Operations Management Study Guide Questions
Course Introduction
Operations Management is a foundational course that explores the principles, strategies, and techniques involved in overseeing the production and delivery of goods and services. Students will examine core concepts such as process design, supply chain management, quality control, inventory management, and capacity planning. The course emphasizes the application of quantitative and qualitative methods to improve efficiency, productivity, and customer satisfaction in both manufacturing and service organizations. Through case studies and practical examples, students will develop analytical and problem-solving skills necessary to address real-world operational challenges and drive continuous improvement in organizational performance.
Recommended Textbook
Principles of Supply Chain Management A Balanced Approach 3rd Edition by Joel D. Wisner
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Chapter 1: Introduction to Supply Chain Management
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Sample Questions
Q1) Which of the following acronyms is NOT paired with its correct "translation?"
A) TQM - Total Quality Management
B) JIT - Just-in-Time
C) MRP - Materials Requirements Planning
D) ERP - Estimated Response Parameters
Answer: D
Q2) Which of the following acronyms is NOT paired with its correct "translation?"
A) TQM - Total Quality Management
B) JIT - Just-in-Time
C) MRP - Manufacturing Responsiveness and Planning
D) ERP - Enterprise Resource Planning
Answer: C
Q3) Which of the following can be classified as a 3PL?
A) A company that offers warehousing services
B) A company that offers transportation services
C) A company that offers customs clearing services
D) All of these
Answer: D
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3
Chapter 2: Purchasing Management
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Sample Questions
Q1) Which of the following illustrates Forward Vertical Integration?
A) Microsoft starting a new division that designs and manufactures clothing
B) Ford automotive buying additional machines for production
C) Subway sandwich company buying a bakery to make the bread for their sandwiches.
D) Sony buying trucks to deliver their finished goods inventories to their customers' warehouses
Answer: D
Q2) A form of purchasing that is placed directly to the supplier and suitable when firms use the same components to make standard goods over a relatively long period of time is referred to as:
A) Material Requisition
B) Purchase Requisition
C) Planned Order Release
D) Traveling Requisition
Answer: C
Q3) A purchase order is legally binding once issued by the buyer.
A)True
B)False
Answer: False
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Page 4
Chapter 3: Creating and Managing Supplier Relationships
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Sample Questions
Q1) A company using a weighted-criteria evaluation system has established these 3 categories and the appropriate weight in parentheses: Quality(0.30),Delivery(0.40),Cost(0.30).
The scores for each category are shown below.Which of the following companies has the highest total score?
A) Company A: Quality(90), Delivery(80), Cost(60)
B) Company C: Quality(70), Delivery(95), Cost(60)
C) Company B: Quality(70), Delivery(80), Cost(80)
D) All companies scored the same.
Answer: D
Q2) In a weighted-criteria evaluation system the weights of all the performance dimensions must add up to total more than 1.00 and less than 100.
A)True
B)False
Answer: False
Q3) ISO 14000 is a family of international standards for environmental management. A)True
B)False
Answer: True
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Page 5
Chapter 4: Ethical and Sustainable Sourcing
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Sample Questions
Q1) Variations of outsourcing include all of the following EXCEPT: (C; 114)
A) Co-sourcing
B) Selective sourcing
C) Front sourcing
D) Insourcing
Q2) Benchmarking is:
A) A system of performance metrics that seeks to motivate suppliers to perform better.
B) A practice where companies attempt to learn and apply the best practices of other companies.
C) A system of marking defective inbound inventory so it can quickly be identified for return to the supplier.
D) A program where suppliers compete for contracts, but those companies who are outbid are provided advice for winning future contracts
Q3) Companies that lack internal expertise in a specific functional area would likely consider insourcing.
A)True
B)False
Q4) What are some of the risks of outsourcing?
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Chapter 5: Demand Forecasting
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Sample Questions
Q1) Using Data Set E1,what would be the forecast for period 7 using a four period moving average: (Choose the closest answer.)
A) 17625
B) 15225
C) 15300
D) 17250
Q2) What does the acronym CPFR represent?
A) Coordinated planning and forecasting relationships
B) Collaborative planning, forecasting, and replenishment
C) Centralized purchasing and forecasting relationships
D) Collaborative purchasing, forecasting, and receivables
Q3) Some of the important steps involved in implementation of a CPRF process model include developing a collaborative arrangement,creating a sales forecast,creating an order forecast,and generating those orders.
A)True
B)False
Q4) Associative forecasting methods are based on opinions and intuition.
A)True
B)False
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Chapter 6: Resource Planning Systems
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Sample Questions
Q1) Organizations that choose to discontinue use of old and inefficient computer and information systems in favor of adopting a modern ERP system are said to have implemented a decentralized database solution.
A)True
B)False
Q2) According to the text,resource planning is the process of determining the production capacity required to meet demand.
A)True
B)False
Q3) A Master Production Schedule is a medium-range materials plan. A)True
B)False
Q4) According to the text,a firm should always run its operations at 100 percent capacity to ensure changes affecting demand can be met.
A)True B)False
Q5) MRP systems are simply a more modern version of the ERP systems of the 1980's. A)True B)False
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Chapter 7: Inventory Management
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Sample Questions
Q1) Radio Frequency Identification (RFID)is considered an eventual replacement of bar code because of its ability to store huge amount of information to differentiate specific unit of good.
A)True
B)False
Q2) The ABC inventory matrix shows an ABC inventory classification based on annual usage on the vertical axis and an ABC inventory classification based on physical inventory on the horizontal axis.
A)True
B)False
Q3) If usage is constant,as order size increases,annual order costs ____ but annual carrying costs ____.
