Operations and Supply Chain Strategy Fundamentals

Chapter 2: Business & Operations Strategy

Question 18

Structural elements of a business include:

Correct Answer: D) computer systems.

Question 19

________ is an example of an infrastructural element.

Correct Answer: B) An organizational structure

Question 20

The firm's targeted customers, time frames, and performance objectives are identified by their:

Correct Answer: C) business strategy.

Question 21

Which of the following statements about functional strategy is BEST?

Correct Answer: C) Many functional-level strategies could readily be described as cross-functional.

Question 22

No one could turn around a failing restaurant as expertly as Gordon, whose experience and cadre of trained professionals was available at a moment's notice should his services be needed. This ability, some might call it a gift, was developed to such a level that other restaurant consultants were unable to match his results. This ability is best described as his:

Correct Answer: B) core competency.

Question 23

Which of these is NOT one of the primary objectives of an operations and supply chain strategy?

Correct Answer: D) to align structural and infrastructural elements to convert order winners into order qualifiers as determined by the mission statement

Question 24

Damron Inc., wants to purchase a shear for their sheet metal shop and chooses dimensions of cost, reliability, and flexibility as critical to their long-term success. They evaluate three different shears and rate their performance on each criterion on a scale from 1 (poor) to 5 (excellent). What is the value index for the shear made by Belsky Manufacturing?

Correct Answer: C) 23

Question 25

Damron Inc., wants to purchase a shear for their sheet metal shop and chooses dimensions of cost, reliability, and flexibility as critical to their long-term success. They evaluate four different shears and rate their performance on each criterion on a scale from 1 (poor) to 5 (excellent). Which shear should be purchased?

Correct Answer: B) Reber

Question 26

Which of the following is NOT a generic performance dimension of operations and supply chain activities?

Correct Answer: D) social responsibility

Question 27

Whether the product was made or service performed to specifications is a question of:

Correct Answer: A) conformance quality.

Question 28

Which of these statements about time performance is BEST?

Correct Answer: B) A customer with a narrow delivery window should have a supplier with high delivery reliability.

Question 29

The ability to produce a wide range of products or services is:

Correct Answer: A) mix flexibility.

Question 30

Mutt's Amazing Dogs offers a hot dog with mustard and a hot dog with relish and mustard. The difference between the two (the relish) is achieved by flipping a single lever, which changes the dispenser from mustard, to a perfectly proportioned mix of relish and mustard. This lever responds instantly to the feathery touch of Mutt, who has achieved a high level of:

Correct Answer: D) changeover flexibility.

Question 31

Performance dimensions on which customers expect a minimum level of performance are called:

Correct Answer: D) order qualifiers.

Question 32

The latex division of Vandelay Industries provided support after the sale that could not be matched by any of the other players in the latex industry. This unique attribute was responsible for perhaps 60% of their sales volume and could be described as:

Correct Answer: C) an order winner.

Question 33

When the operations and supply chain areas are not linked with the overall business strategy, but instead follow industry practices, the firm is in this stage of alignment.

Correct Answer: B) externally neutral

Question 34

Before firms can progress to the fourth stage of alignment, they must:

Correct Answer: A) develop core competencies.

Question 35

Closing the loop in the area of business strategy means that:

Correct Answer: A) core competencies at the functional level feed back into the business strategy.