OMIS 320 TEST 1 QUESTIONS ANSWERED CORRECTLY LATEST UPDATE 2026
Supply Chain Management (SCM) - Answers the integration of key business processes regarding the
flow of materials from raw material suppliers to final customers
Vertically Integrated firm - Answers a firm whose business boundaries include former suppliers and/or
customers
first-teir suppliers, first-teir customers - Answers The ____________ suppliers are thus the focal firm's
second-tier suppliers, and the ___________ customers are the focal firm's second-tier customers
1950-1960 - Answers U.S. manufacturers focused on mass production techniques as their principal
cost reduction and productivity improvement strategies.
1960-1970 - Answers Introduction of new computer technology lead to development of Materials
Requirements Planning (MRP) and Manufacturing Resource Planning (MRPII) to coordinate inventory
management and improve internal communication.
1980-1990 - Answers Intense global competition led U.S. manufacturers to adopt Supply Chain
Management along with Just-In-Time (JIT), Total Quality Management (TQM), and Business Process
Reengineering (BPR) practices.
2000-Beyond - Answers Industrial buyers will rely more on third-party service providers (3PLs) to
improve purchasing and supply management. Wholesalers/retailers will focus on transportation and
logistics more & refer to these as quick response, service response logistics, and integrated logistics.
Important elements of Supply Chain Management - Answers Supply
Operations
Logistics
Integration
Supply - Answers supply base reduction, supplier alliances, SRM, global sourcing, ethical and
sustainable sourcing
Operations - Answers demand management, CPFR, inventory management, MRP, ERP, lean systems,
Six Sigma quality
Logistics - Answers logistics management, CRM, network design, RFID, global supply chains,
sustainability, service response logistics
Integration - Answers barriers to integration, risk and security management, performances
measurement, green supply chains
Foundation of Supply Chain Management - Answers Supply Management
Operations
Distribution
Integration
Supply Management - Answers supplier management, supplier evaluation, supplier certification,
strategic partnerships
Operations - Answers demand management, MRP, ERP, inventory visibility, JIT (AKA lean production
& Toyota Production system), TQM (AKA Six Sigma)
Distribution - Answers transportation management, customer relationship management, distribution
network, perfect order fulfillment, global supply chains, service response logistics
Integration - Answers process integration, performance measurement
Lean Production (Just-In-Time (JIT) Production Systems) - Answers implementing this type of system
takes time but usually results in faster delivery times, lower inventory levels and better quality.
Important aspect of a lean production system is the quality of the incoming purchased items and the
quality of the various assemblies as they move through the various production processes.
TQM
JIT
MRP
ERP - Answers Total Quality Management
Just-In-Time
Material Requirement Planning
Enterprise Resource Planning
Business Process Reengineering (BPR) - Answers the radical rethinking and redesigning of business
processes to reduce waste and increase performance, introduced in the early 1990s.
Supplier Management - Answers encouraging or helping the firm's suppliers to perform in some
desired fashion; one of the crucial issues with supply management is this topic.
, Supplier Evaluation - Answers determining the current capabilities of suppliers; one of the key
activities in supply management
Supplier Certification - Answers allow buyers to assume the supplier will meet certain product quality
and service requirements covered by the certification; a close related activity.
ISO 9000 - Answers are internationally recognized and standardized programs of quality certifications.
Supply Chain Consists of the flow of products and services from: - Answers o Raw materials
manufacturers
o Component and intermediate manufacturers
o Final product manufacturers
o Wholesalers and Distributors
o Retailers
Who benefits from SCM? - Answers o Large inventories
o Large number of suppliers
o Complex products
o Customers with large purchasing budgets
Reduced Bullwhip Effect - Answers the magnified reduction of safety stock costs based on
coordinated planning and sharing of information.
Strategic Partnerships - Answers successful and trusting relationships with top-performing suppliers.
