Introduction to Operations and Supply Chain Management
Practice Questions
Course Introduction
This course offers a foundational overview of operations and supply chain management, exploring the design, operation, and improvement of processes that produce and deliver goods and services. Students will gain insight into key concepts such as process analysis, capacity planning, inventory control, quality management, and logistics. Emphasis is placed on the interdependence between operational efficiency and effective supply chain strategies in a global context. Through case studies and real-world examples, students develop practical skills for optimizing organizational performance and supporting strategic decision-making in a dynamic business environment.
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Introduction to Operations and Supply Chain Management 5th Edition by Cecil
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B. Bozarth
Chapter 1: Introduction to Operations and Supply Chain Management
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Q1) ________ is the use of information technology solutions to conduct business via electronic transfer of data and documents.
Answer: Electronic commerce
Q2) Which of the major operations and supply chain activities do not deal directly with customers? Explain why this is so.
Answer: The sole operations and supply chain activity that does not work directly with a customer is the purchasing function. Purchasing reaches upstream, i.e., in the opposite direction from the customer.
Q3) A(n)________ plans and controls production in a manufacturing setting.
Answer: production manager
Q4) Scheduling and managing the flow of work through an organization and supply chain belongs to the logistics function of a supply chain.
A)True
B)False
Answer: False
Q5) A(n)________ acquires knowledge in a specific market in which the organization purchases significant quantities of materials and services.
Answer: commodity manager
3
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Chapter 2: Operations and Supply Chain Strategies
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Q1) When you translate an overall business strategy into a level of detail suitable for the marketing area, you create a(n)________.
Answer: functional strategy
Q2) The ability to produce a wide range of products or services is:
A)mix flexibility.
B)changeover flexibility.
C)volume flexibility.
D)run flexibility.
Answer: A
Q3) Structural elements of a business include:
A)policies.
B)people.
C)decision rules.
D)computer systems.
Answer: D
Q4) Decisions about capacity, facilities and technology fall in the ________ decision category?
Answer: structural
Q5) A firm's ________ explains why an organization exists.
Answer: mission statement
4
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Chapter 3: Process Choice and Layout Decisions in Manufacturing and Services
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Q1) When designers are considering the ways that a space may be laid out with functional departments:
A)they typically construct every possible physical layout.
B)they don't construct every physical layout, but they do simulate every possible layout.
C)they usually look for a viable, but not optimal solution.
D)they assign layouts at random since it doesn't pay to consider a good layout.
Answer: C
Q2) A product-based layout arranges resources sequentially according to the steps required to make a product.
A)True
B)False
Answer: True
Q3) The point where the customer interfaces directly with the service organization is:
A)the front room.
B)the back room.
C)onstage.
D)the floor.
Answer: A
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Chapter 4: Business Processes
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Q1) Level two of the SCOR model divides SCM activities into ________.
Q2) When constructing a fishbone (cause and effect)diagram, brainstorming takes place during the:
A)closed phase.
B)narrow phase.
C)wide phase.
D)open phase.
Q3) When an organization compares their processes to those of another firm outside their industry, they are engaging in ________.
Q4) Mapping does NOT:
A)create a common understanding of the content of a process.
B)define the boundaries of a process.
C)provide a detailed view of all elements external to the process.
D)provide a baseline against which to measure the impact of improvement efforts.
Q5) A support process performs necessary, value-added activities of an organization.
A)True
B)False
Q6) What is benchmarking and how do the two types differ?
Q7) Briefly describe the five core management processes that comprise Level 1 of the SCOR model.
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Chapter 5: Managing Quality
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Q1) Process owners are empowered employees that have the authority and responsibility for improving the organization's business processes.
A)True
B)False
Q2) One international standard for managing quality across the supply chain is:
A)ISO 9000.
B)ISO 14000.
C)AQL.
D)LTPD.
Q3) A barbecue sauce producer makes their product in an 80-ounce bottle for a specialty store. Their historical process mean has been 80.1 ounces and their tolerance limits are set at 80 ounces plus or minus 1 ounce. What does their process standard deviation need to be in order to sustain a process capability index of 1.5?
A)0.10
B)0.15
C)0.20
D)0.25
Q4) The ability of a non-centered process to meet certain tolerance limits is measured by its ________.
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Chapter 6: Managing Capacity
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Q1) Total cost to produce is the sum of expenses incurred regardless of output plus the variable cost per unit of business activity multiplied by ________.
Q2) Saul Goodman represents several clients and bills by the hour at a reasonable $500 per hour. He forgot to record the time it took to complete each activity, but he knows his eight-hour day was spent representing 13 clients involved in one high profile case. He also remembers that Walt told him once that his learning curve percentage was 80%. How many hours should Saul bill his first client?
A)one hour eight minutes and forty five seconds
B)one hour two minutes and thirty six seconds
C)fifty six minutes and twenty eight seconds
D)fifty minutes and five seconds
Q3) Define theoretical and rated capacity and name four factors that affect a company's capacity. Indicate how each factor impacts rated capacity.
