Introduction to Operations and Supply Chain Management
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Course Introduction
This course provides a comprehensive introduction to the fundamental concepts and practices in operations and supply chain management. Students will explore how products and services are created and delivered, focusing on the design, planning, and control of processes that transform inputs into finished goods or services. Topics include process analysis, inventory management, quality control, logistics, procurement, and the strategic importance of supply chains in global markets. Through case studies and real-world examples, students will gain insight into how businesses achieve efficiency and competitive advantage through effective operations and supply chain strategies.
Recommended Textbook operations management an integrated approach 6th edition by r. dan reid
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Chapter 1: Introduction to Operations Management
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Sample Questions
Q1) Just-in-time philosophy is applicable in:
A) Service organizations
B) Manufacturing organizations
C) Assembly line operations
D) A, B, and C
E) A and C only
Answer: D
Q2) Which business function is responsible for managing cash flow, current assets, and capital investments?
A) accounting
B) finance
C) marketing
D) operations management
E) purchasing
Answer: B
Q3) Companies that have low customer contact and are capital intensive, yet provide a service, are called service factories.
A)True
B)False
Answer: False
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Chapter 2: Operations Strategy and Competitiveness
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Sample Questions
Q1) Yesterday, John produced 100 units in 8 hours. Today he produced the same amount in 6 hours. What is his percent productivity change?
A) 33.33%
B) 0.00%
C) 25.55%
D) -25.00%
E) 4.67%
Answer: A
Q2) Output/(all inputs used) is called total productivity.
A)True
B)False
Answer: True
Q3) Worker pay decisions are part of the production process structure.
A)True
B)False
Answer: False
Q4) Environmental scanning helps organizations recognize ________________________.
Answer: opportunities and threats.
Q5) A business strategy is like an explorer's ________________________. Answer: compass
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Chapter 3: Product Design and Process Selection
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Sample Questions
Q1) Which of the following is not a guideline for design for manufacture?
A) use modular design
B) design parts for different products
C) minimize parts
D) rely on automated equipment
E) simplify operations
Answer: D
Q2) What are the characteristics of intermittent operations?
Answer: Produce many different products with varying processing requirements, different products have different processing needs and there is no standard route that all products take through the facility, resources are grouped by function, labor intensive, often there are skilled and semiskilled workers with a fair amount of discretion in performing their jobs, workers need to be flexible and to be able to perform different tasks depending on the processing needs of the product, general purpose equipment, and the volume of goods produced is directly tied to the number of customer orders
Q3) One source of new product ideas is a product manager.
A)True
B)False
Answer: True
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Chapter 4: Supply Chain Management
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Sample Questions
Q1) Location managers are typically responsible for managing the movement of products between locations.
A)True
B)False
Q2) In general, what comprises the bulk of the cost of goods sold?
A) Overhead
B) Materials
C) Electricity
D) Depreciation
E) Labor
Q3) What are some examples of infrastructure issues that firms managing global supply chains may encounter?
Q4) What is the formula for the indifference point Q* in the make-or-buy decision.
Q5) Crossdocking eliminates the receiving and shipping functions of a distribution warehouse while still performing its storage and order picking functions.
A)True
B)False
Q6) Name three kinds of B2B e-commerce: ______________________,
Page 6
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Chapter 5: Total Quality Management
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Sample Questions
Q1) What are the four types of quality costs?
Q2) External failure costs include
A) Scrap
B) Litigation costs resulting from product liability issues
C) Rework
D) Quality inspections
E) Employee training
Q3) Quality circles are a common application of the ________________________
Q4) ISO 9001 is the standard used for the certification of a firm's quality management system.
A)True
B)False
Q5) The plan-do-study-act cycle is often called the
A) TQM activity approach
B) Deming wheel
C) Continuous improvement cycle
D) Quality circle
E) Action wheel
Q6) What are the steps involved in Quality Function Deployment?
Q7) Who are the seven primary quality gurus?
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Chapter 6: Statistical Quality Control
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Sample Questions
Q1) The standard deviation measures the difference between the largest and smallest observations in a set of data.
A)True
B)False
Q2) What is the formula for an x-bar chart's center line?
Q3) In six-sigma programs, individuals are given academic titles that reflect their skills in the six-sigma process.
A)True
B)False
Q4) All processes will have what type of variation?
A) Random
B) Assignable
C) Identifiable
D) Stochastic
E) Common
Q5) Julia has been assigned to develop a new product design specifications. Manufacturing has stated that the system must have a capability index of 1.2 when the product standard deviation is 1.3. What is the specification range limits?
Q6) Describe how finance is associated with SQC.
Page 8
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Chapter 7: Just-In-Time and Lean Systems
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Q1) JIT considers people to be a company's most precious resource.
A)True
B)False
Q2) One of the greatest benefits of JIT would be
A) increasing waste and improving responsiveness
B) longer lead times and increased productivity
C) decreased machine utilization and improved quality
D) competing based on schedules
E) eliminating waste, improving responsiveness and competing based on time
Q3) Quality in just-in-time is centered on building quality into the A) Product
B) Maintenance of equipment
C) Process
D) Distribution system
E) Workforce
Q4) Materials and work in process move farther and more often under ____________________.
