Supply Chain Management
Final Exam Questions
Course Introduction
Supply Chain Management focuses on the strategic and operational activities involved in the flow of goods, services, and information from the point of origin to the final customer. The course explores supply chain design, logistics, sourcing, procurement, inventory management, transportation, and distribution. It examines the integration of suppliers, manufacturers, warehouses, and retailers to achieve efficient and cost-effective delivery of products. Topics also include the role of technology, sustainability, risk management, and global considerations in modern supply chains. Through case studies and practical applications, students learn how effective supply chain management impacts organizational success and customer satisfaction.
Recommended Textbook Operations Management Creating Value Along the Supply Chain 7th Edition by Roberta S. Russell
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Chapter 1: Operations Management
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Sample Questions
Q1) Operations research is concerned with the systematic analysis of work methods.
A)True
B)False
Answer: False
Q2) Briefly describe how operations can be viewed as a transformation process.
Answer: Operations is often defined as a transformation process.Inputs such as raw materials,labor,equipment,and capital are transformed into outputs goods and services).Customer feedback is used to adjust the transformation process.An objective of the operations manager is to ensure that the transformation process operates efficiently and the outputs of the process have greater value than the sum of the inputs.In this way the transformation process creates value,making it possible to view the transformation process as a value chain extending from supplier to customer.
Q3) Globalization of the supply chain for many products has many pros and few,if any,cons.
A)True
B)False
Answer: False
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Chapter 2: Quality Management
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Sample Questions
Q1) Statistical process control monitors and controls quality for both qualitative and quantitative variables.
A)True
B)False
Answer: True
Q2) With Six Sigma the project team leader is known as a Black Belt
A)True
B)False
Answer: True
Q3) From the producer's perspective quality is determined by what the consumer wants and is willing to pay for.
A)True
B)False
Answer: False
Q4) Quality of performance relates to the basic operating characteristics of a product.
A)True
B)False
Answer: True
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Page 4
Chapter 3: Statistical Quality Control
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Sample Questions
Q1) Special cause variation can be identified using statistical process control.
A)True
B)False
Answer: True
Q2) Control charts are never implemented until special cause variation has been detected in a process.
A)True
B)False
Answer: False
Q3) Statistical process control is only effective for service processes.
A)True
B)False
Answer: False
Q4) Unique or special cause variation reflects the random variation associated with the output of a process.
A)True
B)False
Answer: False
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Chapter 4: Product Design
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Sample Questions
Q1) Products designed to withstand variations in operating conditions are said to be robust.
A)True
B)False
Q2) Form design refers to the physical appearance of a product.
A)True
B)False
Q3) The design process begins with understanding the customer and identifying customer needs.
A)True
B)False
Q4) The final design consists of detailed drawings and specifications for the new product.
A)True
B)False
Q5) Collaborative product design CPD)software provides interconnectivity among members of a product's supply chain.
A)True
B)False
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Chapter 5: Service Design
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Sample Questions
Q1) A service counter employs two servers.On average a server requires 8 minutes to process a customer and service times follow an exponential distribution.Customers arrive at the counter at the rate of 12 per hour according to a Poisson distribution.The average amount of time spent by a customer waiting in line is approximately
A)0.370 minutes
B)2.844 minutes
C)14.22 minutes
D)22.20 minutes
Q2) A service package defines the target market and the desired customer experience.
A)True
B)False
Q3) A single waiting line model can be applied to every type of waiting line system.
A)True B)False
Q4) Waiting lines form because customers arrival times and service times are not always equal.
A)True
B)False
Q5) Briefly describe the traditional cost relationship in waiting line analysis.
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Chapter 6: Processes and Technology
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Sample Questions
Q1) Variable demand and small to moderate quantities produced to order are characteristics usually associated with A)mass production
B)continuous production
C)projects
D)batch production
Q2) The ease of adjusting resources in response to changes in demand defines firm's
A)vertical integration
B)process flexibility
C)customer involvement
D)capital intensity
Q3) Batch production is also known as a job shop because it creates more jobs than any of the other process choices
A)True
B)False
Q4) A firm's process strategy defines all of the following except its A)capital intensity.