Demand Management - Answers match demand to available capacity
Transportation Management - Answers tradeoff decisions between cost and timing of
delivery/customer service via trucks, rail, water and air
Customer relationship management - Answers strategies to ensure deliveries, resolve complaints,
improve communications, and determine service requirements
Network design - Answers creating distribution networks based on tradeoff decisions between cost
and sophistication of distribution system
Benchmarking - Answers improve over competitors performance
reliable service, demand-driven supply, and affordable differentiation - Answers Some companies,
such as Proctor and Gamble, are developing capabilities for retaining customers and driving growth.
These include ____________, ______________, and ___________________.
Purchasing - Answers obtaining merchandise, capital equipment, raw materials, services, or
maintenance, repair, and operating (MRO) suppliers in exchange for money or its equivalent
Merchant buyers - Answers wholesalers and retailers who purchase for resale
Industrial buyers - Answers purchase raw materials for conversion, services, capital equipment, &
MRO suppliers
Supply Management - Answers a newer term that encompasses all acquisition activities (identification
acquisition, access, positioning, and management of resources an organization needs or potentially
needs in the attainment of its strategic objectives)
Primary Goals of purchasing are: - Answers o Ensure uninterrupted flows of raw materials at the
lowest total cost
o Improve quality of the finished goods produced
o Optimize customer satisfaction
Types of Requisition - Answers Material Requisition
Purchase Requisition
Traveling Requisition
Material Requisition - Answers the purchasing process starts when the material user initiates a
request for a material by issuing this
Purchase Requisition - Answers instead of material requisition in some firms
Traveling Requisition - Answers is used for materials and standard parts that are requested on a
recurring basis
Supplier Development - Answers a growing trend among firms that practice supply chain
management
Purchase order - Answers is the buyer's offer and becomes a binding contract when accepted by
suppliers.
Outsourcing - Answers buying materials and components from suppliers instead of making them in-
housing. The trend has moved toward outsourcing.
Backward vertical integration - Answers refers to acquiring sources of supply
Forward vertical integration - Answers refers to acquiring customer's operations
Supply Chain Management (SCM) - Answers the integration of key business processes regarding the
flow of materials from raw material suppliers to final customers
Vertically Integrated firm - Answers a firm whose business boundaries include former suppliers and/or
customers
first-teir suppliers, first-teir customers - Answers The ____________ suppliers are thus the focal firm's
second-tier suppliers, and the ___________ customers are the focal firm's second-tier customers
1950-1960 - Answers U.S. manufacturers focused on mass production techniques as their principal
cost reduction and productivity improvement strategies.
1960-1970 - Answers Introduction of new computer technology lead to development of Materials
Requirements Planning (MRP) and Manufacturing Resource Planning (MRPII) to coordinate inventory
management and improve internal communication.
1980-1990 - Answers Intense global competition led U.S. manufacturers to adopt Supply Chain
Management along with Just-In-Time (JIT), Total Quality Management (TQM), and Business Process
Reengineering (BPR) practices.
2000-Beyond - Answers Industrial buyers will rely more on third-party service providers (3PLs) to
improve purchasing and supply management. Wholesalers/retailers will focus on transportation and
logistics more & refer to these as quick response, service response logistics, and integrated logistics.
Important elements of Supply Chain Management - Answers Supply
Operations
Logistics
Integration
Supply - Answers supply base reduction, supplier alliances, SRM, global sourcing, ethical and
sustainable sourcing
Operations - Answers demand management, CPFR, inventory management, MRP, ERP, lean systems,
Six Sigma quality
Logistics - Answers logistics management, CRM, network design, RFID, global supply chains,
sustainability, service response logistics
Integration - Answers barriers to integration, risk and security management, performances
measurement, green supply chains
Foundation of Supply Chain Management - Answers Supply Management
Operations
Distribution
Integration
Supply Management - Answers supplier management, supplier evaluation, supplier certification,
strategic partnerships
Operations - Answers demand management, MRP, ERP, inventory visibility, JIT (AKA lean production
& Toyota Production system), TQM (AKA Six Sigma)
Distribution - Answers transportation management, customer relationship management, distribution
network, perfect order fulfillment, global supply chains, service response logistics
Integration - Answers process integration, performance measurement
Lean Production (Just-In-Time (JIT) Production Systems) - Answers implementing this type of system
takes time but usually results in faster delivery times, lower inventory levels and better quality.
