Global Supply Chain Management
Question Bank
Course Introduction
Global Supply Chain Management explores the strategies, processes, and best practices involved in designing, operating, and optimizing supply chains in a global context. The course examines the challenges of coordinating production, sourcing, and distribution across borders, as well as the impact of globalization, technology, and trade regulations. Students learn about risk management, sustainability, supplier relationships, logistics, and the interplay between global economics and supply chain decisions. Real-world cases and current industry trends are analyzed to develop the skills necessary to manage and improve supply chain performance for multinational organizations.
Recommended Textbook Operations Management in the Supply Chain Decisions and Cases 6th Edition by Roger G Schroeder
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16 Chapters
508 Verified Questions
508 Flashcards
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Chapter 1: The Operations Function
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Sample Questions
Q1) The process view provides a basis for viewing an entire business as a system of interconnected processes.
A)True
B)False
Answer: True
Q2) As price increases and benefits remain constant,the value of a product increases.
A)True
B)False
Answer: False
Q3) The contemporary operations themes signify that:
A)More emphasis should be placed on manufacturing than on service industries
B)Every operation should be externally directed to meet the customers' requirements
C)Operations decisions should precede decisions in other functions in an organization
D)To be competitive,strategies for operations should exclude broader supply chain issues
Answer: B
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Chapter 2: Operations and Supply Chain Strategy
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Sample Questions
Q1) The four common objectives of operations are:
A)Quality,delivery,cost,and innovation
B)Quality,cost,flexibility,and agility
C)Quality,cost,delivery,and flexibility
D)Cost,quality,capacity,and flexibility
Answer: C
Q2) Describe five focused initiatives with which a company should start its sustainability journey?
Answer: (1)Eliminate air,water,and landfill pollution. (2)Reduce energy consumption. (3)Measure and minimize transportation and total carbon footprint. (4)Work with suppliers to use recyclable and biodegradable packaging. (5)Incorporate product re-use,end-of-life return,and recycling.
Q3) Which of the following statements about operations objectives is NOT true?
A)Focusing attention on improving quality frequently results in lower costs
B)Reducing costs often causes improvement in quality
C)Each of the operations objectives can be improved nearly simultaneously
D)Reducing the time necessary to produce and deliver a product will result in greater flexibility
Answer: B
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Page 4
Chapter 3: Product Design
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Sample Questions
Q1) The market-pull view of new product innovation is to:
A)"Pull" the products into the market as fast as possible
B)Develop products that the company can sell,based on customer needs
C)Market whatever the company makes best
D)Make new products appealing through innovative packaging
Answer: B
Q2) Value analysis:
A)Improves the usefulness of the product without increasing the cost
B)Reduces the cost of a product without reducing its usefulness
C)Both a and b
D)None of the above
Answer: C
Q3) The concept that a product should not only fit the market needs but have a technical advantage as well is known as the:
A)Market pull approach to new-product introduction
B)Technology push approach to new-product introduction
C)Interfunctional view to new-product introduction
D)Dual approach to new-product introduction
Answer: C
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Page 5
Chapter 4: Process Selection
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Sample Questions
Q1) A large office with a copy department,a drafting department with all of the engineers located together,and all of the managers located together in a large suite of offices is an example of:
A)An assembly line process
B)A batch process
C)A project process
D)A continuous process
Q2) What are the major cross-functional issues related to process selection decisions?
Q3) A make-to-order operation would be primarily concerned with:
A)Forecasting demand
B)Production planning
C)Balancing inventory and service
D)Lead-time
Q4) Classify the following examples as continuous,line,batch,or project flow processes.Identify the type of Labor (skills,task type,& pay),Capital (investment,inventory,& equipment),Control and Planning (production and inventory control)requirements for these processes.Explain your choices.
Q5) What are the six types of focus?
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Chapter 5: Service Delivery System Design
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Sample Questions
Q1) An example of a service business/organization that has a high degree of customer contact,high customization,and a high degree of labor intensity is:
A)Retailing
B)Hotels
C)Law practice
D)Schools
Q2) Outsourcing is the export of service activities to other countries.
