Operations Management Test Preparation
Course Introduction
Operations Management is a comprehensive course that explores the design, operation, and improvement of the systems and processes that organizations use to produce goods and deliver services. The course covers key concepts such as process analysis, capacity planning, supply chain management, quality control, inventory management, and operations strategy. Students learn to apply analytical tools and techniques to optimize operational efficiency, enhance quality, and improve organizational performance. Real-world case studies and practical applications are used to illustrate how effective operations management contributes to overall business success in both manufacturing and service environments.
Recommended Textbook
Supply Management 8th Edition by David N. Burt
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22 Chapters
1000 Verified Questions
1000 Flashcards
Source URL: https://quizplus.com/study-set/3046
Page 2
Chapter 1: The Progression to Professional Supply Management
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64 Verified Questions
64 Flashcards
Source URL: https://quizplus.com/quiz/60533
Sample Questions
Q1) The term "supply chain" means all the members are linked together in one master contract covering a long time period.
A)True
B)False
Answer: False
Q2) When supply savings and increased sales due to superior supply chain management are combined,it is not uncommon to increase ROI 50%.
A)True
B)False
Answer: True
Q3) Which statement about SM is not true?
A) SM recognizes the global environment
B) SM is a philosophy
C) SM is synonymous with logistics
D) SM is proactive
E) SM spans functional boundaries
Answer: C
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Page 3
Chapter 2: Organizational Issues
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30 Verified Questions
30 Flashcards
Source URL: https://quizplus.com/quiz/60532
Sample Questions
Q1) The key first step in establishing cross functional teams is obtaining executive sponsorship.
A)True
B)False
Answer: True
Q2) The most significant advantage of the supply chain management structure is: :
A) it facilitated a total systems approach to stimulate integration
B) it uses the internet to extract key information
C) it increases the visibility of the purchasing department P
D) it focuses management attention on quality Q
E) it reveals that inventory costs are often understated R
Answer: A
Q3) Aside from the benefits of synergy,cross functional teams provides input from all affected functions.
A)True
B)False
Answer: True
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Chapter 3: Supply Management: an Organization Spanning Activity
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42 Verified Questions
42 Flashcards
Source URL: https://quizplus.com/quiz/60531
Sample Questions
Q1) In assuming lesser strategic responsibility,the activities of supply managers are increasingly spanning less organizational boundaries.
A)True
B)False
Answer: False
Q2) Information technology is greatly simplifying the relationship between supply management and manufacturing.
A)True
B)False
Answer: True
Q3) Supply management is responsible for putting pressure on marketing to share forecasts so that supply management can update manufacturing schedules at the firm's suppliers when sales forecasts change.
A)True
B)False
Answer: False
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Page 5
Chapter 4: A Portfolio of Relationships
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63 Verified Questions
63 Flashcards
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Sample Questions
Q1) During the late 1980's and early 1990's,"partnerships" became popular.The authors of the textbook argue that there are problems with the term partner.One of the problems given in the text was that legal problems and concerns inevitably arose regarding the term.
A)True
B)False
Q2) Collaborative and alliance relationships tend to result in lower total costs and improve performance of the supply chain.
A)True
B)False
Q3) "Collaboration is the new imperative," declares Michael Dell.
A)True
B)False
Q4) A captive buyer is held hostage by a supplier free to switch to another customer.
A)True
B)False
Q5) Power is a topic that makes people uncomfortable.
A)True
B)False
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Chapter 5: New Product Development
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26 Verified Questions
26 Flashcards
Source URL: https://quizplus.com/quiz/60529
Sample Questions
Q1) Which of the following questions does not typically belong on a value-engineering checklist?
A) Can the item be eliminated?
B) Can the product quality be lowered to reach a lower price point?
C) If the item is not standard, can a standard item be used?
D) If it is a standard item, does it completely fit the application, or is it a misfit?
E) Does the item have greater capacity than required?
Q2) Which of the following is not one of the typical questions to ask prior to inviting a supplier into the design process as presented in the book?
A) Will the supplier be able to provide price concessions
B) Will the supplier be able to meet our cost, quality, and product performance requirements?
C) Does the supplier possess the required engineering capability?
D) Will the supplier be able to meet our development and production needs?
E) Does it have the necessary physical process and quality capabilities required?
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Chapter 6: Purchasing Descriptions and Specifications
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67 Verified Questions
67 Flashcards
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Sample Questions
Q1) Which of the following is not a savings that can result from simplification?
