Supply Chain Management Review
Questions
Course Introduction
Supply Chain Management focuses on the efficient coordination and integration of all activities involved in sourcing, procurement, production, and distribution of goods and services. This course explores key concepts such as demand forecasting, inventory control, logistics, supplier relationship management, and global sourcing. Students will examine how information technology, strategic planning, and collaboration across organizations help in optimizing supply chain operations. Through real-world case studies and practical applications, the course prepares students to address challenges like risk management, sustainability, and the evolving demands of the global marketplace.
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) Process thinking is the traditional way of viewing an organization by function.
A)True
B)False
Answer: False
Q2) Which one of the following has the lowest goods content?
A)automobile muffler replacement
B)computer diagnosis and repair
C)movie presentation
D)fast food restaurant
Answer: C
Q3) A process can be designed by operations managers independently of the choice of a customer benefit package, which is chosen exclusively by marketing staff.
A)True
B)False
Answer: False
Q4) Today, almost half the U.S. economy is involved in service industries.
A)True
B)False Answer: False
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Chapter 2: Value Chains
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Sample Questions
Q1) In the value chain model for a hospital, patients, drugs and staff would be considered
A)suppliers
B)inputs
C)processes
D)outputs
Answer: B
Q2) Explain a value proposition. Relate this to a customer benefits package of goods and services
Answer: A competitively dominant customer experience is often called a value proposition. A winning value proposition is one that meets the full set of customer needs, including price. The focus on value has forced many traditional goods-producing companies to add services to their customer benefit packages.
Q3) A reason for globalization includes shifting work closer to customers for fast delivery and customization.
A)True
B)False
Answer: True
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Chapter 3: Measuring Performance in Operations
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Sample Questions
Q1) Which of the following would not be a typical organizational-level financial performance measure?
A)labor and material costs
B)revenue and profit
C)return on assets
D)earnings per share
Answer: A
Q2) Having intensive care nurses on call in case of a dramatic increase in patient demand is an example of design flexibility.
A)True
B)False
Answer: False
Q3) Value chain measures would generally be less valuable to A)top management
B)middle managers
C)first-line supervisors
D)employees to monitor any control
Answer: A
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Chapter 4: Operations Strategy
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Sample Questions
Q1) Improving design quality usually allows a firm to charge higher prices and thus increase revenue and profit.
A)True
B)False
Q2) An operations strategy provides the direction on which corporate strategy is based.
A)True
B)False
Q3) 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
Q4) Which one of the following statements best represents McDonald's approach to global business?
A)One brand cannot be all things to all people.
B)Extensive use of outside trainers
C)Using alternative technologies to make French fries
D)Use of primarily manual information systems
Q5) Explain the concept of search, experience, and credence attributes.
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Chapter 5: Technology and Operations Management
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Sample Questions
Q1) Discuss the role of technology in productivity.
Q2) All organizations face common issues regarding technology. Which item below does not belong on the list of issues?
A)The right technology must be selected for the goods that are produced.
B)Robots must be programmed to operate the equipment.
C)Work must be scheduled to meet shipping commitments/customer promise dates.
D)Quality must be ensured..
Q3) Flexible manufacturing systems integrate machines or robots with automated handling devices to route work, load tools, and control operations.
A)True
B)False
Q4) Return facilitators specialize to getting reusable packaging/shipping material (containers, crates, and pallets) back to manufacturers.
A)True
B)False
Q5) How does customer relationship management (CRM) help a firm gain competitive advantage?
Q6) What are some of the benefits and challenges of technology?
Q7) Explain the concept of ERP-Enterprise Resource Planning Systems.
Page 7
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Chapter 6: Goods and Service Design
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Sample Questions
Q1) Which of the following steps is not the same for both goods and services?
A)detailed goods, services and process design
B)Customer Benefit Package design and configuration
C)market introduction/deployment
D)marketplace evaluation
Q2) Describe the Taguchi loss function. Contrast it to the "goal post" model.
Q3) A(n) ____ is a promise to reward and compensate a customer if a service upset occurs.
A)service guarantee
B)customer contact requirement
C)service recovery
D)empowerment
Q4) Customer contact, for the purpose of classifying a system as being high-contact or low-contact, is measured by
A)the percentage of a service provider's workday spent with customers
B)the percentage of time the customer must be in the system relative to the total time it takes to provide the service
C)the number of service encounters occurring in a given span of time
D)the number of different service providers required to serve one customer
Q5) Explain the importance of service recovery and service guarantees.