B)process flexibility.
C)vertical integration.
D)process selection.
Page 8
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Chapter 17: Scheduling
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Sample Questions
Q1) Scheduling using the theory of constraints (TOC)requires that process batch sizes and transfer batch sizes always match.
A)True
B)False
Q2) The dispatch list contains the order in which work is assigned to a productive resource.
A)True
B)False
Q3) With drum-buffer-rope (DBR)the bottleneck resource is always the buffer.
A)True
B)False
Q4) The sequencing rule that will minimize average job completion time for a set number of jobs to be processed on one machine is
A)first-come-first served (FCFS).
B)longest processing time (LPT).
C)shortest process time (SPT).
D)due date (DDATE).
Q5) What is the difference between infinite scheduling and finite scheduling?
Q6) List some of the objectives in scheduling.
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Chapter 7: Capacity and Facilities
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Sample Questions
Q1) An important advantage of a process layout over a product layout is efficiency.
A)True
B)False
Q2) What type of layout is commonly used in services? What are some of the objectives associated with service layouts?
Q3) The cycle time refers to the maximum amount of time a product is allowed to spend at each workstation.
A)True
B)False
Q4) Which of the following statements is most true?
A)product layouts are flexible;process layouts are efficient
B)product layouts are efficient;process layouts are flexible
C)product and process layouts are equally flexible;neither are efficient
D)product and process layout are equally efficient;neither are flexible
Q5) General as opposed to specific purpose equipment is typically found in a process layout.
A)True
B)False
Q6) Briefly describe the two constraints under which assembly line balancing must operate.
Page 10
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Chapter 8: Human Resources
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Sample Questions
Q1) Which of the following is not a true statement regarding learning curves?
A)learning curves can help managers project labor requirements
B)learning curves are not affected by product modifications
C)learning curves are useful in developing production scheduling plans
D)learning curves can help make overall product cost estimates
Q2) Fitting the task to the employee in a work environment is known as
A)motivation.
B)worker analysis.
C)ergonomics.
D)task analysis.
Q3) A 90% learning curve indicates
A)a 90% increase in processing time per unit as output doubles.
B)a 90% decrease in processing time per unit as output doubles.
C)a 10% increase in processing time per unit as output doubles.
D)a 10% decrease in processing time per unit as output doubles.
Q4) The objective of ergonomics is to make the best use of employees' capabilities while maintaining the employees' health and well-being.
A)True
B)False
Q5) Briefly discuss the advantages and disadvantages of scientific management.
Page 11
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Chapter 9: Project Management
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Sample Questions
Q1) Using Table 9.1,the latest start (LS)time for activity B is
A)5 weeks.
B)8 weeks.
C)13 weeks.
D)14 weeks.
Q2) A unique,one-time operational activity or effort is referred to as a process.
A)True
B)False
Q3) Because the critical path is the shortest path through a network it defines the minimum project completion time.
A)True
B)False
Q4) Project scope involves a set of procedures for anticipating and assessing uncertainties that might increase the risk of delaying the project.
A)True
B)False
Q5) Briefly discuss project management and what it involves.
Q6) Briefly describe the makeup of the project management team.
Q7) Why have projects taken on a more crucial role in operations management?
Page 12
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Chapter 10: Supply Chain Management: Strategy and Design
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Sample Questions
Q1) Enterprise Resource Planning ERP)is software that helps integrate many of the supply chain components by sharing and organizing information and data among supply chain members.
A)True
B)False
Q2) List and explain the three key supply chain performance indicators.
Q3) Companies address uncertainty in their supply chains by holding extra inventory.
A)True
B)False
Q4) All of the following are performance metrics in the SCOR system,except A)perfect order fulfillment.
B)production flexibility.
C)value-added productivity.
D)asset fulfillment.
Q5) Increased uncertainty and variability in a supply chain typically results in A)faster deliveries.
B)more accurate order fulfillment.
C)larger inventories.
D)lower costs.
Q6) What processes comprise the supply chain and how are the processes integrated? Page 13
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Page 14
Chapter 11: Global Supply Chain Procurement and Distribution
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Sample Questions
Q1) E-procurement is most often used for
A)domestic goods.
