity while C & total productivity.

37) B
Answer B is correct. Answer A is a partial
measure of productivity while C & D are
measures of total productivity.

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38) D
Answer D is correct. Answer A is a partial a measure of total
measure of productivity, Answer B is a productivity.
multifactor measure of productivity while C is
39) A
Answer A is correct. Without measures of possible.
other inputs only a partial output measure is
40) D
Answer D is the most correct of the answers.
You could use either a partial or a multifactor
measure or both kinds of measure.

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41) B
500 units divided by 350 hours = 1.429.

42) A
Answer A is 900 units divided by 900 hours equals 1.0 units per
hour.
43) C
Labor productivity is output (revenue) divided 3.96/44.12 = 0.0898
by hours of labor input. For April, revenue × 100 = 8.98%.
was $60,000 and labor hours were 4 × [(40 × (Note: this analysis
6) + (25 × 4)]. This is 60,000/1,360 or 44.12 assumes four weeks
dollars per hour of labor. For May, revenue in each month and
was $50,000 and labor hours were 4 × [(40 × equal productivity
6) + (10 × 2)] This is 50,000/1,040 or 48.08 for each hour
dollars per hour of labor a difference of $3.96 worked.)
per hour. The percentage change in
productivity between April and May, then, is
44) D
Total productivity for 2015 is $300,000 between 2015 and
divided by the sum $40,000 + $45,000 + 2016 is 0.0249 and
$10,000 + $250,000 + $2,000 or 0.8646. Total the percentage
productivity for 2016 is $330,000 divided by difference is 0.0249
the sum of $43,000 + $51,000 + $9,000 + divided by 0.8646 =
262,000 + $6,000 or 0.8895. The difference 0.0288 or 2.88%

45) E
The energy partial productivity measure for 2015 is $300,000

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divided by $10,000 or 30. For 2016 it is = 22.2%.
$330,000 divided by $9,000 or 36.67. The
percentage change between 2015 and 2016
then is (36.67 − 30)/30 or 6.67 divided by 30
46) B
The labor partial productivity measure for and 2016, then, is
2015 is $300,000 divided by $40,000 or 7.5. (7.67 − 7.5)/7.5 or
For 2016 it is $330,000 divided by $43,000 or 0.17 divided by 7.5
7.67. The percentage change between 2015 = 2.27%.

47) C
The multifactor labor and raw materials then is (3.511 −
productivity measure for 2015 is $300,000 3.529)/3.529 or
divided by the sum $40,000 + $45,000 or −0.018 divided by
3.529. For 2016 it is $330,000 divided by the 3.529 = −0.51%.
sum $51,000 + $43,000 or 3.511. The
percentage change between 2015 and 2016,
48) E
Operations effectiveness is performing strategic priorities at
activities in a manner that best implements minimum cost

49) D
Integrating operations and supply chain support these
strategy with a firm's operations capabilities processes.
involves decisions that relate to the design of
the processes and infrastructure needed to
50) B

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B is the answer. Key is that it should take care
of three objectives as well as shareholders and
stakeholders. (Ex 2.1).

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51) D
Even though other answers contain some of book. It is not
the dimensions, they have other extraneous exhaustive.
items. D has only dimensions discussed in the
52) D
D is the most complete answer.

53) C
Labor productivity will increase since it takes capital productivity.
less labor. Since labor is one of the And E is also
components of multifactor productivity, it will wrong.
also increase. Clearly, it cannot decrease
54) C
Labor productivity will not change. Material Affects overall
productivity doubles, since the denominator is productivity.
halved. Has no effect on capital productivity.

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