Deck 1: Operations Management, Processes, and Supply Chain Management

Question 1

Forecasting demand and translating that forecast into desired levels of purchasing, production, and distribution activities is part of which of the eight key supply chain processes?

A) Manufacturing flow management
B) Customer service management
C) Demand management
D) Customer relationship management

Answer 1

C

Question 2

Which of the following is not a basic operations management activity?

A) Transformation
B) Marketing
C) Distribution
D) Storage

Answer 2

B

Question 3

Which of the following is not one of the eight key supply chain processes?

A) Customer service management
B) Supplier relationship management
C) Financial management
D) Demand management

Answer 3

C

Question 4

Which of the following would be most likely to enhance supply chain responsiveness?

A) Partnering with a local supplier in a foreign market
B) Closing overseas manufacturing facilities
C) Outsourcing distribution center operations
D) Limiting product customization options

Question 5

REHAU Inc. manufactures front and rear bumpers that are shipped directly to Mercedes-Benz assembly plants. REHAU Inc. is likely a _____________ for Mercedes-Benz.

A) Customer
B) Second-tier supplier
C) First-tier supplier
D) Retailer

Question 6

Scott Industrial Products has recently contracted with a local delivery company to ensure that orders are delivered on-time and in appropriate condition to their local customers. Which of the eight key supply chain processes is Scott most likely using for this decision?

A) Demand management
B) Order fulfillment
C) Supplier relationship management
D) Customer service management

Question 7

Processes turn _________ into ________.

A) outputs, inputs
B) inputs, outputs
C) returned product, refurbished product
D) components, raw materials

Question 8

A regional grocery chain has hired an analytics firm to build models to predict which customers are likely to become long-term customers of the chain's stores. These customers will then be carefully targeted with mailers and other marketing outreach. This is an example of which of the eight key supply chain processes?

A) Order fulfillment
B) Manufacturing flow management
C) Customer relationship management
D) Demand management

Question 9

Collaboration within a supply chain leads to all of the following except __________.

A) Enhanced customer satisfaction
B) Distorted information in the supply chain
C) Reduced stockout costs
D) Reduced delivery costs

Question 10

A firm's primary goods and services suppliers are referred to as:

A) First-tier suppliers
B) Market winners
C) Third echelon suppliers
D) Customers

Question 11

A company that manages its customer base in order to satisfy the customer and ensure that they continue to purchase goods and services is using which of the eight key supply chain processes?

A) Demand management
B) Order fulfillment
C) Returns management
D) Customer relationship management

Question 12

Which of the following is a business that would primarily be involved in the provision of services?

A) Ice cream producer
B) Clothing manufacturer
C) Package delivery company
D) Cell phone assembly company

Question 13

Which of the eight key supply chain processes refers to "making goods to satisfy target markets"?

A) Returns management
B) Demand management
C) Manufacturing flow management
D) Order fulfillment

Question 14

Process-related decisions may include all of the following except:

A) Determining which activities to outsource
B) Determining how a product should be marketed
C) Determining how to improve an existing process
D) Determining how to reduce manufacturing costs

Question 15

In a typical supply chain, goods flow in which of the following manners?

A) Supplier $\rightarrow$ Distributor $\rightarrow$ Manufacturer $\rightarrow$ Retailer $\rightarrow$ Consumer
B) Consumer $\rightarrow$ Retailer $\rightarrow$ Distributor $\rightarrow$ Manufacturer $\rightarrow$ Supplier
C) Supplier $\rightarrow$ Manufacturer $\rightarrow$ Distributor $\rightarrow$ Retailer $\rightarrow$ Consumer
D) Manufacturer $\rightarrow$ Supplier $\rightarrow$ Retailer $\rightarrow$ Distributor $\rightarrow$ Consumer

Question 16

Which of the following is a business that would primarily be involved in the production of goods?

A) Furniture manufacturer
B) Package delivery company
C) Bank
D) Technical support call center

Question 17

Which of the eight key supply chain processes refers to "satisfying customer orders"?

A) Order fulfillment
B) Demand management
C) Customer service management
D) Product development and commercialization

Question 18

Process integration between a firm and its suppliers and customers is __________.