Page 8
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Chapter 7: Process Selection, Design, and Analysis
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Sample Questions
Q1) Service facilities have a greater range of resource utilization than manufacturing.
A)True
B)False
Q2) Transferring material between two non-adjacent workstations, waiting for service and requiring multiple approvals are examples of
A)A value stream
B)A process map
C)Non-value-added activities
D)Little's Law
Q3) In service applications, flowcharts generally highlight the points of contact with the customer.
A)True
B)False
Q4) The average number of hotel rooms occupied per day during the month of March is 225. Rooms are booked on average for 2.5 days. On average, how many new bookings occur each day?
Q5) Explain Little's Law and how it can be used.
Q6) Explain why the product-process matrix does not transfer well to services.
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Chapter 8: Facility and Work Design
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Sample Questions
Q1) Flow-blocking and lack-of-work delays can be reduced by assigning an appropriate level of capacity at each workstation.
A)True
B)False
Q2) ____ is vertical expansion of job duties to give the worker more responsibility.
A)Job enlargement
B)Job rotation
C)Job enrichment
D)Job design
Q3) Workers in cellular layouts generally have greater responsibilities than those who work in product or process layouts.
A)True
B)False
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) Discuss four reasons for conducting a facility-layout study.
Q6) Explain the role of ergonomics in job design.
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Chapter 9: Supply Chain Design
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Sample Questions
Q1) An automobile company that installs satellite radio at the dealership instead of at the factory is applying a postponement strategy.
A)True
B)False
Q2) Which of the following is true regarding order amplification?
A)The fluctuation of orders is larger than the fluctuation in sales.
B)The amplitude of order quantity over time is smaller than the variation of sales.
C)The less the uncertainty, the greater the amplification in orders.
D)The amplification is greatest near the customer.
Q3) For Dell Inc., the push-pull boundary is very early in the supply chain, where suppliers store inventory for frequent deliveries.
A)True
B)False
Q4) Distribution centers are warehouses that act as intermediaries between suppliers and factories.
A)True
B)False
Q5) Explain the typical structure of a supply chain.
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Chapter 10: Capacity Management
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Sample Questions
Q1) Explain the concept of a focused factory. Include different ways a factory can be focused.
Q2) Revenue management systems are vital to most manufacturing organizations.
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) Define the Theory of Constraints (TOC). How does TOC view throughput differently from the traditional OM perspective?
Q5) Safety capacity or a capacity cushion is
A)needed for processes with little demand variability
B)provided for anticipated events
C)generally higher in a job shop
D)not appropriate for service organizations
Q6) Long setup times increase capacity and improve flexibility.
A)True
B)False
Page 12
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Chapter 11: Forecasting and Demand Planning
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Sample Questions
Q1) Explain the difference between statistical forecasting and judgment forecasting.
Q2) If actual demand for a product is highly influenced by only random variation, the quantitative technique to use for forecasting demand is
A)Regression
B)Moving average
C)Mean Absolute Percentage Error (MAPE)
D)Delphi
Q3) A 7-month simple moving average would approximately equate with what alpha (\(\alpha\)) factor for simple exponential smoothing?
Q4) Regression models are often used in forecasting to incorporate causal variables that may influence a time series.
A)True
B)False
Q5) A tracking signal provides a method for quantifying forecast
A)bias
B)error
C)accuracy
D)outliers
Q6) Explain how forecasting is used at different levels of an organization.
Page 13
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Chapter 12: Managing Inventories
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Sample Questions
Q1) Inventory position refers to the physical quantity of items on hand in an inventory system.
A)True
B)False
Q2) Discuss the concept of safety stock in a fixed order quantity system with uncertain demand.
Q3) Independent demand
A)can be derived/calculated
B)is related to other SKUs
C)is also called finished goods inventory
D)needs to be forecasted
Q4) An airline seat is an example of an asset held for future use or sale.
A)True
B)False
Q5) In the fixed-period system, managers must make two key decisions: the time interval between reviews, and the replenishment level.
A)True
B)False
Q6) Discuss two types of stockouts.
Q7) Define the EOQ model and explain its major assumptions.
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Chapter 13: Resource Management
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Sample Questions
Q1) "Level 3" planning represents aggregate planning at higher management levels of an organization.
A)True
B)False
Q2) Define a Master Production Schedule (MPS) and explain how it differs from a final assembly schedule.
