Supply Chain Management Review Questions
Course Introduction
Supply Chain Management is an interdisciplinary course that explores the design, operation, and optimization of global supply chains. Students will learn how organizations coordinate the flow of goods, information, and finances from raw material suppliers to end consumers. The course covers core topics such as procurement, inventory management, logistics, transportation, demand forecasting, risk management, and sustainability. Through case studies and practical projects, students will analyze real-world supply chain challenges and develop strategies to improve efficiency, responsiveness, and cost-effectiveness in various industries.
Recommended Textbook Operations Management 12th Edition by William J. Stevenson
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Page 2
Chapter 1: Introduction to Operations Management
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74 Flashcards
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Sample Questions
Q1) People who work in the field of operations should have skills that include both knowledge and people skills.
A)True
B)False
Answer: True
Q2) Dealing with the fact that certain aspects of any management situation are more important than others is called:
A) analysis of trade-offs.
B) sensitivity analysis.
C) recognition of priorities.
D) analysis of variance.
E) decision table analysis.
Answer: C
Q3) Service operations require additional inventory because of the unpredictability of consumer demand.
A)True
B)False
Answer: False
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Chapter 2: Competitiveness, Strategy, and Productivity
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Sample Questions
Q1) Competitiveness doesn't include:
A) productivity.
B) effectiveness.
C) profitability.
D) operations strategy.
E) operations management.
Answer: C
Q2) Time-based approaches of business organizations focus on reducing the time to accomplish certain necessary activities. Time reductions seldom apply to:
A) product/service design time.
B) processing time.
C) delivery time.
D) response time for complaints.
E) internal audits.
Answer: E
Q3) Competitiveness relates to the profitability of an organization in the marketplace.
A)True
B)False
Answer: False
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Page 4
Chapter 3: Forecasting
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Sample Questions
Q1) The primary method for associative forecasting is:
A) sensitivity analysis.
B) regression analysis.
C) simple moving averages.
D) centered moving averages.
E) exponential smoothing.
Answer: B
Q2) Trend-adjusted exponential smoothing requires selection of two smoothing constants.
A)True
B)False
Answer: True
Q3) The degree of management involvement in short-range forecasts is:
A) none.
B) low.
C) moderate.
D) high.
E) total.
Answer: B
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Page 5
Chapter 4: Product and Service Design
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Sample Questions
Q1) A house of quality is achieved when no department in a single location has more than 15 percent rejects.
A)True B)False
Q2) One of the main advantages of standardization is that it increases the potential variety of products.
A)True B)False
Q3) Research and development (R&D) refers to organized efforts that are directed toward increasing scientific knowledge and product (or process) innovation.
A)True
B)False
Q4) A major benefit of computer-aided design (CAD) is the increased productivity of designers.
A)True B)False
Q5) Reliability can be improved by the use of backup components. A)True B)False
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Chapter 4: Extension: Reliability
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Sample Questions
Q1) The time between failures for an electrical appliance is exponentially distributed with a mean of 25 months. What is the probability that the next failure will not occur before 30 months have elapsed?
A) not in excess of .2
B) in excess of .2 but not in excess of .3
C) in excess of .3 but not in excess of .4
D) in excess of .4 but not in excess of .6
E) in excess of .6
Q2) Redundancy is often more cost-effective than increasing individual component reliability.
A)True
B)False
Q3) Product reliability involves both short-term and long-term perspectives. A)True
B)False
Q4) If a system depends on two subsystems functioning when activated, the reliability of that system is equal to that of the less reliable subsystem.
A)True
B)False
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Chapter 5: Strategic Capacity Planning for Products and Services
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106 Verified Questions
106 Flashcards
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Sample Questions
Q1) Operation X feeds into operation Y. Operation X has an effective capacity of 55 units per hour. Operation Y has an effective capacity of 50 units per hour. Increasing X's effective capacity to ensure that Y's utilization is maximized would be an example of ________ a(n) constraint.
A) overcoming
B) outsourcing
C) insourcing
D) cushioning
E) supporting
Q2) The owner of Firewood To Go is considering buying a hydraulic wood splitter which sells for $50,000. He figures it will cost an additional $100 per cord to purchase and split wood with this machine, while he can sell each cord of split wood for $125. If, for this machine, design capacity is 50 cords per day, effective capacity is 40 cords per day, and actual output is anticipated to be 35 cords per day, what would be its utilization?
