Supply Chain Management
Pre-Test Questions
Course Introduction
Supply Chain Management explores the strategic coordination and integration of business functions within and across organizations for the purpose of improving the long-term performance of individual companies and the supply chain as a whole. This course covers key concepts such as procurement, production, logistics, inventory management, demand forecasting, and supplier relationship management. Students learn about the design, operation, and optimization of global supply networks, as well as challenges posed by technology, sustainability, and risk management. Emphasis is placed on real-world applications, case studies, and current trends in supply chain innovation and digitalization.
Recommended Textbook
Decision Sciences and Operations Management Coursemate 4th Edition by David A. Collier
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Chapter 1: Goods, Services, and Operations Management
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Q1) Time-based competition means providing new and innovative products that surprise and delight customers.
A)True
B)False Answer: False
Q2) Quality has been a principal focus of operations management since the industrial revolution.
A)True
B)False Answer: False
Q3) Customers and service providers often work together to co-produce a service.
A)True
B)False Answer: True
Q4) Many products that appear to be only physical goods often include bundled services.
A)True
B)False Answer: True
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Chapter 2: Value Chains
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Q1) A value chain can be considered a "cradle-to-grave" model of the operations function.
A)True
B)False
Answer: True
Q2) Offshoring is the same as outsourcing in terms of transferring ownership and control.
A)True
B)False
Answer: False
Q3) A vertical integration strategy provides a firm more control and generally reduces the complexity of managing the value chain.
A)True
B)False
Answer: False
Q4) Vertical integration is a modern method of outsourcing.
A)True
B)False
Answer: False
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Chapter 3: Measuring Performance in Operations
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Q1) The quote "Happy employees create happy customers" best characterizes the Service-Profit Chain SPC) model.
A)True
B)False
Answer: True
Q2) It costs 3 to 5 times more to keep an existing customer than to acquire a new customer.
A)True
B)False
Answer: False
Q3) Regarding the service-profit chain model, which of the following is not viewed as internal performance?
A)customer satisfaction
B)employee satisfaction
C)employee retention
D)employee productivity
Answer: A
Q4) Briefly discuss the seven categories of the Malcolm Baldrige National Quality Award. Answer: 11ea89ff_22ee_4e89_8b44_2961b1fd8f46_TB2054_00
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Chapter 4: Operations Strategy
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Q1) Southwest Airlines has gained competitive advantage by focusing on cost as a key competitive priority.
A)True
B)False
Q2) Core competencies are the strengths that are unique to an organization, such as a creative workforce or a strong supply chain.
A)True
B)False
Q3) With regard to the Lawn Care Company case study, explain how the a) physical product i.e., grass seed and fertilizer) and b) lawn application service life cycles are related? What are the implications? You might also want to use a graph.
Q4) The infrastructure of an organization must support process choices and provide managers with timely and accurate information to make good decisions.
A)True
B)False
Q5) Employee training is an example of a key competitive priority.
A)True
B)False
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Chapter 5: Technology and Operations Management
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Q1) According to the National Research Council, companies with computer-integrated manufacturing system experience have been able to
A)improve quality by a factor of ten
B)increase equipment utilization to 100 percent
C)decrease engineering design costs by up to 30 percent
D)reduce finished goods inventory by five percent
Q2) Which of the following enables engineers to design, analyze, test, simulate, and "manufacture" products before they physically exist?
A)CNC
B)CAD/CAE
C)CIM
D)CAM
Q3) Amazon.com would be an example of a customer-to-customer value chain.
A)True
B)False
Q4) Computer chips and microprocessors are examples of hard technology.
A)True
B)False
Q5) Describe the three stages of the technology development and adoption process.
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Chapter 6: Goods and Service Design
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Q1) The final step in using the House of Quality involves identifying those technical features that meet any of the following criteria except
A)have the strongest relationship to customer requirements
B)have the highest quality
C)have poor competitive performance
D)will be strong selling points
Q2) The roof of the house of quality shows the relationship matrix between customer requirements and the technical features.
A)True
B)False
Q3) A bank provides four sequential services to its customers. Over the last quarter, the reliability of each of these services was 92%, 97%, 95% and 90%. What is their overall reliability?
A)0.9700
B)0.9350
C)0.7630
D)0.7400
Q4) Define reliability. Include the four major elements.
Q5) Discuss the concept of servicescape.