B)indirect goods.
C)finished goods.
D)international goods.
Q2) A transportation management system controls activities at a facility's dock and schedules appointments.
A)True
B)False
Q3) Transportation involves the movement of a product within a warehouse or distribution center.
A)True
B)False
Q4) Partnerships between customers and suppliers are beneficial because they
A)provide security and stability.
B)reduce the need for global suppliers.
C)enhance competition in the supply chain.
D)require suppliers to build facilities near the customer.
Page 15
Q5) Explain the concept of landed cost and discuss how it is used to make global sourcing decisions.
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Chapter 12: Forecasting
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Sample Questions
Q1) A large positive cumulative error indicates that the forecast is probably
A)higher than the actual demand.
B)lower than the actual demand.
C)unbiased.
D)biased.
Q2) The _________________ forecast method consists of an exponentially smoothed forecast with a trend adjustment factor added to it.
A)Exponentially smoothed
B)Adjusted exponentially smoothed
C)Time series
D)Moving average
Q3) A mathematical technique for forecasting that relates the dependent variable to an independent variable is
A)correlation analysis.
B)exponential smoothing.
C)linear regression.
D)weighted moving average.
Q4) Time series methods use historical data to predict future demand.
A)True
B)False
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Chapter 13: Inventory Management
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Sample Questions
Q1) Buffer inventories provide independence between different stages of the production process.
A)True
B)False
Q2) With the economic order quantity (EOQ)model ,the number of orders increases as the order size decreases.
A)True
B)False
Q3) Dependent demand is determined by external market conditions.
A)True
B)False
Q4) The demand for an electronic component is normally distributed with an average daily demand of 500 units and a standard deviation of 50.The lead-time for the component is 9 days.If a service level of 95% is desired then the company's reorder point for this component is approximately
A)3785 units.
B)4500 units.
C)4627units.
D)4747units.
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Chapter 13: Operational Decision-Making Tools: Simulation
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Sample Questions
Q1) After a sufficient number of simulation runs a steady state results when the variable being investigated reaches an _________ value that remains constant.
A)optimal
B)average
C)expected
D)estimated
Q2) The ______________ technique selects numbers randomly from a probability distribution for use in a trial run of a simulation.
A)Computer World
B)Monaco
C)steady-state
D)None of the above.
Q3) Because simulation is used to analyze probabilistic problems it provides information that is used to make a decision versus an optimal solution.
A)True
B)False
Q4) What is simulation and why is it a popular decision-making tool?
Q5) In what ways is simulation relevant to analyzing production problems?
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Chapter 14: Operational Decision-Making Tools: Linear Programming
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Sample Questions
Q1) A company produces product A and product B.Each product must go through two processes.Each A produced requires two hours in process 1 and five hours in process 2.Each B produced requires six hours in process 1 and three hours in process 2.There are 80 hours of capacity available each week in each process.Each A produced generates $6.00 in profit for the company.Each B produced generates $9.00 in profit for the company.If the company produces 6 units of A and 9 units of B the company's objective function is
A)$6.00A + $9.00B
B)$9.00A + $6.00B
C)$6.00A - $9.00B
D)$6.00A*$9.00B
Q2) The optimal solution for a linear programming problem will always occur
A)when the slack price equals the surplus price.
B)when the surplus price equals the slack price.
C)at an extreme point.
D)at a non-extreme point.
Q3) Briefly define the components that comprise a linear programming model.
Q4) What is meant by the term "shadow price" in linear programming?
Q5) How is linear programming useful to an operations manager?
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Chapter 14: The Sales and Operations Planning Process
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Sample Questions
Q1) What are the outputs of aggregate planning?
Q2) Yield management can be used to address all of the following problems except A)overbooking.
B)portioning demand into fare classes.
C)single order quantities.
D)backorders.
Q3) Which of the following is not a characteristic of aggregate planning for services?
A)labor is usually the most constraining resource for services
B)service capacity must be provided at the appropriate place and time
C)demand for services is easy to predict
D)capacity for services is difficult to predict
Q4) Disaggregation is the process of breaking a sales and operations plan into more detailed plans.
