Operations Management
Pre-Test Questions
Course Introduction
Operations Management is a comprehensive course that explores the principles and practices involved in the efficient production and delivery of goods and services. The curriculum covers topics such as process analysis, capacity planning, inventory management, supply chain logistics, quality control, and project management. Through case studies and real-world applications, students learn to analyze operational processes, design effective systems, and implement strategies to optimize performance. By the end of the course, students will understand how operations management drives organizational success and how to apply quantitative and qualitative techniques to solve complex operational challenges.
Recommended Textbook
Purchasing and Supply Chain Management 6th Edition by Robert
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20 Chapters
1518 Verified Questions
1518 Flashcards
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Page 2
M. Monczka
Chapter 1: Introduction to Purchasing and Supply Chain Management
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46 Verified Questions
46 Flashcards
Source URL: https://quizplus.com/quiz/22659
Sample Questions
Q1) According to Porter, a firm's value chain is composed of primary and support activities that can lead to competitive advantage when configured properly.
A)True
B)False
Answer: True
Q2) Competition today is no longer between firms; it is between the supply chains of those firms.
A)True
B)False
Answer: True
Q3) Most of the features that make their way into final products originate with suppliers. A)True
B)False
Answer: False
Q4) Global sourcing is a requirement and no longer a luxury for most firms.
A)True
B)False
Answer: True
Page 3
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Chapter 2: The Purchasing Process
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79 Verified Questions
79 Flashcards
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Sample Questions
Q1) Failing to respond to the needs of internal customers will diminish the confidence these users have in purchasing, and they may try to negotiate contracts themselves (a practice known as _____).
A) strategic sourcing
B) spend management
C) maverick buying
D) outsourcing
E) internal sourcing
Answer: C
Q2) All of the following are conditions under which competitive bidding is effective except _____.
A) the buyer has a preferred supplier for the item
B) volume is high enough to justify this method
C) the marketplace is competitive
D) the specifications or requirements are clear to the seller
E) adequate time is available for suppliers to evaluate the RFQs
Answer: A
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Chapter 3: Purchasing Policy and Procedures
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28 Verified Questions
28 Flashcards
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Sample Questions
Q1) Which of the following is not an example of typical charge-back costs associated with supplier responsibility for defective material shipments?
A) Sales, general, and administrative costs.
B) Cost of material rework.
C) Repackaging for return shipment.
D) Return shipping costs.
E) Costs associated with lost or delayed production.
Answer: A
Q2) All of the following are examples of topics discussed in legal contract procedures except _____.
A) essential elements of the contract
B) execution and administration of agreements
C) compliance with contract terms and performance assessment
D) legal definitions
E) analysis of competitive quotations
Answer: E
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Chapter 4: Supply Management Integration for Competitive Advantage
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67 Verified Questions
67 Flashcards
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Sample Questions
Q1) Many supply management groups are recruiting commodity managers with very strong technical backgrounds, who are able to talk the talk and walk the walk alongside their engineering counterparts.
A)True
B)False
Q2) If positive work is never recognized or reinforced through rewards, the positive effort will likely be extinguished.
A)True
B)False
Q3) _____ is the process of incorporating or bringing together different groups, functions, or organizations, either formally or informally, physically or by information technology, to work jointly and often concurrently on a common business-related assignment or purpose.
A) Cooptation
B) Program management
C) Collaboration
D) Collusion
E) Integration
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Chapter 5: Purchasing and Supply Management Organization
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73 Verified Questions
73 Flashcards
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Sample Questions
Q1) If each division or unit is responsible for developing its own e-purchasing system or data gathering and part-numbering system, the result will be a compatible purchasing system.
A)True
B)False
Q2) Which of the following is not one of the factors to be considered when implementing an organization's supply structure?
A) The firm's overall business strategy.
B) What foreign competitors are doing.
C) The similarity of purchases.
D) Total purchase dollar expenditures.
E) The overall philosophy of management.
Q3) Organizations that rely on part-time teams typically do not maintain their existing functional structure while adding additional team-related duties.
A)True
B)False
Q4) A reason for decentralization is a reduction in duplication of effort.
A)True
B)False
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Chapter 6: Category Strategy Development
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80 Verified Questions
80 Flashcards
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Sample Questions
Q1) As a strategic planning tool, a SWOT analysis can provide insight even with limited data.
A)True
B)False
Q2) In general, the more important the commodity, the less likely that cross-functional members and user groups will be involved.
A)True
B)False
Q3) Which of the following elements is Falseregarding Phase 3, Limited Integration, of supply management strategy development?
A) Supplier quality focus.
B) Global sourcing.
C) Ad hoc supplier alliances.
D) Volume leveraging.
E) Long-term contracts.
Q4) Objectives drive goals, whether at the highest levels of an organization or at the functional or department level.
