Supply Chain Management
Study Guide Questions
Course Introduction
Supply Chain Management explores the planning, design, operation, and control of the processes and networks involved in creating and delivering products and services from raw materials to end consumers. This course covers key topics such as procurement, inventory management, logistics, demand forecasting, supplier relationships, and global supply chain strategies. Students will examine how effective supply chain management can drive organizational efficiency, enhance customer satisfaction, and provide a competitive advantage. Through case studies, real-world examples, and hands-on projects, learners will develop analytical and problem-solving skills essential for navigating the complexities of modern supply chain environments.
Recommended Textbook Service Management Operations Strategy Information Technology 9th Edition by Sanjeev Bordoloi
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2
Chapter 1: The Service Economy
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Sample Questions
Q1) Marketing helps smooth demand to match capacity in service operations.
A)True
B)False Answer: True
Q2) Sharing service resources among customers presents a challenge for managers.
A)True
B)False Answer: True
Q3) Capital decisions, technological advances, and managing demand are some managerial challenges for a ________.
A) service factory
B) service shop
C) mass service
D) professional service
Answer: A
Q4) The fact that services can be inventoried is an important characteristic, which distinguishes them from manufacturing.
A)True
B)False
Answer: False
Page 3
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Chapter 2: Service Strategy
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Sample Questions
Q1) Which of the following is not a role of information technology?
A) Creating a barrier to entry for competitors.
B) Generating revenues.
C) Displacing workers.
D) Managing multisite operations.
Answer: C
Q2) The qualifier for an airline offering short commuter flights is ________.
A) quality of the meals
B) safety record
C) politeness of the crew
D) on-time performance
Answer: B
Q3) Kraft targeted its cream cheese flavors to match the tastes of a store's customers using off-line analysis of POS (point-of-sale) data. This is an example of ________.
A) yield management
B) expert systems
C) data envelopment analysis
D) micromarketing
Answer: D
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Page 4
Chapter 3: New Service Development
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Sample Questions
Q1) Blockchain technology is based upon the cyber currency Bitcoin.
A)True
B)False Answer: True
Q2) Only ________ exceeded the United States in percent of nonmanufacturing share of total business R&D expenditure in 2001.
A) Japan
B) Norway
C) Sweden
D) United Kingdom Answer: B
Q3) The service encounter is a structural service design element.
A)True
B)False Answer: False
Q4) In the new service development process cycle, development follows design.
A)True
B)False Answer: False
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Chapter 4: The Service Encounter
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Sample Questions
Q1) A customers who becomes intoxicated and disruptive is an example of ________.
A) unreasonable demands
B) abusive or hostile attitude
C) inappropriate behavior
D) demands contrary to policies
Q2) The Disney organization refers to its employees as cast members in order to promote its organizational culture.
A)True
B)False
Q3) Efficiency vs satisfaction is the possible source of conflict in the relationship between the customer and the service organization.
A)True
B)False
Q4) Customer and server interact face-to-face in technology-mediated service encounters.
A)True
B)False
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6
Chapter 5: Supporting Facility and Process Flows
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Sample Questions
Q1) Mid-Columbia Medical Center has a special employee-only entrance to enhance security.
A)True
B)False
Q2) All but one of the following impacts the user friendliness of the facility and the ability to serve customers effectively.
A) Floorplan.
B) Layout of equipment.
C) Equipment design.
D) Time of day.
Q3) The entire system capacity is measured by the inverse of the bottleneck cycle time. A)True
B)False
Q4) The line-balancing problem attempts to resolve the inconsistencies in the capacities at various stages in a product layout.
A)True
B)False
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Chapter 6: Service Quality
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Sample Questions
Q1) When customer expectations are confirmed by perceptions, service quality is considered satisfactory.
A)True
B)False
Q2) The average business hears only from 10 percent of its dissatisfied customers.
A)True
B)False
Q3) The walk-through audit (WtA) focuses on the effectiveness of each stage in the service delivery process.
A)True
B)False
Q4) Severity of failure, speed of recovery, service guarantee and perceived service quality are all factors governing service recovery expectations.
A)True
B)False
Q5) A process is said to be in control when all the variation that is noticed can be assigned to specific causes.
A)True
B)False
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Chapter 7: Process Improvement
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Sample Questions
Q1) Which of the following categories carries the highest point value on the examination paper for the Malcolm Baldrige National Quality Award?
A) Leadership.
B) Strategic quality planning.
C) Management of process quality.
D) Customer focus and satisfaction.
Q2) Which among the following is not a category that is eligible for the Malcolm Baldrige National Quality award?
A) Manufacturing companies.
B) Service firms.
C) Small businesses.
D) Government agencies.
Q3) Which of the following statements is not part of Deming's 14-point philosophy?
A) Create constancy of purpose for improvements of product and service.
B) Promote numerical goals for the workforce.
C) Constantly and forever improve the system of production and service.
D) Cease dependence on mass inspection.
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Chapter 8: Service Facility Location
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Sample Questions
Q1) The location set covering problem locates facilities to minimize the distance that the most distant customer would travel to reach a facility (known as maximal service distance).
A)True
B)False
Q2) Which of the following items does the Huff retail location model not consider?
A) The degree of accessibility.
B) Travel time from the customer's location to the facility.
C) Facility size.
D) A parameter reflecting the importance of travel time by customers.
Q3) The choice of location criterion has little effect on the site selected.
A)True
B)False
Q4) If you are going to open four facilities and have identified six candidate locations, how many different combinations of site selections are there?
