Supply Chain Management
Final Test Solutions
Course Introduction
Supply Chain Management explores the design, operation, and improvement of supply chains, focusing on the flow of goods, services, information, and finances from suppliers to end customers. The course covers key concepts such as procurement, production, distribution, logistics, demand forecasting, inventory management, and global supply chain strategies. Students will analyze real-world case studies and apply analytical tools to enhance efficiency, manage risks, and achieve competitive advantage in today's interconnected and rapidly evolving business environment.
Recommended Textbook
Operations Management in the Supply Chain Decisions and Cases 7th Edition by Roger Schroeder
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18 Chapters
857 Verified Questions
857 Flashcards
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Page 2
Chapter 1: The Operations Function
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Sample Questions
Q1) Which of the following functions is responsible for the actual movement of goods and/or services across organizations?
A) Logistics
B) Operations
C) Purchasing
D) None of these
Answer: A
Q2) The five major decision responsibilities of operations management are
A) process, quality, capacity, sourcing, and human resources.
B) process, quality, human resources, logistics, and inventory.
C) quality, inventory, human resources, capacity, and supply chain.
D) process, capacity, quality, supply chain, and inventory.
Answer: D
Q3) Capacity decisions
A) include staffing and scheduling.
B) include inventory control.
C) include defining product specifications.
D) are none of these.
Answer: A
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Page 3
Chapter 2: Operations and Supply Chain Strategy
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Sample Questions
Q1) According to Michael Porter,the generic types of business strategies include
A) differentiation, low cost, focus.
B) high price, high quality, fast delivery.
C) focus, quality, imitation.
D) all of the above.
Answer: A
Q2) Which of the following statements concerning the development of operations functional mission,objectives,and strategies is correct?
A) Strategic operational choices such as make versus buy or handcrafted versus machine-made specify how operations objectives will be achieved.
B) Functional-level operations and strategies are determined prior to corporate objectives and strategies.
C) It is common for many different types of operations to use a common or similar set of business strategies.
D) Operations objectives represent a plan for achieving operations strategies.
Answer: A
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4
Chapter 3: Product Design
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Sample Questions
Q1) Which of the following would NOT be a form of new product development collaboration with customers?
A) Providing them with prototypes or beta versions free, in exchange for their feedback.
B) Observing customers as they use existing products or services.
C) Simply asking customer what they want or need.
D) All of the above are recommended forms of collaboration with customers on new product development.
Answer: C
Q2) Process design
A) is the way new product ideas are developed.
B) is the next stage after product design.
C) is considered less important to a company than product design.
D) should occur at the same time as product design.
Answer: D
Q3) Ideally,process design occurs immediately after the product is designed.
A)True
B)False
Answer: False
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Chapter 4: Process Selection
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Sample Questions
Q1) In a make-to-stock operation,the order penetration point is after fabrication and before final assembly.
A)True
B)False
Q2) A machine shop is able to produce a bracket with a wide variety of hole sizes using a computer-controlled drill that quickly rotates the proper drill bit into place to meet the customer order.This is which form of mass customization?
A) Modular production
B) Fast changeover
C) Postponement
D) None of the above
Q3) The type of processing system that is used for highly standardized products such as oil and gasoline is
A) mass production.
B) continuous process.
C) project.
D) batch.
Q4) What are the major cross-functional issues related to process selection decisions?
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Chapter 5: Service Delivery System Design
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Sample Questions
Q1) Which of the following is a common potential benefit of outsourcing services?
A) Increased control over the service delivery.
B) Increased ability to focus on core competencies.
C) Decreased need to attend to people (customers of the service) allowing greater focus on processes.
D) Decreased need to control the quality of the service because it is outsourced.
Q2) Researchers Schlesinger and Heskett propose that service organizations
A) value investment in employees as much or more than investment in technology.
B) link compensation and performance for employees at all levels.
C) use technology to support front-line employees, not to monitor or replace them. D) do all of the above.
Q3) The major difference between the service delivery system matrix and the product-process matrix is that service process design generally does not vary with customer volume.
A)True
B)False
Q4) Describe the difference in service delivery system design for customer-routed services versus provider-routed services.
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Page 7
Chapter 6: Process-Flow Analysis
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Sample Questions
Q1) If I denotes the average inventory in the system,T denotes the average throughput time,and R denotes the average flow rate of the system,then by Little's Law,
A) I = T/R.
B) T = I + R.
C) I = R/T.
D) R = I/T.
Q2) A process will generally have at least one bottleneck.
A)True
B)False
Q3) A diamond symbol in a flowchart indicates A) evaluation with more than one possible outcome. B) decision.
C) both (a) and (b).
D) neither (a) nor (b).
Q4) Capacity is
A) the average rate of output of a process.
