Operations and Supply Chain Management
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Course Introduction
Operations and Supply Chain Management offers an in-depth exploration of the strategies, processes, and tools used to design, operate, and improve the production and distribution of goods and services. This course covers key topics such as process analysis, quality management, inventory control, logistics, and global supply chain coordination. Through practical examples and case studies, students learn how organizations achieve efficiency, responsiveness, and sustainability in dynamic environments, and develop the skills needed to analyze and optimize supply chain networks from sourcing to customer delivery.
Recommended Textbook
OM 4th Edition by David Alan Collier
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Page 2
Chapter 1: Goods, Services, and Operations Management
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Sample Questions
Q1) The demand for services is usually easier to predict than the demand for goods.
A)True
B)False Answer: False
Q2) Service facilities must be physically located close to the customer.
A)True
B)False Answer: False
Q3) Taking a customer order at a quick service restaurant would generally be viewed as a support process.
A)True
B)False
Answer: False
Q4) Employees who work in financial and accounting functions of organizations need little knowledge of operations management.
A)True
B)False
Answer: False
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Page 3
Chapter 2: Value Chains
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Sample Questions
Q1) Value can be increased by adding services to customer benefit packages even when the quality or features of goods cannot be improved.
A)True
B)False
Answer: True
Q2) Value chain integration requires consolidating information systems among suppliers, factories, distributors, and customers; managing the supply chain and scheduling factories; and studying new ways to use technology.
A)True
B)False Answer: True
Q3) In breakeven analysis, whenever the anticipated volume is greater than the breakeven quantity, the firm should not outsource.
A)True
B)False
Answer: True
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Chapter 3: Measuring Performance in Operations
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Sample Questions
Q1) The balanced scorecard is designed to be linked to an organization's strategy.
A)True
B)False
Answer: True
Q2) Good customer satisfaction measurement systems are designed to provide information about future buying behavior.
A)True
B)False
Answer: True
Q3) In the Baldrige Award criteria, the Business Results category focuses on how an organization selects, gathers, analyzes, manages, and improves its data, information, and knowledge assets.
A)True
B)False
Answer: False
Q4) Measuring and reporting performance results can be a motivator for many workers.
A)True
B)False Answer: True
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Chapter 4: Operations Strategy
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Sample Questions
Q1) Customers generally perceive greater risk when buying goods than when buying services.
A)True
B)False
Q2) In an automobile, which of the following would not be considered an order winner?
A)Self-parking capability
B)Voice-activated music system
C)Front-seat airbags
D)Collision-avoidance system
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 customer benefit package that a firm designs is meant to appeal to all customers.
A)True
B)False
Q5) What is the difference between corporate, business and functional strategy?
Q6) 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) An intermediary specializes in handling all aspects of customers' returning a manufactured good or invoking service guarantees.
A)True
B)False
Q2) Enterprise Resource Planning Systems (ERP)
A)are a subset of supply chain management
B)give each function the ability to set up its own databases
C)handle customer ordering, inventory management and production scheduling on a real-time basis.
D)are easy to implement
Q3) Without the internet, there would be little application of technology in services.
A)True
B)False
Q4) Discuss the components, hardware and software of a Computer-Integrated Manufacturing System (CIMS).
Q5) Bar code scanners are examples of soft-technology.
A)True
B)False
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Chapter 6: Goods and Service Design
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Sample Questions
Q1) The House of Quality shows the interrelationships between any pair of technical features.
A)True
B)False
Q2) An ATM machine provides four sequential steps in processing a transaction.Over the last quarter, the reliability of each of these steps was 0.92, 0.97, 0.95 and 0.90.What is the overall reliability of the machine? How much can reliability be improved if the reliability of the fourth step is increased to 0.98?
Q3) Which of the following is not correct regarding product or process simplification?
A)reduces flexibility
B)reduces opportunity for error
C)speeds up flow time
D)improves reliability
Q4) A company is developing a new rocket for NASA and is concerned about the reliability of the fuel pump system.The fuel pump system has four fuel pumps (none are redundant), each with a failure probability of .001 over a two-hour period.
a.What is the reliability of an individual fuel pump?
b.What is the reliability of the fuel pump system for the rocket?
