Operations Management
Chapter Exam Questions
Course Introduction
Operations Management explores the principles and practices involved in designing, managing, and improving the processes that produce goods and services. This course covers topics such as process analysis, capacity planning, inventory control, quality management, supply chain coordination, and the strategic role of operations within organizations. Students will develop analytical and decision-making skills through real-world case studies, simulations, and quantitative models, preparing them to optimize operational efficiency, support organizational goals, and respond to dynamic market environments.
Recommended Textbook
Supply Chain Management A Logistics Perspective 10th Edition by John J. Coyle
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547 Verified Questions
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Page 2
Chapter 1: Supply Chain Management: an Overview
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Sample Questions
Q1) Which of the following is not part of the Supply Chain network?
A) Plants
B) Stores
C) Terminals
D) Distribution centers
Answer: B
Q2) Some individuals describe the current consumer as the "click here" generation because they:
A) all have Internet access.
B) no longer wait for information to be "pushed out" to them.
C) buy so much merchandise online.
D) take little time to make purchasing decisions.
Answer: B
Q3) Logistics, in its simplest form,
A) is a military term, as it was developed originally to supply the battlefield.
B) combines inbound logistics with the outbound logistics of physical distribution.
C) is another term for transportation management.
D) does not involve customer service or other related functions.
Answer: B
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Page 3
Chapter 2: Global Dimensions of Supply Chains
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Sample Questions
Q1) One could argue that the external role of technology in recent years has moved ahead of globalization as an agent or driver of change.
A)True
B)False
Answer: True
Q2) Which of the following is not an important issue for economic development and vitality of the economy?
A) Migration
B) Urbanization
C) Entrepreneurship
D) None of these answers
Answer: C
Q3) Given the importance of global trade to the United States, a delicate balance exists between security and the efficient flow of global commerce.
A)True
B)False
Answer: True
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4
Chapter 3: Role of Logistics in Supply Chains
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Sample Questions
Q1) What are fixed spatial points where goods stop for storage or processing?
A) Nodes
B) Links
C) Cost centers
D) Fulfillment centers
Answer: A
Q2) What activity is described as the movement of goods into a warehouse, the placement of goods in a warehouse, and the movement of goods from storage to order picking areas and eventually to dock areas for transportation out of the warehouse?
A) Materials handling
B) Physical distribution
C) Business logistics
D) Order fulfillment
Answer: A
Q3) Transportation is the physical movement or flow of goods.
A)True
B)False
Answer: True
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5
Chapter 4: Distribution and Omni Channel Network Design
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Sample Questions
Q1) Labor-intensive industries place significant emphasis on the availability and cost of labor.
A)True
B)False
Q2) The grid technique:
A) is a variation of SAILS.
B) assumes that the raw materials sources and finished goods markets are fixed.
C) assumes that the raw materials sources and finished goods markets are variable.
D) assumes nonlinear transportation rates.
Q3) A channel of distribution is controlled by the marketing department, which selects the physical structures and intermediaries through which the product(s) flow.
A)True
B)False
Q4) Facilities may sometimes be located where senior officers prefer.
A)True
B)False
Q5) List and discuss potential supply chain modeling pitfalls to avoid.
Q6) What are the current trends governing site selection?
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Chapter 5: Sourcing Materials and Services
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Sample Questions
Q1) In the Item Procurement Importance Matrix, what describes high risk, low value?
A) Generics
B) Commodities
C) Criticals
D) Distinctives
Q2) When a firm makes a "make" decision when analyzing whether to "make or buy," they may still have to purchase some types of inputs from outside suppliers.
A)True
B)False
Q3) Strategic sourcing as a process is far more broad and comprehensive than procurement. Overall, the process starts with the formation of a:
A) steering committee.
B) list of vendors.
C) decision as whether to make or buy.
D) list of criticals.
Q4) Vendors may offer varying levels of discounts from their published prices.
A)True
B)False
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Chapter 6: Operations Producing Goods and Services
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Sample Questions
Q1) Processes that can produce a range of products are said to have:
A) economies of scale.
B) economies of scope.
C) routing flexibility.
D) work centers.
Q2) Discuss the role of production operations in Supply Chain Management (SCM).
Q3) A newly launched twenty-first century addition to production strategy which leverages lean manufacturing strategies, Six Sigma best practices, and real-time actionable intelligence from the factory floor is called:
A) just-in-time inventory.
B) adaptive manufacturing.
C) machine flexibility.
D) capacity requirements planning.
Q4) Which of the following is not a reactive capability strategy?
A) Machine flexibility
B) Routing flexibility
C) Resource requirements planning
D) Offshoring
Q5) There are four assembly processes. Name all four, and pick two to discuss in detail.
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Chapter 7: Demand Management
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Sample Questions
Q1) There are four types of forecast error measures that can be used. Name them, and choose one to discuss.
Q2) Collaborative planning, forecasting, and replenishment (CPFR) has not been considered to be a good process, as it excludes transportation.
A)True
B)False
Q3) The weighted moving average method assigns:
A) a value in each period being averaged.
B) a weight greater than 1.
C) information based on a simple average.
D) a weight to each previous period.
Q4) A process that organizations can use to arrive at a consensus forecast is called Sales and Operations Planning. Discuss the five steps used to implement this process.
Q5) Exponential smoothing:
A) is one of the most commonly used techniques.
B) uses primarily weighted averages to compensate for errors.
C) is used to determine random variations.
D) is used to reduce channel fluctuations.
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Chapter 8: Order Management and Customer Service
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Sample Questions
Q1) With the proper information on how a customer's interaction with the shipper drives the firm's costs, the firm can then segment its customers by profitability.
