58 Free Test Bank for Principles of Operations Management 9th Edition Heizer

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Which of the following is LEAST likely to be a low-cost leadership competitive advantage?

•  A) low overhead
•  B) effective capacity use
•  C) inventory management
•  D) broad product line
•  E) mass production

According to the authors, which of the following strategic concepts allow firms to achieve their missions?

•  A) productivity, efficiency, and quality leadership
•  B) differentiation, cost leadership, and response
•  C) differentiation, quality leadership, and response
•  D) distinctive competency, cost leadership, and experience
•  E) differentiation, distinctive competency, quality leadership, and capacity

The ability of an organization to produce services that, by utilizing the consumer's five senses, have some uniqueness in their characteristics is:

•  A) sensory response.
•  B) time-based competition.
•  C) differentiation.
•  D) flexible response.
•  E) experience differentiation.

Which of the following is an example of competing on quick response?

•  A) A firm produces its product with less raw material waste than its competitors do.
•  B) A firm offers more reliable products than its competitors do.
•  C) A firm's products are introduced into the market faster than its competitors' products.
•  D) A firm utilizes its capacity more effectively than its competitors do.
•  E) A firm advertises more than its competitors do.

Which of the following best describes experience differentiation?

•  A) immerses consumers in the delivery of a service
•  B) uses people's five senses to enhance the service
•  C) complements physical elements with visual and sound elements
•  D) consumers may become active participants in the product or service
•  E) All of the above are elements of experience differentiation.

A firm can effectively use its operations function to yield competitive advantage through all of the following EXCEPT:

•  A) customization of the product.
•  B) setting equipment utilization goals below the industry average.
•  C) speed of delivery.
•  D) constant innovation of new products.
•  E) maintaining a variety of product options.

Which of the following is true of maquiladoras?

•  A) They discourage foreign businesses from outsourcing.
•  B) They assess tariffs only on the value-added work done.
•  C) They originated in China.
•  D) None of the above
•  E) All of the above

Which of the following represents a reason for globalizing operations?

•  A) to improve the supply chain
•  B) to improve operations
•  C) to expand a product's life cycle
•  D) to attract and retain global talent
•  E) all of the above

Response-based competitive advantage can be:

•  A) flexible response.
•  B) reliable response.
•  C) quick response.
•  D) all of the above.
•  E) none of the above.

Franz Colruyt has achieved low-cost leadership through:

•  A) effective use of voice mail.
•  B) plastic, not paper, shopping bags.
•  C) background music that subtly encourages shoppers to buy more.
•  D) converting factories, garages, and theaters into retail outlets.
•  E) exclusive use of the Euro.

The term maquiladora is most synonymous with:

•  A) free trade zones in Mexico.
•  B) Chinese forced labor camps.
•  C) home-based or cottage industry.
•  D) areas that do not meet U.S. standards for workplace safety and pollution.
•  E) tax breaks provided by some South American countries to other South American countries.

Which of the following statements is true?

•  A) Corporate mission is shaped by functional strategies.
•  B) Corporate strategy is shaped by functional strategies.
•  C) Functional strategies are shaped by corporate strategy.
•  D) External conditions are shaped by corporate mission.
•  E) Functional area missions are merged to become the organizational mission.

Which of the following activities takes place most immediately once the mission has been developed?

•  A) The firm develops alternative or back-up missions in case the original mission fails.
•  B) The functional areas develop their functional area strategies.
•  C) The functional areas develop their supporting missions.
•  D) The ten OM decision areas are prioritized.
•  E) Operational tactics are developed.

Which of the following did the authors NOT suggest as a reason for globalizing operations?

•  A) reduce costs
•  B) improve the supply chain
•  C) pursue stockholder approval ratings
•  D) understand markets
•  E) attract and retain global talent

Which of the following statements regarding the Dreamliner 787 is true?

•  A) Boeing has found partners in over a dozen countries.
•  B) The new aircraft incorporates a wide range of aerospace technologies.
•  C) The new aircraft uses engines from not one, but two manufacturers.
•  D) Boeing will add only 20 to 30 percent of the aircraft's value.
•  E) All of the above are true.

A strategy is a(n):

•  A) set of opportunities in the marketplace.
•  B) broad statement of purpose.
•  C) simulation used to test various product line options.
•  D) plan for cost reduction.
•  E) action plan to achieve the mission.

The purpose of NAFTA is to:

•  A) substitute cheap labor in Mexico for expensive labor in the United States.
•  B) curb illegal immigration from Mexico to the United States.
•  C) phase out all trade and tariff barriers between North America and South America.
•  D) phase out all trade and tariff barriers between the United States, Canada, and Mexico.
•  E) provide fair and equitable tariff rates for trade between the United States, Canada, and Mexico.

Experience differentiation:

•  A) isolates the consumer from the delivery of a service.
•  B) is an extension of product differentiation in the service sector.
•  C) uses only the consumer's senses of vision and sound.
•  D) keeps consumers from becoming active participants in the service.
•  E) attempts to make the service experience different for every single customer.

Which of the following is the best example of competing on low-cost leadership?

•  A) A firm produces its product with less raw material waste than its competitors do.
•  B) A firm offers more reliable products than its competitors do.
•  C) A firm's products are introduced into the market faster than its competitors' products are.
•  D) A firm's research and development department generates many ideas for new products.
•  E) A firm advertises more than its competitors do.

Which of the following does NOT represent a valid reason for globalizing operations?

•  A) reduce costs
•  B) improve the supply chain
•  C) reduce responsiveness
•  D) attract and retain global talent
•  E) understand markets

Which of the following is an example of competing on the basis of differentiation?

•  A) A firm manufactures its product with less raw material waste than its competitors do.
•  B) A firm's products are introduced into the market faster than its competitors' products are.
•  C) A firm's distribution network routinely delivers its product on time.
•  D) A firm offers more reliable products than its competitors do.
•  E) A firm advertises more than its competitors do.

The fundamental purpose of an organization's mission statement is to:

•  A) create a good human relations climate in the organization.
•  B) define the organization's purpose in society.
•  C) define the operational structure of the organization.
•  D) generate good public relations for the organization.
•  E) define the functional areas required by the organization.

Cost cutting in international operations can take place because of:

•  A) lower taxes and tariffs.
•  B) lower wage scales.
•  C) lower indirect costs.
•  D) less stringent regulations.
•  E) all of the above.

Which of the following statements about organizational missions is FALSE?

•  A) They reflect a company's purpose.
•  B) They indicate what a company intends to contribute to society.
•  C) They are formulated after strategies are known.
•  D) They define a company's reason for existence.
•  E) They provide guidance for functional area missions.

With reference to cultural and ethical issues, the World Trade Organization has:

•  A) eliminated bribery.
•  B) made progress in providing equal protection of intellectual property among nations.
•  C) phased out all trade and tariff barriers between the United States and Mexico.
•  D) eliminated slave labor and child labor.
•  E) played little role in addressing cultural and ethical issues among nations.