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Page 8
Chapter 7: Process Selection, Design, and Analysis
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Sample Questions
Q1) An automobile emissions testing center has six (6) inspectors and tests 50 autos per hour.Each inspector can inspect twelve (12) autos per hour.What would the service rate need to be in order to achieve 90% utilization?
Q2) Which of the following is not a common process design improvement strategy?
A)Increasing revenue
B)Decreasing agility
C)Decreasing cost
D)Decreasing flow time
Q3) Improving process designs nearly always focus on decreasing costs.
A)True
B)False
Q4) ____ offer customers broad freedom to select the pathways that are best suited for their immediate needs and wants from many possible pathways through the service delivery system.
A)Provider-routed pathways
B)Customer-routed pathways
C)Highly repeatable service encounter activity sequences
D)ATMs
Q5) Compare and contrast a product-process matrix with a service positioning matrix.
Page 9
Q6) What are some management strategies to improve process designs?
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Chapter 8: Facility and Work Design
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Sample Questions
Q1) ALDEP is a process layout technique that focuses on materials handling costs as the primary solution.
A)True
B)False
Q2) An assembly line with 28 activities is to be balanced.The total amount of time required for all 28 activities is 39 minutes.The line will operate for 450 minutes per day.What must the cycle time be to achieve an output rate of 400 units/day?
Q3) All of the following are common objectives of layout studies except
A)Minimize delays in materials handling and customer movement
B)Minimize the number of workstations
C)Provide for good housekeeping and maintenance
D)Maintain flexibility
Q4) ____ is vertical expansion of job duties to give the worker more responsibility.
A)Job enlargement
B)Job rotation
C)Job enrichment
D)Job design
Q5) Differentiate between a "flow blocking delay" and a "lack of work delay." How can each be reduced?
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Chapter 9: Supply Chain Design
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Sample Questions
Q1) 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
Q2) Supply chains often must be redesigned when a firm's product lines and markets change or expand.
A)True
B)False
Q3) Which one of the following is not directly related to a supply chain?
A)Distribution center
B)Inventory
C)Promotion/Advertising
D)Supplier
Q4) A contract manufacturer can offer significant competitive advantages.Which one of the following is not an advantage of using a contract manufacturer.
A)Access to advanced manufacturing technologies
B)Faster product time-to-market
C)Lower costs from economies of scale
D)Standardized design
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Chapter 10: Capacity Management
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Sample Questions
Q1) Average safety capacity (%) is computed as
A)Average resource utilization (%) - 100%
B)100% - average resource utilization (%)
C)[maximum safety capacity (%) + minimum safety capacity (%)]/2
D)100% - maximum resource utilization (%)
Q2) Define the Theory of Constraints (TOC).How does TOC view throughput differently from the traditional OM perspective?
Q3) In calculating required capacity for a job shop, setup time is a significant factor.
A)True
B)False
Q4) Long-term capacity planning must be closely tied to the strategic direction of the organization.
A)True
B)False
Q5) Complementary goods or services balance seasonal demand cycles and therefore use excess capacity available.
A)True
B)False
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Chapter 11: Forecasting and Demand Planning
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Sample Questions
Q1) Exponential smoothing models "never forget" past data as long as the smoothing constant is strictly between 0 and 1.In contrast, moving average methods "completely forget" all data older than k periods in the past.
A)True
B)False
Q2) Statistical forecasting is based upon the assumption that the future will be an extrapolation of the past.
A)True
B)False
Q3) If single exponential smoothing is used and the time series has a negative trend, the forecast will
A)Lag
B)Overshoot
C)Be on target
D)Have a MAD equal to zero
Q4) Aggregate forecasts are generally much easier to develop whereas detailed forecasts require more time and resources.
A)True
B)False
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Chapter 12: Managing Inventories
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Sample Questions
Q1) Using a fixed quantity system (FQS), as the reorder point increases
A)safety stock increases
B)safety stock decreases
C)the number of orders increases
D)the number of orders decreases
Q2) Which one of the following statements concerning the economic order quantity (EOQ) model is not true when the unit holding cost increases?
A)the economic order quantity will decrease
B)the number of orders per year will decrease
C)total ordering cost will increase
D)average inventory will decrease
Q3) Airline seats and call center phone lines are examples of inventory in service organizations.
