Chap1

Supply chain management is the management of processes used to design, supply, product, and deliver
valuable goods and services to customers?

A) True

B) False

A supply chain is the global network of organizations and activities involved in:

A) Designing a set of goods and services and their related processes

B) Transforming inputs into goods and services

C) Consuming these goods and services

D) Disposing of these goods and services

E) All of the above.

Other terms sometimes substituted for supply chain include:

A) Demand chain

B) Extended enterprise

C) Supply network

D) Supply web

E) All of the above

Services:

A) Are tangible

B) Can be inventoried
 C) Have short lead times

D) Are often capital-intensive

A lean operation produces minimum levels of efficiency and effectiveness using a maximum amount of
resources.

A) True

B) False

During a time of global competition in the 1960s to the 1980s, ____________ emerged as key technical
advances.

A) Interchangeable parts and emerging transportation networks

B) Movement to urban areas and new machines and economies of scale

C) Increased automation and the introduction of computers and quantitative analysis

D) Just in time systems and the emergence of statistical process control

E) The Internet and enhanced communication and transportation technologies

A core capability is a unique set of skills that confers competitive advantages to a firm, because rival
firms cannot easily duplicate them.

A) True

B) False

Customers can include

A) Internal customers only

 B) Both internal and intermediate customers

C) Both intermediate and final customers

D) Internal, intermediate and final customers

_______________ typically provide raw materials, components, and services directly related to
manufacturing or service production processes.

A) Upstream product suppliers

B) Downstream product suppliers

C) Resource and technology suppliers

D) Aftermarket suppliers

E) All of the above.

10

_______________ provide product service and support such as maintenance, repair, disposal, or
recycling.

A) Upstream product suppliers

B) Downstream product suppliers

C) Resource and technology suppliers

D) Aftermarket suppliers

E) All of the above.

11

___________ is the management of the customer interface, including all aspects of order processing and
fulfillment.

A) Supplier management

B) Customer management
 C) Logistics management

D) All of the above

E) None of the above

12

Functional groups directly concerned with customer management have names such as distribution,
sales, order fulfillment, and customer service.

A) True

B) False

13

___________ is the management of processes used to identify, acquire, and administer inputs to the
firm.

A) Supplier management

B) Customer management

C) Logistics management

D) All of the above

E) None of the above

14

A ________ supplier produces goods and services directly to the firm. For example, the stock film
wholesaler to the movie production company.

A) First-tier

B) Second-tier

C) Echelon

D) Downstream

E) None of the above

15

_____________ planning such as sales and operations planning seeks to identify and target customer
demands for aggregate product families and to establish the inventory and capacity plans needed to
satisfy these overall demands.

A) Strategic

B) Operational

C) Tactical

D) Both tactical and operational

E) None of the above

Chap2

Top of Form

1
Corporate strategy:

Covers a long-term horizon

A)

Sets the overall values of a firm

B)

Sets the overall direction of a firm

C)

Sets the goals of a firm

D)

All of the above

E)

2
Of the three levels of strategic planning, the _______ strategy is the most detailed as well
as the most constrained.

Corporate
A)

Business Unit
B)

SBU
C)

Functional
D)
 None of the above
E)

3
A critical customer may be responsible for the smallest current or future sales of the firm or
it may be the one with the lowest prestige.

True
A)

False
B)

4
A product trait that causes customers to choose a product over a competitor's offering: for
example, better performance or lower prices is an:

Order winner
A)

Order qualifier
B)

Order loser
C)

All of the above

D)

5
The cost dimension of product-related competitive priorities includes:

Performance
A)

Reliability
B)

Speed
C)

Salvage/disposal
D)

None of the above

E)

6
The value proposition reflects the order winners, order qualifiers, and the order losers for a
critical customer segment.