A) 100 percent
B) 80 percent
C) 75 percent
D) 70 percent
E) 0 percent
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Chapter 5: Extension: Decision Theory
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Sample Questions
Q1) Consider the following decision scenario: \[\begin{array} { | l | l | l | l | l | }
\hline { \text { Alternative } } & { \text { State of Nature } } & & \\
\hline & \# 1 & \# 2 & \# 3 & \# 4 \\
\hline \text { A } & 1 & 0 & 1 & 6 \\
\hline \text { B } & 1 & 5 & 4 & 2 \\
\hline \text { C } & 3 & 2 & 2 & 3 \\
\hline
\end{array}\] If you feel that P(#1) = .4, P(#2) = .3, P(#3) = .2, and P(#4) = .1, what is your expected payoff under certainty?
Q2) Among decision environments, risk implies that certain parameters have probabilistic outcomes.
A)True
B)False
Q3) Decision trees, with their predetermined analysis of a situation, are really not useful in making health care decisions since every person is unique.
A)True
B)False
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Page 9
Chapter 6: Process Selection and Facility Layout
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Sample Questions
Q1) A group of machines including supervisory computer control, automatic material handling, and possibly robots is called:
A) computer-aided design.
B) a manufacturing cell.
C) computer-aided manufacturing.
D) computer-integrated manufacturing.
E) a flexible manufacturing system.
Q2) The type of processing system which is used for highly standardized products is:
A) continuous.
B) intermittent.
C) project.
D) batch.
E) unit.
Q3) Key aspects of the process selection challenge include _________ and __________.
A) information technology; marketing strategy
B) process flexibility; marketing strategy
C) capital intensity; process flexibility
D) marketing strategy; operations strategy
E) capacity planning; marketing strategy
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Chapter 7: Work Design and Measurement
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Sample Questions
Q1) We incorporate the average seriousness of accidents by measuring the number of lost-time accidents per million labor hours worked.
A)True
B)False
Q2) A flow process chart is helpful for visualizing the portions of a work cycle during which the operator and equipment are busy or idle.
A)True
B)False
Q3) Which of the following is not a potential benefit of the use of self-directed teams?
A) higher quality
B) higher productivity
C) greater worker satisfaction
D) greater satisfaction for middle managers
E) lower turnover
Q4) Many lower-level jobs are monotonous and boring.
A)True
B)False
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Chapter 7: Extension: Learning Curves
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Sample Questions
Q1) The learning curve is a basic tool for mass production-type activities because it can deal with large volumes of output.
A)True
B)False
Q2) A job is expected to have a 70 percent learning curve. The first unit has been completed in 20 hours. Accordingly, the second unit can be expected to take approximately how many hours?
A) 6
B) 9.8
C) 14
D) 20
E) 34
Q3) It took exactly 10 hours to perform the first kidney transplant on a 100 percent learning curve. The second kidney transplant will take how many hours to perform?
A) 8 hours
B) 10 hours
C) 12 hours
D) A 100 percent learning curve cannot exist.
E) 5 hours
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Page 12
Chapter 8: Location Planning and Analysis
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80 Verified Questions
80 Flashcards
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Sample Questions
Q1) An example of a regional factor in location planning is the location of our markets (either existing or potential).
A)True
B)False
Q2) Location choice I has monthly fixed costs of $100,000 and per-unit variable costs of $10. What would its total cost be at a monthly volume of 250 units?
A) $105,200
B) $102,500
C) $100,250
D) $100,520
E) $105,500
Q3) Location decisions are basically one-time decisions usually made by new organizations.
A)True
B)False
Q4) Global positioning systems (GPS) use the center of gravity method to establish starting grid coordinates.
A)True
B)False
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Chapter 8: Extension: The Transportation Model
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Sample Questions
Q1) An automobile manufacturer that has eight assembly plants and thousands of dealers throughout the United States can find the optimal distribution plan by using: (I) a linear programming model. (II) the transportation model. (III) weighted factor ratings. (IV) global information systems.
A) I only
B) II only
C) II or III
D) I or II
E) I or IV
Q2) The transportation model method for evaluating location alternatives minimizes total:
A) sources.
B) destinations.
C) capacity.
D) demand.
E) shipping cost.
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Chapter 9: Management of Quality
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102 Verified Questions
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Sample Questions
Q1) A tool that depicts process variation graphically is a(n):
A) affinity diagram.
B) checklist.
C) control chart.
D) flowchart.