A) 4
B) 6
C) 15
D) 24
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Chapter 9: Service Supply Relationships
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Sample Questions
Q1) Information moves in both directions in the service chain for mobile workers.
A)True
B)False
Q2) The "bullwhip effect" is a phenomenon in the physical supply chain that describes the inventory stocking levels at various stages.
A)True
B)False
Q3) Conversion is a primary value component of service chain management.
A)True
B)False
Q4) Outsourcing a service incurs transaction costs such as loss of employee loyalty.
A)True
B)False
Q5) Travel booking is a service that falls in the ________ category of outsourcing business service.
A) facility support
B) employee development
C) facilitator
D) professional
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Chapter 10: Globalization of Services
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Sample Questions
Q1) Rapid growth with investment capital from franchisers is the main objective of franchising.
A)True
B)False
Q2) Hedging is a strategy adopted by multinational corporations to neutralize their exposure to fluctuating currency exchange rates.
A)True
B)False
Q3) Franchising usually is used when developing a focused network.
A)True
B)False
Q4) Communication is included in the five Cs of strategic planning.
A)True
B)False
Q5) When franchising which one of the following is not a benefit to the franchiser?
A) Proven business.
B) Rapid expansion.
C) Right to dictate conditions.
D) Fees from the franchisee.
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Chapter 11: Managing Capacity and Demand
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Sample Questions
Q1) Yield management is a strategy that manages both demand and capacity.
A)True
B)False
Q2) ________ is not a strategy for accommodating of customer-induced variability.
A) Provide generous staffing
B) Cross-train employees
C) Reward increased effort
D) Do work for customers
Q3) The workshift scheduling problem is important in service organizations that face a cyclic demand for their services.
A)True
B)False
Q4) Which of the following is not a characteristic of yield management?
A) Capacity is relatively fixed.
B) There is one homogeneous customer class.
C) The service is considered a perishable inventory.
D) Demand fluctuates yet is somewhat predictable.
Q5) Overbooking is a strategy that can be used to smooth demand.
A)True
B)False
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Chapter 12: Managing Waiting Lines
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Sample Questions
Q1) If the number of arrivals in an interval of time follows an exponential distribution, the interarrival time is known to follow a Poisson distribution.
A)True
B)False
Q2) According to Maister's Second Law of service, ________.
A) perceptions minus expectations equal the level of customer satisfaction
B) first impressions can influence the remainder of the service experience
C) quality in the service industry is essentially free
D) a waiting customer cannot be satisfied
Q3) Empirical studies have suggested that the distribution of inter-arrival times is
A) Poisson
B) exponential
C) uniform
D) FCFS
Q4) Demand smoothing is accomplished by the differential pricing policy of telephone companies.
A)True B)False
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Chapter 13: Capacity Planning and Queuing Models
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Sample Questions
Q1) A queuing system is said to be in a transient condition when ________.
A) its parameters change with time
B) its parameters remain constant
C) it is still under the influence of the initial state
D) it grows beyond bound
Q2) Verification refers to determining whether or not the structure of a simulation model is consistent with the real system.
A)True
B)False
Q3) Pooling of services is an approach toward achieving economies of scale in services through better utilization of services.
A)True
B)False
Q4) For the system to operate satisfactorily over the long run, ________.
A) the capacity to serve must be greater than the average demand
B) the expected waiting time for each customer must not exceed average service time
C) the arrival rate must be less than the service rate
D) the number of servers must equal the average number of arrivals per unit time
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15
Chapter 14: Forecasting Demand for Services
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Sample Questions
Q1) Subjective models are used to assess the future impact of changing demographics.
A)True
B)False
Q2) All of the following are forecasting models, except ________ model.
A) subjective
B) objective
C) causal
D) time series
Q3) Exponential smoothing prevents overreaction to extremes in the actual observed values.
A)True
B)False
Q4) Fast-food restaurants use a causal model to forecast daily demand for menu items.
A)True
B)False
Q5) Both measures of forecast accuracy, MAD and MSE, give equal weight to all forecasting errors.
A)True
B)False
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Chapter 15: Managing Service Inventory
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Sample Questions
Q1) Inventory management is concerned with two basic questions: how much to order and when to place an order.
A)True
B)False
Q2) Which of the following concepts is not associated with the 'news vendor problem'?
A) Breakeven analysis.
B) Incremental analysis.
C) Expected value analysis.
D) Trade-off analysis.
Q3) A continuous review system is generally used for Class C items in the ABC system of classification.
A)True
B)False
Q4) For an electronic super store using the ABC inventory classification system, ________ would fall in class A.
A) television sets
B) entertainment centers
C) stereos
D) desktop computers
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Chapter 16: Managing Service Projects
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Sample Questions
Q1) Which of the following is not true about a critical path in a project network with certain activity times?
A) Activities on the critical path have the least slack.
B) The longest activity in the project must lie on the critical path.
C) There can be several critical paths in a project network.
D) The first activity in the network is always on the critical path.
Q2) The critical path for a project with uncertain activity times is not known for certain until after the project is completed.
A)True
B)False
Q3) The Beta distribution is useful in network analysis because it ________.
A) provides formulas for calculating the activity mean and variance
B) can be approximated by a normal distribution
C) provides probability estimates for project completion time
D) requires only three time estimates to describe uncertain activity duration
Q4) Schedule variance is the difference between budgeted cost for work performed and actual cost of work performed.
A)True
B)False
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