Supply Chain Management
Solved Exam Questions
Course Introduction
Supply Chain Management explores the strategic and operational processes involved in the flow of goods, services, information, and finances from raw material suppliers to end consumers. The course covers key concepts such as demand forecasting, inventory management, purchasing, transportation, logistics, and supplier relationships. Students will analyze real-world supply chain networks, examine the role of technology in improving efficiency, and study risk management practices. Through case studies and practical exercises, learners gain the skills necessary to design, implement, and optimize supply chains in a global context, enhancing value creation and achieving competitive advantage for organizations.
Recommended Textbook
OM 5 5th Edition by David Alan Collier
Available Study Resources on Quizplus
23 Chapters
1926 Verified Questions
1926 Flashcards
Source URL: https://quizplus.com/study-set/3569 Page 2
Chapter 1: Goods, Services, and Operations Management
Available Study Resources on Quizplus for this Chatper
81 Verified Questions
81 Flashcards
Source URL: https://quizplus.com/quiz/70869
Sample Questions
Q1) A customer benefit package (CBP) includes _____.
A) only core offerings
B) only peripheral offerings
C) either core or peripheral offerings but not both
D) both core offerings as well as peripheral offerings
Answer: D
Q2) Operations management is focused primarily on the application of technology in manufacturing.
A)True
B)False
Answer: False
Q3) The reason that many Japanese firms captured major shares of world markets in the 1970s was a result of their focus on quality rather than efficiency.
A)True
B)False
Answer: True
To view all questions and flashcards with answers, click on the resource link above. Page 3
Chapter 2: Value Chains
Available Study Resources on Quizplus for this Chatper
87 Verified Questions
87 Flashcards
Source URL: https://quizplus.com/quiz/70871
Sample Questions
Q1) In break-even analysis, whenever the anticipated volume is greater than the break-even quantity, the firm should not outsource.
A)True
B)False
Answer: True
Q2) The control of Walmart's value chain is _____, while the control of General Electric's is _____.
A) postproduction focused; preproduction focused
B) horizontal; vertical
C) centralized; decentralized
D) backward integrated; forward integrated
Answer: C
Q3) _____ refers to acquiring capabilities in the value (supply) chain toward distributions or even customers.
A) Backward integration
B) Outsourcing
C) Offshoring
D) Forward integration
Answer: D
To view all questions and flashcards with answers, click on the resource link above.
Page 4
Chapter 3: Measuring Performance in Operations
Available Study Resources on Quizplus for this Chatper
98 Verified Questions
98 Flashcards
Source URL: https://quizplus.com/quiz/70873
Sample Questions
Q1) A coffee shop's average transaction price is $4, and the contribution margin is 60 percent. A typical customer makes a purchase once a week or 52 weeks per year, and the management estimates the value of the loyal customer over the buying life cycle as $520. The customer defection rate is _____.
A) less than or equal to 0.10
B) more than 0.10 and less than or equal to 0.15
C) more than 0.15 and less than or equal to 0.20
D) more than 0.20 and less than or equal to 0.25
Answer: D
Q2) In the Service-Profit Chain model, which of the following is viewed as an external performance?
A) Customer satisfaction
B) Volume flexibility
C) Cycle time
D) Employee productivity
Answer: A
Q3) The customer defection rate is expressed as 1/customer retention rate.
A)True
B)False
Answer: False
To view all questions and flashcards with answers, click on the resource link above. Page 5
Chapter 4: Operations Strategy
Available Study Resources on Quizplus for this Chatper
82 Verified Questions
82 Flashcards
Source URL: https://quizplus.com/quiz/70875
Sample Questions
Q1) _____ is the discovery and practical application or commercialization of a device, method, or idea that differs from existing norms.
A) Measurement
B) Learning
C) Innovation
D) Diversity
Q2) Southwest Airlines has gained a competitive advantage by focusing on innovation as a key competitive priority.
A)True
B)False
Q3) The ease with which one can create original music compositions using a software package, such as Band in a Box or Apple's GarageBand, is an example of an experience attribute.
A)True
B)False
Q4) Formal marketing research, such as surveys and focus groups, is the only useful approach to learn about customer needs and expectations.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 6
Chapter 5: Technology and Operations Management
Available Study Resources on Quizplus for this Chatper
77 Verified Questions
77 Flashcards
Source URL: https://quizplus.com/quiz/70876
Sample Questions
Q1) Discuss the role of technology in productivity.
Q2) An intermediary specializes in handling all aspects of customers returning a manufactured good or invoking service guarantees.
