Supply Chain Management
Practice Exam
Course Introduction
Supply Chain Management explores the strategies, processes, and technologies involved in the effective coordination of activities from raw material sourcing to final product delivery. The course covers key concepts such as procurement, logistics, inventory management, demand forecasting, and the integration of information systems to optimize the flow of goods, services, and information across organizational and geographical boundaries. Emphasis is placed on understanding how global supply chains contribute to competitive advantage, sustainability, risk management, and customer satisfaction while navigating challenges presented by globalization, disruptions, and evolving market demands.
Recommended Textbook
OM 3rd Edition by David
Alan Collier
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18 Chapters
1344 Verified Questions
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Page 2
Chapter 1: Goods, Services, and Operations Management
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Sample Questions
Q1) Taking a customer order at a quick service restaurant would generally be viewed as a support process.
A)True
B)False
Answer: False
Q2) Which of the following is the correct sequence describing the evolution of operations management?
A)efficiency, customization, quality, service, sustainability, time-based competition
B)quality, efficiency, time-based competition, sustainability, customization, service
C)efficiency, quality, customization, time-based competition, service, sustainability
D)quality, service, customization, time-based competition, efficiency, sustainability
Answer: C
Q3) Process thinking is the traditional way of viewing an organization by function. A)True
B)False
Answer: False
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Chapter 2: Value Chains
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Sample Questions
Q1) A value chain describes the flow of customer information through a production system.
A)True
B)False
Answer: False
Q2) Vertical integration is a modern method of outsourcing.
A)True
B)False
Answer: False
Q3) A competitively dominant customer experience is often called a
A)perceived benefit
B)preemptive strike
C)moment of truth
D)value proposition
Answer: D
Q4) A vertical integration strategy provides a firm more control while generally reducing the complexity of managing the value chain.
A)True
B)False
Answer: False
Page 4
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Chapter 3: Measuring Performance in Operations
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Sample Questions
Q1) A family rents videos from a local video store. On average, they spend $80.00 a month. The store's contribution margin is 45 percent and the average customer defection is 40 percent. Determine the value of a loyal customer.
Answer: VLC = P * CM * RF * BLC VLC = (80)(.45)(12)(1/.4) = $1,080.00
Q2) Which of the following is not a key dimension of service quality?
A)conformance
B)tangibles
C)empathy
D)reliability
Answer: A
Q3) Dell's ability to provide a wide range of customized computer hardware to accommodate customers' needs best describes
A)volume flexibility
B)design flexibility
C)cycle time
D)queue time
Answer: B
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Chapter 4: Operations Strategy
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Sample Questions
Q1) Quality improvement initiatives generally increase market share in the long term and also increase profitability in the short term.
A)True
B)False
Q2) What is the difference between corporate, business and functional strategy?
Q3) Innovation does not necessarily involve practical application or commercialization.
A)True
B)False
Q4) The customer benefit package that a firm designs is meant to appeal to all customers.
A)True
B)False
Q5) The color and size of an iPod would be considered credence attributes.
A)True
B)False
Q6) What do we mean by core competencies?
Q7) What are competitive priorities? Provide some examples of how OM influences the five major types of competitive priorities.
Page 6
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Chapter 5: Technology and Operations Management
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Sample Questions
Q1) List some of the key issues that organizations face in using technology.
Q2) ____ involves computer control of a manufacturing process, such as determining tool movements and cutting speeds.
A)Computer-Aided Design/Computer-Aided Engineering (CAD/CAE)
B)Computer-Aided Manufacturing (CAM)
C)Enterprise Resource Planning (ERP)
D)Flexible Manufacturing Systems (FMS)
Q3) Bar codes are the modern successor to RFID tags.
A)True
B)False
Q4) Customer Relationship Management (CRM) systems use segmentation data to help focus marketing initiatives and provide data for tracing sales trends and advertising effectiveness.
A)True
B)False
Q5) Describe the three stages of the technology development and adoption process.
Q6) High scalability is the capability to serve additional customers at high incremental variable costs.
A)True
B)False
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Chapter 6: Goods and Service Design
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Sample Questions
Q1) An ATM machine provides four sequential steps in processing a transaction. Over the last quarter, the reliability of each of these steps was 0.92, 0.97, 0.95 and 0.90. What is the overall reliability of the machine? How much can reliability be improved if the reliability of the fourth step is increased to 0.98?
Q2) Reliability is formally expressed as a probability between 0 and 1.
A)True
B)False
Q3) The text presents an integrative case study of LensCrafters. Which statement is correct?
A)LensCrafters primary product is eyewear.
B)Each store has very different layout and servicescape.
C)Each store has a visible low contact area.
D)Low cost makes a long drive to a LensCrafters store worthwhile.
