Operations and Supply Chain Management Practice Exam - 1186 Verified Questions

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Operations and Supply Chain Management Practice Exam

Course Introduction

Operations and Supply Chain Management focuses on the strategies and techniques essential for efficient production and delivery of goods and services. The course covers fundamental concepts such as process analysis, inventory management, quality control, logistics, and the integration of supply chain activities from suppliers to customers. Students will examine how global supply chains are designed and managed, and how technology, sustainability, and risk mitigation influence operational decisions. Through case studies and practical applications, students learn to optimize processes, reduce costs, and improve overall organizational performance.

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Introduction to Operations and Supply Chain Management 4th Edition by Cecil B. Bozarth

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17 Chapters

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Chapter 1: Introduction to Operations and Supply Chain Management

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Sample Questions

Q1) Efforts to improve cooperation among firms in the supply chain can be characterized as:

A) globalization.

B) domestic focus.

C) relationship management.

D) electronic commerce.

Answer: C

Q2) The ________ model is used to define processes and relationships in supply chain management.

Answer: SCOR

Q3) Most organizations function as part of larger ________ that are linked through physical,monetary,and information flows.

Answer: supply chains

Q4) In general,operations management activities are information and decision intensive. A)True

B)False

Answer: True

Q5) The ________ is a leader in education and all aspects of quality improvement. Answer: ASQ or American Society for Quality

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Chapter 2: Operations and Supply Chain Strategies

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Q1) At the ________ stage of alignment,the business strategy seeks to exploit core competencies found within the operations and supply areas.

Answer: externally supportive

Q2) Lieutenant Columbo donned his raincoat and hopped into his 1959 Peugeot,hot on the trail of another condescending millionaire murder suspect.The Peugeot always drew stares,not because it was a rare automobile,but because it was an eyesore.It had one redeeming quality; every time he sat behind the wheel and turned the key in the ignition,it would start.Thus,the car scored well on the:

A) mix flexibility scale.

B) changeover flexibility scale.

C) reliability quality scale.

D) delivery reliability scale.

Answer: C

Q3) A mechanism that identifies a firm's targeted customers and sets time frames and performance objectives for the business is called a mission statement.

A)True

B)False

Answer: False

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Chapter 3: Process Choice and Layout Decisions in Manufacturing and Services

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Sample Questions

Q1) Refer to the scenario above.The manager assigns tasks to workstations and breaks ties using a longest operation heuristic.That is,if two or three tasks could be assigned to a given station,the manager assigns the longest task first and then fills in the remaining time at the workstation as completely as possible.Using this approach,what task(s)would be assigned at the fourth station?

A) N, P

B) M

C) N, O

D) O, P

Answer: B

Q2) Products that use standard components,but the final configuration of those components is customer-specific,are called make-to-order products.

A)True

B)False

Answer: True

Q3) The product process matrix uses a scale of ________ and ________.

Answer: volume; standardization

Q4) A cellular layout is essentially the opposite of a(n)________ layout.

Answer: functional

Page 5

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Chapter 4: Business Processes

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Sample Questions

Q1) Which two continuous improvement tools are most similar in appearance?

A) scatter plot and check sheet

B) Pareto chart and histogram

C) histogram and fishbone diagram

D) check sheet and fishbone diagram

Q2) A car wash services 200 customers in an hour on a lovely Saturday afternoon.The car wash employs 5 washers at $6 per hour and uses $50 of water and $5 of electricity per hour.They charge $10 per car for their standard wash job.Which of these changes would have the greatest positive impact on their productivity?

A) increasing their service rate so they can process 210 cars per hour

B) cutting their employee pay by $1 per hour

C) charging $11 per standard wash job

D) introducing a new waterless system

Q3) Which of these continuous improvement tools would be best suited for showing all of the steps required to change your major to operations management?

A) process map

B) cause-and-effect diagram

C) Pareto chart

D) scatter plot

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Page 6

Chapter 5: Managing Quality

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Q1) A person or company taking the stance that quality must be judged,in part,by how well the characteristics of a particular product or service align with the needs of a specific user is taking the ________ perspective.

Q2) A technique used to translate customer requirements into technical requirements is: A) quality assurance.

B) statistical quality control.

C) quality function deployment.

D) continuous improvement.

Q3) Describe the four quality-related costs and tell how they are related.

Q4) If a contact lens has a scratch on it,the manufacturer classifies it as defective.This is an example of a continuous variable.

A)True

B)False

Q5) Total Quality Management is the management of an entire organization so that it excels in all quality dimensions that are important to customers.

A)True

B)False

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Chapter 6: Managing Capacity

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Sample Questions

Q1) A steady stream of eager fresh-faced students waits in line to register for spring semester classes.Students arrive at the rate of 100 per hour and it takes the registrar 30 seconds to check their schedule and verify they have paid in full.What is the average time waiting in line and the average number of people in line? How busy is the registrar?