True
A)
 False
B)

7
Flexibility has become an important priority for many companies today because:

Product life cycles are decreasing

A)

Technologies are rapidly changing

B)

There is growing pressure to meet localized, specific customer needs

C)

All of the above

D)

Only A and B
E)

8
Pressure for companies to be more socially responsible is from:

Governments
A)

Social groups and consumers

B)

Governments and consumers

C)

Governments and social groups

D)

Governments, consumers, and social groups

E)

9
Specialized routines, procedures, and performance measurement systems that guide
operational activities are:

Planning systems
A)

Technology
B)

People and culture

C)

Processes
D)

Supply chain relationships

E)
10
Core capabilities are:

Based on factors that are rare and/or unique

A)

Hard to imitate
B)

Take a long time to develop

C)

Ones with few substitutes

D)

All of the above

E)

11
When a company finds itself with capabilities and value propositions that no customers care
about, management can

Live with the mismatch

A)

Change the critical customers to those who value the company's solutions
B)

Change the operational capabilities

C)

Only A and B
D)

Take actions A, B, and C

E)

12
The DuPont or Strategic Profit Model shows how income and balance sheet data are
interrelated and how operational changes affect the overall performance of a business unit.

True
A)

False
B)

13
The balanced scorecard approach can only be used as a strategic planning tool but cannot
be used for strategic deployment.

True
A)
 False
B)

14
The velocity at which a supply chain provides products to the customer is:

Delivery reliability
A)

Responsiveness
B)

Flexibility
C)

Costs
D)

Asset management efficiency

E)

15
The agility of a supply chain in responding to marketplace changes to gain or maintain
competitive advantage is:

Delivery reliability
A)

Responsiveness
B)

Flexibility
C)

Costs
D)

Asset management efficiency

E)

chap3 scm

Top of Form

1
A major supply chain risk is that a company will be blamed by consumers if any of its
suppliers engage in unethical activity.

True
A)

False
B)
2
Every business organization is part of a supply chain.

True
A)

False
B)

3
Inventory velocity refers to the rate at which inventory moves through the supply chain.

True
A)

False
B)

4
4 Cross docking occurs when ships are between two docks so they can be unloaded from
both sides, thereby cutting unloading time in half.

True
A)

False
B)

5
Logistics involves the flow of goods and the flow of information in a supply chain.

True
A)

False
B)

6
Active RFID requires more worker involvement than passive RFID, which can operate
independently.

True
A)

False
B)

7
Strategic sourcing differs from more traditional sourcing in that it emphasizes total cost
rather than price.
True
 A)

False
B)

8
Service organizations often have shorter supply chains than manufacturing organizations.

True
A)

False
B)

9
A key different between active and passive RFID tags is that active tags have a power
supply.

True
A)

False
B)

10
An important goal of purchasing is to obtain low prices for goods and services.

True
A)

False
B)

11
Supplier audits are intended to keep current on suppliers' production or service capabilities.

True
A)

False
B)

12
Supply chain visibility is enhanced when supply trucks have a company's name prominently
displayed.

True
A)

False
B)
13
Fill rate refers to the rate at which goods are loaded onto ships or trucks.

True
A)

False
B)

14
E business enhances the ability of small businesses to compete with large businesses.

True
A)

False
B)

15
VMI is a way that companies can reduce costs related to replenishing inventory.

True
A)

False
B)

16
The term bullwhip effect is most closely related to:

assertive customers
A)

demand variations
B)

inventory turnover
C)

return of inventory
D)

inventory security
E)

17
Cross docking results in cost savings associated with

dock space
A)

ordering goods
B)
 cargo ships
C)

storage space
D)

down time
E)

18
Which one is not a requirement of effective supply chain management?

low cost
A)

trust
B)

event management
C)

visibility
D)

19
The term "3PL" is most closely associated with

outsourcing
A)

e-commerce
B)

learning curves
C)

mass customization
D)

cross docking
E)

20
The letters RFID are most closely associated with

outsourcing
A)

tracking items
B)

cross docking
C)

event management
D)
None of these.
 E)

21
Which one of these would have a negative impact on inventory costs?

disintermediation
A)

delayed differentiation
B)

cross docking
C)

bullwhip effect
D)

22
Which one is not a reason for increased emphasis on supply chain management?

increased levels of outsourcing

A)

increased transportation costs

B)

trends towards globalization

C)

the need to improve internal operations

D)

23
Which one of these best describes disintermediation?

The mediation of supply chain disputes by a disinterested third party.