Q4) In general, the designs of both goods and services follow a similar path. The critical differences lie in the detailed product and process design phases.
A)True
B)False
Q5) Describe the Taguchi loss function. Contrast it to the "goal post" model.
Q6) List the five elements of a service delivery system.
Page 8
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Chapter 7: Process Selection, Design, and Analysis
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Sample Questions
Q1) Flow shop processes are more rigid and specialized than continuous flow processes.
A)True
B)False
Q2) How many computer repair troubleshooters should be on duty from 8:00 p.m. to midnight if total demand during that period is 60 calls? The service rate is five (5) calls per hour and the target utilization is 90%.
Q3) Define a value stream map. How does this differ from a regular process map?
Q4) Which of the following is not a common process design improvement strategy?
A)Increasing revenue
B)Decreasing agility
C)Decreasing cost
D)Decreasing flow time
Q5) A company is able to process 300 customer statements (bills) per day. The average processing time is six (6) days. What is the average number of statements (bills) the company has in process at any time?
Q6) What is the implied service rate at a bank teller's window if demand is 26 customers per hour and the bank staffs 3 tellers with an average utilization of 80%?
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Page 9
Chapter 8: Facility and Work Design
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Sample Questions
Q1) The predominant layout type used in hospitals is the fixed-position layout.
A)True
B)False
Q2) Considering ergonomics, which of the following does not fit?
A)Improving productivity
B)Group technology
C)Designing equipment and instrumentation
D)Considering physical capability of people
Q3) Teams are a way of accomplishing job enrichment.
A)True
B)False
Q4) Product layouts offer higher flexibility with low productivity and process layouts have limited flexibility with high productivity.
A)True
B)False
Q5) Differentiate among product layout, process layout, cellular layout, and fixed-position layout. State the advantages and disadvantages of each.
Q6) List the many questions that must be addressed in designing a workstation.
Q7) Describe approaches used for process layout design.
Page 10
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Chapter 9: Supply Chain Design
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Sample Questions
Q1) In designing an efficient supply chain, an organization would need high levels of inventory stored in many small distribution centers.
A)True
B)False
Q2) Supply chains often must be redesigned when a firm's product lines and markets change or expand.
A)True
B)False
Q3) Where in its supply chain does Dell, Inc. begin to use a pull system?
A)supplier
B)factory
C)distribution center
D)customer
Q4) With vendor-managed inventory, a manufacturer monitors and managers inventory for a customer.
A)True
B)False
Q5) Summarize the Supply Chain Operations Reference (SCOR) model.
Q6) Describe some common supply chain metrics used to evaluate performance.
11
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Chapter 10: Capacity Management
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Sample Questions
Q1) All the following are means to manage capacity by shifting and stimulating demand except
A)Vary price of goods or services
B)Add peripheral goods and/or services
C)Provide reservations
D)Shift work to slack periods
Q2) Reservations reduce risks for customers but provide little benefit for service providers.
A)True
B)False
Q3) Safety capacity is most closely related to A)Bottlenecks
B)Economies of scale
C)Unanticipated events
D)Focused factory
Q4) An assembly line normally operates two shifts a day, five days per week. The planned capacity of the assembly line is 380 units/shift. Determine the average safety capacity if 700 items are assembled a day, on average.
Q5) What is safety capacity? Discuss reasons for using it.
Q6) What are complementary goods and services and why do firms have them?
Page 12
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Chapter 11: Forecasting and Demand Planning
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Sample Questions
Q1) All time series contain random variation but may not contain trend or seasonal components.
A)True
B)False
Q2) A group of international experts published a set of principles of forecasting that includes all of the following except
A)Use quantitative rather than qualitative methods.
B)Combine forecasts from approaches that are similar.
C)Ask experts to justify their forecasts in writing.
D)Use multiple measures of forecast accuracy.
Q3) Explain the difference between a moving average and single exponential smoothing forecasting model.
Q4) Seasonal patterns can occur over the weeks during a month, over days during a week, or hours during a day.
A)True
B)False
Q5) Explain how forecasting is used at different levels of an organization.
Q6) Define regression analysis and explain how it is an approach to forecasting.
Q7) Explain the difference between statistical forecasting and judgment forecasting.
Page 13
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Chapter 12: Managing Inventories
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Q1) "C" items are the critical few that must be closely managed in an inventory system.
A)True
B)False
Q2) Work in process inventory is completed products ready for distribution or sale to customers.
A)True
B)False
Q3) Demand that incorporates uncertainty is called ____.
A)Static
B)Dynamic
C)Stochastic
D)Deterministic
Q4) Airline flights to ski areas near Denver, Colorado, probably have different means and variances throughout the year. This is an example of dynamic demand.
