1. Select the best definition of supply chain.

A. The chain of suppliers contracted by an organization, including first, second and third tier
suppliers, to provide inputs for production.

B. The raw materials, components or other parts provided by vendors to an organization

which are transformed from inputs to outputs.

C. The sequence of organizations—their facilities, functions, and activities—that are

involved in producing and delivering a product or service.

2. The activities that supply chain managers are involved with planning and coordinating
are all of the following except which?

A. Logistics

B. Sourcing & procurement

C. Transformation activities

D. Financial accounting

3. Select the best definition of Logistics.

A. Transportation of material to the factory and finished goods from the factory to
distributor, retailer or customer directly.

B. The part of a supply chain involved with the forward and reverse flow of goods, services,
cash, and information.

C. All activities involved in the receipt, storage, inventory and distribution of material &
parts used to transform inputs into outputs.

4. The sequence of a typical manufacturing supply chain is

A. Storage – Supplier – manufacturing – storage – distributor – retailer – customer

B. Supplier – Storage – manufacturing – storage – distributor – retailer – customer

C. Supplier – Storage – manufacturing – distributor– storage – retailer – customer

D. Supplier – Storage – manufacturing – storage – retailer – distributor – customer

5. The purpose of supply chain management is

 A. provide customer satisfaction

B. improve quality of a product

C. integrating supply and demand management

D. increase production

6. All of the following are current trends in supply chain management EXCEPT ____.

A. re-evaluating outsourcing

B. integrating information technology

C. greening the supply chain

D. adopting automated assembly lines

7. Lean supply chain has flexibility to respond to unpredictable changes or circumstances.

A. True

B. False

8. ____ is shortens the supply chain, reducing transportation time and cost, reducing
supply chain inventory reducing the risk of disruption, and increasing responsiveness.

A. Lean supply chain

B. Nearby Sourcing

C. Responsive

D. None of the above

9. A top management strategic responsibility with respect to supply chains is network

configuration. What does this area of responsibility entail?

A. Determining the number and location of suppliers, warehouses, production/operations

facilities, and distribution centers

B. Making decisions on new product and services selection and design

C. Aligning supply and distribution strategies with organizational strategy and deciding on
the degree to which outsourcing will be employed
10. Choose the correct example of tactical versus operational inventory management--one
of the responsibilities of supply chain managers.

A. Tactical: Managing inbound deliveries from suppliers; Operational: Preparing and

evaluating forecasts

B. Tactical: Deciding where in the supply chain to hold inventory; Operational: replenishing
inventory when depleted

C. Tactical: Converting inputs into outputs; Operational: Coordinating the external supply
chain.

11. ………. is a flexible supply chain that has the ability to quickly respond to changes in
product requirements.

A. Lean supply chain

B. Agile

C. Outsourcing

12. Decide where in the supply chain to store the various types of inventory represents an
example of …………responsibilities.

A. Tactical

B. Technological

C. Operational

13. Order fulfilling represents an example of ……………..

A. Tactical responsibility

B. Technical responsibility

C. Operational responsibility

14. ………………. is an example of tactical responsibility.

A. Evaluating forecasts

B. Choose suppliers

C. Information sharing with suppliers

 D. A and B

15. How flexible is the supplier in make changing in the delivery schedule, quantity and
changes in required produces, is a definition of ………… of factors related to choosing a
supplier.

A. Product or service changes

B. Quantity and Quality assurance

C. Lead times delivery

D. None of the above

16. "Is the supplier nearby?" is considered as a typical question of ……………

A. On-time delivery

B. Location

C. Flexibility

17. …………… is considered from the steps of purchasing cycle.

A. Selects a supplier

B. Places the order

C. Order storage

D. A and B only

18. The main goals of supply chain management are ……..

A. Managing suppliers

B. Managing procurement

C. Managing sales

D. A and B

E. All of the above

19. ………… is a type of purchasing where the separate locations handle their own
purchasing requirements.
 A. Centralized purchasing

B. Decentralized purchasing

C. None of the above

20. The purchasing process interacts with other areas, such as;

A. Operations

B. Accounting

C. Design and engineering

D. A and B

E. All of the above

21. Strategic responsibilities could include ……….

A. Uncertainty and risk reduction

B. Distribution strategy

C. Information technology

D. All of the above

22. Develops skills, expand knowledge and conduct business that promotes the supply
management profession, is considered as one of the purchasing ethics standards, which
is …………

A. Perceived impropriety

B. Reciprocity

C. Professional competence

23. Guarantying that any personal or business activity does not conflict with the employees’
lawful interest, is considered as one of the purchasing ethics standards, which is
…………

A. Issues of influence

B. Conflicts of interest
 C. Sustainability and social responsibility

24. One of the advantages of e-business is that the customers have global choices and easy
access to information.

A. True

B. False

25. …………. is considered as a type of B2B marketplace enablers.