Q5) A key outcome of JIT is that organizational barriers are eliminated.
A)True
B)False
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Chapter 8: Forecasting
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Sample Questions
Q1) Explain the impact on forecasting that the number of observations used in a simple moving average has.
Q2) Describe the naïve forecasting method.
Q3) What are the two categories of quantitative models?
A) Delphi and non-causal
B) Causal and non-causal
C) Delphi and time series
D) Causal and time series
E) Causal and Delphi
Q4) Which of the following forecasting methods is most likely to be implemented to change an existing quantitative forecast to account for a new competitor in the marketplace?
A) Market research
B) Executive opinion
C) Delphi method
D) Naïve method
E) Gamma method
Q5) Describe a data pattern with seasonality.
Q6) When developing the linear trend line you must calculate _________ before
10
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Chapter 9: Capacity Planning and Facility Location
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Sample Questions
Q1) What conditions make effective capacity differ from design capacity?
Q2) Why would a company consider purchasing or building a small facility, when in the long run they think that they could use a large one?
Q3) What are the disadvantages of globalization?
Q4) Large facilities can benefit from the concept of _____________________ by creating a plant within a plant (PWP).
A) just-in-time
B) focused factories
C) economies of scale
D) supply chain
E) hierarchical management
Q5) The concept of diseconomies of scale ________________________.
A) states that the average cost of a unit produced is reduced when the amount of output increases
B) is not realistic
C) is not valid for regulated industries
D) states that beyond a certain point the cost of each additional unit made increases E) is an approach for measuring unusable output
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Chapter 10: Facility Layout
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Sample Questions
Q1) Marketing is not highly affected by layout planning.
A)True
B)False
Q2) What is typically used to quantitatively compare the effectiveness of layouts?
A) trial and error
B) process control charts
C) load-distance model
D) mean absolute deviation (MAD)
E) exponential smoothing
Q3) Compare the minimum versus maximum cycle time of a process.
Q4) Suppose that assembly of a product involves three different tasks taking 10 seconds, 20 seconds, and 30 seconds, respectively. What is the maximum possible output per hour of the system?
Q5) Which type of movement is most like rectilinear?
A) driving cross-country on an interstate highway
B) flying an airplane
C) climbing a mountain
D) driving in New York City
E) riding a roller coaster
Q6) What is the formula for the theoretical minimum number of work stations?
Page 12
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Chapter 11: Work System Design
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Sample Questions
Q1) Which of the following steps is not included when a time study analyst uses standard elemental times?
A) Identify the standard elements of the job.
B) Determine the performance rating factor.
C) Adjust the database times if needed.
D) Check the database for time studies done on these elements.
E) If no valid studies exist for this or a similar work element, do a time study for the new work element.
Q2) In calculating the time standard, the frequency of occurrence for a work element is
A) how many times the work element is repeated in doing the job once
B) how many other jobs have the same work element
C) the fraction of the time the work element needs to be done when the job is done
D) the number of times the work element took longer than all the other work elements
E) the inverse of the wave length for the work element
Q3) What are the steps involved in doing a time study?
Q4) What does OSHA stand for and when was it enacted?
Q5) Studying the detailed process for doing a job is called ___________________.
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Chapter 12: Inventory Management
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Sample Questions
Q1) What are the three major categories of holding costs?
Q2) All of the following affect holding costs except:
A) storage costs
B) obsolescence cost
C) damage cost
D) setup cost
E) insurance cost
Q3) A min-max inventory system implies a larger average inventory than a periodic review inventory system.
A)True
B)False
Q4) In the service industry it is considered good performance when a company has an inventory loss of only:
A) 1%
B) 2%
C) 3%
D) 4%
E) 5%
Q5) What is the basic EOQ for a product whose annual demand is 48000 with setup cost $15 and holding cost $5?
Page 14
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Chapter 13: Aggregate Planning
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Sample Questions
Q1) When evaluating the production plan you should use all but which of the following:
A) total/unit cost
B) inventory levels
C) number of back orders
D) effect on marketing plan
E) effect on workforces
Q2) Develop a level aggregate plan using inventory and back orders (data given above).
(a) What is the production rate per period?
(b) No overtime is to be used. What is the required workforce level and how many workers are hired or fired at the beginning of period 1?
(c) What is the maximum ending inventory and when does it occur?
(d) What is the maximum amount of back orders and when does it occur?
(e) What is the total cost?
(f) What is the cost per unit?
Q3) Shifting demand makes sense when the company has high fixed costs and low variable costs.
A)True
B)False
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Chapter 14: Resource Planning
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Sample Questions
Q1) Scheduling all the activities that must be done by a due date from that point of view is called ________________ scheduling.
Q2) Which of the following is not true concerning indented bills of materials?
A) Subsequent levels are indented further to the right.
B) Children are indented toward the right.
C) The highest level parents are closest to the left margin.
D) Quantity required is shown for each part number.
