Test Bank For Operations Management 6th Edition By Stuart Chambers

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Test Bank For Operations Management 6th Edition By Stuart Chambers

MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the
question.
1) Vertical integration is:

A) Reducing the number of direct suppliers

B) Increasing the number of customers

C) The purchase of competitor businesses

D) The extent to which an organisation owns the network of which it is part

Answer: D
Explanation: A) B) C) D) P

age Ref: Topic:

2) Second-tier suppliers in Company A network are:

A) Suppliers of goods/services to companies that, in turn, supply Company A

B) Suppliers of goods directly to Company A C

) Stand by suppliers of goods to Company A

D) Suppliers of ‘non-core’ goods directly to Company A

Answer: A
Explanation: A) B) C) D) Page Ref: Topic:

3) According to Lord Sieff of Marks and Spencer what are the three most important things in retailing?

A) Customers, staff and quality goods.

B) Quality suppliers, quality shops and quality staff.

C) Location, location, location.

D) Quality goods, keen prices and helpful staff.

Answer: C
Explanation: A) B) C) D) Page Ref: Topic: 1

4) The centre-of-gravity method to find a location for a factory works by:

A) Locating in a place that minimises total transport costs to and from the location

B) Locating near to the main supplier

C) Locating near to the main customer

D) Locating near to a cluster of suppliers

Answer: A
Explanation: A) B) C) D) Page Ref: Topic:

5) An advantage of a capacity-lagging strategy is that:

A) There is no ability to exploit short-term increases in demand

B) There is always sufficient capacity to meet demand

C) Utilisation of the plants is always relatively low

D) Over-capacity problems are minimised if forecasts are optimistic

Answer: D
Explanation: A) B) C) D) Page Ref: Topic:

6) Which of the following was NOT a key driver of the heavy Japanese investment in the UK in the 1990s?

A) Language compatibility with the USA.

B) A keen and willing workforce.

C) A critical mass of Japanese companies and supporting infrastructure.

D) Generous government funded financial support.

E) Common cultural traditions.

Answer: E
Explanation: A) B) C) D) E) Page Ref: Topic: 2
7) The only reason that causes organisations to make location decisions is a change in demand for goods and services.

A) True

B) False

Answer: B
Explanation: A) B) Page Ref: Topic:

8) Of the supply-side influences community factors include all, bar one, of the following considerations:

A) Language

B) Image of the location

C) Local amenities

D) Government financial assistance

E) History of labour relations

Answer: B
Explanation: A) B) C) D) E) Page Ref: Topic:

9) An organisation’s vertical integration strategy does NOT include:

A) The investment in distribution warehouses

B) The extent of the process span required

C) Upstream or downstream expansion

D) The directions of any expansion

E) The balance among the integrated stages

Answer: A
Explanation: A) B) C) D) E) Page Ref: Topic: 3

10) Supply-side influences on the design of operations would NOT include:

A) Land costs

B) Labour skills

C) Transportation factors

D) Labour costs

E) Energy costs

Answer: B
Explanation: A) B) C) D) E) Page Ref: Topic: