OMGT Test 2 Study Guide | Operations Management Review, Key Concepts & Practice
Questions
Customer arrivals at a dry cleaning service occur randomly throughout the day. The distribution
that is usually used to model the interval between arrivals is the: - ANS ✔✔A) Poisson
distribution
One advantage of simulation modeling is: - ANS ✔✔C) it allows the user to conduct a "what if"
analysis.
Firms do not compete only against global competitors, but against: - ANS ✔✔D) their
competitors' supply chain.
The percentage of value of shipments that come from materials for the average manufacturer
is: - ANS ✔✔B) greater than or equal to 50 and less than or equal to 59 percent.
The analyst turned on his bankers' lamp, adjusted his eye shade, and slowly pulled a legal pad
from his desk. His weathers hands punched the buttons on his desk calculator deliberately as he
divided earnings by total assets in order to calculate: - ANS ✔✔A) return on assets.
The phenomenon that a dollar in cost savings increases pretax profits by a dollar, while a dollar
increase in sales increases pretax profits only by the dollar multiplied by the pretax profit
margin is known as the: - ANS ✔✔D) profit leverage effect.
Which of the following is required in order to execute a successful spend analysis? - ANS ✔✔C)
ability to analyze large quantities of data.
The use of the supply chain partners to provide products or services is called: - ANS ✔✔A)
outsourcing.
, One advantage of outsourcing is that it: - ANS ✔✔B) increases the company's access to state-of-
the-art products and processes.
Which of these is an indirect cost associated with insourcing? - ANS ✔✔A) maintenance.
A company using portfolio analysis correctly decides to streamline the purchasing process for a
few items by use of EDI and automated requisitions to the greatest extent possible. The
quadrant that these items fall in is most probably the: - ANS ✔✔D) routine quadrant.
The ratio of earnings to sales for a given time period is the: - ANS ✔✔C) profit margin.
When compared with single sourcing, multiple sourcing has the advantage of: - ANS ✔✔A)
spreading risk.
Single sourcing is a better choice than multiple sourcing from the perspective of: - ANS ✔✔D)
access to the supplier's design and engineering capabilities.
A sourcing strategy in which two suppliers are used for the same purchased product or service
is: - ANS ✔✔B) dual sourcing.
A description method used when a product or service is proprietary or when there is a
perceived advantage to using a particular supplier's product or services is: - ANS ✔✔B)
description by brand.
The two basic types of purchasing contracts are: - ANS ✔✔A) fixed-price and cost-based.
A recent survey of executives at Global 1000 companies uncovered what fear? - ANS ✔✔A) the
fear of supply chain disruption
Questions
Customer arrivals at a dry cleaning service occur randomly throughout the day. The distribution
that is usually used to model the interval between arrivals is the: - ANS ✔✔A) Poisson
distribution
One advantage of simulation modeling is: - ANS ✔✔C) it allows the user to conduct a "what if"
analysis.
Firms do not compete only against global competitors, but against: - ANS ✔✔D) their
competitors' supply chain.
The percentage of value of shipments that come from materials for the average manufacturer
is: - ANS ✔✔B) greater than or equal to 50 and less than or equal to 59 percent.
The analyst turned on his bankers' lamp, adjusted his eye shade, and slowly pulled a legal pad
from his desk. His weathers hands punched the buttons on his desk calculator deliberately as he
divided earnings by total assets in order to calculate: - ANS ✔✔A) return on assets.
The phenomenon that a dollar in cost savings increases pretax profits by a dollar, while a dollar
increase in sales increases pretax profits only by the dollar multiplied by the pretax profit
margin is known as the: - ANS ✔✔D) profit leverage effect.
Which of the following is required in order to execute a successful spend analysis? - ANS ✔✔C)
ability to analyze large quantities of data.
The use of the supply chain partners to provide products or services is called: - ANS ✔✔A)
outsourcing.
, One advantage of outsourcing is that it: - ANS ✔✔B) increases the company's access to state-of-
the-art products and processes.
Which of these is an indirect cost associated with insourcing? - ANS ✔✔A) maintenance.
A company using portfolio analysis correctly decides to streamline the purchasing process for a
few items by use of EDI and automated requisitions to the greatest extent possible. The
quadrant that these items fall in is most probably the: - ANS ✔✔D) routine quadrant.
The ratio of earnings to sales for a given time period is the: - ANS ✔✔C) profit margin.
When compared with single sourcing, multiple sourcing has the advantage of: - ANS ✔✔A)
spreading risk.
Single sourcing is a better choice than multiple sourcing from the perspective of: - ANS ✔✔D)
access to the supplier's design and engineering capabilities.
A sourcing strategy in which two suppliers are used for the same purchased product or service
is: - ANS ✔✔B) dual sourcing.
A description method used when a product or service is proprietary or when there is a
perceived advantage to using a particular supplier's product or services is: - ANS ✔✔B)
description by brand.
The two basic types of purchasing contracts are: - ANS ✔✔A) fixed-price and cost-based.
A recent survey of executives at Global 1000 companies uncovered what fear? - ANS ✔✔A) the
fear of supply chain disruption