A)

Elimination of supply chain middlemen.

B)

Delayed differentiation.
C)

Overcoming the bullwhip effect.

D)

24
Which one of these relates to avoiding warehousing costs?

cross docking
A)

delayed differentiation
B)
 disintermediation
C)

gatekeeping
D)

strategic partnering
E)

25
Which one refers to reverse logistics?

cross docking
A)

delayed differentiation
B)

customer refusal to accept damaged goods

C)

returned goods
D)

retracing the steps in a supply chain

E)

chap10 LogM

Top of Form

Customer
service
benefits
include:

Availability
A)

Lead-time performance
B)

Service reliability
C)

All of the above

D)

None of the above

E)

2
As service levels increase, typically so do costs.

True
A)
 False
B)

3
The total landed cost

Is the sum of all product-related costs

A)

Is the sum of all logistics-related costs

B)

Is the most important strategic decision companies should consider

C)

Can affect the decision of where to locate manufacturing plants

D)

All of the above

E)

4
Economic regulation is designed to ensure that transportation services are available to
everyone at a reasonable cost.

True
A)

False
B)

5
While the economic regulation of transportation has increased in the US in recent
years, safety and social regulation has decreased significantly.

True
A)

False
B)

6
The economy of scale refers to the principle that the cost per unit of distance
decreases as the distance moved increases.

True
A)

False
B)

7
 ___________ is achieved by combining several small shipments from one shipper that
are going to the same market area into one shipment.

Pooled delivery consolidation

A)

Scheduled delivery consolidation

B)

Economy of distance
C)

Market area consolidation

D)

Economy of scale
E)

8
_______ refers to establishing specific times when deliveries will be made to
customers.

Pooled delivery consolidation

A)

Scheduled delivery consolidation

B)

Economy of distance
C)

Market area consolidation

D)

Economy of scale
E)

9
There are _____ basic transportation modes or methods of transporting items.

Three
A)

Four
B)

Five
C)

Six
D)

Seven or more
E)

10
Because of the relationship between total transportation cost, product value, and
weigh, a shipping load's value density is usually a key determinant of the
 transportation mode used to move it.

True
A)

False
B)

11
_______ are companies that own and operate transportation equipment to transport
their own products.

Contract carriers
A)

Common carriers
B)

Private carriers
C)

Both private and contract carriers

D)

Both contract and common carriers

E)

12
Stockpiling stores inventories in warehouses to protect against

Seasonality in supply
A)

Seasonality in demand
B)

Both seasonality in supply and demand

C)

None of the above

D)

13
_____ combines break-bulk and consolidation activities.

Stockpiling
A)

Distribution
B)

Cross-docking
C)

Transshipment point
D)
All of the above
 E)

14
In ____________, inbound shipment are received and unloaded from the
transportation vehicles.

Receiving and unloading

A)

Shipping
B)

Staging
C)

Orderpicking
D)

Storage
E)

In-storage handling
F)

15
________ involves verifying that the assembled orders are correct and the actual
loading of the transportation vehicles occurs.

Receiving and unloading

A)

Shipping
B)

Staging
C)

Orderpicking
D)

Storage
E)

In-storage handling
F)

chp12 LM Ji

Top of Form

Which of
the
following
terms is
used to
describe
a lean
system:

JIT
A)

Stockless production
B)

Zero inventories
C)

The TPS
D)

All of the above

E)

None of the above.

F)

2
The lean systems approach is a philosophy of operations management that emphasizes
the maximization of the amount of all the resources (including tie) used in the various
activities of the enterprise.

True
A)

False
B)

3
The merging of elements into lean occurred during the _______ when a delegation
from Toyota led by Ohno visited the Ford plant at River Rouge then considered the
most advanced car manufacturing system in the world.