A)True
B)False
Q5) An operations plan is an input into the sales and operations planning process.
A)True
B)False
Q6) Briefly discuss the two primary objectives of aggregate planning.
Page 20
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Chapter 15: Resource Planning
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Sample Questions
Q1) All of the following can be used for underloaded conditions except A)acquiring additional work.
B)pushing work back.
C)pulling work ahead.
D)reducing normal capacity.
Q2) Customer relationship management (CRM)software plans and executes business processes that involve customer interactions.
A)True
B)False
Q3) What is Enterprise Resource Planning (ERP)?
Q4) Information concerning on-hand quantities,lot sizes and,lead time,figures can be found in the master production schedule (MPS).
A)True
B)False
Q5) Capacity requirements planning (CRP)projects the load from a given material plan onto the capacity of a system.
A)True
B)False
Q6) How does MRP differ from traditional inventory control systems?
Page 21
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Chapter 16: Lean Systems
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Sample Questions
Q1) In lean production,waste is defined as anything that does not add value to the product.
A)True
B)False
Q2) In a pull production system a card that corresponds to a standard quantity of production is known as a(n)
A)jidoka.
B)andon.
C)kanban.
D)kaizen.
Q3) ______________ setups that can be performed in advance while the machine is running.
A)Internal
B)External
C)Parallel
D)Unnecessary
Q4) A kanban square is a marked area designated for holding a set quantity of output.
A)True B)False
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Chapter 18: Operational Decision-Making Tools: Decision Analysis
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Sample Questions
Q1) Quantitative methods are tools available to operations managers to help make a decision but not a recommendation.
A)True
B)False
Q2) The LaPlace criterion is a decision criterion in which each state of nature is weighted equally.
A)True
B)False
Q3) A sequential decision tree is a graphical method for analyzing decision situations that require a sequence of decisions over time.
A)True
B)False
Q4) A decision criterion in which the decision payoffs are weighted by a coefficient of optimism is known as the Hurwicz criterion.
A)True
B)False
Q5) The outcome of a decision in referred to as a payoff.
A)True
B)False
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Chapter 19: Operational Decision-Making Tools: Acceptance Sampling
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Sample Questions
Q1) Choosing among a single-,double- and multiple-sampling plans is a strategic versus an economic decision.
A)True
B)False
Q2) With a single-sample attribute plan only one of the items randomly sampled from a lot is inspected.
A)True
B)False
Q3) Acceptance sampling is based on the premise that a lot contains some acceptable number of defective items.
A)True
B)False
Q4) The consumer's willingness to accept lots with a small proportion of defective items is known as the acceptable
A)sampling plan.
B)quality level.
C)consumer's risk.
D)producer's risk.
Page 24
Q5) What is the advantage of a multiple-sampling plan?
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Chapter 20: Decision-Making Tools: Facility Location Models
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Sample Questions
Q1) Common location incentives include all of the following except A)tax credits.
B)job training.
C)fixed exchange rates.
D)improvements to infrastructure.
Q2) The center of gravity technique outlines a method for identifying and weighing important location factors.
A)True
B)False
Q3) Which type of facility is large and expensive?
A)light-industry facilities
B)retail and service facilities
C)heavy-manufacturing facilities
D)medium-site facilities
Q4) Service facilities are usually the largest and most expensive type of facility.
A)True
B)False
Q5) Transportation costs are generally a function of distance,weight,and time. A)True
B)False
25
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Chapter 21: Operational Decision-Making Tools: Work Measurement
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Sample Questions
Q1) _____________ time is the time required by an "average" worker to perform a job under normal circumstances and conditions.
A)Stopwatch
B)Standard
C)Allowance
D)Average
Q2) Determining the length of time it takes to do a job is known as work measurement.
A)True
B)False
Q3) Work sampling tends to be more disruptive on the workplace than time studies.
A)True
B)False
Q4) What is work sampling and what is its primary use?
Q5) A time study is a statistical sample distribution,where the number of cycles is the sample size.
A)True
B)False
Q6) List the steps in work sampling.
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