A)True
B)False
Q3) Differentiate between hard technology and soft technology.
Q4) Flexible manufacturing systems integrate machines or robots with automated handling devices to route work, load tools, and control operations.
A)True
B)False
Q5) Numerical control (NC) machine tools enable the machinist's skills to be duplicated by a programmable device (originally punched paper tape) that controls the movements of a tool used to make complex shapes.
A)True
B)False
Q6) Information-intensive businesses have the potential to be infinitely scalable.
A)True
B)False
Q7) Explain the concept of industrial robots.
Page 7
To view all questions and flashcards with answers, click on the resource link above.
Chapter 6: Goods and Service Design
Available Study Resources on Quizplus for this Chatper
118 Verified Questions
118 Flashcards
Source URL: https://quizplus.com/quiz/70868
Sample Questions
Q1) A kiosk at an airport that allows passengers to check their baggage would be an example of a lean servicescape environment.
A)True
B)False
Q2) The roof of the House of Quality shows the relationship matrix structure between the voice of the customer and the technical features.
A)True
B)False
Q3) Quality function deployment (QFD) is focused primarily on developing a viable quality control plan.
A)True
B)False
Q4) Design for manufacturability (DFM) includes practices such as designing for recycling and disassembly.
A)True
B)False
Q5) Summarize the process of designing goods and services, and explain where the process differs between goods and services.
To view all questions and flashcards with answers, click on the resource link above. Page 8
Chapter 7: Process Selection, Design, and Analysis
Available Study Resources on Quizplus for this Chatper
116 Verified Questions
116 Flashcards
Source URL: https://quizplus.com/quiz/70870
Sample Questions
Q1) The lowest resource utilization is usually found in a(n) _____ process.
A) job shop
B) flow shop
C) continuous flow
D) assembly line
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) a service blueprint.
Q3) A manufacturer's average work-in-process inventory for Part 1234 is 1,250 parts. The workstation produces parts at the rate of 150 parts per day. What is the average amount of time a part spends at the workstation?
A) More than 4 but less than or equal to 6 days
B) More than 6 but less than or equal to 8 days
C) More than 8 but less than or equal to 10 days
D) More than 10 days
Q4) Define a value stream map. How does this differ from a regular process map?
To view all questions and flashcards with answers, click on the resource link above. Page 9
Chapter 8: Facility and Work Designs
Available Study Resources on Quizplus for this Chatper
92 Verified Questions
92 Flashcards
Source URL: https://quizplus.com/quiz/70877
Sample Questions
Q1) Changes in goods and services for a firm's customer benefit package do not impact facility layouts.
A)True
B)False
Q2) An assembly line is a type of product layout.
A)True
B)False
Q3) Which one of the following statements is TRUE regarding the BankUSA: Cash Movement case study?
A) The cycle time for the outgoing wire process was less than 2.0 minutes per wire.
B) Commercial (business) outgoing wires used a separate process different from the one for individual customer tractions.
C) Outgoing wire error rate data was not available in the case study.
D) The current assembly line for outgoing wires was understaffed based on assembly-line balancing (ALB) analysis.
Q4) In a perfectly balanced assembly line, no bottlenecks exist.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 10
Chapter 9: Supply Chain Design
Available Study Resources on Quizplus for this Chatper
87 Verified Questions
87 Flashcards
Source URL: https://quizplus.com/quiz/70878
Sample Questions
Q1) A(n) _____ seeks to balance capacity and demand, might use only a few large distribution centers, and minimize costs of routing products from factories to retail stores and customers.
A) responsive supply chain
B) efficient supply chain
C) push system
D) pull system
Q2) For General Motors' supply chain, the _____ is the push-pull boundary.
A) supplier
B) logistic provider
C) dealer
D) customer
Q3) Describe some common supply chain metrics used to evaluate performance.
Q4) Explain the difference between an efficient and a responsive supply chain, and the business context for which each works best.
Q5) In the supply chain operations reference (SCOR) model, the "plan" step involves identifying and selecting suppliers.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 11
Chapter 10: Capacity Management
Available Study Resources on Quizplus for this Chatper
89 Verified Questions
89 Flashcards
Source URL: https://quizplus.com/quiz/70879
Sample Questions
Q1) Given the base case information and resource levels in question #21, which process improvement option given below is best to maximize (increase) process (throughput) capacity? (Each option is independent of any other option; that is, consider each option below as the base case plus the one option.)
A) Add one clerk to help do the work at Stage A.
B) Add one assistant manager to help do the work at Stages C and D.
