Materials Management Test Questions
Course Introduction
Materials Management is a comprehensive course that explores the planning, organizing, and control of the flow of materials from their initial purchase through internal operations to the service point through distribution. The curriculum covers key topics such as procurement, inventory management, logistics, supplier relationships, and waste reduction. Students learn how effective materials management optimizes productivity, reduces costs, and enhances the overall efficiency of the supply chain. Emphasis is placed on strategic decision-making, technology integration, sustainable practices, and real-world case studies to prepare students for challenges faced in industrial, manufacturing, and service sectors.
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Principles of Supply Chain Management A Balanced Approach 4th Edition by Joel D. Wisner
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14 Chapters
822 Verified Questions
822 Flashcards
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Chapter 1: Introduction to Supply Chain Management
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148 Verified Questions
148 Flashcards
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Sample Questions
Q1) Lean production is typically associated with which of the following company's production systems?
A)Proctor and Gamble
B)Toyota
C)Boeing
D)Intel
Answer: B
Q2) Which of the following is strategy usually employed by lean organizations in an effort to ensure continued quality compliance among suppliers and with internal production facilities?
A)MRP II
B)Six Sigma
C)3PL
D)CAPS
Answer: B
Q3) The Department of Transportation was created by the 1920 Transportation Act.
A)True
B)False
Answer: False
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Page 3
Chapter 2: Purchasing Management
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52 Flashcards
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Sample Questions
Q1) The goal of a proper purchasing system is to ensure the efficient transmission of information from the users to the purchasing personnel,and ultimately,to the suppliers.
A)True
B)False
Answer: True
Q2) When using the Total Cost of Ownership concept,explain how a supplier with a higher unit price and higher tooling cost can end up being more cost effective than another supplier with a lower unit price and tooling cost.
Answer: When calculating the Total Cost of Ownership,unit price and tooling cost are not the only criterion used in supplier selection.Other qualitative and quantitative factors,including freight and inventory costs,tariffs and duties,currency exchange fees,payment terms,maintenance and nonperformance costs should be considered.After calculating these other factors,the Total Cost of Ownership may have been lower with the second supplier.
Q3) The Total Cost of Ownership Concept does NOT include quantitative factors.
A)True
B)False
Answer: False
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Chapter 3: Creating and Managing Supplier Relationship
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52 Verified Questions
52 Flashcards
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Sample Questions
Q1) One result of an effective supplier certification program is an increase in the supplier base.
A)True
B)False
Answer: False
Q2) It is critical that customers and suppliers develop stronger relationships and partnerships based on a tactical rather than a strategic perspective.
A)True
B)False
Answer: False
Q3) Which of the following is important in developing successful relationships in a partnership?
A)Commitment by top management
B)Interpersonal relationships between employees of the companies
C)Mutual/compatible needs that result in a win-win situation for the partners
D)All of these
Answer: D
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5
Chapter 4: Ethical and Sustainable Sourcing
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Sample Questions
Q1) As relationships with suppliers become more trusted,reliable,and long-term in nature,early supplier involvement has become a popular strategy among firms.Explain THREE benefits gained from using this strategy.
Q2) Which of the following can be used as a punishment for suppliers that perform poorly?
A)Elimination of future business with the focal firm
B)Downgrade the supplier's status
C)Billback penalty
D)All of these
Q3) Which of the following is TRUE?
A)VMI stands for Vertically Managed Inventory
B)3PL stands for Third Party Leverage
C)VMI stands for Vendor-Managed Inventory
D)3PL stands for Three Point Logistics
Q4) Service companies like beauty parlors,cleaning companies and delivery companies are also becoming aware of the trends in ethical and sustainable sourcing.Describe FOUR ways a service company can use ethical and sustainable sourcing.Provide an example of how this can happen.
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Chapter 5: Demand Forecasting
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52 Verified Questions
52 Flashcards
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Sample Questions
Q1) One common Cause-and-Effect Model used is:
A)Regression analysis
B)Linear Trend Forecast
C)Moving Average Forecast
D)Mean Absolute Deviation
Q2) According to the text,the ultimate goal of any forecasting endeavor is to have an accurate and unbiased forecast.
A)True
B)False
Q3) A forecasting method has produced the following data over the past 5 months shown in Data Set E2.What is the mean absolute deviation (accurate to 2 decimals)?
A)?0.60
B)?1.20
C)1.00
D)1.25
Q4) The goal of a good forecasting technique is to achieve 98.7% accuracy between the forecast and actual demand.
A)True
B)False
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Chapter 6: Resource Planning Systems
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Sample Questions
Q1) A Master Production Schedule is a medium-range materials plan.
A)True
B)False
Q2) Organizations that choose to implement one single system with all of the desired applications from a single vendor versus choosing to implement the best applications or modules for each of the different functional departments associated with the supply chain is said to have chosen a(n):
A)Best-of-breed solution
B)Elite integrator solution
C)Single integrator solution
D)Premier application solution
Q3) Legacy systems were designed to perform a very specific operational function.
A)True
B)False
Q4) Implementing a best-of-breed solution may cause firms to link databases from multiple software applications of different venders.
A)True
B)False
Q5) What is ERP? Why was it developed?
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Chapter 7: Inventory Management
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Sample Questions
Q1) The cost of a widget is $5,and the carrying rate is 40%; cost of processing an order is $25,annual demand is for 400 widgets,and supply and usage patterns are stable.What is the economic order quantity (EOQ)?
A)5
B)20
C)25
D)100
E)200
Q2) The (s,S)continuous review inventory system orders the same quantity Q when physical inventory reaches the reorder points.
