Supply Chain Management
Exam Questions
Course Introduction
Supply Chain Management focuses on the coordination and integration of activities involved in the production, shipment, and distribution of products. This course covers the strategies, tools, and processes that organizations use to manage the flow of goods, information, and finances from raw material suppliers to end consumers. Students will explore topics such as procurement, logistics, inventory management, demand forecasting, supplier relationships, and the impact of globalization and technology on supply chains. Emphasis is placed on efficiency, sustainability, risk management, and the use of data-driven decision-making to optimize supply chain performance and deliver value to customers and organizations alike.
Recommended Textbook operations management an integrated approach 6th edition by r. dan reid
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Chapter 1: Introduction to Operations Management
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Q1) Companies that have low customer contact and are capital intensive, yet provide a service, are called service factories.
A)True
B)False
Answer: False
Q2) When were the Hawthorne Studies conducted?
A) 1770s
B) 1830s
C) 1930s
D) 1960s
E) 1980s
Answer: C
Q3) The creator of scientific management believed that worker productivity was governed by scientific laws.
A)True
B)False
Answer: True
Q4) What are environmental issues faced by business?
Answer: air pollution, water pollution, global warming, and waste disposal
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Chapter 2: Operations Strategy and Competitiveness
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Sample Questions
Q1) Suggest some core competencies that companies may have.
Answer: highly trained workforce, responsive in meeting customer needs, flexible in performing a variety of tasks, strong technical capability, creative in product design, flexible in producing a variety of products, technologically advanced, an efficient distribution system, skilled in understanding customer wants and predicting market trends, skilled in attracting and raising capital, use of latest production technology, use of information technology, and quality control techniques.
Q2) When does productivity increase?
A) inputs increase while outputs remain the same
B) inputs decrease while outputs remain the same
C) outputs decrease while inputs remain the same
D) inputs and outputs increase proportionally
E) none of the above
Answer: B
Q3) Last week George mowed 6 lawns in two days. This week he mowed 8 lawns in three days. In which week was George more productive?
Answer: last week
Q4) Environmental scanning helps organizations recognize
Answer: opportunities and threats.
Page 4
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Chapter 3: Product Design and Process Selection
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Sample Questions
Q1) Which of the following is true regarding the relative predictability of the cycle of new product introductions?
A) new car models are predictable, but new fashion and new skin care products are not
B) new car models and new fashion are predictable, but new skin care products are not
C) new car models, new fashion, and new skin care products are all predictable
D) new car models, new fashion, and new skin care products are all unpredictable
E) new fashion and new skin care products are predictable, but new car models are not
Answer: B
Q2) Which type of operational function represents an Assemble-to-Order?
A) wedding invitations
B) corporate training
C) airline flights
D) legal services
E) vacation packages
Answer: B
Q3) Name a company that hurt its business success by changing its Operations Type.
Answer: Babcock & Wilcox is one example.
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5
Chapter 4: Supply Chain Management
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Sample Questions
Q1) What is an extension of an intranet to include suppliers and customers called?
A) supply chain net
B) supernet
C) supranet
D) extranet
E) intranet++
Q2) Big Oil Refinery is losing money every month. They cannot shut down the refinery. What quantity of product should they make in an effort to break even? Their primary product sale price is $1.50 per gallon. The production fixed cost is $36,000/day. The variable cost per gallon is $1.20.
Q3) A firm whose variable cost of providing a function is $10 while a potential supplier will outsource the function if ______________________
Q4) Service organization supply chains are:
A) similar to manufacturing organizations.
B) not similar to service organizations.
C) very unique.
D) not a consideration when planning a service organization.
E) universally government regulated.
Q5) List some benefits derived from E-commerce.
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Chapter 5: Total Quality Management
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Sample Questions
Q1) A useful tool for translating customers' everyday language into specific technical requirements is
A) Quality Function Deployment
B) Quality circles
C) Quality of design
D) Scatter diagrams
E) Cause-and-effect diagrams
Q2) When using SPC if you plot the variable of interest against a timeline you are using
A) scatter diagrams
B) control charts
C) fishbone diagrams
D) pareto charts
E) flow charts
Q3) In using Quality Function Deployment, conducting focus groups is one way to find out precisely what features customers want in the product.