A. Responsive

B. Organization

C. Technology

26. The long-term relationship is a type of relationship that occurs with the ……….

A. Supplier as adversary

B. Supplier as partner

C. Both A and B

27. The quality of vendor certified is offered with ……….

A. Supplier as adversary

B. Supplier as partner

C. Both A and B

28. From the last operation to shipping is considered as one of the steps of the logistics
movement within a Facility.

A. True

B. False

29. ………. is considered as the third step in the logistics movement within a Facility.

A. From storage to packaging/shipping

B. From storage to the point of use

C. From storage to incoming vehicles

30. The processes involved in responding to customer orders, is a definition of ……….

A. Order fulfillment

B. Logistics

C. Purchasing cycle

31. ………. are examples of order fulfillment.

A. Engineer-to-stock

B. Engineer-to-order

C. Assemble-to-order

D. A and B

E. B and C

32. Radio frequency identification is a technology that uses radio waves to identify objects,
such as goods in supply chain.

A. True

B. False

33. All of the following are true about strategic sourcing EXCEPT _____.

A. seeks to maximize value-added activities

B. focuses on purchase price instead of total cost

C. focuses on risk reduction

D. employs cross-functional teams to reduce process waste

34. Creating a supply chain typically involves the following steps:

A. Plan > Make > Source > Deliver > Manage Returns

B. Plan > Source > Make > Manage Returns > Deliver

C. Plan > Source > Make > Deliver > Manage Returns

D. Plan > Make > Deliver > Source > Manage Returns
35. Select the best definition of inventory velocity.

A. The rate at which inventory accumulates in the stock room.

B. The rate at which goods move through a supply chain.

C. The speed at which an operations analyst places an order for inventory replenishment.

D. None of the above is true.

36. When a major trading partner can connect to its supply chain to access data in real
time, that is ______.

A. supply chain visibility

B. event-response capability

C. resiliency

D. event management

37. Products are sometimes returned to companies or to third-party handlers for which
reasons?

A. Defective items or parts replaced in the field

B. Unsold or obsolete products

C. Both (A) and (B)

D. None of the above.

38. What are the two different ways companies managing returns?

A. Reverse logistics and event management

B. Inventory velocity and fill rate

C. Gatekeeping and avoidance

D. None of the above.

39. What are the main Challenges face supply chain success?

I. Ease of merging of separate organizations.

II. Barriers to Integration of Separate Organizations

III. Variability and Uncertainty

IV. Response Time

A. I, III and IV

B. II, III and IV

C. I, II and IV

D. I, II and III

40. Flexible automation systems can handle a large variety of dissimilar products.

a) True
b) False
41. A job shop is similar to an assembly line in that both produce products or services to
meet the customers' specifications.

a) True
b) False
42. Product layouts usually require less-skilled workers than process layouts.

a) True
b) False
43. The term 'group technology' is similar to the term 'part families'.

a) True
b) False
44. The cycle time is the minimum time allowed at each workstation to perform assigned
tasks before the work moves on.

a) True
b) False
45. As a general rule, the cycle time is determined by desired output rate divided by
operating time per day.

o True
 o False

46. One drawback of process layouts is that equipment utilization rates are lower than in a
product layout.

a) True
b) False
47. In a job shop, volume is low, and product variety tends to be:

a) High
b) Moderate
c) Low
d) very low
48. The system that has the highest equipment flexibility is:

a) A job shops
b) A batch system
c) Repetitive production
d) Continuous processing
49. An operations strategy for process selection should recognize that:

a) Process selection is easily changed

b) Engineering is solely responsible for choosing what process is best
c) There is little need to manage technology
d) Flexibility may not the best choice
e) Managers need not have technical skills
50. Which one of the following is not generally regarded as an advantage of product
layouts?

a) Material handling costs per unit are low.