C) Transfer one coder from coding to an assistant manager job.
D) Speed up the service time for coders (Stage B) from 6 minutes/unit to 5 minutes/unit.
Q2) What is the current labor utilization of the coders, if two coding specialists are currently on duty?
A) Less than 90 percent
B) More than 90% but less than or equal to 95%
C) More than 95% but less than or equal to 100%
D) More than 100%
Q3) Short-term capacity decisions usually involve adjusting schedules or staffing levels.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above.
Page 12
Chapter 11: Forecasting and Demand Planning
Available Study Resources on Quizplus for this Chatper
95 Verified Questions
95 Flashcards
Source URL: https://quizplus.com/quiz/70880
Sample Questions
Q1) Which of the following is NOT a statistical forecasting method?
A) Delphi
B) Exponential smoothing
C) Moving average
D) Linear regression
Q2) _____ forecasts are needed for planning production schedules and to assign workers to jobs.
A) Long-range
B) Intermediate-range
C) Short-range
D) Demand planning
Q3) Explain how forecasting is used at different levels of an organization.
Q4) In an exponential smoothing model, larger values of alpha place less emphasis on recent data.
A)True
B)False
Q5) The values of mean absolute deviation (MAD) and mean square error (MSE) depend on the measurement scale of the time-series data.
A)True
B)False
13
To view all questions and flashcards with answers, click on the resource link above.
Chapter 12: Managing Inventories
Available Study Resources on Quizplus for this Chatper
117 Verified Questions
117 Flashcards
Source URL: https://quizplus.com/quiz/70881
Sample Questions
Q1) In a single-period inventory situation, the only inventory decision is when to trigger an order.
A)True
B)False
Q2) Which of the following statements is NOT TRUE?
A) Inventory is any asset held for future use or sale.
B) When using ABC analysis, "C" items comprise of a small dollar value.
C) Stock keeping unit (SKU) is a single item or asset stored at multiple locations.
D) The lead time is the time between placement of an order and its receipt.
Q3) Keith, an operations manager at a chemical company is attempting to set a safety stock level for a key ingredient that is used in their most powerful insecticide product. He believes that demand during lead time for this ingredient is normally distributed based on past data. In addition, he believes that future use is accurately depicted by these historical demands during lead-time data (in gallons): 55, 75, 75, 70, 80, 60, 50, 70, 60, and 85. He estimates the standard deviation of demand during the lead time to be 8.5 gallons.
a.What is the average demand during the lead time for this key ingredient?
b.What is the safety stock needed to provide a 95 percent service level?
c.What is the reorder point the company should use?
To view all questions and flashcards with answers, click on the resource link above.
Page 14
Chapter 13: Resource Management
Available Study Resources on Quizplus for this Chatper
106 Verified Questions
106 Flashcards
Source URL: https://quizplus.com/quiz/70882
Sample Questions
Q1) Lot sizing is the process of translating aggregate plans into short-term operational plans that provide the basis for weekly and daily schedules.
A)True
B)False
Q2) The words "product family," "budget allocation," and "long-term" fit 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) Shop floor controlling-Level 4
Q3) Increasing the output rate without changing existing resources is an example of demand management.
A)True
B)False
Q4) The purpose of the master schedule is to translate the aggregate plan into a separate plan for individual finished goods.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 15
Chapter 14: Operations Scheduling and Sequencing
Available Study Resources on Quizplus for this Chatper
79 Verified Questions
79 Flashcards
Source URL: https://quizplus.com/quiz/70883
Sample Questions
Q1) Scheduling refers to specifying:
A) the sequence in which 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.
Q2) The earliest due date (EDD) rule minimizes the maximum of jobs past due but doesn't perform well on average flow time, work-in-process (WIP) inventory, or resource utilization.
A)True
B)False
Q3) Tardiness measures the amount of time by which the completion time exceeds the due date.
A)True
B)False
Q4) The time to rest and travel between games for baseball umpire crews is an important factor in developing their schedule.
A)True
B)False
Q5) Differentiate between scheduling and sequencing.
To view all questions and flashcards with answers, click on the resource link above. Page 16
Chapter 15: Appendix: Quality Management
Available Study Resources on Quizplus for this Chatper
56 Verified Questions
56 Flashcards
Source URL: https://quizplus.com/quiz/70867
Sample Questions
Q1) The Chester Table Company mass produces quality end tables for motels. They produce 5,000 end tables per week. The owner is trying to determine how many workers he needs. The workers work 40 hours per week but are idle about three percent of the time because of the cleaning of their area. Their performance rating is equal to one. The owner has developed these time standards for operations per table:
Transporting the table through the plant = 2 minutes
Table top = 10 minutes
One leg = 4 minutes
Finishing = 5 minutes
a. How long does it take (in minutes) to produce one table?
b. What is the labor standard (in minutes) for this operation?
c. What is the minimum number of workers needed to produce 5000 tables in one week?