A) Reduced inventory investment
B) More standard parts carried
C) More competitive prices
D) Greater quantity discounts
E) Reduced handling costs
Q2) What are the purposes of specifications?
Q3) How does a materials catalog help reduce design time?
Q4) What are the benefits of standardization?
Q5) Which of the following problems is not a "type" of standard?
A) Local standards
B) International standards
C) Industry standards
D) National standards
E) Company standards
Q6) Which of the following is usually a more complex specification: brand name, sample, commercial standard, or engineering drawings?
Q7) In the Unreasonable Tolerances Example, what are some of the ways the problem could have been prevented five years earlier?
Chapter 7: Managing for Quality
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56 Verified Questions
56 Flashcards
Source URL: https://quizplus.com/quiz/60528
Sample Questions
Q1) Which of the following is not a quality award?
A) Malcolm Baldrige Award
B) European Quality Award
C) ISO 9000
D) Deming Prize
Q2) Supply professionals that plan to guide their organization and chain to SM must understand how to evaluate the management of quality within their own facilities and those of their suppliers.Evaluation of the underlying philosophy,management system,facilitating tools and methodologies of a supplier is the first step; however,SM calls for going beyond mere evaluation to aiding in the development and improvement of supplier quality.
A)True
B)False
Q3) Which of the following is not a principle of the Quality Management System (QMS)?
A) Customer focus
B) Leadership
C) Involvement of people
D) Drive for Perfection
E) Process approach
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Page 9
Chapter 8: The Procurement of Equipment
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28 Verified Questions
28 Flashcards
Source URL: https://quizplus.com/quiz/60527
Sample Questions
Q1) Which of the following is usually not a necessary activity to conduct prior to purchasing used equipment?
A) Check the reputation of the supplier
B) Inspect the equipment
C) Observe the equipment under power
D) Check for brand name parts
E) Determine the age
Q2) Which of the following is not one of the primary sources of used equipment?
A) Buying from a competitor
B) Through a used equipment dealer
C) For sale by the owner
D) Arrangement through a broker
E) Through auctions, both online and traditional
Q3) Among the reasons that firms utilize leases are: they would like to purchase the equipment at a later time and the firm wants freedom and flexibility.
A)True
B)False
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10
Chapter 9: Purchasing Services
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29 Verified Questions
29 Flashcards
Source URL: https://quizplus.com/quiz/60526
Sample Questions
Q1) Which is usually not included in planning the statement of work?
A) Performance measurements
B) Deliverables
C) Delivery and performance schedule
D) Service levels
E) Local buying requirements
Q2) The conventional method and the owner as a contractor are alternative methods of purchasing construction services as presented in the textbook.
A)True
B)False
Q3) Which is usually not included in writing the SOW?
A) Quality monitoring system
B) Total cost of ownership
C) Personnel plan
D) Performance and payment bonds
E) Metrics
Q4) Satisfaction is built into service products rather than added as an afterthought.
A)True
B)False
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Chapter 10: Outsourcing
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27 Verified Questions
27 Flashcards
Source URL: https://quizplus.com/quiz/60525
Sample Questions
Q1) Many companies are not readily staffed to keep a company competitive in e-business.As a result,companies are outsourcing infrastructure development and maintenance to "Netsourcers."
A)True
B)False
Q2) Which of the following is a consideration that favors buying a product?
A) Cost considerations make in-house production less costly
B) Desire to integrate plant operations
C) Stable work force is desired in a period of rising sales
D) Use of excess plant capacity
E) Control over production
Q3) Outsourcing all critical activities is a trend where the idea is to achieve significant cost leverage.
A)True
B)False
Q4) Cost of materials has continued to increase in many industries,which means that the make or buy outsourcing decision must be reinvestigated from time to time for even stable demand products.
A)True
B)False
Page 12
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Chapter 11: Sourcing
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61 Verified Questions
61 Flashcards
Source URL: https://quizplus.com/quiz/60524
Sample Questions
Q1) The selection of bidding or negotiation should be decided by using subjective criteria,a lowest price perspective and sound supply management logic.
A)True
B)False
Q2) The bidding process is far more likely than negotiation to lead to a complete understanding of all issues of the procurement.
A)True
B)False
Q3) Which of the following is not a typical category where the opportunity to reduce costs is increased through early supplier involvement in design?