b) Labor costs are low per unit.
c) The system is fairly flexible to changes in volume of output.
d) unit costs may be lower than with other processes
e) There is high utilization of labor and equipment
51. In a product layout, the process of deciding how to assign tasks to work stations is
referred to as:

a) Process balancing
b) Task allocation
c) Line balancing
d) Station balancing
e) Scheduling
52. Job shops tend to be __________ while continuous processes tend to be __________.

a) In services; in manufacturing
b) Short-term and capital intensive; long-term and labor intensive
c) Small scale and flexible; large-scale and inflexible
d) Standardized; customized
e) Low cost-per-unit; high cost-per-unit
53. The advantages of automation include:

I. reduced output variability.

II. reduced variable costs.
III. machines don't strike or file grievances.
IV. machines are always less expensive than human labor.
a) I and IV
b) II and III
c) I, II, and III
d) I and III
e) II and IV
f) All of the above
54. Process choice is _________ driven.

a) demand
b) operations
c) marketing
d) process
e) capacity
55. When new products or services are being planned, process selection occurs as a matter
of course. Process selection also comes into play as a result of:

I. technological changes.
II. competitive pressures.
III. fundamental changes in demand patterns.
a) I only
b) II only
c) III only
d) I and II but not III
e) I, II, and III
56. The key questions in the process selection task are:

I. How will the product/service be priced?

II. How much variety will be imposed on the process?
III. What is the target market for the product/service?
IV. At what volume will the process need to operate?
a) I and III
b) II and IV
c) II and III
d) I and IV
e) III and IV
57. In which type of operation are you likely to see, at most, only minor variations in the
product or service being produced using the same process and the same equipment?

a) a project
b) a job shop
c) repetitive production
d) batch processing
e) continuous production
58. In an environment in which demand is both substantial and stable, __________
technology tends to be the best choice.

a) fixed automation
b) programmable automation
c) flexible automation

a) Which one of the following is

not considered an important factor
in service layout design?
b) 
c) A.cost minimization and
product flow
d) B.frequency of orders
e) C.customer attitude and
image
f) D.intensity of contact with the
customer
g) E.customer preferences with
regard to variety
h) Which one of the following is
not considered an important factor
in service layout design?
i) 
 j) A.cost minimization and
product flow
k) B.frequency of orders
l) C.customer attitude and
image
m) D.intensity of contact with the
customer
n) E.customer preferences with
regard to variety
59. Which one of the following is not considered an important factor in service layout
design?

a) cost minimization and product flow

b) frequency of orders
c) customer attitude and image
d) all are important
e) none are important
60. The grouping of equipment by the operations needed to perform similar work for part
families is:

a) product layout.
b) cellular manufacturing layout.
c) functional layout.
d) fixed-position layout.
e) process layout
61. Layout design has many objectives, one of which is ______.
 a) reduce bottlenecks
b) Move materials and workers simultaneously
c) use workers and space efficiently
d) hold material handling costs to 27% or less
e) installs computer terminals every 500 feet
62. A common goal in designing process layouts is:

a) minimizing the number of workers.

b) minimizing idle time.
c) minimizing transportation costs.
d) maximizing workstation productive time.
e) maximizing transportation distances

f) A company is designing a
product layout for a new product. It
plans to use this production line
g) eight hours a day in order to
meet projected demand of 480 units
per day. The tasks necessary to
h) produce this product are:
a) For output to equal forecasted
demand, what will be the efficiency
of the production line that uses
 b) the least number of
workstations?
63. Operations management refers to the activities required to produce and deliver a
product or a service.

a. True

b. False

64. Broadly defined, quality refers to the ability of a product or service to occasionally meet
or exceed customer expectations.

a. True

b. False

65. An organization achieves quality by consistently meeting their competitor's standards.

a. True

b. False

66. The purpose of organizations is to meet customer needs and satisfy their expectations.

a. True

b. False

67. The ability to command premium prices is one of the advantages of good quality
management.

a. True

b. False

68. TQM expands the traditional view of quality beyond looking only at the quality of the
final product or service to looking at the quality of every aspect of the process.

a. True
 b. False

69. A major obstacle to implementing TQM can be an emphasis on long-term financial

results.

a. True

b. False

70. Process mapping is part of process improvement.

a. True

b. False

71. The PDSA cycle forms the conceptual basis for continuous improvement.

a. True

b. False

72. Lean/six sigma is an approach to continuous improvement that integrates lean

operation principles and six-sigma techniques.

a. True

b. False

73. Keep everyone informed is considered the fifth step of problem solving

a. True

b. False

74. ___ is the core function of an organization.

a. Finance

b. Production

c. Operations

d. Planning

75. Operation management deals with the production of ___.

a. Time chart
 b. Planning

c. Feasibility report

d. Goods and services

76. Operation management includes ___ resources.

a. Planning

b. Organizing

c. Directing

d. All of the above

77. Total Quality Management (TQM) focuses on:

a. Customer

b. Employee

c. Both (a) and (b)

d. None of the above

78. Service Quality one of its key elements is:

a. Performance

b. Responsiveness

c. Both (a) and (b)

d. None of the above.

