Operations Strategy
Exam Preparation Guide
Course Introduction
Operations Strategy explores the critical role of operations in achieving competitive advantage and delivering value to customers in both manufacturing and service organizations. The course examines how operations align with overall business strategy, focusing on key decisions related to process design, capacity planning, supply chain management, technology adoption, quality management, and sustainability. Through case studies and analytical frameworks, students learn to formulate and implement effective operations strategies that respond to changing market demands, optimize resource utilization, and foster innovation, positioning operations as a driver of organizational success.
Recommended Textbook
Introduction to Operations and Supply Chain Management 3rd Edition by Cecil B. Bozarth
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17 Chapters
981 Verified Questions
981 Flashcards
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Chapter 1: Introduction to Operations and Supply Chain Management
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62 Verified Questions
62 Flashcards
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Sample Questions
Q1) Printing and binding a book take place ________ from the conversion of wood to paper pulp in a publishing supply chain.
Answer: downstream
Q2) To avoid supply chain problems,firms must manage relationships with their downstream suppliers as well as their upstream customers.
A)True
B)False
Answer: False
Q3) Most of the participants in a supply chain are both suppliers and customers.
A)True
B)False
Answer: True
Q4) The five broad areas of the Supply Chain Operations Reference model include ________,________,________,________,and ________.
Answer: plan,source,make,deliver,return
Q5) The ________ function of an organization manages the movement of physical goods throughout the supply chain.
Answer: logistics
3
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Chapter 2: Operations and Supply Chain Strategies
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57 Verified Questions
57 Flashcards
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Sample Questions
Q1) The American-made car I purchased as a starving graduate student was not the sleek,high-performance machine that full professors park in faculty parking,but it performed admirably.For the next twenty years I could count on one thing;every morning it would start when I turned the key.This vehicle had outstanding ________ quality.
Answer: reliability
Q2) The phrase "closing the loop" means that strengths and weaknesses,as well as core competencies,are fed back into the mission statement.
A)True
B)False
Answer: False
Q3) The operations and supply chain strategy is a functional strategy that is,by definition,an infrastructural strategy.
A)True
B)False
Answer: False
Q4) The ________ explains why an organization exists.
Answer: mission statement
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4
Chapter 3: Process Choice and Layout Decisions in Manufacturing and Services
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67 Verified Questions
67 Flashcards
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Sample Questions
Q1) Operations managers and process engineers design a line that contains seven stations.What is the percentage of idle time?
A)29.5%
B)14.3%
C)37.6%
D)19.8%
Answer: A
Q2) The product-process matrix illustrates that low volume,one-of-a-kind products are ideally suited to a job shop process.
A)True
B)False
Answer: True
Q3) Assemble-to-order occurs upstream from:
A)design.
B)material sourcing.
C)fabrication.
D)finishing.
Answer: D
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Chapter 4: Business Processes
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Sample Questions
Q1) A Six Sigma Champion is a full-time Six Sigma expert that is responsible for training,mentoring,deployment,and results.
A)True
B)False
Q2) When an employee team develops a process map,they should document the process ________.
Q3) Which of these statements about SCOR level 3 processes is BEST?
A)They describe in detail the actual steps required to execute level 2 processes.
B)They prescribe how best to achieve the processes defined in level 2.
C)They describe an alternative method of achieving processes described in level 2 if a primary system failure occurs.
D)They prescribe a communication plan for the people,departments,and organizations that execute level 2 processes.
Q4) Describe continuous improvement and business process reengineering and compare their advantages and disadvantages in relation to each other.
Q5) A(n)________ process performs the main,value-added activities of an organization.
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Chapter 5: Managing Quality
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58 Verified Questions
58 Flashcards
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Sample Questions
Q1) Based on W.Edwards Deming's Fourteen Points for Management,we can safely conclude he would have been a strong advocate for a Zero Defects promotion.
A)True
B)False
Q2) Total Quality Management is the management of an entire organization so that it excels in all quality dimensions that are important to customers.
A)True
B)False
Q3) W.Edwards Deming's Fourteen Points for Management include:
A)use statistical methods to determine the workers responsible for poor quality. B)break down barriers between departments.
C)the customer is always right,so design your system to please them.
D)plan your work and work your plan.
Q4) Taguchi's quality loss function runs counter to the notion that a product falling within tolerance limits is acceptable.
A)True
B)False
Q5) Describe the four quality-related costs and tell how they are related.
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Chapter 6: Managing Capacity
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60 Flashcards
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Sample Questions
Q1) In a decision tree,outcome points are under direct control of the decision maker and show the results of choices.
A)True
B)False
Q2) How long will it take to build all of the pools?