A)True
B)False
Q2) There are two parts to the order management process. The first is _____ and the second is _____.
A) managing the order after it is received; influencing how the customer orders
B) shipping the order; taking the order
C) influencing how the customer orders; managing the order after it is received
D) the Internet model; the traditional model
Q3) From a marketing perspective, logistics customer service can be thought of as a feature of the augmented product that adds value for the customer.
A)True
B)False
Q4) Activity-based costing works well in warehouse-type environments but does not work for customer service applications.
A)True
B)False
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Chapter 9: Managing Inventory in the Supply Chain
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Sample Questions
Q1) As Q decreases for EOQ, the cost per order:
A) increases.
B) decreases.
C) stays the same.
D) can't be determined.
Q2) Inventory plays a dual role in organizations. Inventory impacts the cost of goods sold as well as supporting the balance sheet, a new concept only recently receiving attention.
A)True
B)False
Q3) Capital cost is also called interest or opportunity cost.
A)True
B)False
Q4) The fixed order interval EOQ model is best used for SKUs with: A) variable demand.
B) stable demand.
C) unknown demand.
D) seasonal demand.
Q5) What is Vendor Managed Inventory?
Q6) Discuss capital cost and include both the hurdle rate and WACC in your answer.
Page 11
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Chapter 10: Distribution
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Sample Questions
Q1) Asset utilization is very important in a 3PL warehouse.
A)True
B)False
Q2) The first facility consideration is to determine the size of each operation within the network.
A)True
B)False
Q3) The roles of the distribution center include _____.
A) balancing supply and demand
B) protecting against uncertainty and promoting transportation economies
C) promoting transportation economies
D) balancing supply and demand, protecting against uncertainty, and promoting transportation economies
Q4) The primary facility operations focus is:
A) on the movement and storage of product.
B) on inventory control and personnel issues.
C) in making sure KPIs are fulfilled.
D) the WMS system.
Q5) Discuss inventory positioning and the differences between centralized and decentralized inventory.
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Chapter 11: Transportation
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Sample Questions
Q1) Air carriers were historically looked upon as:
A)emergency only carriers.
B)having equipment shortages.
C)a fringe participant.
D)insignificant.
Q2) Following the trend in deregulation of most transportation modes, freight rate negotiations are being decentralized.
A)True
B)False
Q3) Railroad's length of haul is longer than that of motor carriers.
A)True
B)False
Q4) Economic deregulation sparked competition among carriers in several areas. Which of these is not an area of competition?
A) Accessibility
B) Pricing
C) Performance
D) Services
Q5) What is modal selection? What are the key determinants in choosing a mode?
Q6) What are the three types of freight documentation? Discuss how each is used.
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Chapter 12: Aligning Supply Chains
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Sample Questions
Q1) Vertical integration refers to collaboration typically among buyers and sellers in the supply chain.
A)True
B)False
Q2) A third-party logistics firm may be defined as:
A) an outsource service.
B) a firm that owns trucks and warehouses.
C) a firm that owns trucks and warehouses and provides computer support.
D) an external supplier that performs or manages all or part of a company's logistics functions.
Q3) Many organizations have directed significant attention toward working more closely with supply chain partners, including not only customers and suppliers but also various types of logistics suppliers.
A)True
B)False
Q4) Outsourcing and contract logistics are terms sometimes used to describe third-party logistics.
A)True B)False
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Chapter 13: Supply Chain Performance Measurement and Financial Analysis
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Sample Questions
Q1) A metric could drive inappropriate behavior.
A)True
B)False
Q2) Four major categories that provide a useful way to examine logistics and supply chain performance are time, quality, cost, and inventory.
A)True
B)False
Q3) Managers should resist sub-optimization of their particular function unless it benefits the organization as a whole.
A)True
B)False
Q4) Which of the following is NOT an element of Order Management?
A) Reducing stockouts
B) Reducing order processing times
C) Optimizing mode mix
D) Optimizing order fill rate
Q5) Discuss the differences between the terms metric, measure, and index.
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Q6) There are seven factors in the successful development of supply chain metrics. Name them, and select any two to discuss in more detail.
Chapter 14: Supply Chain Technology
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Sample Questions
Q1) Describe the attributes of information quality and how they impact supply chain decision making.
Q2) There are three principle supply chain information requirements that support effective decision-making. Which of the following is NOT one of the three?
A) Information must meet quality standards to support fact-based decision-making.
B) Information must readily flow within and between organizations.
C) Information must support multiple types of supply chain decisions.
D) Information must be in the form of real-time data.
Q3) Supply chain software includes technologies that:
A) address virtually every function and task that occurs in the supply chain.
B) help organizations plan, execute, and control supply chain activities in real time.
C) help to maintain visibility of inventory.
D) all of these answers.
Q4) Business intelligence applications are being used to gather information on competitors and their suppliers.
A)True
B)False
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16
Chapter 15: Strategic Challenges and Change for Supply Chains
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Sample Questions
Q1) What special challenges and opportunities are presented for reverse flows by globalization?
Q2) Distinguish between a value stream and a waste stream for reverse flows.
Q3) Which one of the choices below is NOT one of the various stages and levels of sophistication and robustness that is associated with supply chain analytics?
A) Descriptive
B) Predictive
C) Indicative
D) Cognitive
E) None of these answers
Q4) Why is sustainability such a complex and challenging issue for organizations? How can they simplify these challenges from a supply chain perspective?
Q5) Companies have discovered that there is no revenue opportunities to offset the costs in sustainability practices.
A)True
B)False
Q6) What strategies and steps can organizations pursue to combat the SCM talent shortage?
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