A) Undesirable
B) Likely to provoke conflicts
C) Desirable
D) Dangerous

Question 19

Jim's Restaurant struggles with low demand during off-peak times of the day. To encourage customers to visit during off-peak times, the restaurant has implemented discounts during those times. Doing this is an example of which of the eight key supply chain processes?

A) Demand management
B) Customer relationship management
C) Order fulfillment
D) Customer service management

Question 20

Which of the following definitions is most closely associated with "operations management"?

A) The management of processes responsible for the delivery of products to consumers
B) The management of activities that add value in a manufacturing environment
C) The effective management of knowledge within an organization
D) The effective planning, organizing, and controlling of the value-creating activities of the firm

Question 21

Which of the following describes how product lifecycles are changing?

A) Shortening
B) Lengthening
C) Neither shortening nor lengthening
D) There is no definitive way to know how or if product lifecycles are changing

Question 22

An operations management intern has been hired and will review and suggest enhancements to contracts with a firm's suppliers. The intern is involved in which process?

A) Demand management
B) Customer service management
C) Manufacturing flow management
D) Supplier relationship management

Question 23

A large manufacturer of farm equipment has recently switched to a product design approach in which representatives from a variety of the firm's functional areas are involved in the product design process. This type of approach is likely be referred to as?

A) Concurrent engineering
B) Functional siloing
C) Cooperative dynamics
D) Decision theory

Question 24

A cell phone manufacturer feeling increased pressure to release new and updated models of cell phones is experiencing the effects of?

A) Lengthened product lifecycles
B) Shortened product lifecycles
C) Increased demand
D) Reduced supplier availability

Question 25

Simultaneous design of product, process, and supply chain configuration is referred to as:

A) Two-dimensional cooperative engineering
B) Collaborative engineering
C) Three-dimensional concurrent engineering
D) Diversity engineering

Question 26

A cooperative approach to product design is referred to as?

A) Team manufacturing
B) Continuous improvement
C) Concurrent engineering
D) Functional overlapping

Question 27

Product returns result in approximately how much cost to U.S. suppliers each year (in $)?

A) $10 million
B) $100 billion
C) $100 million
D) $1 billion

Question 28

The key supply chain process responsible for on-time delivery of goods and services to customers is referred to as?

A) Returns management
B) Order fulfillment
C) Demand management
D) Manufacturing flow management

Question 29

Nissan was able to enhance its profitability by which of the following?

A) Increasing the company's supplier base
B) Severing relationships with overseas manufacturers
C) Reducing the company's number of suppliers
D) Decreasing its advertising presence

Question 30

Demand can be positively stimulated by the use of which of the following demand management techniques?

A) Closing facilities
B) Increasing prices
C) Aggressive marketing
D) Capacity reduction

Question 31

Designing and producing new products that customers want and doing it frequently and efficiently is associated with which of the eight key supply chain processes?

A) Customer service management
B) Customer relationship management
C) Manufacturing flow management
D) Product development and commercialization

Question 32

Determining how and where to store or move incoming and work-in-process materials is most closely associated with which of the eight key supply chain processes?

A) Order fulfillment
B) Supplier relationship management
C) Manufacturing flow management
D) Returns management

Question 33

Which of the following is not a reason for a company to be concerned about the effective management of product returns?

A) Reduced disposal costs
B) Legal requirements related to returns and disposal
C) Enhanced customer satisfaction
D) Increased access to emerging markets

Question 34

A company implementing a liberal policy for accepting customers bringing back unwanted or defective purchases relates to which of the eight key supply chain processes?

A) Customer relationship management
B) Demand management
C) Supplier relationship management
D) Returns management

Question 35

A small manufacturer of customized knitted products for children is considering the use of a new delivery service (it previously relied on mailing products using the postal service). A possible change in delivery service would involve which of the eight key supply chain processes?

A) Order fulfillment
B) Demand management
C) Customer service management
D) Product development and commercialization

Question 36

Developing successful, long-term relationships with key suppliers is part of which process?

A) Returns management
B) Supplier relationship management
C) Demand management
D) Order fulfillment

Question 37

Dabbawalas in Mumbai, India, are most closely linked with which of the eight key supply chain processes?