A)17.1 hours
B)642.75
C)796.3 hours
D)1200.0 hours
Q3) Describe the three capacity strategies and the advantages of each.
Q4) Capacity is the capability of a worker,machine,work center,plant,or organization to produce output per time period.
A)True
B)False
Q5) In operations and supply chain environments that must deal with random demand,it is virtually impossible to achieve very high capacity utilization levels and still provide acceptable customer service.
A)True
B)False
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Chapter 7: S Advanced Waiting Line Theory and Simulation
Modeling
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49 Verified Questions
49 Flashcards
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Sample Questions
Q1) Which of the following is characteristic of Monte Carlo simulation?
A)Results are usually not valid,but provide managers with an approximation.
B)Time compression is not possible using this technique.
C)Statistical sampling is used to create outcomes for many trials.
D)Computer packages such as Simquick and Arena can show on-screen graphics of customers moving through the system or inventory accumulation.
Q2) Which of the following statements about simulation is BEST?
A)Tools like linear programming and regression analysis work best when they are simulated.
B)Simulation permits managers to test the effects of new policies and procedures without disrupting customer service.
C)As computers have increased in power,simulation results have become less accurate.
D)Computer-based simulation is the only "true" simulation.
Q3) Customers pass by any one of forty ticket takers on their way in the arena for a WWE event.This is a single ________ system.
Q4) Customers that leave the system after waiting in line for a while are ________,but customers that don't even join the line because it looks too long are ________.
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Chapter 8: Supply Management
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67 Flashcards
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Sample Questions
Q1) Terms and conditions for a purchased service that indicate what services will be performed and how the service provider will be evaluated are called a:
A)request for quotation.
B)bid specification.
C)preferred supplier contract.
D)statement of work.
Q2) Use of a single supplier for a part or service in part of the business and another supplier with the same capability for a different part or service in another area of the business is known as ________.
Q3) Horace Smithfield,Esq. ,was insistent that he pay a flat rate of $10,000,000 and not a penny more to transfer his inheritance through your checking account so he could move vast sums of cash out of his country.Sure,he had fallen out of favor with the government and the economy in his country was in a dire situation,but a deal was a deal and $10,000,000 was all he could afford to pay.This type of purchase contract was to be a(n)________ if you would kindly provide your account information..
Q4) ________ are high level,often strategic decisions regarding which products or services will be provided internally and which will be provided by external supply chain members.
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Chapter 9: Logistics
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Sample Questions
Q1) The landed cost is the sum of all of the logistics activities from packaging at the producer's site through transportation,handling,customs,and any other logistics fees to the point of sale.
A)True
B)False
Q2) The most detailed level of logistics information systems is the:
A)decision support system.
B)planning system.
C)material handling system.
D)execution system.
Q3) A location model that looks at the problem of serving various demand points from multiple supply points at the lowest cost is the ________.
Q4) ________ is a form of warehousing in which smaller outgoing shipments are created from large incoming shipments.
Q5) In order for the weighted center of gravity method to yield an optimal solution all of the transportation costs in the area must be identical.
A)True
B)False
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Chapter 10: Forecasting
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55 Flashcards
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Sample Questions
Q1) A video game publishing company needs to predict the total sales in the European market for the next year.This is an example of a(n):
A)firm-level demand forecast.
B)overall market demand forecast.
C)supply forecast.
D)price forecast.
Q2) The tracking signal calculated for the first forecast is always either +1 or -1.
A)True
B)False
Q3) Describe the mechanics of three qualitative forecasting techniques and compare their strengths and weaknesses.
Q4) Which of these quantitative techniques is a causal model?
A)linear regression
B)last period
C)exponential smoothing
D)weighted moving average
Q5) A seasonal index less than 1.0 means that the model is overforecasted.
A)True
B)False
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Chapter 11: Sales and Operations Planning Aggregate Planning
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55 Flashcards
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Sample Questions
Q1) What are the possibilities for matching capacity to sales and vice versa when doing S&OP in a service environment?
Q2) A production planner can confirm future capacity requirements based on released or planned orders by glancing at a(n)________.
Q3) Sales and operations planning indicates how the organization will use its tactical capacity resources to meet expected customer demand.
A)True
B)False
Q4) There are three phases to sales and operations planning implementation.The first phase,during which employees are trained,information systems implemented,and ideal products are identified for initial efforts is called ________.
Q5) At the beginning of the semester,you decide to devote 12 hours a week outside of class time to your operations management studies,regardless of scheduled tests,assignments,or project due dates.This is a level plan approach to your favorite course.
A)True
B)False
Q6) How can and why should a firm link S&OP throughout the supply chain?
