Production and Operations Management
Textbook Exam Questions
Course Introduction
Production and Operations Management focuses on the efficient transformation of inputs into finished goods and services, encompassing key concepts such as process design, capacity planning, quality management, inventory control, supply chain management, and workflow optimization. The course explores strategies for improving productivity, reducing costs, ensuring product quality, and responding effectively to market demand within manufacturing and service organizations. Students gain practical insight into tools and techniques used to plan, coordinate, and control business operations, preparing them to address real-world challenges in managing production systems.
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Purchasing and Supply Chain Management 7th Edition by van Weele
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15 Chapters
909 Verified Questions
909 Flashcards
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Page 2
Chapter 1: The Role of Purchasing in the Value Chain
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Sample Questions
Q1) Procurement and supply chain management can contribute to improving the company's bottom line in which of the following ways?
A) Quantitative only.
B) Qualitative only.
C) Both quantitative and qualitative.
D) Neither quantitative nor qualitative.
Answer: C
Q2) Which of the following explains 'supply chain'?
A) A series of companies (links) in which the final stages of production of an economic product take place.
B) A series of companies (links) in which the consecutive stages of production of an economic product take place, from primary producer to final consumer.
C) A series of companies (links) in which the initial stages of production of an economic product take place.
D) A series of companies (links) in which the final stages of production of an economic product take place and the product is distributed to final consumer.
Answer: B
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Chapter 2: Industrial Buying Behavior: Decision-Making in Purchasing
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Sample Questions
Q1) Which of the following is not a characteristic of a 'Routine product'?
A) These products produce few technical or commercial problems from a purchasing point of view.
B) They usually have a small value per item.
C) There are many alternative suppliers.
D) They are expensive to purchase.
Answer: D
Q2) Which of the following is not an element in a 'Technical specification'?
A) The specification of the technical properties of the product
B) The specification of the characteristics of the product.
C) The specification of the deadline for tenders to be submitted.
D) The specification of the activities to be performed by the supplier.
Answer: C
Q3) Which of the following better explains 'Competitive Bidding'?
A) This is a situation where a supplier asks for orders from different buyers.
B) This is a situation where a buyer asks for bids from different suppliers.
C) This is a situation where a buyer asks for information from one supplier.
D) This is a situation where a buyer asks for bids from different suppliers, creating a level playing field.
Answer: D
Page 4
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Chapter 3: The Purchasing Management Process
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Sample Questions
Q1) Which of the following explains 'Purchasing Authority'?
A) This allows a manager to legally bind their company to an external partner.
B) This allows a manager to legally bind their company to an internal partner.
C) This allows a manager to link their company to an external partner.
D) This allows a manager to legally bind their external partner.
Answer: A
Q2) Which of the following is the prime task and responsibility of purchasing?
A) Securing availability of required materials and services at consistent quality from reliable suppliers.
B) Securing availability of required materials and services from reliable suppliers.
C) Securing availability of required materials and services at consistent quality.
D) Securing services at consistent quality from reliable suppliers.
Answer: A
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5
Chapter 4: Buying Business Services
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Sample Questions
Q1) Which of the following processes is used to professionalize purchasing for purchasing excellence?
A) Supervisory management processes.
B) Operational management processes.
C) Tactical management processes.
D) Enabling process.
Q2) Which of the following factors will not be stressed by buyers when purchasing services?
A) Personal relationship.
B) Cost savings potential.
C) Clear contractual relationships.
D) Clear performance expectations.
Q3) Which of the following is not an example of an input specification?
A) Materials.
B) Hours.
C) Quality.
D) Equipment hours.
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Chapter 5: Contract Management for Complex Projects
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Sample Questions
Q1) Which of the following is a stage of contract management?
A) Research.
B) Contract negotiations.
C) Concept.
D) Independent evaluation.
Q2) Which of the following is a dimension of contract management?
A) Tendering.
B) Financial flow
C) Contracting
D) Evaluating.
Q3) Which of the following is an example of a large infrastructure project?
A) Refurbishing the toilets.
B) Bridge construction.
C) A roof repair.
D) Re-surfacing the car park.
Q4) Which of the following best explains 'outcome-oriented contract'?
A) How the contractor should deliver the work.
B) Specification of desired outcomes of contractor work.
C) Where the contractor should deliver the work.
D) Specification of required inputs.
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Chapter 6: Public Procurement
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Sample Questions
Q1) Which of the following is a European Directives public procurement procedure?
A) Open procedure.
B) Notification to unsuccessful bidders.
C) Competitive dialogue.
D) The prior information notice.
Q2) Which of the following disciplines is involved in public procurement?
A) Psychology.
B) Public administration.
C) Sociology.
D) Chemistry.
Q3) Which of the following is a European Directives public procurement procedure?
A) Design contest.
B) Notification procedure.
C) Selection procedure.
D) Closed procedure.
Q4) How many European Public Procurement Directives are there?
A) One.
B) Two.
C) Three.
D) Four.
Page 8
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Chapter 7: Purchasing and Business Strategy
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Sample Questions
Q1) Which of the following is a potential source from which competitive advantage could be derived in the purchasing domain?
A) Superior skills.
B) Buying a product at the cheapest price.
C) Buying a product efficiently.
D) Buying a product effectively.
Q2) Which of the following best describes 'Quality assurance'?
A) Minimising complaints.
B) Keeping up the methods and procedures of quality management.
C) Continuous improvement.
D) Achieving a quality award.
Q3) Which of the following is not a supplier strategy?
A) Partnership.
B) Competitive Bidding.
C) Secure Supply.
D) First respondent wins the order.