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Chapter 7: Process Selection, Design, and Analysis
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Q1) A company can differentiate itself from its competitors by positioning itself along the diagonal of the Product-Process matrix.
A)True
B)False
Q2) During which phase of a product's life cycle does low unit cost become a top competitive priority?
A)Introduction
B)Growth
C)Maturity
D)Decline
Q3) Configurations of standard parts, subassemblies, or services that can be selected by customers from a limited set are called "make to order" goods and services.
A)True
B)False
Q4) The lowest resource utilization is usually found in
A)A job shop
B)A flow shop
C)A continuous flow
D)An assembly line
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Chapter 8: Facility and Work Design
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Sample Questions
Q1) Because of precedence relationships, assembly-line efficiencies will generally be very high.
A)True
B)False
Q2) All of the following are true regarding assembly lines except
A)Lower cost
B)Only one model can be assembled on a line
C)Makes good affordable to mass markets
D)Used in services,
E)g., insurance policies and sorting mail
Q3) Differentiate between a "flow blocking delay" and a "lack of work delay." How can each be reduced?
Q4) 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
Q5) Explain assembly line balancing. Discuss the three types of information needed to balance an assembly line.
Page 10
Q6) List the many questions that must be addressed in designing a workstation.
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Chapter 9: Supply Chain Design
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Sample Questions
Q1) Given the retail location coordinates and the value of material movement in the following chart, find the best supply point location using the center-of-gravity method.
\[\begin{array} { c c c }
\text { Retail Outlet } & \text { Lacation Coordinates } \mathbf { X } , \mathbf { Y } & \text { Materal Movement } \\ \hline 1 & 25,05 & 1,500 \\
2 & 17,20 & 3,000 \\ 3 & 12,12 & 1,000 \\ 4 & 06,09 & 2,200 \end{array}\]
Q2) The center-of-gravity method determines the best X and Y coordinates location) for multiple facilities by finding a central location and then assigning the facilities around the periphery of that location.
A)True
B)False
Q3) Explain the concept of postponement and provide an example of it.
Q4) Explain the typical structure of a supply chain.
Q5) Summarize the Supply Chain Operations Reference SCOR) model.
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Chapter 10: Capacity Management
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Sample Questions
Q1) A machine in a job shop is used for only two parts, A and B. The time per setup in minutes), processing time in seconds), order size in units) is given below. Using the information, determine the total capacity required for this machine in minutes.
\[\begin{array} { c c c c }
\text { Part } & \text { Machine Setup Time minutes) } & \text { Processing Time seconds) } & \text { Order Size units) } \\
\hline \text { A } & 55 & 54 & 600 \\
\text { B } & 30 & 64 & 700
\end{array}\]
Q2) Jack's Ice Cream Parlor produces two types of ice cream on a contract basis for a major restaurant chain using a large blender. A batch of ice cream A requires a setup time of 45 minutes, a process mixing time of 1.2 minutes per gallon, and 50 gallons are made per day. Ice cream B requires the same machine to be cleaned and setup which takes 30 minutes, a process mixing time of 2 minutes per gallon, and 100 gallons produced per day.
a. Compute the capacity required.
b. What percentage of total capacity required is setup time?
Q3) What is safety capacity? Discuss reasons for using it.
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Chapter 11: Forecasting and Demand Planning
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Q1) A single moving average is most appropriate for data with identifiable trends.
A)True
B)False
Q2) Sales of a new CD at a store for the last 4 weeks are shown below.
\[\begin{array} { l c c c c }
\text { Week } & 1 & 2 & 3 & 4 \\ \text { Seles } & 112 & 105 & 125 & 118 \end{array}\]
a.Find a 3 period moving average forecast for the next week.
b.Find a 4 period moving average forecast for the next week.
c.Actual sales for week 5 were 105 units. What would be the 3- and 4-period moving average forecasts for week 6?
Q3) In an exponential smoothing model, larger values of alpha i.e., closer to 1) place less emphasis on recent data and more on older data.
A)True
B)False
Q4) Judgmental forecasting should only be used if no historical data are available. A)True
B)False
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Chapter 12: Managing Inventories
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Q1) Two fundamental inventory decisions are when to order and how much to order. Which of the following statement is true with respect to Fixed Quantity( FQS) and Fixed Period (FPS) inventory systems?
A)A FPS orders a fixed period quantity when the inventory position reaches or drops below the reorder point( r).