A) Packaging quality may increase
B) Assembly changes may be improved, thereby saving money
C) Co-opting of supplier can lead to price reductions for existing designs
D) Design cycle time may be reduced, thereby saving money
E) Inventory reductions may result, thereby saving money
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13
Chapter 12: Global Supply Management
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64 Verified Questions
64 Flashcards
Source URL: https://quizplus.com/quiz/60523
Sample Questions
Q1) Which of the following is not a global trade intermediary?
A) Import merchants: easiest method, basically like buying from a "domestic source"
B) Commission houses: act for exporters abroad, paid by the exporter, they do selling, shipping and customs details
C) Import brokers: commission paid by sellers and buyers, charges fee for bringing parties together
D) Trade seekers: utilize the Internet to broker the deal between both parties
E) Trading companies: may work for both or one party, handles selling, shipping, customs details
Q2) Which of the following information points is not recommended in the textbook as a point that should be included in the initial meeting with a direct supplier?
A) Provide gifts to the supplier's critical personnel
B) Provide a briefing on your firm
C) Provide a tour of your facility if the meeting is at your facility
D) Meet with critical personnel
E) Describe how and when the supplier's firm would get paid
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14
Chapter 13: Total Cost of Ownership
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30 Verified Questions
30 Flashcards
Source URL: https://quizplus.com/quiz/60522
Sample Questions
Q1) Which of the following is not an acquisition cost?
A) Purchase Price
B) Planning Costs
C) Taxes
D) Risk costs
E) Financing Costs
Q2) Which of the following is not one of the three major components of total cost of ownership presented in the textbook?
A) Acquisition Costs
B) Ownerships Costs
C) Post-Ownership Costs
D) Opportunity Costs
Q3) TCO analysis may include the study of all but one of the following issues.Which issue does not belong in the TCO analysis?
A) Manufacturability
B) Projected sales
C) Infrastructure
D) Outsource decision
E) Analysis of suppliers beyond tier one
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Page 15
Chapter 14: Price and Cost Analysis
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68 Verified Questions
68 Flashcards
Source URL: https://quizplus.com/quiz/60521
Sample Questions
Q1) Price or acquisition cost,is usually the smallest component of total cost.
A)True
B)False
Q2) A supply manager without an understanding of cost analysis and costing systems cannot individually aspire towards shifting his or her organization towards excellence.
A)True
B)False
Q3) Which of the following is not a category of discounts?
A) Trade Discounts
B) Quantity Discounts
C) Credit Card Discounts
D) Seasonal Discounts
E) Cash Discounts
Q4) A commonly used discount is 2 / 10,net 30,which means that a discount of 10 percent is given if the invoice is paid within 30 days.
A)True
B)False
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Chapter 15: Methods of Compensation
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35 Verified Questions
35 Flashcards
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Sample Questions
Q1) Contract schedule risk is the risk associated with material and labor cost increases and possible schedule slippages.
A)True
B)False
Q2) Which of the following is not true with respect to fixed price redetermination contracts (FPR)?
A) A FFP is set for an initial period of the contract
B) A redetermination (upward or downward) occurs at a stated time during the contract
C) FPR prospective almost always occurs at the middle point in time of the contract
D) FPR prospective is used where a fair and reasonable price can be developed for initial periods but not subsequent periods
E) FPR Retroactive is used when uncertainty exists as in the prospective, but the amount of the contract is small and/or the performance period is short
Q3) The target profit is an amount considered fair and reasonable by both parties.
A)True
B)False
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17
Chapter 16: Negotiation
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64 Verified Questions
64 Flashcards
Source URL: https://quizplus.com/quiz/60519
Sample Questions
Q1) Traditional non-cost objectives in a negotiation include all technical aspects of the purchase,buyer-furnished material and equipment and the mode of transportation.
A)True
B)False
Q2) "Throwing in the Towel" is a universally applicable technique of negotiation that lets the opponent believe that you are giving a concession when in fact the concession is of very little financial consequence.
A)True
B)False
Q3) In preparation for a negotiation,the negotiator must research a variety of issues.Which is not one of the issues presented in the textbook?
A) Possess a technical understanding of the item or service
B) Analyze the relative bargaining positions of both parties
C) Have conducted a price or cost analysis
D) Have alternatives ready to threaten the supplier
E) Be aware of cultural nuances
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Chapter 17: Contract Formation and Legal Issues
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34 Verified Questions
34 Flashcards
Source URL: https://quizplus.com/quiz/60518
Sample Questions
Q1) A mistake in drawing up a contract by the selling firm can always be voided by the selling firm without the consent of the buying firm.