79. Product quality should have good ___ & ___, while, service quality should have a good
___ & ___.

a. Convenience & Serviceability / Performance & Assurance

b. Convenience & Assurance / Performance & Serviceability

c. Performance & Serviceability / Convenience & Assurance

 d. Performance & Assurance / Convenience & Serviceability

80. Quality Management should focus in the level of reliability of product quality in order
to ensure ___.

a. How well a product corresponds to design specifications

b. Dependable performance

c. The ability to perform a service dependably, consistently, and accurately.

d. None of the above

81. ___ is considered a benefit that appear on the company upon adoption good quality
management.

a. Lower production costs

b. An increased market shares

c. Greater customer loyalty

d. All of the above.

82. ___is considered a consequence that appear when adopt a poor-quality management.

a. Business loss.

b. Legal responsibility.

c. Both of (a) and (b).

d. None of the above.

83. The four categories of costs associated with product quality costs are:

a. Warranty, product liability, training, and appraisal

b. External failure, internal failure, prevention, and inspection

c. External failure, internal failure, prevention, and appraisal

d. External failure, internal failure, repair, and appraisal

84. The cost of quality related training in a product quality cost system is categorized as a:

a. Internal failure costs

 b. Appraisal costs

c. Prevention costs

d. External failure costs

85. The cost of scrap rework, in a product quality cost system, is categorized as a:

a. Internal failure costs

b. Appraisal costs

c. Prevention costs

d. External failure costs

86. Continuous Improvement and removal of variation

a. Shewhart Philosophy

b. Deming Philosophy

c. Juran Philosophy

d. Ishikawa Philosophy

87. "Fitness for use" is the philosophy of ___ in Quality Management.

a. Shewhart Philosophy

b. Deming Philosophy

c. Juran Philosophy

d. Ishikawa Philosophy

88. W. Edwards Deming Develop some theories about modern quality management:

a. Create constancy of purpose toward improvement of product and service.

b. Remove barriers that stand between the hour worker and his right to pride of
workmanship

c. Eliminate suppliers that cannot qualify with statistical evidence of quality.

d. All of the above.

89. Which of the following is not an element of TQM?

a. Continuous improvement

b. Employee empowerment

c. Team approach

d. Quality management as a specialized function within the firm

90. The process of identifying other organizations that are best at some facet of your
operations, and then modeling your organization after them is known as:

a. continuous improvement

b. employee empowerment

c. benchmarking

d. industrial espionage

91. A distinguishing feature of the total quality management approach is

a. Attention to rewards

b. Development of problem-solving skills

c. The improvement of processes

d. Training

92. A tool that is not used for quality management is ________.

a. Flowchart

b. Histogram

c. Perato Analysis

d. Redesign

93. A statistical chart of time-ordered values of a sample statistic is a(n) ___.

a. Affinity diagram

b. Check list
 c. Control Chart

d. Flow Chart

94. The tool that is useful in documenting the current process is:

a. A control chart

b. A pareto chart

c. A check sheet

d. A flow chart

95. Which of the following is not a goal of process improvement?

a. increasing customer satisfaction

b. reducing waste

c. identifying the cause of a problem

d. All are the goals.

96. Which of the following is not a goal of process improvement?

e. increasing customer satisfaction

f. reducing waste

g. identifying the cause of a problem

h. All are the goals.

97. What is the second step in the problem-solving process?

a. Establish an improve goal

b. Develop performance measure and collect

c. Analyze the problem

d. Choose a solution
98. Approving the effort that occurs during the production process is known as acceptance
sampling.

A. True
B. False

99. Processes that are in control eliminate variation

A. True
B. False
100. The mean of sampling distribution is

A. less than mean of process distribution

B. more than mean of process distribution
C. equal to mean of process distribution
D. any of the above