Q4) What is a virtual supply chain and how is it different from a traditional supply chain?
Q5) ________ capacity is always greater than or equal to ________ capacity.
Q6) The process step that limits throughput for the entire process chain is the ________.
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Chapter 6: S: Advanced Waiting Line Theory and Simulation
Modeling
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Q1) Hopeful patrons line up to spin the giant slot machine at the entrance to Ace Rothstein's Tangiers casino. They pour in the door at the rate of 300 per hour and it takes exactly ten seconds every time for the wheels to spin and inform the unlucky patron that they have lost a dollar rather than win a new Corvette. How long do customers spend waiting in line and finding out the unhappy news on average?
A)35 seconds
B)30 seconds
C)25 seconds
D)20 seconds
Q2) Simulation permits the modeler to discover what might happen should certain events occur, for example, extreme levels of customer demand, equipment malfunction, etc. This type of analysis is known as ________ analysis.
Q3) All waiting line formulas assume that customers are served on a first-come first-served (FCFS)basis.
A)True
B)False
Q4) One assumption in most waiting line analyses is that the number of customers is
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Chapter 7: Supply Management
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Sample Questions
Q1) The use of supply chain partners to provide products or services is called:
A)outsourcing.
B)insourcing.
C)offloading.
D)partnering.
Q2) The deans' suite hoped to cut costs and decided to perform a total cost analysis on its tequila supplier. Consumption was currently 10,000 bottles per semester and this was predicted to maintain that level for the next few years. Their current source, Byron's, charged $15.50 per bottle and packed 300 bottles in a crate. The cost to ship the crate was $15. Another potential source of tequilas was Pancho's, who charged $14.75 per bottle but could ship only 100 bottles in a crate and at a higher price, $75. Assume that a partial crate may be purchased. Conduct a total cost analysis and make a recommendation.
Q3) A recent survey of executives at Global 1000 companies uncovered what single biggest threat?
A)the fear of a supply chain disruption
B)the fear of the unknown
C)the fear of improperly weighting performance dimensions
D)the fear of misclassifying direct and indirect costs
Q4) Profit margin is the ratio of ________ to ________.
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Chapter 8: Logistics
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Q1) One form of warehousing that features light manufacturing and packaging duties and allows firms to put off final assembly or packaging until the last possible moment is:
A)assortment warehousing.
B)spot stock warehousing.
C)postponement warehousing.
D)pac-man warehousing.
Q2) A reverse logistics system handles repairs, recycling, returns and remanufacturing. A)True
B)False
Q3) What is a suitable constraint?
A)Minimize Cost = $19? S<sub>VL</sub> + $16? S<sub>VP</sub> + $3? S<sub>VM</sub> + $8? S<sub>VA</sub>
B)Minimize Cost = $19? S<sub>VL</sub> + $15? S<sub>LL</sub> + $13? S<sub>BL</sub> + $16? S<sub>SL</sub>
C)S<sub>BL</sub> + S<sub>BP</sub> + S<sub>BM</sub> + S<sub>BA</sub> ? 400
D)3? S<sub>VM</sub> + 17? S<sub>LM</sub> + 18? S<sub>BM</sub> + 18? S<sub>SM</sub> = 620
Q4) Define logistics and explain why it is critical.
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Chapter 9: Forecasting
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Q1) A drive-in restaurant has experienced the following customer loads on the past 8 Friday nights. If their forecast for period 7 was 59 customers, then what is their forecast for period number 8 using a smoothing constant of 0.7? \[\begin{array} { | c | c | }
\hline \text { Friday } & \text { \# Customers } \\
\hline 1 & 49 \\
\hline 2 & 55 \\
\hline 3 & 57 \\
\hline 4 & 59 \\
\hline 5 & 56 \\
\hline 6 & 61 \\
\hline 7 & 62 \\
\hline 8 & 63 \\
\hline
\end{array}\]
A)61.10
B)62.43
C)59.90
D)60.83
Q2) ________ is unpredictable movement from one time period to the next.
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Chapter 10: Sales and Operations Planning Aggregate Planning
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Q1) As potato harvest season approaches, the number of year-round llama wranglers is insufficient to meet the demand, so a few wranglers are hired just for the month it takes to haul the harvest down from the mountains to the anxious potato-festival crowd. This approach to meeting the labor requirements is called:
A)a tiered workforce.
B)offloading.
C)labor management.
D)yield management.
Q2) Tim subtracted his cash outflows for 2015 from his cash inflows for the same period to arrive at his ________.
Q3) Your book describes three phases in the implementation of sales and operations planning in an organization. What are the three phases and what takes place in each?
Q4) Describe how both top-down and bottom-up planning work and the situations where one approach is superior to the other.
Q5) Detailed planning and control is riskier than strategic planning.
A)True
B)False
Q6) How can and why should a firm link S&OP throughout the supply chain?