A)True B)False
Q2) F.O.B.origin shipment designates that the buying firm becomes owner when the material is loaded into the carrier's vehicle.
A)True B)False
Q3) Which of the following is not true of inspection and rejection rights with respect to material?
A) The law gives a reasonable period to inspect material after it is received.
B) If the buying firm raises no objection to the material within a reasonable period of time, he or she is deemed to have accepted it.
C) Industry practice usually sets the standard for "reasonable" time
D) A buying firm has the right to reject material that does not conform to the terms of the contract.
E) A supplying firm has the right to force a buyer to accept material that is an overshipment.
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Chapter 18: Contact and Relationship Management
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25 Verified Questions
25 Flashcards
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Sample Questions
Q1) What usually does not need to be specified at the pre-award conference?
A) All terms and conditions
B) Delivery or operations schedule
C) Staffing and supervision
D) Site conditions, work rules, safety
E) Expected quality levels
Q2) A typical cost ratio is calculated by dividing the total dollar purchase from that supplier by the sum of the cost and the total dollar purchase.
A)True
B)False
Q3) As a project manager,we need to know the critical path to identify the tasks we should focus our efforts on controlling.
A)True
B)False
Q4) The critical path is the longest path through the network.
A)True
B)False
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Chapter 19: Ethics and Social Responsibilities
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52 Verified Questions
52 Flashcards
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Sample Questions
Q1) Supply professionals should refrain from soliciting or accepting money,loans,credits,or prejudicial discounts,and the acceptance of gifts,entertainment,favors,or services from present or potential suppliers that might influence,or appear to influence,supply management decisions.
A)True
B)False
Q2) Supply professionals should know and obey the letter,but not necessarily the spirit of laws.Finding ways to bend the legal system to the buying firm's advantage while remaining within legal bound just makes good business sense.
A)True
B)False
Q3) The Principles of Supply Management Practice as created by the Institute for Supply Management are: loyalty to your organization,justice to those with whom you deal and faith in your God.
A)True
B)False
Q4) Ethics are the guidelines or rules of conduct by which we aim to live.
A)True
B)False
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Chapter 20: Production and Inventory Control
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68 Verified Questions
68 Flashcards
Source URL: https://quizplus.com/quiz/60515
Sample Questions
Q1) Detailed production scheduling comes after the release and dispatching of orders.
A)True
B)False
Q2) The inventory/open order netting concept is used to determine the
A) Planned order releases
B) Time phasing
C) Bill of material
D) MPS
E) "On hand" balances
Q3) Acquisition costs are the indirect costs of ordering materials.
A)True
B)False
Q4) The Just-In-Time (JIT)approach in inventory control is primarily used for:
A) B items
B) A items
C) C items
D) D items
E) E items
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Chapter 21: Demand Management and Logistics
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29 Verified Questions
29 Flashcards
Source URL: https://quizplus.com/quiz/60514
Sample Questions
Q1) Logistics can be defined as synonymous with the term SCM.
A)True
B)False
Q2) Which of the following is not a software driven demand/inventory management approach or system discussed in chapter 21?
A) Material Requirements Planning (MRP)
B) Distribution Requirements Planning (DRP)
C) Material Resources Planning (MRP II)
D) Distribution Resources Planning (DRP II)
E) Enterprise Resource Planning (ERP)
Q3) Failure to accurately estimate demand and share information among supply chain entities can result in bloated inventory levels due to a cumulative effect of poor information cascading up through a supply chain.This effect is infamously known as the "Earthquake Effect."
A)True
B)False
Q4) The definition of Supply Chain Management (SCM)depends on one's perspective.
A)True
B)False
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Chapter 22: Implementing Value Network Management
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38 Verified Questions
38 Flashcards
Source URL: https://quizplus.com/quiz/60513
Sample Questions
Q1) A problem that the new supply management team faced at Megatronics was the fact the price often rises when the focus is shifted onto TCO.The solution presented by the team was as follows,"If we pay a price premium that is offset with a reduction in the total cost of ownership,we will document our analysis."
A)True
B)False
Q2) Which of the following is not one of the 12 Golden Rules of Value Network Managment?
A) Do not engage in reengineering
B) Involve supply management and external suppliers in the earliest stages of new product development.
C) Develop and manage appropriate supply alliances.
D) Identify, verify, track, and control savings.
E) Foster an environment of collaboration.
Q3) According to Megatronics,the inflow of technology is a function of the supplier's investment in advancing its technological capabilities and the supplier's willingness to share its innovations.
A)True
B)False
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Page 24