A)True
B)False
Q4) TQM philosophy focuses on seven basic concepts. What are they?
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Chapter 6: Statistical Quality Control
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Sample Questions
Q1) What is the only service company to have won the Malcolm Baldrige National Quality Award twice?
A) Marriott
B) Nordstrom Department Stores
C) Wal-Mart
D) Ritz-Carlton
E) Northwest Airlines
Q2) What does "OC" stand for?
Q3) What is the lower control limit for a c-chart if the average number of defects found over 320 samples is equal to 16?
A) 6.584
B) 4
C) 20
D) 0
E) 12
Q4) Describe the two aspects to implementing the six-sigma concept.
Q5) A skewed distribution implies that assignable causes of variation may be present.
A)True
B)False
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Chapter 7: Just-In-Time and Lean Systems
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Q1) Scheduling two, 12-hour shifts and a 4-hour housekeeping and repair shift each workday is an example of ___________________.
Q2) In making specific changes to JIT manufacturing, which of the following steps should come first?
A) reduce lot sizes and lead times
B) switch to pull production
C) reorganize workplace
D) reduce setup times
E) implement layout changes
Q3) Consider a workstation that can process 1060 units per hour. It takes 15 minutes to receive an order from the previous station. The container size is 20 units. The factory sets safety stock at 20 percent of demand during lead time. How many kanbans are needed for the workstation?
Q4) The role of production employees in JIT includes all of the following except
A) Be actively engaged in improving the production process
B) Monitor quality
C) Record data
D) Follow clearly defined and limiting work rules
E) Act on the information they have
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Chapter 8: Forecasting
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Sample Questions
Q1) Suppose that you are using the naïve forecasting method with trend to forecast sales. If sales have been declining by 20% per week, and this week's sales amounted to $200, what would your forecast be for next week?
A) $200
B) $ 40
C) $240
D) $180
E) $160
Q2) What is the exponential smoothing formula?
Q3) Suppose that you are using the four-period simple moving average method to forecast sales, and sales have been increasing by 40% every period. How will your forecasts perform?
A) Forecasts will be increasing by 40.0% every period.
B) Forecasts will be higher than actual.
C) Forecasts will equal actual.
D) Forecasts will be decreasing.
E) Forecasts will be increasing by 10.0% every period.
Q4) Nearly all other business decisions depend on _______________.
Q5) The most frequently used forecasting model is the ____________.
Q6) What are the five basic steps in the forecasting process?
Page 10
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Chapter 9: Capacity Planning and Facility Location
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Sample Questions
Q1) Capacity decisions at the strategic level include ____________________.
A) investment in new facilities and equipment
B) size of workforce
C) inventory buffers
D) day-to-day use of machines
E) composition of the workforce
Q2) Issues that need to be considered in location globally include all of the following except ______________.
A) different cultures
B) FEC accounting requirements
C) language barriers
D) different laws
E) different business practices
Q3) The first level of capacity planning is at the strategic level.
A)True
B)False
Q4) How should forecasts of long-range demand be developed for identifying capacity requirements?
Q5) How are capacity planning and location analysis similar?
Q6) Discuss why marketing is important in making capacity decisions.
Page 11
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Chapter 10: Facility Layout
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Sample Questions
Q1) Which of the following is more like a product layout as compared to a process layout?
A) Resources used are general purpose.
B) Facilities are less capital intensive.
C) Processing rates are slower.
D) Space requirements for inventory storage are lower.
E) Scheduling resources is more challenging.
Q2) Which of the following is more like a product layout as compared to a process layout?
A) Resources used are general purpose.
B) Facilities are less capital intensive.
C) Processing rates are slower.
D) Space requirements for inventory storage are higher.
E) Scheduling resources is less challenging.
Q3) As compared to a process layout, a product layout generally requires less skilled workers.
A)True
B)False
Q4) While traditional walls and doors provide privacy, they reduce _____________ and opportunities for ______________.