E) relationship diagram.
Q2) Recent changes to ISO guidelines stress continuous improvement regardless of how good you currently are.
A)True
B)False
Q3) Deming stresses that workers are primarily responsible for poor quality because very often they fail to follow instructions.
A)True
B)False
Q4) Because courtesy is subjective, it cannot be considered a factor in service quality.
A)True
B)False
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Chapter 10: Quality Control
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Sample Questions
Q1) A control chart used to monitor the process mean is the:
A) p-chart.
B) R-chart.
C) x-bar chart.
D) c-chart.
E) Gantt chart.
Q2) The probability of concluding that assignable variation exists when only random variation is present is:
(I) the probability of a Type I error.
(II) known as the alpha risk.
(III) highly unlikely.
(IV) the sum of probabilities in the two tails of the normal distribution.
A) I and II
B) I and IV
C) II and III
D) I, II, and IV
E) I, III, and IV
Q3) Range charts are used mainly with attribute data.
A)True
B)False
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Chapter 10: Extension: Acceptance Sampling
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Sample Questions
Q1) Which of the following is associated with producer's risk?
A) LTPD
B) AQL
C) AOQL
D) SPC
E) C<sub>pk</sub>
Q2) The quality manager for Graphics, Inc., is concerned about the quality of the lot of several thousand posters which her company printed this week and is now preparing to ship. If the cost of replacing a defective poster once it has been shipped is $10.00, while the cost of complete 100 percent inspection prior to shipment is $.50 per poster, at what point is she indifferent between complete inspection and shipment without inspection?
A) 5 percent
B) 10 percent
C) 12 percent
D) 20 percent
E) 25 percent
Q3) Suppose a batch is of acceptable quality. There is a 10 percent chance that it will be rejected. Thus, ________ is 10 percent.
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17
Chapter 11: Aggregate Planning and Master Scheduling
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Sample Questions
Q1) The more __________ demand is, the more the aggregate plan will tend to reflect the ____________ strategy.
A) stable; level
B) aggregated; outsourcing
C) variable; level
D) complex; uncommitted
E) stable; chase
Q2) Which one of the following would not be considered a decision option for purposes of aggregate planning?
A) inventory levels
B) manpower levels
C) pricing
D) production costs
E) promotion
Q3) One option for altering the availability of manufacturing capacity is:
A) pricing.
B) promotion.
C) back orders.
D) inventories.
E) yield management.
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Chapter 12: MRP and ERP
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89 Verified Questions
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Sample Questions
Q1) The MRP input listing the assemblies, subassemblies, parts, and raw materials needed to produce one unit of finished product is the:
A) master production schedule.
B) bill of materials.
C) inventory records.
D) assembly time chart.
E) net requirements chart.
Q2) The gross requirements value for any given component is equal to the net requirements of that component's immediate parent multiplied by the quantity per parent.
A)True
B)False
Q3) The term pegging refers to identifying the parent items that have generated a given set of material requirements for a part or subassembly.
A)True
B)False
Q4) Safety time is sometimes used in MRP rather than safety stock quantities.
A)True
B)False
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Chapter 13: Inventory Management
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161 Flashcards
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Sample Questions
Q1) The introduction of quantity discounts will cause the optimum order quantity to be:
A) smaller.
B) unchanged.
C) greater.
D) smaller or unchanged.
E) unchanged or greater.
Q2) The materials manager for a billiard ball maker must periodically place orders for resin, one of the raw materials used in producing billiard balls. She knows that manufacturing uses resin at a rate of 50 kilograms each day, and that it costs $.04 per day to carry a kilogram of resin in inventory. She also knows that the order costs for resin are $100 per order, and that the lead time for delivery is four days. If order size was 1,000 kilograms of resin, what would be the length of an order cycle?
A) .05 days
B) 4 days
C) 16 days
D) 20 days
E) 50 days
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Chapter 14: Jit and Lean Operations
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Sample Questions
Q1) A basic requirement for operating with low inventories in lean systems is that major system problems must already have been solved and new problems will be solved as they appear.
A)True
B)False
Q2) A production system uses kanban cards to control production and movement of parts. One work center uses an average of 40 pieces per hour of a certain part. Standard containers hold 10 parts. The cycle time for parts containers is about 36 minutes. Management has assigned an efficiency factor of .20 to this work center. How many containers should be used to support this operation?
Q3) A potential obstacle to conversion to a lean system is:
A) lack of management commitment.