A)True B)False
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Chapter 7: Supplier Evaluation and Selection
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78 Verified Questions
78 Flashcards
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Sample Questions
Q1) All of the following are examples of entry qualifiers that suppliers must possess before they proceed to the next phase of the evaluation and selection process except
A) appropriate sales and marketing activities
B) financial strength
C) proven manufacturing or service capability
D) capable and supportive management
E) adequate facilities
Q2) One argument against rotating buyers too frequently between product lines or types of purchases is that a buyer may lose the expertise built up over the years.
A)True
B)False
Q3) A _____ is limited to a select group of suppliers who provide critical high value items to the firm.
A) disqualified supplier
B) sole source supplier
C) preferred supplier
D) single source supplier
E) partnered supplier
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Page 9
Chapter 8: Supplier Quality Management
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94 Verified Questions
94 Flashcards
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Sample Questions
Q1) The performance appraisal systems in most organizations create real barriers to pride in workmanship as they promote competitive behavior and quantity of work over quality.
A)True
B)False
Q2) Which of the following is not one of Deming's 14 points?
A) Institute training.
B) Drive out fear.
C) Optimize the efforts of individuals working alone. (LO #4)
D) Stop making decisions purely on the basis of price.
E) Improve constantly and forever.
Q3) Deming's quality philosophy has often been criticized because it does not prescribe specific firm-level actions and programs for management to follow.
A)True
B)False
Q4) To be considered capable, the outputs from a process must fall outside upper and lower specification limits.
A)True
B)False
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Chapter 9: Supplier Management and Development:
Creating a World-Class Supply Base
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84 Verified Questions
84 Flashcards
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Sample Questions
Q1) Which of the following is not one of the formal approaches to supply base rationalization?
A) Twenty/eighty rule.
B) "Improve or else" approach.
C) Global sourcing.
D) Triage approach.
E) Competency staircase approach.
Q2) Many buyers have now concluded that, if they select suppliers carefully and develop close and collaborative working relationships with fewer suppliers, supply risk can actually decrease.
A)True
B)False
Q3) All of the following are elements of market risk in a supply base except _____.
A) the number of buyers competing for the same goods or source of supply
B) increasingly shorter product life cycles
C) regional political risk
D) threat of emerging, often disruptive, technologies
E) protecting and maintaining trade secrets and intellectual properties from misuse or misappropriation by suppliers, particularly those located overseas
Page 11
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Chapter 10: Worldwide Sourcing
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Sample Questions
Q1) Sharing currency fluctuation risk with a supplier works best on items that have a set delivery date such as with capital equipment.
A)True
B)False
Q2) A/An _____ can only be changed or canceled upon agreement of all parties.
A) compensation trade
B) revocable letter of credit
C) buy-back
D) optional commission
E) irrevocable letter of credit
Q3) _____ is relocating sourcing to countries geographically closers to the United States.
A) Global sourcing
B) Nearshoring
C) Re-shoring
D) Single sourcing
E) Domestic sourcing
Q4) A major complaint about Americans is our ignorance of other cultures.
A)True
B)False
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Chapter 11: Strategic Cost Management
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83 Verified Questions
83 Flashcards
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Sample Questions
Q1) All of the following are examples of broad total cost of ownership categories except
A) purchase price
B) acquisition costs
C) sales, general, and administrative overhead costs
D) usage costs
E) end-of-life costs
Q2) Under penetration pricing, using final price as a basis, the product is disaggregated into major subsystems, each of which has its own target cost.
A)True
B)False
Q3) Most large firms base purchase decisions and evaluation suppliers on only the cost elements of unit price, transportation, and tooling.
A)True
B)False
Q4) Building a TCO model is an easy task.
A)True
B)False
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Page 13
Chapter 12: Purchasing and Supply Chain Analysis: Tools and Techniques
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67 Verified Questions
67 Flashcards
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Sample Questions
Q1) In a PERT network, the difference between the _____ and the _____ is slack.
A) early start .late finish
B) late start .early finish
C) early start .early finish
D) late start .early start
E) None of the above.
Q2) _____ is a tool that reduces processes to their component parts or activities and helps identify and then eliminate non-value-added activities (waste) or delays within a process.
A) Process mapping
B) TCO
C) PERT/CPM
D) QDA
E) Productivity analysis
Q3) The advantage of a Gantt chart is that for larger projects, it can be easy to use and keep up to date.
A)True
B)False
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Chapter 13: Negotiation and Conflict Management
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98 Verified Questions
98 Flashcards
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Sample Questions
Q1) Which of the following is not a reason for negotiating with suppliers?
A) The total contract value or volume is large.
B) The purchase is for widely available, commodity-like goods.
C) The purchase involves utilization of capital-intensive plant and equipment.
D) The purchase involves a special or collaborative relationship.
E) The supplier will perform important or significant value-added activities.
Q2) A win-lose negotiation approach works best for items or services that are important to the buyer's products or business or when the item involves high-dollar items or services where cost control is critical.
A)True
B)False
Q3) A tactic used during one negotiation may not be successful or applicable to another negotiation, even with the same counterpart.