Page 12
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Chapter 11: Work System Design
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Sample Questions
Q1) When deciding if the firm should participate in alternative workplace arrangements you must ensure that the same level of direct report control is maintained.
A)True
B)False
Q2) For each work element in the time study, multiplying the mean observed time by the performance rating factor by the frequency of occurrence results in what?
A) the normal time for the element
B) the average observed time for the element
C) the standard time for the element
D) the average delay for the element
E) the standard time for the job
Q3) The standard time is the time it should take a qualified operator, working at a sustainable pace and using the appropriate tools and process, to do the job.
A)True
B)False
Q4) Jobs that are physically and mentally doable are said to be
Q5) Discuss how job design is related to the supply chain.
Q6) Calculating the learning rate is a means for ____________.
Page 13
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Chapter 12: Inventory Management
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Sample Questions
Q1) Which inventory function specifically is designed to allow the company to maintain a level production strategy?
A) anticipation inventory
B) fluctuation inventory
C) lot-size inventory
D) transportation inventory
E) speculative inventory
Q2) List some advantages of small order quantities.
Q3) What costs are considered in the basic EOQ model?
A) annual ordering costs + annual holding costs
B) annual purchasing costs + annual holding costs
C) annual ordering costs + annual holding costs + annual shortage costs
D) annual purchasing costs + annual ordering costs + annual holding costs + annual shortage costs
E) ordering costs per order + annual holding costs
Q4) Lot-for-lot ordering is commonly used in materials requirements planning systems.
A)True
B)False
Q5) What does WIP stand for?
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Chapter 13: Aggregate Planning
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Q1) Using a level production plan how many oil changes must each employee be capable of to meet a weekly demand of 1400 oil changes in a five day work week if there are 4 employees?
A) 40
B) 50
C) 60
D) 70
E) 80
Q2) Discuss some of the human resource concerns you should have when evaluating the production plan.
Q3) What are the steps involved in developing the aggregate plan?
Q4) An advantage of the chase aggregate plan is ____________________________.
A) workforce instability
B) excess hiring
C) space requirements
D) minimizes finished good holding costs
E) excessive purchase of additional tools and equipment
Q5) If the marketing plan does not meet the strategic business objectives, top management and marketing revise either the _________ or the ___________.
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Chapter 14: Resource Planning
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Q1) An action notice is generated
A) for planned orders in any period
B) only for orders that are to be released to the shop floor
C) only for movements to and from the warehouse
D) only when marketing needs to be notified
E) when a planned order needs to be released
Q2) What transactions can cause information in the inventory records file to change?
Q3) According to the textbook, most manufacturing operations, production or inventory control planners are responsible for working with MRP. Planners are typically responsible for all except which of the following:
A) end item inventory items
B) subassemblies inventory items
C) component inventory items
D) raw material pricing
E) supplier delays
Q4) MRP develops a time-phased schedule that shows future demand, supply and inventories by time period.
A)True
B)False
Page 16
Q5) Explain how Dell Computer has become able to implement mass customization.
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Chapter 15: Scheduling
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Sample Questions
Q1) When were Gantt charts developed?
A) early 1800s
B) early 1900s
C) early 1920s
D) early 1940s
E) early 1960s
Q2) Define job tardiness.
Q3) Negative lateness means the job is finished before the due date.
A)True
B)False
Q4) A Gantt chart is a basic scheduling tool for low-volume systems.
A)True
B)False
Q5) According to the text, a system's input is determined by three kinds of constraints: internal resource constraint, market constraint, and policy constraint.
A)True
B)False
Q6) Define job lateness.
Q7) What are the two major kinds of Gantt charts?
Q8) Eli Goldratt's bottleneck scheduling system is called _____________.
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Chapter 16: Project Management
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Q1) An activity in a network diagram has an optimistic time estimate of five days, a most likely time estimate of seven days, and a pessimistic time estimate of 15 days. Its expected time is eight days.
A)True
B)False
Q2) In making a backward pass through a network, activity L has an activity time of 4 and immediately precedes activities M, P, and T. The late start times for activities M, P, and T are 22, 17, and 27, respectively. The late finish times for activities M, P, and T are 29, 27, and 33, respectively. What is the late finish time for activity L?