B) lack of worker cooperation.
C) supplier resistance.
D) all of the choices.
E) insufficient space to store the increased inventories.
Q4) In the lean philosophy, the larger the lot size, the easier it is to schedule.
A)True
B)False
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Chapter 14: Extension: Maintenance
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Sample Questions
Q1) Reactive maintenance is _____________ maintenance.
A) planned
B) after the event
C) proactive
D) predictive
E) preventive
Q2) The average time before breakdown of a machine is normally distributed and has a mean of seven weeks and a standard deviation of 1.5 weeks. If breakdown cost averages $2,500 and preventive maintenance costs $500, what is the optimal preventive maintenance interval?
Q3) Attempting to determine when preventive maintenance activities should be performed is called:
A) breakdown maintenance.
B) forecastive maintenance.
C) preventive maintenance.
D) predictive maintenance.
E) corrective maintenance.
Q4) Ideally, preventive maintenance will be performed before a breakdown or failure.
A)True
B)False
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Chapter 15: Supply Chain Management
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Sample Questions
Q1) Every business organization is part of at least one supply chain.
A)True
B)False
Q2) Which of the following is not a benefit of centralized purchasing?
A) potential for quantity discounts
B) better service from suppliers
C) quick response to local needs
D) potential for use of purchasing specialists
E) supplier research
Q3) A 30 percent reduction in product and service variety will not affect the efficiency of a supply chain.
A)True
B)False
Q4) Which of the following is not a performance driver?
A) quality
B) cost
C) stability
D) velocity
E) flexibility
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Chapter 16: Scheduling
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Sample Questions
Q1) Line balancing is a major factor in the design and scheduling of low-volume systems because of batch processing.
A)True
B)False
Q2) Which of the following is present in the manufacturing scheduling hierarchy but is absent in the service scheduling hierarchy?
A) aggregate planning
B) materials planning
C) master scheduling
D) detailed, short-term scheduling
E) detailed, short-term planning
Q3) Scheduled due dates are the result of:
A) promises to customers.
B) MRP processing.
C) managerial decisions.
D) all of the choices.
E) our competitor's promises.
Q4) Priority rules are widely used to sequence jobs in high-volume systems.
A)True
B)False
Page 24
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Chapter 17: Project Management
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137 Verified Questions
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Sample Questions
Q1) In a project network, the critical path is the sequence of activities which has the:
A) most activities.
B) most nodes.
C) most events.
D) longest duration.
E) greatest variance.
Q2) Activity 7-8 is directly preceded by two activities-activity 5-7 and activity 6-7. Activity 5-7 has an expected time of five and an ES time of six. Activity 6-7 has an expected time of seven and an ES time of seven. Activity 7-8 has an expected time of 10.
The ES for activity 7-8 is:
A) 11.
B) 14.
C) 21.
D) 24.
E)25.
Q3) The earliest finish time for an activity is equal to the latest finish time minus the activity time.
A)True
B)False
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Page 25
Chapter 18: Management of Waiting Lines
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Sample Questions
Q1) A manager assembled the following information about an infinite-source waiting line system: five servers, an arrival rate of six per hour, and a service time of 20 minutes. The manager has determined that the average number of customers waiting for service is .04. Determine each of the following:
(A) the system utilization
(B) the average waiting time in line in minutes
(C) the average time in the system
(D) the average number in the system
Q2) An approach to reducing the variability in processing times might include greater standardization.
A)True
B)False
Q3) In a _______ system, customers enter the waiting line, receive service, and leave.
A) fast-track
B) simulated
C) queuing
D) random
E) nonrandom
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Chapter 19: Linear Programming
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Sample Questions
Q1) The production planner for a private label soft drink maker is planning the production of two soft drinks: root beer (R) and sassafras soda (S). Two resources are constrained: production time (T), of which she has at most 12 hours per day; and carbonated water (W), of which she can get at most 1,500 gallons per day. A case of root beer requires 2 minutes of time and 5 gallons of water to produce, while a case of sassafras soda requires 3 minutes of time and 5 gallons of water. Profits for the root beer are $6.00 per case, and profits for the sassafras soda are $4.00 per case. What are optimal daily profits?
A) $960
B) $1,560
C) $1,800
D) $1,900
E) $2,520
Q2) The value of an objective function decreases as it is moved away from the origin. A)True
B)False
Q3) The feasible solution space only contains points that satisfy all constraints. A)True B)False
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