A)True
B)False
Q3) Service guarantees are only for consumers outside the firm,and do not apply to internal customer relationships within a firm.
A)True
B)False
Q4) ____ contact services require employees with technical skills and efficient processing routines.
A)High
B)Low
C)Moderate
D)More than one of the above
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Chapter 6: Process-Flow Analysis
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Sample Questions
Q1) Which of the following statements about Little's Law is NOT include?
A)Little's Law cannot be applied to service operations
B)Little's Law relates the average number of units in the system to average throughput time and average flow rate
C)Little's Law includes processing and waiting time
D)Little's Law assumes that the system is in steady state
Q2) If I denotes the average inventory in the system,T denotes the average throughput time,and R denotes the average flow rate of the system,then by Little's Law:
A)I = T/R
B)T = I + R
C)I = R/T
D)R = I/T
Q3) Which of the following is NOT a prerequisite to process flowcharting?
A)Identifying system boundaries
B)Identifying the manager overseeing the process
C)Identifying sequential flows
D)Identifying suppliers
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Chapter 7: Lean Thinking and Lean Systems
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Sample Questions
Q1) A kanban system cannot be used in service industries.
A)True
B)False
Q2) How is the 5 Whys technique used in a lean system?
Q3) If a work center has no empty kanban containers,the workers at the work center should do which of the following?
A)Continue to produce as much inventory as they can
B)Produce enough inventory to meet the following day's demand
C)Produce enough inventory to satisfy the master production schedule
D)Stop production
Q4) "Gemba" refers to data collection using the company's information system.
A)True
B)False
Q5) If it takes 100 minutes to complete a circuit,demand at the next work center is 5 parts per minute,and a kanban container holds 20 parts,how many containers are required?
A)25
B)5
C)40
D)20
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Chapter 8: Managing Quality
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Sample Questions
Q1) ________ is a combination of reliability and maintainability.
A)Field service
B)Availability
C)Quality of conformance
D)Mean time to repair
Q2) Quality of design:
A)Is one of the four decision areas of engineering
B)Is determined before production by a cross-functional product design team
C)Means a product has high reliability,maintainability,and availability
D)Is the prime responsibility of production
Q3) It is important to determine the quality of design even before producing the product.
A)True
B)False
Q4) The Baldrige Award is given in which of the following categories?
A)Manufacturing companies
B)Small businesses
C)Healthcare organizations
D)All of the above
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Chapter 9: Quality Control and Improvement
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Sample Questions
Q1) There are two indicators of a process shift-points outside the control limits and an upward or downward trend in the process average.
A)True B)False
Q2) In process capability analysis,the standard deviation (\(\sigma\))refers to the standard deviation of sample measures.
A)True B)False
Q3) Attribute control occurs when the product characteristic is measured on a continuous scale.
A)True B)False
Q4) The C<sub>p</sub> measure requires the process to be centered for an accurate measure of process capability.
A)True B)False
Q5) List and explain the five steps of the DMAIC process.
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Chapter 10: Supply Chain Management
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Sample Questions
Q1) Which of the following is NOT a specific measure of supply chain performance?
A)Quality
B)Time
C)Innovation
D)Delivery
Q2) The design and management of seamless,value-added processes across organizational boundaries to meet the real needs of the end customer is called:
A)Demand management
B)Distribution channel management
C)Supply chain management
D)Logistics management
Q3) In supply chain improvement,it is often necessary to reduce the setup time of equipment dramatically so that smaller lots of the product can be economically produced.
A)True
B)False
Q4) Final consumers can be found farthest downstream in the supply chain.
A)True
B)False
Q5) How can a firm design and develop a more resilient supply chain?
Page 12
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Chapter 11: Forecasting
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Sample Questions
Q1) A small company that manufactures rubber boots is selecting a method to forecast demand for the next 10 years.The company recently expanded its facilities,doubling its capacity.Which of the following forecasting methods would be preferred?