Important aspect of a lean production system is the quality of the incoming purchased items and the
quality of the various assemblies as they move through the various production processes.
TQM
JIT
MRP
ERP - Answers Total Quality Management
Just-In-Time
Material Requirement Planning
Enterprise Resource Planning
Business Process Reengineering (BPR) - Answers the radical rethinking and redesigning of business
processes to reduce waste and increase performance, introduced in the early 1990s.
Supplier Management - Answers encouraging or helping the firm's suppliers to perform in some
desired fashion; one of the crucial issues with supply management is this topic.
, Supplier Evaluation - Answers determining the current capabilities of suppliers; one of the key
activities in supply management
Supplier Certification - Answers allow buyers to assume the supplier will meet certain product quality
and service requirements covered by the certification; a close related activity.
ISO 9000 - Answers are internationally recognized and standardized programs of quality certifications.
Supply Chain Consists of the flow of products and services from: - Answers o Raw materials
manufacturers
o Component and intermediate manufacturers
o Final product manufacturers
o Wholesalers and Distributors
o Retailers
Who benefits from SCM? - Answers o Large inventories
o Large number of suppliers
o Complex products
o Customers with large purchasing budgets
Reduced Bullwhip Effect - Answers the magnified reduction of safety stock costs based on
coordinated planning and sharing of information.
Strategic Partnerships - Answers successful and trusting relationships with top-performing suppliers.
Demand Management - Answers match demand to available capacity
Transportation Management - Answers tradeoff decisions between cost and timing of
delivery/customer service via trucks, rail, water and air
Customer relationship management - Answers strategies to ensure deliveries, resolve complaints,
improve communications, and determine service requirements
Network design - Answers creating distribution networks based on tradeoff decisions between cost
and sophistication of distribution system
Benchmarking - Answers improve over competitors performance
reliable service, demand-driven supply, and affordable differentiation - Answers Some companies,
such as Proctor and Gamble, are developing capabilities for retaining customers and driving growth.
These include ____________, ______________, and ___________________.
Purchasing - Answers obtaining merchandise, capital equipment, raw materials, services, or
maintenance, repair, and operating (MRO) suppliers in exchange for money or its equivalent
Merchant buyers - Answers wholesalers and retailers who purchase for resale
Industrial buyers - Answers purchase raw materials for conversion, services, capital equipment, &
MRO suppliers
Supply Management - Answers a newer term that encompasses all acquisition activities (identification
acquisition, access, positioning, and management of resources an organization needs or potentially
needs in the attainment of its strategic objectives)
Primary Goals of purchasing are: - Answers o Ensure uninterrupted flows of raw materials at the
lowest total cost
o Improve quality of the finished goods produced
o Optimize customer satisfaction
Types of Requisition - Answers Material Requisition
Purchase Requisition
Traveling Requisition
Material Requisition - Answers the purchasing process starts when the material user initiates a
request for a material by issuing this
Purchase Requisition - Answers instead of material requisition in some firms
Traveling Requisition - Answers is used for materials and standard parts that are requested on a
recurring basis
Supplier Development - Answers a growing trend among firms that practice supply chain
management
Purchase order - Answers is the buyer's offer and becomes a binding contract when accepted by
suppliers.
Outsourcing - Answers buying materials and components from suppliers instead of making them in-
housing. The trend has moved toward outsourcing.
Backward vertical integration - Answers refers to acquiring sources of supply
Forward vertical integration - Answers refers to acquiring customer's operations