A)True
B)False
Q4) There is minimal danger in stereotyping or oversimplifying the cultural characteristics of different countries or regions.
A)True
B)False
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Chapter 14: Contract Management
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109 Verified Questions
109 Flashcards
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Sample Questions
Q1) To be most effective, cost-based contracts should include cost productivity improvements in order to drive continuous cost reduction over the life of the contract.
A)True
B)False
Q2) With pure ______ contracts, allowable costs are shared between the parties on a predetermined percentage basis.
A) cost-sharing
B) time and materials
C) fixed-price with incentives
D) cost plus incentive fee
E) fixed-price with redetermination
Q3) Long-term contracts can help the buyer to gain exclusive access to proprietary supplier technology, and blocking competitor access can result in a short-term competitive advantage.
A)True
B)False
Q4) Once a contract has been negotiated and signed, the real work is over.
A)True
B)False
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Chapter 15: Purchasing Law and Ethics
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107 Verified Questions
107 Flashcards
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Sample Questions
Q1) Accepting a supplier's outside gifts and favors in exchange for special treatment is not a form of corruption.
A)True
B)False
Q2) Ethics have their basis in the field of philosophy and identify common principles associated with appropriate versus inappropriate actions, moral duty, and obligation.
A)True
B)False
Q3) A good rule of thumb is to remember that purchasers must always act in the best interests of their employer.
A)True
B)False
Q4) Exceeding both actual and apparent authority can have dire consequences; an individual may be held directly liable by the supplier or other third party.
A)True B)False
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Page 17
Chapter 16: Lean Supply Chain Management
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Sample Questions
Q1) Record integrity exists when the physical inventory on hand exceeds the electronic record on hand, regardless of the quantity of inventory.
A)True
B)False
Q2) According to JIT, inspection is a waste of both time and personnel caused by defects.
A)True
B)False
Q3) A major step toward eliminating delivery uncertainty is a commitment to stable release schedules with realistic (but not overly generous) supplier lead times.
A)True
B)False
Q4) The _____ is one that is delivered on time, accurately, and in perfect condition.
A) kanban order
B) MRO order
C) consignment order
D) perfect order
E) MRP order
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Chapter 17: Purchasing Services
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98 Verified Questions
98 Flashcards
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Sample Questions
Q1) A _____ is a key individual or unit that controls substantial indirect spending and typically has a position of great responsibility within the organization.
A) purchasing consortium
B) maverick spender
C) 3PL
D) power spender
E) kanban
Q2) A PBL agreement and a SLA are similar concepts.
A)True
B)False
Q3) The presence of _____ ensures a supply of available transportation in markets where only one-way traffic exists.
A) exempt carriers
B) one-way carriers
C) common carriers
D) motor carriers
E) All of the above
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Page 19
Chapter 18: Supply Chain Information Systems and Electronic Sourcing
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Sample Questions
Q1) Because MRP and DRP systems are primarily external, an additional electronic linkage to suppliers and customers is not needed.
A)True
B)False
Q2) A/An _____ is typically organized around specific e-sourcing suite modules that interact with different elements of the purchasing database, elements of the ERP system, and integration of data obtained through external EDI or web-based communications with suppliers or customers.
A) EDI system
B) SRM system
C) third-party marketplace
D) sell-side system
E) buy-side system
Q3) In a regular reverse auction, prices are anonymous, and the identity of the competitors is provided to all sellers.
A)True
B)False
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Page 20
Chapter 19: Performance Measurement and Evaluation
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Sample Questions
Q1) The most common price performance measures include actual purchase price versus planned purchase price comparisons, actual purchase price(s) compared to a market index, comparisons of actual-to-actual purchase prices for individual and aggregated items between operating plants or divisions within an organization, and target prices achieved.
A)True
B)False
Q2) Which of the following is one of the reasons for measuring performance?
A) Support better decision making.
B) Support better communication.
C) Provide performance feedback.
D) Motivate and direct behavior.
E) All of the above.
Q3) It is difficult to develop performance improvement plans without understanding the areas in which performance falls short.
A)True B)False
Q4) Well-defined measures use data that are available and accurate.
A)True B)False
Page 21
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Chapter 20: Purchasing and Supply Strategy Trends
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Sample Questions
Q1) Which of the following statements is Falseregarding category strategy?
A) Companies, in the future, will look beyond cost, quality and delivery as purchase category strategy goals.
B) Companies will increasingly use value-focused sourcing approaches to evaluate how a supplier or group of suppliers may be utilized to gain competitive advantage for categories with high business impact.
C) There will be increasing use of value chain mapping, data analytics to better understand industry trends, cost modeling and scenario planning techniques to develop, evaluate, and select from purchase category strategy alternatives.
D) Establishing core competencies and capabilities has influenced the strategic planning process and category strategy development at most firms.
E) Groups of suppliers (versus supply networks) will become an increasing focus of purchase category strategies.
Q2) External collaboration will signal a shift from cooperation to pure competition for some segments of a company's supply base.
A)True
B)False
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