1940s
A)

1950s
B)

1960s
C)

1970s
D)

1980s
E)

1990s
F)

4
An objective of lean systems thinking is to produce:
 Only the products that customers want
A)

Only as quickly as customers want

B)

With only features customers want

C)

With perfect quality

D)

All of the above

E)

5
_______________ waste stems from unbalanced workloads, unplanned maintenance,
long process setup times, misuse of automation, and too much specialization

Overproduction
A)

Waiting
B)

Transportation
C)

Processing
D)

Inventory
E)

6
Symptoms of ______________ waste include extra storage and handling, extra
rework, paperwork, and high disposal costs.

Overproduction
A)

Waiting
B)

Transportation
C)

Processing
D)

Inventory
E)

7
Root causes of motion include:
Reduced productivity
 A)

Large reach/walk distances

B)

Excess handling
C)

Poor ergonomics/layout
D)

People/machines waiting
E)

8
Ultimately, the responsibility for improving product quality and flow lies with the
frontline workers who are the most familiar with the processes that must be improved
in the lean system philosophy.

True
A)

False
B)

9
Takt is a _______ word that means pace or rhythm of operations

French
A)

Japanese
B)

Chinese
C)

American
D)

German
E)

10
Heijunka is the practice of leveling quantities of different product models produced
over a period time, with the goal of increasing batch sizes and lead times.

True
A)

False
B)

11
In general, setup reduction ______ changeover times and costs and makes it possible
 to product outputs in ______ batch sizes efficiently.

Lowers; smaller
A)

Increases; smaller
B)

Lowers; larger
C)

Increases; larger
D)

None of the above

E)

12
A Kaizen Event usually lasts from _____ to _____ days.

12-15
A)

2-5
B)

1-4
C)

11-14
D)

None of the above

E)

13
______ makes use of various statistical tools for analyzing the capabilities of a given
process and for monitoring its performance.

SPC
A)

Visual control
B)

Quality at the source

C)

Stop-and-fix
D)

Andons
E)

14
______ is an emphasis on eliminating defects at their origination points.
SPC
 A)

Visual control
B)

Quality at the source

C)

Stop-and-fix
D)

Andons
E)

15
______ works on the simple premise that an operator should stop the process and
immediately fix any significant problem that arises, rather than allowing it to continue
making poor-quality output.

SPC
A)

Visual control
B)

Quality at the source

C)

Stop-and-fix
D)

Andons
E)

chp14 SM

Top of Form
Effective
supply
management
enables a
firm to meet
its strategic
objectives
and improve
performance:
Its goals are
to:

Ensure timely availability of resources

A)

Reduce total costs

B)

Enhance quality
C)
Access technology and innovation
 D)

All of the above

E)

2
The total cost of ownership considers:

Sourcing costs and purchase price

A)

Transportation and handling

B)

Inspection, quality, and rework

C)

Maintenance and disposal

D)

All of the above

E)

3
Purchase price and costs or ordering, transporting, expediting, receiving,
inspecting and follow up occur:

Before the transaction

A)

During the transaction

B)

After the transaction

C)

In all stages
D)

None of the above

E)

4
Providing jobs in the supplier's community fulfills the goal to:

Increase social diversity

A)

Encourage environmental responsibility

B)

Display ethical behavior

C)

Support and provide value to the community

D)
All of the above
 E)

Delivery lead time

F)

5
Hiring suppliers who conform to safety standards meets the goal of:

Increase social diversity

A)

Display ethical behavior

B)

Support and provide value to the community

C)

Respecting human rights

D)

Encouraging a safe working environment

E)

6
Acquiring inputs from operational processes done by suppliers is:

Insourcing
A)

Outsourcing
B)

Home sourcing
C)

Global sourcing
D)

Re-Sourcing
E)

7
___________ is analysis done when considering insourcing or outsourcing the
production of parts and components.

Make or buy decision

A)

Assessing fit with competencies

B)

Flexibility assessment
C)

Supplier certification
D)
None of the above
 E)

8
The firm will incur costs each time it places a new order, for example, costs to
inspect and refurbish tools for individual production runs. This is the issue of:

Fixed costs per contract

A)

Fixed costs per order

B)

Variable costs
C)

Variable expenses
D)

All of the above

E)

9
_______ are costs associated with each unit produced including labor, materials,
asset depreciation, energy or the purchase price.