Q2) A collection of companies decides to work together for a while to provide service for what they see as a short term window of opportunity.These firms plan to coordinate their activities by deploying sophisticated information systems to share critical data.Each of these companies is skilled at one or two core activitiesdesign,manufacturing,distribution,marketing,and so on.This association of companies can be described as a(n)________.

Q3) Students arrive at a professor's office every 20 minutes during final exam week according to a Poisson distribution.What is the probability that the professor's one hour afternoon nap will not be disrupted by any student arrivals?

A) 0.00

B) 0.05

C) 0.15

D) 0.45

Q4) The ________ is the output volume level where the firm realizes a $0 net profit.

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Chapter 6: A: Advanced Waiting Line Theory and Simulation

Modeling

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Sample Questions

Q1) A waiting line cannot be both multiple-channel and multiple-phase.

A)True

B)False

Q2) Hopeful patrons line up to spin the giant slot machine at the entrance to Ace Rothstein's Tangiers casino.They pour in the door at the rate of 300 per hour and it takes exactly ten seconds every time for the wheels to spin and inform the unlucky patron that they have lost a dollar rather than win a new Corvette.How long do customers spend waiting in line and finding out the unhappy news on average?

A) 35 seconds

B) 30 seconds

C) 25 seconds

D) 20 seconds

Q3) Customer arrivals at a dry cleaning service occur randomly throughout the day.The distribution that is usually used to model the interval between arrivals is the:

A) Poisson distribution.

B) uniform distribution.

C) random distribution.

D) normal distribution.

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Chapter 7: Supply Management

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Sample Questions

Q1) A company using portfolio analysis decides to form partnerships with suppliers; the products in question probably fall in the ________ quadrant.

Q2) Total cost analysis divides costs into direct (costs that are tied to the level of operations or supply chain activities)and indirect (costs that are not tied to the level of operations or supply chain activity).

A)True

B)False

Q3) What takes place in each step in the procure-to-pay cycle and which step is most critical?

Q4) A manufacturer that wants to make sure that suppliers do not become complacent should use multiple sourcing.

A)True

B)False

Q5) Profit margin is the ratio of ________ to ________.

Q6) What are the four sourcing strategies,how do they work,and what are the advantages of each?

Q7) The bulk of insourcing costs are usually ________ costs.

Q8) Define outsourcing and discuss its advantages and disadvantages.

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Chapter 8: Logistics

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Q1) In the United States,the value of goods transported via highway is greater than the value of goods transported by all other transportation modes.

A)True

B)False

Q2) Choose a major manufacturer and a major retailer and describe two types of warehousing each might use and why they use it.

Q3) A location model that looks at the problem of serving various demand points from multiple supply points at the lowest cost is the ________.

Q4) Cargo is loaded and unloaded only once with:

A) direct truck shipment.

B) less-than-truckload shipment.

C) multimodal solutions.

D) None of these modes always has only one loading and unloading.

Q5) The complicated gift basket was delivered exactly as it was designed and in plenty of time to be enjoyed during seasonal celebrations.From a logistics performance standpoint,the product could be considered a(n)________.

Q6) A(n)________ can handle shipments on an as-needed basis with no long-term contract required.

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Chapter 9: Forecasting

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Sample Questions

Q1) A seasonal pattern in time series data is evident when the level of the variable of interest moves erratically up or down from one period to the next.

A)True

B)False

Q2) Forecasts are almost always wrong.

A)True

B)False

Q3) Qualitative forecasts are used when there is plenty of relevant data.

A)True

B)False

Q4) A seasonal index less than 1.0 means that the model is overforecasted.

A)True

B)False

Q5) Describe the mechanics of three qualitative forecasting techniques and compare their strengths and weaknesses.

Q6) The greater the randomness in the model,the greater the number of periods should be used in a moving average forecast.

A)True

B)False

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Chapter 10: Sales and Operations Planning Aggregate Planning

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Sample Questions

Q1) Compared to other levels of planning,detailed planning and control offers the greatest ability to adjust capacity.

A)True

B)False

Q2) An organization with twenty people developing sales and operations plans might receive twenty different proposals.What are some factors an organization might consider when deciding among these alternative plans? Provide a ranking for your factors and support your ranking with examples from recent business news media.

Q3) Each entity in a supply chain should produce its own sales and operations plan independent of the other members in order to improve the overall cost performance in a supply chain.

A)True

B)False

Q4) A hotel using yield management would ________ prices if demand is higher than expected only if the expected result is ________.

Q5) A sales and operations plan that varies both production and inventory levels is called a(n)________ production plan.

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Q6) How can and why should a firm link S&OP throughout the supply chain?

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Chapter 11: Managing Inventory Throughout the Supply Chain

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Sample Questions

Q1) Central Perk orders their organic coffee filters from a South American supplier that mails them as inexpensively (hence,as slowly)as possible.Central Perk uses 80 filters a day with a standard deviation of 15 days.It would be disastrous if they ran out of these filters,years ago customers caught them using paper towels from the men's room and business suffered.They have set their service level at 99.5% in hopes of avoiding a similar situation.It takes a fortnight to receive a shipment and the standard deviation of the shipping time is five days.What is their reorder point?