Q2) A performance rating factor (PRF) of 1.15 means:
A) a worker is working at a pace that is 15 percent faster than normal.
B) a worker is working at a pace that is 15 percent slower than normal.
C) a worker is working at a pace that is 15 percent faster than standard time.
D) a worker needs to add 15 percent to the standard time.
Q3) Define work measurement and what it leads to from an operations perspective.
To view all questions and flashcards with answers, click on the resource link above.
17
Chapter 15: Quality Management
Available Study Resources on Quizplus for this Chatper
81 Verified Questions
81 Flashcards
Source URL: https://quizplus.com/quiz/70884
Sample Questions
Q1) W. Edward Deming believed that productivity would improve by setting numerical quotas.
A)True
B)False
Q2) In the define phase of the Six Sigma problem-solving (DMAIC) approach, teams identify critical-to-quality characteristics (CTQs) that are considered by the customer to have the most impact on quality.
A)True
B)False
Q3) All of the following are components of the GAP model EXCEPT:
A) the difference between the customer's expectations and perceptions.
B) the discrepancy between delighting or pleasing customers and total customer service and satisfaction.
C) the discrepancy between management's perceptions of what features constitute a target level of quality and the task of translating these perceptions into executable specifications.
D) the discrepancy between quality specifications documented in operating and training manuals and plans and their implementation.
Q4) Define root cause and describe root cause analysis.
To view all questions and flashcards with answers, click on the resource link above. Page 18
Chapter 16: Quality Control and Spc
Available Study Resources on Quizplus for this Chatper
110 Verified Questions
110 Flashcards
Source URL: https://quizplus.com/quiz/70872
Sample Questions
Q1) A supplier is producing a machined part for the transmission of a vehicle. The upper specification limit is 0.135 cm, and the lower specification limit is 0.075. The process standard deviation for the process that makes this part is 0.005, and the process average is 0.105. What conclusion can be drawn from these process capability data?
A)The process is centered and capable.
B)The process is not centered and capable.
C)The process is centered and not capable.
D)The process is not centered and not capable.
Q2) Common causes of variation generally accounts for about 80 to 90 percent of the observed variation within a process.
A)True
B)False
Q3) A key element of a control system is the ability to measure performance and compare it to a performance standard.
A)True
B)False
Q4) Define statistical process control (SPC), and differentiate between common cause and special (or assignable) cause variation.
To view all questions and flashcards with answers, click on the resource link above. Page 19
Chapter 16: Appendix: Queuing Analysis
Available Study Resources on Quizplus for this Chatper
38 Verified Questions
38 Flashcards
Source URL: https://quizplus.com/quiz/70866
Sample Questions
Q1) An ice cream shop is quite busy after the neighborhood high school lets out each day. From 3 pm to 5 pm customers arrive at the rate of 50 per hour, on average. Currently, the clerk can serve one customer per minute, on average. The store manager can buy an electrically heated scoop with an automatic ice cream ejector which will decrease the serving time to one custom-er per 45 seconds, on average.
a. What is the current time (in minutes) spent waiting in line?
b. What will the waiting time (in minutes) become using the automatic ice cream ejector?
c. What fraction of time is the clerk currently idle?
d. What fraction of time will the clerk be idle using the automatic ice cream ejector?
e. How many customers, on average, are in the shop under the current system?
f. How many customers would be in the shop, on average, using the automatic ice cream ejector?
Q2) Discuss three categories of information necessary to develop a queuing model.
Q3) Describe at least four queue disciplines.
Q4) Triage is a form of preemption.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above.
Page 20
Chapter 17: Appendix: Modeling Using Linear Programming
Available Study Resources on Quizplus for this Chatper
41 Verified Questions
41 Flashcards
Source URL: https://quizplus.com/quiz/70865
Sample Questions
Q1) Explain the essence of a blending problem.
Q2) Deciding on how much of each grade of gasoline to produce is an example of the linear programming model for blending applications.
A)True
B)False
Q3) What characterizes a linear function?
Q4) If a company has a demand of 1,600 units for the month of May and a beginning of 900 units, and if X<sub>m</sub> = production in May and L<sub>m</sub> = the number of lost sales in May, which of the following equations represents the material-balance constraint?
