Final answer:
Operations management is the field specializing in the physical production of goods or services and includes decisions on the use of labor and physical capital to optimize the production process efficiently.
Step-by-step explanation:
The statement "The field of management that specializes in the physical production of goods or services refers to operations management" is true. Operations management indeed concerns itself with the physical production of goods and services, which includes overseeing the process of transformation of inputs, like labor, capital, and raw materials, into finished products or services. An example of this is the production process for making pizza, where inputs such as flour, water, yeast, tomatoes, spices, and labor from the pizzaiolo are essential factors of production. Additionally, the domain of operations management involves decisions regarding the choice of production technology to ensure the most efficient production process. Firms continually choose between various forms of technology and methods that impact the physical production, aiming to reduce costs and increase profits. They have to decide on using either labor or physical capital, which are often interchangeable, to accomplish tasks and optimize production. Thus, operations management is a key aspect of effectively producing goods and sustaining competitive advantage in the market.