E) Lead times determine how far children are indented.
Q3) Companies use ____________ to check that enough work is scheduled for operations and that the amount of work scheduled is feasible.
A) capacity management
B) closed-loop requirements planning
C) cut requirements planning
D) capacity resources planning
E) capacity requirements planning
Q4) Supply chain intelligence enables strategic decision-making along the supply chain.
A)True
B)False
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Chapter 15: Scheduling
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Sample Questions
Q1) Discuss how companies can benefit from both infinite and finite loading.
Q2) Which of the following is mostly like to be a policy constraint?
A) strike at the supplier's plant
B) raw material shipping problems
C) decreasing market demand
D) no overtime
E) a regular bottleneck in the product process
Q3) A Gantt chart is a basic scheduling tool for low-volume systems.
A)True
B)False
Q4) What is a process batch?
A) the quantity of finished goods that can be sold
B) the quantity of items moved at the same time from one resource to the next
C) the quantity of work-in-process inventory
D) the quantity produced at a resource before the resource is switched over to produce another product
E) the set of machines used to make products
Q5) What are the three kinds of constraints defined by TOC?
Q6) Define Johnson's rule.
Q7) Define what slack is.
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Chapter 16: Project Management
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Sample Questions
Q1) What does AON stand for?
A) action-oriented-network
B) activity-on-network
C) activity-on-node
D) activity-oriented-network
E) activity-overrun-network
Q2) Name and describe the three ways to add safety time in the critical chain approach.
Q3) If a delay in an activity will delay completion of the whole project, the activity ____________________.
A) is on the critical path
B) has slack
C) is costly
D) is a dummy
E) is represented by a node
Q4) In network diagramming, arrows represent precedence relationships.
A)True
B)False
Q5) CPM was initially developed to plan and _______________ maintenance projects in chemical plants.
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Chapter 17: Spreadsheet Modeling: An Introduction
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Sample Questions
Q1) When you change one or more model inputs, Excel automatically updates the associated Data Table.
A)True
B)False
Q2) Describe the difference between an XY graph and a Line graph.
Q3) Describe the difference between the MAX and MIN Excel functions.
Q4) In Excel, what are the three arguments that a MATCH function takes?
A) Lookup_value, Match_type, and Lookup_array
B) Lookup_value, Match_type, and Array
C) Lookup_value, Column_num, and Lookup_array
D) Array, Row_num, and Column_num
E) Lookup_array, Row_num, and Column_num
Q5) What is a primary reason why recommended footers contain the date and time?
Q6) A road atlas represents which type of model?
A) physical model
B) mathematical model
C) mental model
D) spreadsheet model
E) visual model
Q7) Ideally, a spreadsheet model should be ________________________
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Chapter 18: Introduction to Optimization
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Sample Questions
Q1) Consider the mathematical program below. Which of the following choices represents an upper bound to the problem?
Max 10 - X<sup>2</sup> <sup> </sup>Subject to X 3
A) X = 10
B) X = 5
C) X = 3.5
D) X = -6
E) X = 0
Q2) In Excel Solver, the Target Cell corresponds to the objective function in the algebraic model.
A)True
B)False
Q3) A specific combination of values of the decision variables such that at least one of the constraints is violated results in a(n) ______________________.
Q4) _________ are limitations or requirements that must be satisfied.
Q5) Solver's Changing Cells corresponds to the ________ in the algebraic model.
Q6) Describe guidelines for spreadsheet model development.
Page 20
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Chapter 19: Waiting Line Models
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Sample Questions
Q1) Which of the following waiting line systems best describes a drive-through service at a fast-food restaurant, where the order is placed at the first service point, the order is paid for at the second service point, and the food is picked up at the third service point?
A) single-server, single-phase
B) single-server, multi-phase
C) multi-server, single-line, single-phase
D) multi-server, multi-line, single-phase
E) multi-server, multi-phase
Q2) Which of the following is not an assumption of the waiting line models presented in the textbook?
A) balking is not allowed
B) reneging is not allowed
C) jockeying is allowed
D) customer arrival rate is described by a Poisson distribution
E) service times are described by an exponential distribution
Q3) Identify the three assumptions the textbook uses for the single-line, multi-server, single-phase model.
Q4) List examples of dedicating specific servers for specific transactions.
Q5) Waiting line models typically assume what distribution(s)?
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Chapter 20: Master Scheduling and Rough-Cut Capacity Planning
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Q1) Consider an MPS record. An MPS shipment amount is always set equal to the absolute value of the amount in the projected available row if that amount is negative.
A)True
B)False
Q2) Discuss how the MPS is evaluated in terms of cost.
Q3) Demand management includes all but which of the following:
A) company's forecast
B) order planning
C) order-entry
D) order receipts
E) physical distribution activities
Q4) In future periods, MPS Shipments - Customer orders between current and next scheduled MPS shipment is called ________________________.
Q5) Which of the following is not a direct input into the MRP system?
A) MPS
B) aggregate plan
C) inventory records
D) bill of material data
E) None of these answer choices are correct
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