A) X<sub>m</sub> - I<sub>m</sub> + 900 + L<sub>m</sub> = 1,600
B) X<sub>m</sub> + I<sub>m</sub> - 900 + L<sub>m</sub> = 1,600
C) X<sub>m</sub> - I<sub>m</sub> + 900 - L<sub>m</sub> = 1,600
D) -X<sub>m</sub> - I<sub>m</sub> + 900 - L<sub>m</sub> = 1,600
Q5) The precedence relationships in a network limit the activity _____.
A) nonnegativity time
B) overtime
C) crash time
D) inventory time
Q6) Discuss the concept of optimization models with examples.
Page 21
To view all questions and flashcards with answers, click on the resource link above.
Chapter 17: Lean Operating Systems
Available Study Resources on Quizplus for this Chatper
84 Verified Questions
84 Flashcards
Source URL: https://quizplus.com/quiz/70874
Sample Questions
Q1) Lean enterprise refers to approaches that focus primarily on the elimination of waste throughout the value chain.
A)True
B)False
Q2) Lean principles are always transferrable to front-office services that involve high customer contact and service encounters.
A)True
B)False
Q3) Timken Company illustrates the application of lean principles when it _____.
A) reduces the total cycle time for new product development
B) increases safety stock in its inventory system
C) expands factories and distribution centers
D) maximizes the number of parts or items in its systems
Q4) Discuss the seven major categories of waste as defined by Toyota Motor Company.
Q5) A clean and organized work area is an important principle of lean thinking.
A)True
B)False
Q6) Explain the concept of Single Minute Exchange of Dies (SMED).
Q7) Compare and contrast a push system and a pull system.
Page 22
Q8) Contrast batching with single-piece flow.
To view all questions and flashcards with answers, click on the resource link above.
Chapter 18: Appendix: Simulation
Available Study Resources on Quizplus for this Chatper
40 Verified Questions
40 Flashcards
Source URL: https://quizplus.com/quiz/70864
Sample Questions
Q1) Using two-digit random numbers, the interval 55-79 represents the probability of
A) 0.55 to 0.79
B) 0.25
C) 0.24
D) 0.67
Q2) Face validity means the programmers agree to a model's logic.
A)True
B)False
Q3) A simulator is a general-purpose simulation model.
A)True B)False
Q4) Discuss a simulator. Provide appropriate examples.
Q5) Given the table below with information on lead time, followed by a set of six random numbers, determine the average lead time. \(\begin{array}{ll}\text { Lead Time (days) }&\text { Frequency }\\
3 & 20 \% \\
4 & 70 \% \\
5 & 10 \%
\end{array}\) RANDOM NUMBERS: 90, 52, 54, 47, 56, and 95
To view all questions and flashcards with answers, click on the resource link above. Page 23
Chapter 18: Project Management
Available Study Resources on Quizplus for this Chatper
108 Verified Questions
108 Flashcards
Source URL: https://quizplus.com/quiz/70885
Sample Questions
Q1) If activity C is delayed by 2 weeks, then the revised earliest project completion time is:
A) 13 weeks.
B) 14 weeks.
C) 15 weeks.
D) 17 weeks.
Q2) The early start time for an activity is computed by finding the largest early finish time of all immediate predecessors.
A)True
B)False
Q3) Crash time is the longest possible time in which the activity can realistically be completed.
A)True
B)False
Q4) All activities on the critical path have a zero slack time.
A)True
B)False
Q5) Project managers need to be specialists, not generalists. A)True
B)False
Page 24
To view all questions and flashcards with answers, click on the resource link above.
Chapter 19: Appendix: Decision Analysis
Available Study Resources on Quizplus for this Chatper
44 Verified Questions
44 Flashcards
Source URL: https://quizplus.com/quiz/70863
Sample Questions
Q1) An aggressive or risk-taking approach to one-time decisions without event probabilities is called maximin.
A)True
B)False
Q2) Decision problems can be depicted graphically using the expected-value approach.
A)True
B)False
Q3) Which of the following statements is TRUE of the expected-value approach to selecting decision alternatives?
A) It mostly applies to one-time decisions.
B) It knows the state of nature in advance.
C) It is best suited for repeated decisions.
D) It is independent of probability estimates for events.
Q4) Which of the following is NOT a characteristic of management decisions for which decision analysis techniques apply?
A) They must be important.
B) They are probably unique.
C) They are usually deterministic.
D) They are complex.
To view all questions and flashcards with answers, click on the resource link above. Page 25