A) 1865 filters

B) 1962 filters

C) 2074 filters

D) 2158 filters

Q2) Safety stock increases when:

A) probability of a stockout increases.

B) average demand increases.

C) delivery speed increases.

D) demand fluctuations decrease.

Q3) Cavalier Enterprises elects to hold no safety stock.Their service level is therefore ________.

Q4) Describe any four types of inventory and the drivers that spur their need.

Page 14

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Chapter 12: Managing Production Across the Supply Chain

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Sample Questions

Q1) The process of ________ occurs when a planner works backwards from the master production schedule and the product structure tree to determine when all parts and subassemblies must be ordered and assembled in order to meet MPS due dates.

Q2) From a revenue standpoint,a producer would rather have higher forecasted demand than booked orders.

A)True

B)False

Q3) Cow Company used the master schedule to determine how many workers and the number of machine hours would be needed for each production period.This approach is known as ________.

Q4) Which of these actions would tend to make an MRP system less nervous?

A) using the same component, such as a fastener, at multiple levels throughout the product structure tree

B) eliminating lot size requirements wherever possible

C) increasing the number of levels in a product structure tree

D) increasing the minimum order quantities only at the highest level of a bill or materials

Q5) What are three advantages of using an MRP system?

Q6) Confirmed demand for products is called ________ in master scheduling.

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Chapter 12: A: Supply Chain Information Systems

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Sample Questions

Q1) Before the Internet was widely adopted by business,the vast majority of computer systems were completely isolated from one another.

A)True

B)False

Q2) At one time,if an organization wanted to automate using a computer system,they had to develop the program on their own.Today,there is software available to perform virtually every business function although most of them will not conform exactly to what a company needs.Describe two software tools that can be used for business process analysis and design.

Q3) The three ways information adds value,ranked in order from lowest to highest value are:

A) visibility, mirroring, creation of new customer relationships.

B) mirroring, creation of new customer relationships, visibility.

C) visibility, , creation of new customer relationships, mirroring.

D) creation of new customer relationships, mirroring, visibility.

Q4) A system that controls all aspects of a company's business from production,through human resources,to accounting and other departments and accomplishes this with a centralized database is ________.

Q5) Warehouse and transportation planning systems support ________ planning efforts.

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Chapter 13: Jitlean Production

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Sample Questions

Q1) When using MRP and kanban together:

A) the control capabilities of MRP are used instead of those from kanban.

B) the planning capabilities of kanban are used instead of those from MRP.

C) the demand rate should be variable in order to derive the greatest benefit from the MRP portion of the system.

D) the number of kanbans is recalculated from the MRP system's order changes throughout the horizon.

Q2) Describe any five of the wastes and their causes identified by the lean philosophy.

Q3) A manufacturer waits to produce until they have an order from a customer.This type of production system is called ________.

Q4) The greater the demand,the more kanbans are needed.

A)True

B)False

Q5) Just-in-time production is also referred to as ________.

Q6) Under two-card kanban system rules,each box of raw material must have a(n)________,while each box of finished goods must have a(n)________.

Q7) Describe the movements of parts and kanbans in a two-card kanban system.

Q8) What is the Lean perspective on inventory?

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Chapter 14: Managing Projects

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Sample Questions

Q1) For critical path activities,slack is equal to ________.

Q2) An activity's duration added to its earliest start time yields the ________.

Q3) The earliest finish time of an activity is always later than its latest start time.

A)True B)False

Q4) In what ways are projects distinct from typical business activities?

Q5) A performance or time target for each major group of activities in a project is a(n)________.

Q6) One of the primary characteristics of projects as a form of work is the movement of personnel from project to project.

A)True B)False

Q7) The Guide to the Project Management Body of Knowledge (PMBOKĀ®)is divided into two main parts,the various business processes that organizations follow in carrying out projects and the nine knowledge areas applicable to nearly all projects.

A)True B)False

Q8) The actual work gets done during the ________ phase of a project.

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Chapter 15: Developing Products and Services

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Sample

Questions

Q1) ABC Corporation knew that XYZ Industries could provide the casings needed for their new line of typewriters as they had for the previous generations of typewriters.Therefore,they designated XYZ as the supplier for that key element,a practice known as ________.

Q2) An airline specifies a wider monitor for installation on their overseas flights.The airframe manufacturer will accommodate this order by issuing an engineering change.

A)True

B)False

Q3) What does the M represent in the acronym DMADV?

A) Metrics

B) Measure

C) Monitor

D) Market

Q4) ________ refers to the ease with which critical components or functions can be tested during production.

Q5) What are robust design,testability,and serviceability and how are they related?

Q6) All product development efforts directly benefit the consumer.

A)True

B)False

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