A)True
B)False
Q3) The EOQ,also known as the economic order quantity,is the order size where annual inventory holding costs equal annual ordering costs.
A)True
B)False
Q4) The term Cycle Counting is synonymous with physically counting inventory.
A)True
B)False
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Chapter 8: Process Management - Lean and Six Sigma in the Supply Chain
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52 Verified Questions
52 Flashcards
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Sample Questions
Q1) An integral part of Six Sigma is:
A)Firms committing to a program of continual reassessment and improvement
B)Using ABC analysis to divide on-hand inventory into three classes
C)Moving new products to market more quickly
D)Enterprise resource planning
Q2) An important outcome of statistical process control is:
A)Firms can take corrective actions before process variabilities get out of control
B)Firms can visually monitor process performance
C)Firms can minimize total inventory cost
D)Both A & B
E)None of these
Q3) Efficient Consumer Response was initially developed in the 1990's for the following industry:
A)Fashion
B)Grocery
C)Small Electronics
D)Automobile
Q4) Discuss the linkages between lean production and environmental sustainability.
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Q5) Describe SPC and Acceptance Sampling.What is the key difference between the two?
Chapter 9: Domestic Usand Global Logistics
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Sample Questions
Q1) The responsibility of transportation is to create both time utility and place utility,which means that products will be delivered at precisely the right time to the desired location.
A)True
B)False
Q2) Limitations of air carrier transport include cost and airport accessibility.
A)True
B)False
Q3) A furniture manufacturer presently owns a total of four warehouses in the following cities Sacramento,Phoenix,Cincinnati,and Atlanta.The average inventory levels for the four warehouses are 8000 units,10,000 units,10,000 units,and 8000 units,respectively.They plan on moving all of their inventory to one warehouse in Memphis.Using the square root rule,what will be the required average inventory level at the new central Memphis warehouse required to maintain the system's present customer service level? (Choose the closest answer.)
A)9000
B)18000
C)20000
D)24500
Q4) Does risk pooling favor a centralized or decentralized warehousing system? Why?
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Chapter 10: Customer Relationship Management
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Sample Questions
Q1) Your top sales executive leaves your company to work for a competitor.Fortunately,all of her notes regarding prior dealings with customers have been captured in a:
A)Sales activity management system
B)Sales territory management system
C)Lead management system
D)Knowledge management system
Q2) Training managers and users in the key customer contact areas can help the firm decide what customizations to the CRM applications are required.
A)True
B)False
Q3) Today a number of application service providers (ASPs)provide cloud applications.Explain why companies use ASPs.
Q4) Customers of companies,using CRM applications,should not be concerned with their personal information becoming compromised or being shared with other companies. A)True
B)False
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12
Chapter 11: Global Location Decisions
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Sample Questions
Q1) Global location decisions are made to optimize the performance of the supply chain and be consistent with the firm's competitive strategy.
A)True
B)False
Q2) While the development and proliferation of the Internet and web-based commerce has not completely eliminated the relevancy of facilities location,because of the Internet,the speed of delivery and cost in serving the customer are no longer factors in determining the strategic location of an organization's facilities.
A)True
B)False
Q3) Your company needs to determine the appropriate location of a factory in order to take advantage of government incentives and avoid tariff barriers,the type of factory needed can be referred to as a(n):
A)Offshore factory
B)Source factory
C)Server Factory
D)Lead Factory
Q4) What are the three levels of any location decision?
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Page 13
Chapter 12: Service Response Logistics
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53 Verified Questions
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Sample Questions
Q1) Which of the following is an example of a person that would be considered to provide a Pure Service?
A)Attorney/Lawyer
B)Management Consultant
C)Musical Entertainer
D)All of these
Q2) All of the following are included in the five dimensions of service quality EXCEPT:
A)Reliability
B)Responsiveness
C)Reasonability
D)Assurance
Q3) When companies sell products both online and in traditional retail stores this is called a mixed internet distribution strategy.
A)True
B)False
Q4) The optimal capacity utilization for an organization would be 100%.
A)True
B)False
Q5) Discuss four important issues involved in managing a global service.
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Chapter 13: Supply Chain Process Integration
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Sample Questions
Q1) Which of the following is an obstacle to successful process integration?
A)Passive integration
B)Collaborative inventory management
C)Lack of supply chain visibility
D)Cloud-based supply chain management
Q2) Which of the following identifies the key customers,determines their needs,and then develops products and/or services to meet those needs?
A)Customer Service Management
B)Product Development and Commercialization
C)Customer Relationship Management
D)Demand Management
Q3) Two methods for managing supply chain risk include utilizing a supply chain IT system and identifying backup suppliers.
A)True
B)False
Q4) Manufacturing flow management is the key process that helps balance customer demand and the firm's output capabilities.
A)True
B)False
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Chapter 14: Performance Measurement Along the Supply Chain
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Sample Questions
Q1) In your opinion,how can using organizational costs,revenues,and profitability measures be ineffective or even damaging in managing a process,system,or organization?
Q2) Nowadays,successful supply chains are those that in the face of ever changing customer needs can continue to:
A)Deliver the right combination of cost, quality, and customer service
B)Increase the number of their suppliers
C)Eliminate the need for performance metrics
D)All of these
Q3) While profit,revenue,and cost related metrics would seem to be useful in moving a company in the right direction,they often give no indication of the underlying causes of financial performance.
A)True
B)False
Q4) Dominant companies within a supply chain can use their buying power to:
A)Leverage demands for supplier conformance to its supply chain requirements
B)Eliminate the need for performance metrics
C)Increase organizational productivity
D)Motivate customers to change their buying preferences
Q5) Briefly describe the FOUR primary perspectives of the balanced scorecard.
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