A)Qualitative
B)Simple exponential smoothing
C)Econometric
D)Box-Jenkins
Q2) Which of the following is NOT a measure of forecast accuracy?
A)Mean square error
B)Cumulative sum of forecast error
C)Mean absolute deviation of forecast error
D)Cumulative absolute deviation of forecast error
Q3) Quantitative forecasting methods should be used for predicting the demand patterns of new products introduced in the market.
A)True
B)False
Q4) Describe each of the five demand components in a time-series (of past demand data).
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Chapter 12: Capacity Planning
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Sample Questions
Q1) Describe the types of short-range,the medium-range,and the long-range capacity decisions.
Q2) A wait-and-see facility approach uses a positive capacity cushion.
A)True
B)False
Q3) Capacity Utilization = Actual Output/Capacity x 100%.
A)True
B)False
Q4) The type of strategy used with respect to the amount of capacity cushion when "the cost or consequence of running out is approximately in balance with the cost of excess capacity" is called:
A)Small cushion
B)Large cushion
C)Moderate cushion
D)None of the above
Q5) It is possible in the short term for a firm to operate above 100% utilization.
A)True B)False
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Chapter 13: Scheduling Operations
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Sample Questions
Q1) Optimal sequencing rules have found widespread use in practice.
A)True
B)False
Q2) Throughput is defined as the difference between the sales and the operating expenses of a plant.
A)True
B)False
Q3) What are the steps that could be taken at a bottleneck resource to increase its capacity?
Q4) Lead time for completion of a job is a function of:
A)Capacity and demand
B)Capacity and priority decisions
C)Capacity and supply decisions
D)None of the above
Q5) Finite capacity scheduling assumes which of the following?
A)Jobs cannot be split into two or more parts.
B)Jobs cannot pass each other.
C)More than one job can be scheduled on a machine at a time.
D)Capacity is limited in each work center.
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Chapter 14: Project Planning and Scheduling
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Sample Questions
Q1) "Slack" refers to the difference between:
A)Late and early times
B)Finish and start times
C)Observed and predicted times
D)Optimistic and pessimistic times
Q2) A forward pass of the above network indicates that the early start time of activity 4-5 is:
A)4
B)5
C)3
D)None of the above
Q3) Controlling a project does NOT include:
A)Monitoring costs,time,and performance
B)Adhering to the budget
C)Correcting the plan as necessary
D)None of the above
Q4) Critical path method (CPM)network scheduling assumes a second order (non-linear)time-cost tradeoff exists.
A)True
B)False
Page 16
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Chapter 15: Independent Demand Inventory
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Sample Questions
Q1) Capacity,as opposed to inventory:
A)Is the rate at which a stock can be depleted
B)Covers anticipated changes in demand or supply
C)Is resources that provide the potential to produce items
D)Is a stock of raw materials,work in process,or finished goods used to facilitate production or satisfy customer demands
Q2) If the actual order quantity Q is much larger than the Economic Order Quantity:
A)The firm is paying high annual holding costs
B)The firm is paying high annual ordering costs
C)The firm is paying total costs that are equivalent to EOQ costs
D)The firm should change its EOQ
Q3) The EOQ formula could be modified to express demand and the carrying rate on a monthly basis.
A)True
B)False
Q4) A decrease in an item's lead-time will increase the amount of safety stock required to maintain a constant service level.
A)True
B)False
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Chapter 16: Materials Requirements Planning and ERP
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Sample Questions
Q1) A Type II MRP system:
A)Only launches orders
B)Has feedback to control capacity
C)Includes planning for personnel and capital
D)Is also known as an Enterprise Resource Planning System
Q2) MRP systems work better in a line flow system compared to a job shop.
A)True
B)False
Q3) Successful MRP system elements include:
A)Implementation planning
B)Accurate data
C)User knowledge
D)All of the above
Q4) A bill of materials can be coupled with a bill of labor if MRP systems are to be used in service industries.
A)True
B)False
Q5) Order launching MRP systems are also known as Type II MRP systems.
A)True
B)False
18
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