Page 13
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Chapter 12: Managing Inventory Throughout the Supply Chain
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Sample Questions
Q1) The value of goods on a "per unit" basis far upstream in a supply chain is greater than the value of those same goods far downstream in a supply chain.
A)True
B)False
Q2) Cavalier Enterprises elects to hold no safety stock.Their service level is therefore ________.
Q3) In a(n)________ review system,orders are placed at a constant time interval,but in a(n)________ review system,a constant order is placed at a variable time level.
Q4) Gordon went to the grocery store and bought a bag of carrots.He needed only three for his cottage pie recipe,but they came twelve to a bag so he diced three and tossed the rest in the crisper compartment of his stainless steel refrigerator.As he screamed his insults at his children they reminded themselves that he wasn't upset with them,rather he was concerned about the high level of ________ stock he was holding.
Q5) The bullwhip effect says that a small change in demand downstream in the supply chain causes a large change in demand upstream.
A)True
B)False
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Chapter 13: Managing Production Across the Supply Chain
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56 Verified Questions
56 Flashcards
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Sample Questions
Q1) If a job has a negative critical ratio then it must be early.
A)True
B)False
Q2) In a bill of material,a parent may have many children but a child may have only one parent.
A)True
B)False
Q3) If a manufacturer had no inventory of any kind but had orders for 10 finished units of their sole product,their buyer would know what parts to order if they were supplied with a:
A)backward schedule.
B)bill of material.
C)rough-cut capacity plan.
D)planning horizon order sheet.
Q4) MRP nervousness refers to the notion that a small change at the top of a bill of material can have drastic effects on items farther down the bill of material.
A)True
B)False
Q5) Confirmed demand for products is called ________ in master scheduling.
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Chapter 14: S Supply Chain Information Systems
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39 Verified Questions
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Sample Questions
Q1) Which of these is NOT an essential characteristic of the cloud model?
A)preservation of metadata
B)on-demand self-service
C)broad network access
D)resource pooling
Q2) The purpose of the execution and transaction processing supply chain activities is to record and retrieve data and execute and control physical and monetary flows.
A)True
B)False
Q3) ERP's traditional strengths lie in routine decision making and in execution and transaction processing.
A)True
B)False
Q4) An organization can use ________ as a repository to access documents or other files from anywhere in the world whenever they are needed.
Q5) Long-term strategic questions such as facility location and sizing are addressed by
Q6) Warehouse and transportation planning systems support ________ planning efforts.
Page 16
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Chapter 15: Jitlean Production
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Sample Questions
Q1) Lean thinking has received considerable attention in the last decade,but tools such as kanbans cannot be used in all production environments.
A)True
B)False
Q2) Lean supply chain management focuses on eliminating waste:
A)in a firm's sourcing and logistics activities.
B)within a firm's internal operations.
C)in flows of information and money among supply chain partners.
D)in all of the above areas.
Q3) What is the Lean perspective on inventory?
Q4) One recent development in Lean thinking is the combination of Lean and Six Sigma into Lean Six Sigma,which combines the rigor of statistical analysis and DMAIC approach with Lean's focus on waste reduction.
A)True
B)False
Q5) A(n)________ is a production control approach that uses containers,cards,or visual cues to control production and movement of goods throughout the supply chain.
Q6) Just-in-time production is also referred to as ________.
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Chapter 16: Managing Projects
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Sample Questions
Q1) The actual work gets done during the ________ phase of a project.
Q2) The budget estimates made during the concept phase are usually accurate to within:
A)20 percent.
B)30 percent.
C)40 percent.
D)50 percent.
Q3) What are the phases of a project and the activities within each?
Q4) How many days can this project be shortened if money is no object?
A)6 days
B)9 days
C)10 days
D)13 days
Q5) Work on a project's constituent activities begins in the project's:
A)planning phase.
B)concept phase.
C)post-completion phase.
D)performance phase.
Q6) During the ________,project planners identify how to accomplish the work,how to organize for the project,and the key personnel and resources needed.
Page 18
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Chapter 17: Developing Products and Services
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Sample Questions
Q1) What are the four reasons that a company might develop new products and services?
Q2) The relationship between product functionality and product cost is quantified as ________.
Q3) The development of specifications for the manufacturing equipment needed to make the product is the responsibility of:
A)engineering.
B)marketing.
C)accounting.
D)purchasing.
Q4) The roof of the house of quality displays conflicts between the voice of the customer and product characteristics and permits designers to rapidly identify trade-offs.
A)True
B)False
Q5) The unexpected expenses associated with overhead and engineering change notices are ________.
Q6) The ________ is the process whereby many ideas are considered at the concept development phase but few ideas make it to the commercial development and launch phases.
Page 19
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