Q3) Which of the following is not correct regarding aggregate planning?
A)Large number of alternatives
B)Good solutions by trial-and-error method
C)Seasonal fluctuations in demand
D)Costs are sunk and irrelevant
Q4) Differentiate between a level production strategy and a chase demand strategy.
Q5) The direct inputs to material requirements planning include all of the following except
A)Master Production Schedule
B)Inventory, SKU, and Transaction files
C)Bills of Material
D)Capacity Requirements Plan
Q6) Explain the three levels of resource planning.
Q7) What are the components of an MRP record?
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Chapter 14: Operations Scheduling and Sequencing
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Sample Questions
Q1) 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
Q2) Johnson's sequencing rule is used to sequence
A)several jobs through several work centers
B)several jobs through one work center
C)two jobs through several work centers
D)several jobs through two work centers
Q3) In sequencing a set of jobs on a single processor, different sequences will have different makespans but the same average flow times.
A)True
B)False
Q4) Rescheduling rarely occurs unless customers change their requested due dates. A)True
B)False
Q5) Describe Johnson's sequencing rule for the two-resource sequencing problem.
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Chapter 15: Quality Management
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Sample Questions
Q1) A Pareto diagram helps to understand the relationships between two variables and to verify possible cause and effect hypotheses.
A)True
B)False
Q2) Because of the amount of resources required, a Kaizen blitz is generally performed outside of normal working hours over several weeks or months.
A)True
B)False
Q3) Over the last year, 1,100 oral medications were administered at a health clinic. Quality is measured by the proper amount of dosage and the use of the correct drug. In three (3) instances, the incorrect amount was given, and in two (2) instances, the wrong drug was selected. What is the epmo metric?
Q4) Cause-and-effect diagrams would help most in which phase of the DMAIC problem-solving approach?
A)Define
B)Measure
C)Analyze
D)Control
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Chapter 16: Quality Control and Spc
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Sample Questions
Q1) "Quality at the source" focuses on supplier quality at the beginning of a value chain.
A)True
B)False
Q2) Discuss the three basic quality control practices used in manufacturing.
Q3) An operator has determined what her percent defectives is for the machine which she operates. Based on several samples of 75 observations, she found p-bar to be 10%. She wants to set up a control chart using 3 standard deviation control limits.
a.What is the upper control limit for a p-chart?
b.What is the lower control limit for a p-chart?
Q4) Common cause variation generally accounts for about 10 to 15% of all variation within a process.
A)True
B)False
Q5) Explain and give the significance of the 1:10:100 Rule.
Q6) Define Statistical Process Control (SPC) and differentiate between common cause and special (or assignable) cause variation.
Q7) Define "quality at the source."
Q8) In general, discuss how to interpret control charts.
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Chapter 17: Lean Operating Systems
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Sample Questions
Q1) Large batches often provide economies of scale and helps firms match inventory to market demand.
A)True
B)False
Q2) Production Kanbans trigger the movement of parts.
A)True
B)False
Q3) Which one of the following statements is true?
A)The heijunka system is a system of boxes much like in a mailroom set of boxes attached to a wall used to smooth production outputs.
B)Producing goods early is a principle of lean.
C)A university publication printed with 100% post-consumer recycled fiber is an example of total productive maintenance practice.
D)Preventive maintenance is not a part of lean principles and practices.
Q4) In lean thinking, waste need not be classified as simply material waste such as scrap and defective parts.
A)True
B)False
Q5) Define lean enterprise and the four principles of lean operating systems.
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Chapter 18: Project Management
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Sample Questions
Q1) In most organizations, projects cut across organizational boundaries, making it difficult to implement projects exclusively within functional departments.
A)True
B)False
Q2) Which of the following is not considered a project?
A)Writing and implementing a computer program
B)Introducing a new product
C)Production of soft drinks
D)Building a bridge
Q3) All activities on the critical path have a zero slack time.
A)True
B)False
Q4) Which of the following is incorrect regarding time/cost trade-offs?
A)The relationship between time and cost is proportional
B)Some activities cannot be crashed
C)The minimum cost can be found by crashing all activities as much as possible
D)Crashing priority is based on the amount of uncertainty in activity times
Q5) Explain the stages of the project life cycle.
Q6) Define a project. Give some non-manufacturing or non-construction examples.
Q7) Describe the four major steps in the project-planning process.
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