A) Demand management
B) Returns management
C) Customer relationship management
D) Order fulfillment

Question 38

In general, how many suppliers should constitute a firm's supplier base?

A) Many
B) Few
C) Very many
D) Ten

Question 39

A performance measure that tracks warranty claims would be most likely to be useful for which of the eight key supply chain processes?

A) Demand Management
B) Product development and commercialization
C) Returns management
D) Order fulfillment

Question 40

Product returns result in approximately how much cost to U.S. suppliers each year (in terms of % profit)?

A) 3.8%
B) 5%
C) 1%
D) 10%

Question 41

Which of the following is likely an example of a high contact service?

A) Nail salon
B) ATM
C) Self-service checkout lane at a grocery store
D) Online banking service

Question 42

Poorly provided service experiences tend to be _______ correctable than a defective, manufactured product.

A) neither more nor less
B) more
C) less
D) far more

Question 43

Manufactured products ___________ inventoried.

A) cannot be
B) are rarely
C) are difficult to be
D) can be

Question 44

A bank has discovered that their tellers receive vastly different ratings from a mystery shopper. This is an example of which characteristic of services?

A) Service quality varies from server to server
B) Services are intangible
C) Services cannot be inventoried
D) Service quality varies from company to company

Question 45

Transportation, communications, utilities, wholesale trade, retail trade, finance, insurance, real estate, and public administration are considered to be in which sector of the U.S. economy?

A) Farming
B) Goods
C) Services
D) Political

Question 46

The key difference between manufacturers and services is?

A) Manufacturers create tangible goods while services are intangible
B) Services are typically more expensive than manufacturing
C) There are no major differences between the two
D) Manufacturers create intangible goods while services are tangible

Question 47

Which of the following is likely an example of a low contact service?

A) Beauty parlor
B) Custom sandwich shop
C) ATM
D) Coffee shop

Question 48

Which of the following might be a problem that is typical of services?

A) Intangible product
B) Decentralized location
C) Inability to store services in inventory
D) Quality based on customer perceptions

Question 49

NYA provides consulting for human resources departments at major corporations. What type of company is NYA?

A) Virtual
B) Services
C) Manufacturing
D) Neither services nor manufacturing

Question 50

Services ___________ inventoried.

A) cannot be
B) are easily
C) are often
D) can be

Question 51

The amount or percentage of time customers are in contact with the service system while the service is being provided refers to?

A) Time or percentage of time in queue
B) Interaction
C) Engagement
D) Customer contact

Question 52

A low contact service is often characterized by which of the following?

A) Many customization options
B) A high degree of direct interaction with the customer
C) A need for a small number of service facilities
D) High degrees of automation

Question 53

Agriculture, forestry, fishing, mining, construction, and manufacturing are considered to be in which sector of the U.S. economy?

A) Farming
B) Goods
C) Services
D) Political

Question 54

High contact services are likely to:

A) Be as hard or easy to manage as low contact services
B) Be harder to manage than low contact services
C) Be easier to manage than low contact services
D) Require no management

Question 55

Repairing a ___________ is typically easier than repairing a __________.

A) customer service failure, manufacturing failure
B) broken manufactured product, poorly provided service experience
C) poorly provided service experience, broken manufactured product
D) transportation service failure, fast-food service failure

Question 56

Which match of characteristics is correct?

A) Services $\rightarrow$ Quality based on product design
B) Manufacturing $\rightarrow$ Intangible product
C) Services $\rightarrow$ Location based on customer traffic
D) Manufacturing $\rightarrow$ Decentralized locations

Question 57

Rebecca and Heather both visit a coffee shop on the same day and leave feedback about the shop on a popular online restaurant rating site. Rebecca leaves very negative feedback while Heather leaves very positive feedback. This is likely an example of what?

A) Poor customer service for both customers
B) Typical service experienced in a food service setting
C) Variation in service quality
D) Customer warranty claims

Question 58

Which match of characteristics is correct?