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Chapter 11: Managing Inventory Throughout the Supply Chain
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Q1) A university orders all office supplies, including red grading pens, out of a catalog from the same supplier. Conservative estimates of the demand for these red pens are 12,000 pens per year. There is a $25 charge for placing an order and the university has a $10 annual cost for holding these pens. Prices for the pens are based on the quantity purchased, so if less than 100 are ordered, the unit price is $2.50, if 100 to 299 are ordered, the unit price is $2.40, if 300 to 499 are ordered, the unit price is $2.30, and if 500 or more are ordered, the unit price is $2.20. What order quantity will result in the lowest total annual cost to the university?
A)100
B)245
C)300
D)500
Q2) A company using the basic EOQ model has annual ________ costs equal to annual ________ costs.
Q3) Cycle stock can occur at more than one point in a supply chain.
A)True
B)False
Q4) Cavalier Enterprises elects to hold no safety stock. Their service level is therefore
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Chapter 12: Managing Production Across the Supply Chain
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Q1) There are six jobs that are awaiting processing at a machining center. The jobs are shown in the table with their processing time and scheduled completion time. Schedule the jobs by earliest due date and the critical ratio rule and calculate average lateness for all the jobs. Which scheduling technique performs BEST?
\[\begin{array} { | c | c | c | }
\hline \text { Job } & \text { Process Time } & \text { Due Time } \\
\hline \text { A } & 12 & 25 \\
\hline \text { B } & 8 & 32 \\
\hline \text { C } & 15 & 40 \\
\hline \text { D } & 10 & 15 \\
\hline \text { E } & 20 & 27 \\
\hline \text { F } & 17 & 46 \\
\hline
\end{array}\]
Q2) Material requirements planning is used to manage independent demand inventory. A)True B)False
Q3) According to the table above.What are the net requirements Front Leg Assemblies in Week 4
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Chapter 12: S: Supply Chain Information Systems
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Q1) The term ________ represents the most basic function of information in the supply chain.
Q2) What is the purpose of an ERP system and what advantages does it hold over the more traditional system it replaces?
Q3) Accuracy is a key performance dimension for strategic decision-making information flows.
A)True
B)False
Q4) What are the functions and relationships between both customer and supplier relationship management and internal supply chain management?
Q5) At the lowest level of the organization, the information flows are highly automated. A)True
B)False
Q6) A system that controls all aspects of a company's business from production, through human resources, to accounting and other departments and accomplishes this with a centralized database is ________.
Q7) How will cloud computing impact operations and supply chain management?
Q8) Why are information flows a necessary part of the supply chain?
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Chapter 13: Jitlean Production
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Q1) Some companies have found it beneficial to combine the planning capabilities of kanban with the control capabilities of MRP.
A)True
B)False
Q2) Unnecessary transportation is waste according to the Lean philosophy.
A)True
B)False
Q3) Lean thinking in the production environment has received considerable attention in the last decade, but tools such as kanbans cannot be used in all production environments.
A)True
B)False
Q4) One definition of waste is underutilizing employees.
A)True
B)False
Q5) Provide a definition by description of the Lean philosophy. Where can Lean be deployed?
Q6) ________ combines the focus on waste reduction with the discipline of define, measure, analyze, improve, and control.
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Chapter 14: Managing Projects
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Q1) A project is composed of the twelve activities shown in the table. What are the earliest and latest start times for each of these activities?
\[\begin{array} { | c | c | c | }
\hline \text { Activity } & \text { Time (days) } & \text { Predecessors } \\
\hline \text { A } & 3 & \cdots \\
\hline \text { B } & 3 & \text { A } \\
\hline \text { C } & 15 & \text { A } \\
\hline \text { D } & 2 & \text { B } \\
\hline \text { E } & 12 & \text { B } \\
\hline \text { F } & 16 & \text { C } \\
\hline \text { G } & 2 & \text { C } \\
\hline \text { H } & 11 & \text { E, F } \\
\hline \text { I } & 9 & \text { D, G } \\
\hline \text { J } & 6 & \text { D, E } \\
\hline \text { K } & 15 & \text { H, I } \\
\hline \text { L } & 13 & \text { J, K } \\
\hline \end{array}\]
Q2) A Gantt chart can be used for project planning and also project ________ .
Q3) The actual work gets done during the ________ phase of a project.
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Chapter 15: Developing Products and Services
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Q1) What are the implications of an empty row (i.e., one with no check marks or x's)in the roof portion of the house of quality?
A)Nothing, it's just a sparse row.
B)There is no synergy for that product characteristic with other product characteristics.
C)Product characteristics are potentially superfluous.
D)Customer requirements are potentially not being met by the product.
Q2) The development funnel demonstrates that while initial conceptual development takes a long time, product design can progress quickly through the final phases of development.
A)True
B)False
Q3) What are the implications of an empty row (i.e., one with no check marks or x's)in the main body of the matrix of the house of quality?
A)Nothing, it's just a sparse row.
B)There is no synergy among the product characteristics.
C)Product characteristics are potentially superfluous.
D)Customer requirements are potentially not being met by the product.
Q4) What is value analysis and how is it typically conducted?
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