A) increase ..... increase
B) decrease ..... decrease
C) increase ..... decrease
D) decrease ..... increase
E) remain the same ..... increase
Q4) Service parts sold to the repair shops are examples of dependent demand. A)True
B)False
Page 9
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Chapter 8: Process Management: Lean and Six Sigma in the Supply Chain
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Sample Questions
Q1) Modern supply chains simultaneously pursue the goals of high-quality,fast response,and low cost because customers nowadays want both high levels of quality and responsiveness.A key manufacturing philosophy that emphasizes waste elimination and minimizing inventories to expose problems is:
A) Just-in-time
B) Quick Response
C) Efficient Consumer Response
D) Total Quality Management
Q2) According to the text,in supply chain,the term lean has begun to replace the term JIT.
A)True
B)False
Q3) All of the following are included in the seven wastes EXCEPT:
A) Overproducing
B) Overprocessing
C) Overspending
D) Waiting
Q4) Deming's 14 points actually conflict with many Six Sigma concepts.
A)True
B)False
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Chapter 9: Domestic USand Global Logistics
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Sample Questions
Q1) List the five modes of transportation.For each mode provide a brief description (or examples)of the type of cargo that typically travels via that mode of transport.
Q2) In order to provide more comprehensive delivery service,some freight-only airlines have invested in developing their own motor carrier fleets to provide full door to door service delivery.
A)True
B)False
Q3) According to the textbook,the five basic modes of transportation are motor,rail,air,water,and cyberspace.
A)True
B)False
Q4) Limitations of air carrier transport include cost and airport accessibility.
A)True
B)False
Q5) Which of the following is NOT a characteristic of cost-of-service pricing?
A) Prices are established based on fixed and variable costs of transportation
B) Prices vary based on volume and distance
C) Prices tend to rise as shipping distance increases
D) Carriers price their services at the highest levels the markets will bear
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Chapter 10: Customer Relationship Management
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Sample Questions
Q1) Because integrated supply chains require good suppliers to act as good supply-chain customer partners,CRM programs should include first-tier customer training and education to ensure proper use of purchase products.
A)True
B)False
Q2) The online retailer Ecatalog.com has decided to send consumers of the new John Grisham book an e-mail with suggestions for books with similar themes and has also offered them a 20% discount if those suggested books were purchased.This type of marketing/promotion is an example of:
A) Target marketing
B) Segmented selling
C) Clickstream selling
D) Cross-selling
Q3) Segmenting customers on the basis of things like products purchased,sales history,demographic information,and desired product features can dilute the results of a CRM program; segmenting customers should be avoided.
A)True
B)False
Q4) What are three of the recent trends in CRM?
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Chapter 11: Global Location Decisions
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Sample Questions
Q1) Examples of regional trade agreements include all of the following EXCEPT:
A) Association of Southeast Asian Nations (ASEAN)
B) European Union (EU)
C) Association of African Markets (AAM)
D) Southern Common Market (MERCOSUR)
Q2) Your company needs to determine the appropriate location of a factory in order to take advantage of government incentives and avoid tariff barriers,the type of factory needed can be referred to as a(n):
A) Offshore factory
B) Source factory
C) Server Factory
D) Lead Factory
Q3) Briefly define a business cluster.Give a location that exemplifies a real-life example of a business cluster.Describe why it should be considered a business cluster.
Q4) The Americas have two primary regional trade agreements,NAFTA,an agreement between the United States,Canada,and Mexico,and COMESA,an agreement between all of the South American countries.
A)True
B)False
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Chapter 12: Service Response Logistics
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Sample Questions
Q1) According to the text,which of the following is a service strategy characterized by the idea that a service can serve a narrow target market better than a broad market?
A) Differentiation strategy
B) Demand strategy
C) Focus strategy
D) Transitional strategy
Q2) The average transaction at an automatic teller can be completed in 7.5 minutes and customers arrive at the average rate of one every ten minutes.On average,how many customers are there in line? (Choose the closest answer.)
A) 4.000 Customers
B) 0.300 Customers
C) 3.000 Customers
D) 0.375 Customers
Q3) As a manager of a queuing system,what are some important system details you'd like to know about in order to manage the system effectively?
Q4) Describe the key considerations of service managers which can help in providing a better service experience?
Q5) Discuss the important issues involved in managing a global service.
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Page 14
Chapter 13: Supply Chain Process Integration
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Sample Questions
Q1) According to the text,customer feedback mechanisms are developed as part of which supply chain business process:
A) Customer relationship management process
B) Knowledge management process
C) Customer service management process
D) Product development and commercialization process
Q2) One of the key supply chain business processes is supplier relationship management,which seeks to forecast demand and coordinate purchasing and distribution in an effort to balance customer demand with the firm's manufacturing capacity.
A)True
B)False
Q3) RFID technology seeks to minimize supply chain visibility.
A)True
B)False
Q4) The development of functional silos within an organization is considered a key component to achieving successful supply chain process integration.
A)True
B)False
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Chapter 14: Performance Measurement Along the Supply Chain
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Sample Questions
Q1) Which of the following was designed by Kaplan and Norton in an effort to align performance measures with strategic plans and goals?
A) Balanced Scorecard
B) SCOR
C) DCOR
D) GSCM
Q2) Which of the following would be considered a way to measure the Supply Chain Environmental Performance?
A) Percentage of partners that are ISO 9000 certified
B) Measuring the Supply Chain Carbon-to-Carbon Cycle Time
C) Percentage of partners that have created a director of environmental sustainability position in their company
D) All of these
Q3) Briefly,explain why understanding the end customer is important to all supply chain parties in developing an effective performance measurement system.
Q4) Explain the difference between Total Productivity and Labor productivity.
Q5) What are the four primary perspectives of the balanced scorecard
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