Fixed costs per contract

A)

Fixed costs per order

B)

Variable costs
C)

Variable expenses
D)

All of the above

E)

10
At the other end of the spectrum from adversarial relationships or the traditional
way buyers and suppliers have approached each other are the more modern:

Arm's –length relationships

A)

Relationships that acknowledge acceptance of mutual goals

B)

Full partnerships
C)

Focus on self-interest
D)

Focus on price
E)
11
Competitive bidding is used when quality is the most important factor and
specifications are unknown and there are few suppliers willing to compete.

True
A)

False
B)

12
Unlike the situation for competitive bidding and online reverse auctions,
negotiation is a better choice when there is:

A high degree of certainty

A)

A simple start-up
B)

Standardized equipment is needed

C)

Set requirements
D)

A need for early supplier involvement in product development

E)

13
The _____ is used to report a supplier's performance eon key performance
indicators.

Supplier certification
A)

Supplier relationship management

B)

Supplier scorecard
C)

Electronic data interchange

D)

All of the above

E)

14
Supplier certification verifies that the supplier ______________ effective
procedures related to the buyer's requirements

Operates
A)
 Maintains
B)

Improves
C)

Documents
D)

All of the above

E)

15
Supplier relationship management or SRM tries to do for supplier management
what CRM does with the customers.

True
A)

False
B)

chap16 evbmod chdri

A business
model
combines
the choice
of which
customer
segments
the firm
will target
with a
specific
value
proposition
and the
supply
chain
capabilities
used to
delivery it.

True
A)

False
B)

2
An important trend influencing operations management and the emergence of
different business models is:
Rapid technological change
 A)

Increasing importance of sustainability

B)

Growing roles of national and corporate cultures

C)

All of the above

D)

None of the above

E)

3
Dynamic business environments make it important for operations managers to
constantly evaluate their existing business models in light of new challenges and
opportunities.

True
A)

False
B)

4
_________ automate material and data processing to provide 24/7 resource
availability, faster processing, greater consistency, and lower cost.

Decision support systems

A)

Processing technologies
B)

Communications technologies
C)

Integrative technologies
D)

All of the above

E)

5
Examples of _________ include product life cycle management, customer
relationship management, and "cloud" computing.

Decision support systems

A)

Processing technologies
B)

Communications technologies
C)
Integrative technologies
 D)

None of the above

E)

6
Sustainability metrics are being added to operations management both as customer
requirements and as operational performance criteria.

True
A)

False
B)

7
______ is an analysis of wastes generated in extraction and evaluates the pollution
created by suppliers as they extract minerals from the earth.

Production
A)

Usage
B)

Disposal
C)

Recycling
D)

Extraction
E)

8
Costs from wastes in product usage are created during maintenance and operation
of the project are ____ costs.

Production
A)

Usage
B)

Disposal
C)

Recycling
D)

Extraction
E)

9
The carbon footprint is established by estimating the difference between direct and
 indirect greenhouse gas emissions.

True
A)

False
B)

10
Another term for the triple bottom line is:

TBL
A)

3BL
B)

People, planet, profit

C)

All of the above

D)

None of the above

E)

11
The goal of the triple bottom line is to shape operational decisions so that a firm
maintains balance between profit and growth-oriented objectives and the needs to
be fair and not harmful to people, the environment, or the planet.

True
A)

False
B)

12
A reason sustainability issues are rising in importance for operations managers is the
requirement by many firms that their suppliers be certified according to an
international standard for environment management: ISO 14000.

True
A)

False
B)

13
Culture is:

An important concept
A)
Used to describe people's beliefs and values
 B)

Learned
C)

Shared patterns for living

D)

All of the above

E)

14
People from different nations or regions often have different:

Ways of looking at things

A)

Ways of dressing
B)

Ways of expressing personality

C)

Skills
D)

All of the above

E)

15
People's cultures are not only shaped by their national origins, but also influenced by
the groups to which they belong.

True
A)

False
B)

mcgrw