B)A FPS must cover a time period of T + L to cover the risk of a stock out.
C)A FPS places an order for the economic order quantity every T time units.
D)A FQS places an order to replenish the inventory position up to a target level (M) when the inventory position reaches the reorder point (r).
Q2) Inventory position is computed using all the following except A)On-hand
B)Scheduled receipts
C)Backorders
D)Lead time demand
Q3) Larger orders result in higher total holding cost but lower total ordering cost.
A)True
B)False
Q4) Provide some examples of when the single period inventory model is applicable.
Q5) Define the EOQ model and explain its major assumptions.
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Chapter 13: Resource Management
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Q1) Which lot sizing rule might base the order quantity on a standard-size container or pallet load?
A)Lot-for-Lot (LFL)
B)Fixed order quantity (FOQ)
C)Periodic order quantity (POQ)
D)Gross Requirements (GR)
Q2) "Level 3" planning represents aggregate planning at higher management levels of an organization.
A)True
B)False
Q3) Which aggregate planning strategy generally would result in the least amount of inventory?
A)Level production
B)Chase demand
C)Mixed
D)Period-Order-Quantity (POQ)
Q4) Resource management deals primarily with managing inventories in a value chain.
A)True
B)False
Q5) Explain the three levels of resource planning.
Page 15
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Chapter 14: Operations Scheduling and Sequencing
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Sample Questions
Q1) The numerical difference between the completion time and the due date is called
A)Flow time
B)Lateness
C)Makespan
D)Tardiness
Q2) The makespan is the sum of flow times of a given set of jobs.
A)True
B)False
Q3) Scheduling refers to specifying
A)The sequence that jobs must be completed
B)The due date for each job
C)The start and completion times of jobs
D)The makespan of each job
Q4) Two examples of process-focused performance measures for sequencing rules are flow time and lateness.
A)True
B)False
Q5) Appointments can be viewed as a reservation of service time and capacity.
A)True
B)False
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Chapter 15: Quality Management
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Sample Questions
Q1) In applying Six Sigma to services, the four key measures of performance include all of the following except
A)accuracy
B)empathy
C)cost
D)customer satisfaction
Q2) Which leader in quality management promoted the Quality Trilogy of quality planning, quality control, and quality improvement?
A)W. Edwards Deming
B)Joseph Juran
C)Philip Crosby
D)Jack Hillerich
Q3) In the act stage of the Deming cycle, improvements become standardized and the plan is implemented as a "current best practice" and communicated throughout the organization.
A)True
B)False
Q4) Explain the four components of the cost of quality.
Q5) Define poka-yoke and provide some examples.
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Chapter 16: Quality Control and Spc
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Q1) Over-adjusting a process that is in control will usually increase the variation in the output.
A)True
B)False
Q2) Define and give an example of the three components of any control system.
Q3) A high?paced discount store in Los Angeles has noticed that checking errors have increased recently. They plan to use control charts with three standard deviation control limits to monitor the process. They decided to take a sample of 100 transactions over each of 10 days. The number of transactions in error for each day was 5, 7, 6, 5, 6, 4, 6, 3, 10, and 8.
a. What is the center line for the p chart?
b. What is the upper control limit for the p chart?
c. What is the lower control limit for the p chart?
Q4) p-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) In general, discuss how to interpret control charts.
Q6) Find the control limits for a c chart with \(\bar { C }\) = 7.
Page 18
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Chapter 17: Lean Operating Systems
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Q1) The number of Kanban cards is dependent on all of the following except
A)Average daily demand rate
B)Setup time
C)Part waiting time
D)Safety stock
Q2) The number of Kanban cards is directly proportional to the amount of work-in-process inventory.
A)True
B)False
Q3) Single minute exchange of dies SMED) frees up capacity for other productive uses.
A)True
B)False
Q4) Lean enterprise refers to approaches that focus on the elimination of defects and errors throughout the value chain.
A)True
B)False
Q5) The 5Ss focus on improving waste generated by inefficient transportation. A)True
B)False
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Chapter 18: Project Management
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Q1) Define a project. Give some non-manufacturing or non-construction examples.
Q2) Because the preparation of annual reports is done on a repeating basis, project management techniques are not appropriate.
A)True
B)False
Q3) The Critical Path Method CPM) allows for an evaluation of uncertainty in project completion times.
A)True
B)False
Q4) Which step in the project management process would involve developing alternative plans in anticipation of problems that might arise?