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9
Chapter 8: Outsourcing and Risk Management
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Sample Questions
Q1) Which of the following is not a supporting factor of an outsourcing relationship?
A) Developing a personal relationship.
B) Professional respect.
C) Commitment to continuous improvement.
D) Trust.
Q2) Which of the following best explains the concept of 'outsourcing'?
A) Transferring activities that were previously conducted in-house, to a third party.
B) Transferring activities to a third party.
C) Transferring activities that were previously externally, to another third party.
D) Transferring activities from one section of the organization to another.
Q3) Which of the following is a distinct phase of the outsourcing process?
A) The planning phase.
B) The operation phase.
C) The evaluation phase.
D) The withdrawal phase.
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Chapter 9: Category Sourcing: Developing Effective
Sourcing Strategies
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Sample Questions
Q1) Which of the following is not an element in a category sourcing plan?
A) Summary of expected results and costs.
B) Business strategy and business issues.
C) Analysis of historical data.
D) Current market share of suppliers.
Q2) Which of the following is not an item of marketing and communication expenditure?
A) Sponsorship.
B) Promotional items.
C) Market research.
D) Hotels and conferences.
Q3) Which of the following is not an item of IT infrastructure expenditure? A) Sponsorship.
B) Printers.
C) Mobile telecom services.
D) PCs.
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Chapter 10: Purchasing Innovation and Quality Management
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Sample Questions
Q1) Which of the following is not a type of quality cost?
A) Prevention costs.
B) Assessment costs.
C) Correction costs.
D) Accreditation costs.
Q2) Which of the following terms is not a potential short-term advantage of early supplier involvement?
A) Higher profit margins.
B) Better product quality.
C) Lower product costs.
D) Shorter development time.
Q3) Which of the following is not a feature of 'the plan-do-check-act cycle'?
A) Requirement.
B) Realization.
C) Verification.
D) Quality accreditation.
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Chapter 11: Purchasing Logistics and Supply Chain Management
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Sample Questions
Q1) Which of the following is not a characteristic of 'Materials Requirements Planning (MRP-I)'?
A) Releasing manufacturing orders.
B) Releasing purchasing requisitions.
C) Managing manufacturing orders and purchasing requisitions.
D) Controls relevant materials flows and production capacity.
Q2) Which of the following is a characteristic of 'Manufacturing Resources Planning (MRP-II)'?
A) Customer orders, the sales plan, the planned stocks of finished products, and the purchasing plans are linked together.
B) The resources needed are recorded in a document from which the required composition of manufacturing resources is derived.
C) This is a basis for computing the quantities of materials, semi-manufactured products and components which must be manufactured.
D) Priorities are derived directly from the master production schedule.
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13
Chapter 12: Purchasing Organization
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Sample Questions
Q1) Which of the following key factors are not necessary to realize and improve the global sourcing process?
A) Outsourcing.
B) Corporate commodity plans.
C) Cross-functional teams.
D) Standardization of logistics.
Q2) Which of the following are not advantages related to decentralized purchasing?
A) Dispersed purchasing power.
B) Direct responsibility for profit centres.
C) Less bureaucratic purchasing procedures.
D) Direct communication with suppliers.
Q3) Which of the following best explains 'corporate procurement officer (CPO)'?
A) The manager who is responsible for divisional purchasing for a corporation.
B) The manager who purchases catering services.
C) The senior executive who is responsible for the management and coordination of key purchasing and supply processes throughout the corporate organization.
D) The senior executive who is responsible for a limited range of purchasing and supply processes.
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Chapter 13: Performance Measurement and Governance in Purchasing
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Sample Questions
Q1) Which of the following best explains 'purchasing materials budget'?
A) The volume of planned purchases.
B) The volume per product item which is expected to be purchased for the next planning period and the expected price level for that specific product.
C) The total purchasing budget.
D) The purchasing budget for each item.
Q2) Which of the following is not a key performance indicator (KPI) for measuring the quality of incoming goods and services?
A) The line reject rate due to inferior quality of components.
B) The cost related to quality inspection and auditing of incoming goods.
C) This is the percentage of the volume that has been ordered from contracted suppliers versus the total contract spend.
D) The number of credit notes to suppliers and the cost related to non-quality deliveries.
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Chapter 14: Cost Approaches and Techniques
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Sample Questions
Q1) Which of the following best explains 'the customer's specification'?
A) The buyer knows precisely the cost of the material to be purchased.
B) The buyer can only obtain a rough indication of the product's cost by means of supply market research.
C) The buyer can only obtain a rough indication of the product's cost by means of demand market research.
D) The buyer knows precisely the profit margin on the material to be purchased.
Q2) Which of the following is not an internal factor influencing the purchase price?
A) Socio-political.
B) Logistics.
C) Technical.
D) Organizational.
Q3) Which of the following is not an external factor influencing the purchase price?
A) Economic.
B) Socio-political.
C) Technological.
D) Organizational.
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Chapter 15: Purchasing, Corporate Social Responsibility and Integrity
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Sample Questions
Q1) Which of the following promotes 'business integrity'?
A) Contractual relationships.
B) Explaining the company's business values and regulations on matters such as conflict of interest.
C) Prior experience.
D) Training and development.
Q2) Which of the following International Labour Office (ILO) Conventions relates to the prohibition and immediate action for the elimination of the worst forms of child labour?
A) Convention No. 138.
B) Convention No. 20400.
C) Convention No. 9001.
D) Convention No. 182
Q3) Which of the following is not an integral part of purchasing corporate social responsibility?
A) Rejection of any kind of forced labour.
B) Compliance with discrimination legislation.
C) Protection of employees and their health at work.
D) Price fixing.
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