A)True
B)False
Q4) An example of stochastic demand might be: "The daily demand for milk is normally distributed with a mean of 150 gallons and a standard deviation of 15 gallons."
A)True
B)False
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Chapter 13: Resource Management
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Sample Questions
Q1) An inventory item can be
A)Only a parent
B)Only a component
C)Both a parent and a component
D)Either a parent or a component, but not both
Q2) Dependent demand does not occur in the service business.
A)True
B)False
Q3) If forecast demand exceeds the total factory or supply capacity, managers might simply decide not to meet forecast demand.This decision would most likely be made at which planning level?
A)Aggregate planning - Level 1
B)Disaggregation - Level 2
C)Execution - Level 3
D)Capacity requirements planning
Q4) Short-term changes in facilities and equipment are seldom used in traditional aggregate planning methods because of the capital costs involved.
A)True
B)False
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Chapter 14: Operations Scheduling and Sequencing
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Sample Questions
Q1) The Shortest Processing Time (SPT) rule
A)Ensures that due dates are met
B)Maximizes average flow-time
C)Minimizes resource utilization
D)Minimizes work in process inventory
Q2) Triage by nurses in an emergency room would be an example of
A)Scheduling
B)Sequencing
C)Appointments
D)Shortest-processing-time rule
Q3) Scheduling and sequencing methods used in manufacturing are more beneficial in low-contact, than high-contact, service processes.
A)True
B)False
Q4) Flow time is the amount of time a job spends in a shop or factory.
A)True
B)False
Q5) Short-term capacity fluctuations necessitate changes in schedules.List at least five factors affecting short-term capacity.
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Chapter 15: Quality Management
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Sample Questions
Q1) Which of the following is not directly related to W.Edwards Deming?
A)Quality leads to a sustainable market
B)Quality is free
C)Higher quality leads to higher productivity and lower cost
D)Plan, Do, Study, Act
Q2) Discuss different ways of defining quality and how these differ for goods and services.
Q3) Zero defects is achieved by identifying defects in production processes and fixing them.
A)True
B)False
Q4) A tool to help determine how a process works and what it is supposed to do is a
A)Run chart
B)Cause-and-effect diagram
C)Scatter diagram
D)Flowchart
Q5) Explain the four components of the cost of quality.
Q6) Performance standards in services are analogous to manufacturing specifications.
A)True
B)False
Page 17
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Chapter 16: Quality Control and Spc
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Sample Questions
Q1) With good management, all variability of output from any goods- or service-producing process can be eliminated.
A)True
B)False
Q2) The upper and lower specification limits for a component are 4.20, and 4.30 ounces, respectively.The process standard deviation is .02, and the process average is 4.24 ounces.Which one of the following statements is true.
A)The C<sub>p</sub> index indicates the process is centered.
B)The C<sub>p</sub> index indicates the process is not centered.
C)The C<sub>pk</sub> index indicates the process is centered.
D)The C<sub>pk</sub> index indicates the process is not centered.
Q3) A manufacturer inspected 40 circuit boards and found a total of 640 defects.If the company wants to use SPC to control the manufacturing process by monitoring the number of defects per circuit board, what type of chart should they use and what should the control limits be?
Q4) It is not necessary to have a process in control when establishing control limits.
A)True
B)False
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Chapter 17: Lean Operating Systems
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Q1) Lean enterprise refers to approaches that focus on the elimination of defects and errors throughout the value chain.
A)True
B)False
Q2) Six Sigma addresses visible problems in processes; lean production is more concerned with less visible problems.
A)True
B)False
Q3) A manufacturing company is using a two-container Kanban system between a downstream (using) and an upstream (producing) work center.Each container holds 25 parts.The using work center can handle 100 parts per day.The average elapsed time for the entire cycle is currently .40 days.The company is concerned about the efficiency of the operation.
a.What is the safety factor for the current operation?
b.What is the maximum authorized inventory for this part?
c.If the number of containers is reduced to one, how many parts must it hold?
d.If the efficiency is changed to .10 and the number of parts per container is increased to 44, how many containers will be needed?
Q4) Discuss the differences between lean production and Six Sigma.
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Chapter 18: Project Management
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Sample Questions
Q1) Strong leadership is an impediment to project management success because of the team-based nature of most projects.