A)Project definition
B)Resource planning
C)Project scheduling
D)Project control
Q5) Explain the purpose of Gantt charts.
Q6) Explain the three time estimates used to characterize uncertainty of activity times in the Program Evaluation and Review Technique (PERT) procedure.
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Chapter 19: Work Measurement, Learning Curves, and Standards
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Q1) All of the following are advantages of using regression analysis to determine standard time except
A)A smaller cycle time is used
B)Avoids the assumption of additive task times
C)Statistically significant variables can be determined
D)Confidence intervals for the prediction can be developed
Q2) A yacht manufacturer signed a contract to build five sailboats for a California resort. Assuming an 85% learning curve, how many labor-hours will it take to build all five sailboats if it took 7,000 standard hours to build the original sailboat?
Q3) Differentiate between an experience curve and the traditional learning curve.
Q4) For work sampling, p will never be known exactly since it is the population parameter that is being estimated.
A)True
B)False
Q5) Unavoidable delays should not be included in time studies.
A)True
B)False
Q6) Define work sampling. Give both manufacturing and service applications.
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Q7) Define work measurement and what it leads to from an operations perspective.
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Chapter 20: Queuing Analysis
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Q1) A flower shop has one employee in the front of the store to sell flowers out of the cooler. On Saturdays customers arrive every six minutes, on average. The employee can serve a customer every five minutes, on average. The owner of the store feels that if there are more than four customers in the store at one time, additional customers may not come in because the wait appears too long.
a. What is the chance of four or more customers being in the store at one time?
b. What is the total time in minutes) a customer spends in the store?
c. What is the average number of customers in the store?
Q2) ____ is the process of a customer evaluating the waiting line and server system and deciding not to join the queue.
A)Triage
B)Reneging
C)Balking
D)Value-based queuing
Q3) Many analytical queuing models exist, each based upon unique assumptions.
A)True
B)False
Q4) Describe seven operating characteristics of a waiting line no formulas).
Q5) Describe at least four queue disciplines.
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Chapter 21: Modeling Using Linear Programming
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Q1) A Singapore company manufactures 50-inch and 75-inch rear projection television sets. Each 50-inch set contributes $200 to profits and each 75-inch set contributes $475 to profits. The company has purchase commitments for 500 50-inch sets and 200 75-inch sets for the next month so they want to make at least that many. Although they think they can sell all the 50-inch sets that they could currently make, they do not think they can sell more than 375 75-inch sets. Their factory capacity allows them to make only 975 sets of both sizes total. They want to know how many of each type to make so as to maximize profits.
a. What is the objective function for this LP problem?
b. What are the constraints involving X1, assuming that X1 corresponds to 50-inch TV sets?
c. What is the optimal solution point for this problem?
d. What is the optimal value of the objective function?
Q2) The transportation problem is a special type of linear programming that arises in planning the distribution of goods and services from only one supply point to several demand locations.
A)True
B)False
Q3) What characterizes a linear function?
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Chapter 22: Simulation
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Q1) The Excel function (RAND ) generates random numbers that provide a continuous range of values. Unlike those for two-digit numbers, these values are not limited to probability increments of 0.01.
A)True
B)False
Q2) Needing the actual time of arrival and actual time of serving relates best with
A)Fixed-time-incremental simulation
B)Next-event simulation
C)Random numbers
D)Queuing formula
Q3) All of the following are disadvantages of simulation except A)Limited application
B)Difficulty of collecting the appropriate input data
C)Selecting the correct probability distribution
D)The accuracy of outputs
Q4) Discuss three advantages and three disadvantages of simulation models.
Q5) A simulator is a general purpose simulation model.
A)True
B)False
Q6) Define simulation and give some operations management examples.
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Chapter 23: Work Measurement, Learning Curves, and Standards
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Q1) A model that starts with the future-most point and moves toward the current time period is called a ____.
A)Payoff table
B)Maximax decision
C)Decision tree
D)Satisficing
Q2) A conservative or risk-averse approach to one-time decisions without event probabilities is ____.
A)Maximax
B)Maximin
C)Minimax regrets
D)Expected value
Q3) Explain the Expected Value of Perfect Information EVPI) and how it helps a decision-maker.
Q4) For decisions repeated over-and-over again, managers can choose those based upon the expected payoff that might occur.
A)True
B)False
Q5) Explain the structure and purpose of a decision tree.
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