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The use of models will guarantee the best possible decisions.

A) True
B) False

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The value of outputs is measured by the prices customers are willing to pay for goods or services.

A) True
B) False

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Prior to the Industrial Revolution, goods were produced primarily by craftsmen or their apprentices using custom made parts.

A) True
B) False

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Among Ford's many contributions was the introduction of mass production, using the concept of interchangeable parts and division of labor.

A) True
B) False

Correct Answer

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Operations and sales are the two ________ functions in businesses.


A) strategic
B) tactical
C) support
D) value-adding
E) line

F) B) and C)
G) B) and D)

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Many operations management decisions can be described as tradeoffs.

A) True
B) False

Correct Answer

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Lean production systems use a highly skilled work force and flexible equipment.

A) True
B) False

Correct Answer

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Which of the following does not relate to system design?


A) altering the system capacity
B) location of facilities
C) inventory management
D) selection and acquisition of equipment
E) physical arrangement of departments

F) C) and D)
G) A) and D)

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Special-purpose technology is a common way of offering increased customization in manufacturing or services without taking on additional labor costs.

A) True
B) False

Correct Answer

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Which is not a significant difference between manufacturing and service operations?


A) cost per unit
B) uniformity of output
C) labor content of jobs
D) customer contact
E) measurement of productivity

F) B) and C)
G) A) and B)

Correct Answer

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