A) 13
B) 17
C) 22
D) 33
E) 37
Q3) The termination phase in the project life cycle involves identifying the need for the project.
A)True
B)False
Q4) Discuss how to develop the critical path variance.
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Chapter 17: Spreadsheet Modeling: An Introduction
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Q1) Excel's COUNT function returns the ______ of cells containing numerical values.
Q2) In Excel, what are the three arguments that a MATCH function takes?
A) Lookup_value, Match_type, and Lookup_array
B) Lookup_value, Match_type, and Array
C) Lookup_value, Column_num, and Lookup_array
D) Array, Row_num, and Column_num
E) Lookup_array, Row_num, and Column_num
Q3) One mistake Excel users make in forming the DATA TABLE is:
A) use too large data steps.
B) use incorrect addressing.
C) forget to leave the first cell blank in the data column.
D) forget to label the columns.
E) modify the default settings.
Q4) In the Excel MATCH function, which argument is the value that we want to test?
A) Lookup_array
B) Array
C) Value
D) Match_type
E) Lookup_value
Q5) Describe five main types of models.
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Chapter 18: Introduction to Optimization
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Q1) Formulate the following as a linear programming problem. Jan lives in the country and is having a garage sale tomorrow. She has decided to sell some fresh baked goods in conjunction with the sale. She has excellent recipes for apple pie and for apple turnovers. She has 20.83 pounds of apples. Each pie will require 1.6 pounds of apples and each turnover will require 0.22 pounds of apples. She has discovered that she is short of both flour and sugar and does not want to make another trip to the store tonight. She has 5.7 pounds of flour and 200 grams of sugar. Each pie will require 0.6 pounds of flour and 11 grams of sugar. Each turnover will require .02 pounds of flour and 3 grams of sugar. She will sell pies for $6 each and turnovers for $0.75 each. She has decided to make 8 pies at most, because she is concerned about how well they will sell.
Q2) Which type of constraint does not allow the solution for a decision variable of an optimization problem to be less than zero?
A) negativity
B) positivity
C) anti-negativity
D) feasibility
E) non-negativity
Q3) In Solver, the __________ is the cell that you want to maximize or minimize.
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Chapter 19: Waiting Line Models
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Sample Questions
Q1) When calculating waiting line metrics you must ensure that the arrival rate and service rate are:
A) for the same day.
B) for the same probability.
C) for the same site.
D) for the same time period.
E) for the same utilization factor.
Q2) For a single-line, multi-server, single-phase waiting line system, where \(\lambda\) represents the mean arrival rate of customers and \(\mu\) represents the mean service rate for each of s identical servers, what is the formula for the average utilization of the system?
A) \(\lambda\) / \(\mu\)
B) \(\lambda\) / (\(\mu\) - \(\lambda\))
C) \(\lambda\) / s \(\mu\)
D) s / (\(\mu\) - \(\lambda\))
E) \(\lambda\) / s (\(\mu\) - \(\lambda\))
Q3) Identify the three assumptions the textbook uses for the single-line, multi-server, single-phase model.
Q4) List some system changes one can make to try to improve waiting line performance.
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Chapter 20: Master Scheduling and Rough-Cut Capacity Planning
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Q1) Johnny Now, Inc. produces two different models of outhouses. Demand next period is expected to be 12,000 and 18,000 units for Models A and B, respectively. Model A has CPOPF planning factors of 0.75 and 0.60 for direct labor and machine time, respectively. Model B has CPOPF planning factors of 0.50 and 0.80 for direct labor and machine time, respectively. Historically department G uses 24% of the direct labor and machine time for these products, while department H uses the remaining 76%. What is the machine time requirement for department G next period?
A) 5,184 hours
B) 4,320 hours
C) 7,200 hours
D) 21,600 hours
E) 16,416 hours
Q2) A master production schedule incorporates production lead time.
A)True
B)False
Q3) Describe what CPOPF is.
Q4) In an MPS record, MPS shipments arrive at the beginning of the time period.
A)True
B)False
Page 22
Q5) Discuss how the MPS is evaluated in terms of cost.
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