B) the maximum rate of output of a process.
C) the difference between the maximum and minimum rates of output of a process.
D) the ratio between output and input.
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Chapter 7: Lean Thinking and Lean Systems
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Sample Questions
Q1) "Gemba" refers to data collection using the company's information system.
A)True
B)False
Q2) One of the main objectives of a lean system is
A) striving for "good enough."
B) reduction of takt time.
C) reduction of waste.
D) define value from the manufacturer's perspective.
Q3) Value stream maps are similar to flowcharts and are used for identifying the waste and non-value-added steps in the current process.
A)True
B)False
Q4) One of the keys to reducing inventory is reducing lead time.
A)True
B)False
Q5) External setups refer to actions that require stopping the production process.
A)True
B)False
Q6) Define the English terms in the 5S technique.How is this applied in practice?
Q7) What are the seven forms of waste that a lean system is intended to prevent?
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Chapter 8: Managing Quality
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Sample Questions
Q1) Which of the following matches between the quality pioneers and their philosophies is INCORRECT?
A) Deming emphasized a philosophy of verifying the quality of every finished product to ensure customer satisfaction.
B) Juran emphasized the need for both performance breakthroughs and continuous improvement of processes.
C) Both of the above are correct.
D) Both of the above are incorrect.
Q2) Describe the concept of rolled yield and how it is related to managing quality in a supply chain.
Q3) Which of the following would NOT be considered a failure cost of quality?
A) Cost of inspection and testing-after rework has been performed.
B) Cost of final product testing that occurs at a distribution center.
C) Cost of reworking a product so that it conforms to specifications.
D) Costs associated with selling blemished products or factory seconds.
Q4) The total cost of quality in an organization is the sum of control costs and failure costs.
A)True
B)False
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Chapter 9: Quality Control and Improvement
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Sample Questions
Q1) Attribute control occurs when the product characteristic is measured on a continuous scale.
A)True
B)False
Q2) The quality tool that shows the relationship between two variables is a histogram.
A)True
B)False
Q3) Which of the following is a critical inspection point where inspection and testing of products occur in a quality control system?
A) Just prior to an irreversible operation (such as drilling).
B) Just prior to a masking operation (an operation that may hide a defect, such as painting or plating).
C) Just prior to packaging and shipping a finished product.
D) All of the above.
Q4) In process capability analysis,the standard deviation (\(\sigma\))refers to the standard deviation of sample measures.
A)True
B)False
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Chapter 10: Forecasting
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Sample Questions
Q1) Using the data from Question 11,calculate the forecast for period 7 using a four-period moving average:
A) 60
B) 43.25
C) 57.75
D) 55.25
Q2) A method of forecasting that best describes the flows from one sector of the economy to another is called
A) regression.
B) econometric model.
C) input-output model.
D) simulation model.
Q3) Which of the following is NOT a measure of variance in the forecast error?
A) CFE (cumulative forecast error).
B) MAD (mean absolute deviation).
C) MAPE (mean absolute percentage errors).
D) All of the above are measures of variance.
Q4) Actual demand is always equivalent to actual sales.
A)True
B)False
Page 12
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Chapter 11: Capacity Planning
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Sample Questions
Q1) Which of the following represents the hierarchy of decisions concerning the capacity of operations ranging from long-term to short-term?
A) Facility planning to aggregate planning to scheduling, respectively.
B) Aggregate planning to scheduling to facility planning, respectively.
C) Scheduling to facility planning to aggregate planning, respectively.
D) Aggregate planning to facility planning to scheduling, respectively.
Q2) If a facility has a utilization rate of 80%,and current output levels requires 3,328 hours annually,what is the facility's annual capacity?
A) 2,582 hours.
B) 3,785 hours.
C) 4,160 hours.
D) None of the above.
Q3) Describe the types of short-range,the medium-range,and the long-range capacity decisions.
Q4) A large capacity cushion is appropriate when
A) a make-to-stock process is used.
B) a firm is attempting to capture market share in a growing industry.
C) the market for its products or services is shrinking.
D) a firm wants its capacity to match average demand.
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Chapter 12: Scheduling Operations
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Sample Questions
Q1) A manufacturing company could increase the output rate of the bottleneck by running larger batches at the bottleneck (assuming another bottleneck in the plant does not interfere).
A)True
B)False
Q2) Which of the following statements is NOT true about finite capacity scheduling (FCS)?
A) FCS is an extension of Gantt chart methods.
B) FCS requires that jobs be loaded backward from due dates to determine the capacity required at each work center.
C) FCS assumes that jobs are scheduled through a number of work centers, each with one or more machines.
D) In FCS, attention is paid to scarce resources to facilitate job flow and to improve the performance of the shop.