A) Services $\rightarrow$ Customers can easily compare competitors' products
B) Manufacturing $\rightarrow$ Location based on low cost
C) Services $\rightarrow$ Tangible product
D) Manufacturing $\rightarrow$ Decentralized locations

Question 59

A clothing store hires additional customer service employees in anticipation of demand associated with the release of a popular new product. The clothing store is taking a risk related to which characteristic of services?

A) Service quality varies from server to server
B) Services are intangible
C) Services cannot be inventoried
D) Service quality varies from company to company

Question 60

A high contact service is often characterized by which of the following?

A) Heavy customer involvement
B) A significant investment in transportation services
C) High degrees of automation
D) Low levels of server training

Question 61

A small but growing automotive producer has noticed a problem of imbalanced plant capacity and component parts inventory. They should consider implementing:

A) JIT
B) SQC
C) ASQ
D) MRP

Question 62

A service's goods-service package is defined by all of the following except?

A) Explicit service
B) Supporting facility
C) Implicit service
D) Customer demand

Question 63

Lean thinking is characterized by all of the following except:

A) Reduction of waste
B) Increased inventory levels
C) Synchronization of supply chain flows
D) Continuous improvement

Question 64

A philosophy that encompasses a collection of processes that seek to improve quality continuously to please customers, reduce costs, and ultimately create competitive advantage for the firm is referred to as:

A) TQM
B) SCM
C) ASQ
D) JIT

Question 65

An automotive company requires that its suppliers provide component parts as needed in appropriate quantities without significant buildup of inventory. This requirement is likely associated with which concept?

A) DIMAIC
B) TQM
C) SCM
D) JIT

Question 66

Software applications that were developed to try and balance part purchases and plant capacities with production requirements are referred to as __________.

A) TQM
B) JIT
C) MRP
D) ARP

Question 67

The JIT concept relies on product being ________ through the system as needed.

A) Pushed
B) Aggregated
C) Pulled
D) Stockpiled

Question 68

The reduction of waste, along with continuous improvement, and the synchronization of material flows within the organization and between supply chain trading partners are characteristics of which operations management development?

A) Project management
B) Lean thinking
C) Total Quality Management
D) MRP and ERP

Question 69

All of the following are issues faced when expanding services into foreign markets except:

A) Identifying global customers
B) Legal and political issues
C) Domestic competitors and the economic climate
D) Decreased complexity

Question 70

A company wishing to switch from a push-oriented to a pull-oriented system will likely consider the implementation of which concept?

A) Kaizen
B) JIT
C) TQM
D) RFID

Question 71

A company being forced to form a joint venture with a local company in order to operate in a foreign country is an example of which type of issue faced when expanding services into a foreign market?

A) Identifying global customers
B) Legal and political issues
C) Domestic competitors and the economic climate
D) Labor, facilities, and infrastructure support

Question 72

Facilitating goods, as part of a goods-service, include which of the following?

A) Bank building
B) Transportation
C) Convenience
D) Food in a restaurant

Question 73

A company modifying its services to appeal to customers in a foreign market is an example of which issue:

A) Identifying global customers
B) Legal and political issues
C) Domestic competitors and the economic climate
D) Labor, facilities, and infrastructure support

Question 74

Explicit service, as part of a goods-service, includes which of the following?

A) Bank building
B) Transportation
C) Convenience
D) Food in a restaurant

Question 75

A bride and groom planning for a large wedding may find it useful to use techniques from which concept?

A) Statistical quality control
B) Lean production
C) Project management
D) MRP

Question 76

The next iteration of MRP systems is referred to as __________ and allow for better planning using "what-if analyses."

A) ERP
B) ELP
C) 2-MRP
D) MRP-II

Question 77

Differences between a traditional airline and a budget airline can be best described as a difference in the ___________ of the airlines.

A) goods-service packages
B) customer profile
C) explicit services
D) financial model

Question 78

Planning, scheduling, and controlling of resources to meet specific goals are activities related to which concept?

A) Operations management
B) Project management
C) Quality control
D) Supply chain management

Question 79

Implicit service, as part of a goods-service, includes which of the following?

A) Bank building
B) Transportation
C) Convenience
D) Food in a restaurant

Question 80

Which of the following systems is most complex?

A) ERP
B) MRP
C) MRP-II
D) FRP