Introduction to Operations and Supply Chain Management 5th Edition by Cecil B. Bozarth Test bank

into outputs. Examples of inputs are raw materials, labor, capital, equipment, information, and intangible
needs. The transformation process is the conversion of these inputs using either manufacturing or service
operations (and sometimes both). Manufacturing operations might be painting, welding, machining, or
assembling. Outputs of the transformation process are tangible goods, services, fulfilled needs, and
satisfied customers. Specific examples may vary depending on the company chosen.
Diff: 2
Reference: 1.1 Why Study Operations and Supply Chain Management?
Keywords: transformation process, operations function, input, output
AACSB: Application of Knowledge
LO: 1.1: Describe what the operations function is and why it is critical to an organization's survival.
37) Distinguish between upstream and downstream firms in a supply chain and provide an example.
Answer: Upstream and downstream are relative terms that describe the position of a supply chain
member from one point of reference. A supply chain member that is upstream from a firm is sending
their output to the firm for use as an input. A supply chain member that is downstream from a firm is
taking the firm's output and using it as an input to their own processes. It is possible for a single member
of a supply chain to be both upstream and downstream from one or more members of their supply chain.
Examples may vary.
Diff: 2
Reference: 1.1 Why Study Operations and Supply Chain Management?
Keywords: upstream, downstream, supply chain, input, output
AACSB: Application of Knowledge
LO: 1.2: Describe what a supply chain is and how it relates to a particular organization's operations function.
38) Distinguish between first-tier and second-tier suppliers in a supply chain and provide an example.
Answer: First-tier, second-tier, and any subsequent steps are measured relative to their position from a
common point in the supply chain. All companies at a level (call it A) receive inputs from their first-tier
suppliers (level B). These first-tier suppliers (at level B) in turn receive their inputs from their own first-
tier suppliers (level C). These companies (level C) are considered second-tier suppliers of the companies
at level A. Both tiers are upstream from level A, but level B is downstream from level C. Examples will
vary.
Diff: 2
Reference: 1.1 Why Study Operations and Supply Chain Management?
Keywords: first-tier, second-tier, upstream, downstream, supply chain, input, output
AACSB: Application of Knowledge
LO: 1.2: Describe what a supply chain is and how it relates to a particular organization's operations function.
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39) Supply chains have been in existence for over a century. What is different about supply chains in the
21 st century from those in existence 100 years ago?
Answer: The active management of supply chain activities is the big difference between supply chains in
existence today and those of decades ago. Active management includes relationship management and an
examination of the supply chain as a whole to optimize it from a global perspective. In the past, the
production managers of each company in the supply chain were more concerned with the operation and
financial well-being of their own companies, often to the detriment of other members of the supply chain.
Diff: 2
Reference: 1.1 Why Study Operations and Supply Chain Management?
Keywords: supply chain
AACSB: Application of Knowledge
LO: 1.2: Describe what a supply chain is and how it relates to a particular organization's operations function.
40) Offer definitions of the operations function and the supply chain. What is the relationship between
operations and supply chain?
Answer: The operations function is the collection of people, technology, and systems within an
organization that has primary responsibility for providing the organization's products or services. The
supply chain is a network of manufacturers and service providers that work together to create products
or services needed by end users. These manufacturers and service providers are linked together through
physical flows, information flows, and monetary flows. The supply chain has multiple actors, each of
which has their own operations function — the output of one operations function is the input to the
downstream partner's operations function, and so on across the breadth of the supply chain.
Diff: 2
Reference: 1.1 Why Study Operations and Supply Chain Management?
Keywords: supply chain, operations function
AACSB: Application of Knowledge
LO: 1.3: Discuss what is meant by operations management and supply chain management.
41) What are three reasons that the study of operations and supply chain management is important?