A)True
B)False
Q2) Slack in an activity is computed as
A)ES - LS
B)EF - LF
C)LS - ES
D)LS - EF
Q3) In which stage in the project life cycle would crashing likely be performed?
A)Define
B)Plan
C)Organize
D)Control
Q4) Because the preparation of annual reports is done on a repeating basis, project management techniques are not appropriate.
A)True
B)False
Q5) Describe the four major steps in the project-planning process.
Q6) Explain the purpose of Gantt charts.
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Chapter 19: Work Measurement, Learning Curves, and Standards
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Q1) Explain the concept of learning curves using an 80% learning curve as an example.
Q2) At an 80% learning rate, if the first unit requires 100 labor hours, the 8th unit will require 64 hours.
A)True
B)False
Q3) The groups best suited to set work standards are managers with input from industrial engineers.
A)True
B)False
Q4) A company manufactures computer parts.They have received an order for 100 custom disc drives.It is estimated that the first drive will take 20 hours of shop time and an 80% learning curve is expected.The labor rate is $15.00 and the pricing policy is to charge 3 times the labor cost.
a.How many hours will the 100th disc drive take?
b.How many hours will the entire order take?
c.What is the price of the entire order?
d.What is the price per unit?
Q5) How do predetermined standards differ from time studies?
Page 21
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Chapter 20: Queuing Analysis
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Sample Questions
Q1) Generally for queuing models, the slower the rate of arrivals, the shorter the time period chosen.
A)True
B)False
Q2) Rules that determine the order in which arrivals are sequenced through the service system are called
A)queuing behavior
B)operating characteristics
C)queue discipline
D)psychology of waiting
Q3) The arrival rate in queuing formulas is expressed as:
A)a fraction of the service rate
B)arrivals per unit of time
C)total number of arrivals
D)average time between arrivals
Q4) Many analytical queuing models exist, each based upon unique assumptions.
A)True
B)False
Q5) Contrast wait cost with server cost.Which is harder to estimate?
Q6) Describe seven operating characteristics of a waiting line (no formulas).
Page 22
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Chapter 21: Modeling Using Linear Programming
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Q1) Since price is usually set by market conditions, the blending problem use of linear programming attempts to meet demand at minimum cost.
A)True
B)False
Q2) Explain the essence of a transportation problem.
Q3) Which of the following factors would generally not be part of a linear programming model for production scheduling?
A)Fluctuations in production
B)Inventory levels
C)Waiting time probability distributions
D)Storage capacity
Q4) Any particular combination of decision variables is referred to as a(n) ____.
A)Objective
B)Solution
C)Constraint
D)Optimization
Q5) Explain the steps necessary to solve a linear programming problem using Microsoft Excel's Solver.
Q6) What characterizes a linear function?
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Chapter 22: Simulation
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Sample Questions
Q1) Simulation language ProcessModel contains all of the following except A)Objects
B)Connections
C)Action logic
D)Simulators
Q2) There is no single test to prove that a model is 100% valid.
A)True
B)False
Q3) Discuss a simulator.How does it differ from simulation software such as ProcessModel?
Q4) All of the following are verification techniques except
A)Developing logical flow charts
B)Testing the probability distribution used to drive the simulation and behavior of system entities
C)Breaking the problem into smaller pieces or modules
D)Codes can be checked by others, not just the programmer
Q5) With a fixed-time-increment simulation model, detailed information is lost. A)True
B)False
Q6) Define simulation and give some operations management examples.
Page 24
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Chapter 23: Decision Analysis
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Sample Questions
Q1) Differentiate between uncertainty and risk.
Q2) ____ represent a future outcome that can occur after a decision is made that are not under the control of the decision-maker.
A)Decision alternatives
B)Events
C)Payoffs
D)Probabilities
Q3) Considering decision trees, which of the following statements is not correct?
A)A decision tree is a graphical schematic of the logical order with which decisions are made when events occur
B)Decision trees are useful for more complex business decisions
C)Working forward through the decision tree, the expected monetary value of each event node is computed by first weighting possible payoffs by their changes of occurrence
D)Expected value calculations can be made directly on the tree to arrive at the best decision
Q4) Define the four major elements of a decision problem.
Q5) Explain the structure and purpose of a decision tree.
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