A)True
B)False
Q5) Provide some examples of when the single period inventory model is applicable.
Q6) Discuss two types of stockouts.
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Chapter 13: Resource Management
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Sample Questions
Q1) The Lot-for-Lot (LFL) rule
A)Minimizes purchase or setup costs
B)Allows the firm to take advantage of quantity discounts (price breaks) by suppliers
C)Is best applied when inventory carrying costs are high and setup/order costs are low
D)Masks the true nature of dependent demand
Q2) What are the components of an MRP record?
Q3) Dependent demand does not occur in the service business.
A)True
B)False
Q4) Assigning people to tasks, setting priorities for jobs and scheduling equipment fits best with which level of the generic framework for resource planning?
A)Aggregate planning - Level 1
B)Disaggregation - Level 2
C)Execution - Level 3
D)Capacity requirements planning
Q5) What is capacity requirements planning (CRP)?
Q6) Differentiate between a level production strategy and a chase demand strategy.
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Page 15
Chapter 14: Operations Scheduling and Sequencing
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Sample Questions
Q1) Explain why any sequence chosen in the single-machine scheduling problem will not change makespan time.
Q2) If the highest priority is to minimize the average job lateness, then the jobs sequence should begin with those jobs requiring
A)The shortest processing time
B)The smallest critical ratio
C)The least remaining operations
D)The longest processing time
Q3) Telling an umpire crew to work baseball games in Chicago, then Milwaukee, and then Cleveland is an example of a sequence.
A)True
B)False
Q4) A lateness measure can only be 0 or a positive number.
A)True
B)False
Q5) UPS, the world's largest package delivery company, is highly dependent on scheduling but not sequencing.
A)True
B)False
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Chapter 15: Quality Management
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Sample Questions
Q1) Costs of recalls and warranty claims are classified as internal failure costs.
A)True
B)False
Q2) The GAP model recognizes five ways to mis-specify and mismanage the creation and delivery of high levels of quality. Describe each of the five problem areas (GAPS).
Q3) A control chart is quality-control jargon for an ordinary run chart that plots data over time.
A)True
B)False
Q4) The most relevant definition of quality for an operations manager is "conformance to specifications."
A)True
B)False
Q5) Both consultants and business professionals now agree on a universal definition of quality.
A)True
B)False
Q6) Define root cause and describe root cause analysis.
Q7) Discuss Kaizen and how it differs from a Kaizen Blitz.
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Chapter 16: Quality Control and Spc
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Q1) A steel company is interested in determining if a particular process in its mini-mill is capable of meeting customer expectations. The thickness of steel has an upper limit of .540 mm and a lower limit of .480 mm. The process has a standard deviation of .02 mm.
a.What is the process capability index (C<sub>p</sub>) for this process?
b.What must the standard deviation of the process be changed to for the C<sub>p</sub> to equal 1.00?
Q2) Define "quality at the source."
Q3) Which is not related to a discrete metric?
A)Counting
B)Visual inspection
C)Good or bad
D)Time
Q4) c-charts
A)Are used for the fraction of non-conforming items
B)Count the number of nonconformances per unit
C)Use continuous metrics
D)Can have negative lower limits
Q5) Define and give an example of the three components of any control system.
Q6) Discuss the three basic quality control practices used in manufacturing.
Page 18
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Chapter 17: Lean Operating Systems
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Sample Questions
Q1) Explain the purpose of visual controls and give examples.
Q2) Which of the following is least related to a pull system?
A)Building inventory
B)Final assembly schedule
C)Real time information
D)Sales rate
Q3) Explain the 5Ss.
Q4) Discuss the differences between lean production and Six Sigma.
Q5) Explain the concept of Single Minute Exchange of Die (SMED).
Q6) A withdrawal Kanban
A)Authorizes production
B)Authorizes suppliers to produce
C)Authorizes the transfer of an empty container
D)Authorizes shipping to customers
Q7) Long lead-times and higher work-in-process is most closely related to which of Toyota's "Seven Major Waste Categories"?
A)Overproduction
B)Single-piece flow
C)Waiting time
D)Transportation
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Chapter 18: Project Management
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Q1) Because the preparation of annual reports is done on a repeating basis, project management techniques are not appropriate.
A)True
B)False
Q2) With the Activity-On-Node (AON) network, the nodes define the precedence relationships and the arcs define the work activities.
A)True
B)False
Q3) In most organizations, projects cut across organizational boundaries, making it difficult to implement projects exclusively within functional departments.
A)True
B)False
Q4) Which is incorrect regarding the critical path?
A)Shortest time to complete a project
B)Longest time to complete a project
C)Project path with 0 slack
D)Delays in activities will delay the project
Q5) Describe the four major steps in the project-planning process.
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