Q3) The greater the workload on a process,the less time jobs spend waiting in queues.
A)True
B)False
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Chapter 13: Project Planning and Scheduling
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Sample Questions
Q1) The purpose of performing a forward pass is to
A) identify the critical path.
B) determine the early start and the early finish times.
C) determine the late start and the late finish times.
D) determine the slack available in the process.
Q2) Given the information above,what is the project cost if the project is crashed by one day?
A) $125
B) $250
C) $270
D) None of the above.
Q3) Which of the following is NOT included in project control?
A) Monitoring costs, time, and performance.
B) Adhering to the budget.
C) Correcting the plan as necessary.
D) All of the above are included.
Q4) The early start and late start times are equal for an activity on the critical path of a network.
A)True
B)False
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Chapter 14: Independent Demand Inventory
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Sample Questions
Q1) A paint supplier that places orders for different colors of paint for delivery at the same time should use a
A) P system.
B) Q system.
C) dependent demand inventory model.
D) quantity discount model.
Q2) Determinants of reorder levels (order point quantities)include all of the following EXCEPT
A) rate of demand.
B) length of lead time.
C) length of the time interval between orders.
D) demand and lead time variability.
Q3) At the economic order quantity,
A) the annual ordering cost for an item is greater than the annual holding cost. .
B) the annual ordering cost and annual holding cost for an item are equal.
C) the annual ordering cost for an item is less than the annual holding cost.
D) none of these answers are true.
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Chapter 15: Materials Requirements Planning and ERP
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Sample Questions
Q1) Which of the following most closely describes net material requirements in an MRP system?
A) Gross requirements - planned receipts.
B) Gross requirements - (on-hand + scheduled receipts).
C) Gross requirements - on-hand + scheduled receipts.
D) Gross requirements - planned order releases.
Q2) The master schedule is prepared for product families.
A)True
B)False
Q3) A requirements-based system derives orders from
A) customer requests.
B) forecast.
C) bill of materials.
D) master schedule.
Q4) A manufacturing execution system (MES)
A) is another name for a shop floor control system.
B) provides information on job priorities using dispatching rules.
C) supports managers in the adjustment of lead times to meet customer needs.
D) has all of the above features.
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Chapter 16: Supply Chain Management
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Sample Questions
Q1) Which of the following is considered a strategic move to increase supply chain resilience?
A) Shift some emphasis from efficiency to business continuity.
B) Maintain higher inventory levels for critical components.
C) Identify alternate suppliers with different operating conditions.
D) Create backup of information systems.
Q2) The efficient consumer response (ECR)movement was formed as a partnership among retailers,wholesalers,and producers in what industry?
A) Garment industry.
B) Grocery industry.
C) Automotive industry.
D) Stationery industry.
Q3) Which of the following statements is true regarding the supply chain dynamics?
A) In a highly interactive system, decisions in each part of the supply chain affect the other parts.
B) The idea of safe harbor causes increased orders and inventory magnification.
C) "Inventory panic" is when managers reduce inventories that are perceived to be too high.
D) All of the above.
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Page 18
Chapter 17: Sourcing
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Sample Questions
Q1) A purchasing executive concerned about a perceived lack of control over purchasing activities should
A) determine the profit leverage level.
B) create a supplier scorecard.
C) conduct a spend analysis.
D) conduct a preferred supplier analysis.
Q2) Which of the following is NOT a reason to reshore a purchased item?
A) Political instability in the foreign country.
B) Cost of oil increasing globally.
C) Congestion at shipping ports.
D) Foreign suppliers achieving economies of scale.
Q3) Which of the following statements is NOT correct?
A) A strong purchasing function requires a bidding process for all purchases made.
B) A request for quotation (RFQ) asks for product, procurement terms, and price information.
C) A reverse auction is a type of RFQ process.
D) A request for proposal asks suppliers how they would solve a problem.
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19
Chapter 18: Global Logistics
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Sample Questions
Q1) Which of the following statements concerning logistics networks is NOT correct?
A) Network design decisions are strategic because they can impact the competitive ability of the firm.
B) Typically logistics networks start with the warehouses, then show shipping to distribution centers, which in turn ship to customers.
C) The two primary logistics network decisions are the number of warehouses needed and where they should be located.
D) Network design decisions affect both logistics cost and delivery time to customers.
Q2) Annual logistics expenditures worldwide are
A) less than 5% of the global GDP (less than approximately $1.5 trillion).
B) between 5% and 10% of the global GDP (between approximately $1.5 and $3.0 trillion).
C) between 10% and 20% of the global GDP (between approximately $3.0 and $6.0 trillion).
D) more than 20% of the global GDP (more than approximately $6.0 trillion).
Q3) Transportation costs are accounted for in the basic EOQ model.
A)True
B)False
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