OM 300 Exam Study Questions with
Elaborate Answers | Latest Edition
1. What does it mean for a process to be "capable"? - ANSWER The process
output is capable of meeting set specifications.
2. Supply chain management describes the coordination of all supply chain
activities, starting with _______ and ending with _______. - ANSWER raw
materials; satisfied customers
3. What is transferring a firm's activities that have traditionally been internal to
external suppliers? - ANSWER Outsourcing
4. What is developing the ability to produce goods or services previously
purchased or actually buying a supplier or a distributor? - ANSWER
vertical integration
5. Which of the following strategies is part collaboration, part purchasing from
few suppliers, and part vertical integration? - ANSWER keiretsu networks
6. Which of the following mitigation tactics could reduce economic risk? -
ANSWER purchasing contracts that address price fluctuations
7. As orders are relayed from retailers, to distributors, to wholesalers, to
manufacturers, the fluctuations in order quantities increase at each step in
the sequence. What is this called? - ANSWER bullwhip effect
,8. A lawnmower assembly plant uses a variety of nuts, bolts, screws, and other
fasteners in its operation. Its supplier delivers these items directly to the
point of use on the assembly line and ensures that there are always sufficient
quantities of fasteners to maintain the production schedule. This is an
example of... - ANSWER vendor-managed inventory.
9. Which of the following would NOT reduce the bullwhip effect? -
ANSWER Increase end-of-quarter sales bonuses
10.What is the term for an approach that seeks efficiency of operations through
the integration of all material acquisition, movement, and storage activities?
- ANSWER Logistics management
11.Which of the following remedies may reduce the bullwhip effect? -
ANSWER share demand information throughout the supply chain
12.The objective of inventory management is to - ANSWER strike a balance
between inventory investment and customer service.
13.Which of the following is NOT a type of inventory? - ANSWER MRP
14.In manufacturing environments, setup cost is highly correlated with -
ANSWER setup time.
15.A large percentage of the revenue of most firms is spent on which function?
A. finance
B. operations
, C. research and development
D. marketing - ANSWER B. operations
16.Productivity increases when
A. inputs and outputs increase proportionately.
B. outputs decrease while inputs remain the same.
C. inputs decrease while outputs remain the same.
D. inputs increase while outputs remain the same. - ANSWER C. inputs
decrease while outputs remain the same
17.The economic activities that typically produce an intangible product are
referred to as
A. services.
B. products.
C. goods.
D. phantoms. - ANSWER A. Services
Elaborate Answers | Latest Edition
1. What does it mean for a process to be "capable"? - ANSWER The process
output is capable of meeting set specifications.
2. Supply chain management describes the coordination of all supply chain
activities, starting with _______ and ending with _______. - ANSWER raw
materials; satisfied customers
3. What is transferring a firm's activities that have traditionally been internal to
external suppliers? - ANSWER Outsourcing
4. What is developing the ability to produce goods or services previously
purchased or actually buying a supplier or a distributor? - ANSWER
vertical integration
5. Which of the following strategies is part collaboration, part purchasing from
few suppliers, and part vertical integration? - ANSWER keiretsu networks
6. Which of the following mitigation tactics could reduce economic risk? -
ANSWER purchasing contracts that address price fluctuations
7. As orders are relayed from retailers, to distributors, to wholesalers, to
manufacturers, the fluctuations in order quantities increase at each step in
the sequence. What is this called? - ANSWER bullwhip effect
,8. A lawnmower assembly plant uses a variety of nuts, bolts, screws, and other
fasteners in its operation. Its supplier delivers these items directly to the
point of use on the assembly line and ensures that there are always sufficient
quantities of fasteners to maintain the production schedule. This is an
example of... - ANSWER vendor-managed inventory.
9. Which of the following would NOT reduce the bullwhip effect? -
ANSWER Increase end-of-quarter sales bonuses
10.What is the term for an approach that seeks efficiency of operations through
the integration of all material acquisition, movement, and storage activities?
- ANSWER Logistics management
11.Which of the following remedies may reduce the bullwhip effect? -
ANSWER share demand information throughout the supply chain
12.The objective of inventory management is to - ANSWER strike a balance
between inventory investment and customer service.
13.Which of the following is NOT a type of inventory? - ANSWER MRP
14.In manufacturing environments, setup cost is highly correlated with -
ANSWER setup time.
15.A large percentage of the revenue of most firms is spent on which function?
A. finance
B. operations
, C. research and development
D. marketing - ANSWER B. operations
16.Productivity increases when
A. inputs and outputs increase proportionately.
B. outputs decrease while inputs remain the same.
C. inputs decrease while outputs remain the same.
D. inputs increase while outputs remain the same. - ANSWER C. inputs
decrease while outputs remain the same
17.The economic activities that typically produce an intangible product are
referred to as
A. services.
B. products.
C. goods.
D. phantoms. - ANSWER A. Services
