OM 300 Exam 3 Newest 2025
OM 300 EXAM 3 NEWEST 2025 WITH COMPLETE 100
QUESTIONS AND CORRECT DETAILED ANSWERS (VERIFIED
ANSWERS) |ALREADY GRADED A+||NEWEST VERSION!!
Which of the following is the first stage of supplier selection?
a. contracting
b. supplier evaluation
c. supplier development
d. negotiations - ANSWER-b. supplier evaluation
Which of the following is NOT one of the benefits accrued from a centralized purchasing
function?
a. maintain professional control over the purchasing process
b. increase the duplication of tasks
c. leverage purchase volume for better pricing
d. devote more resources to the supplier selection and negotiation process - ANSWER-b.
increase the duplication of tasks
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
Which of the following statements is NOT generally an implication stemming from an increase in
the number of facilities?
a. quicker response
b. increased facility costs
c. increased customer satisfaction
d. decreased total logistics cost - ANSWER-d. decreased total logistics cost
1|Page
, OM 300 Exam 3 Newest 2025
What is the major difference in focus between a location decision in the service sector vs. the
manufacturing sector? - ANSWER-the focus in service is on revenue maximization, while the
focus in manufacturing is on cost minimization
Which of the following statements is NOT true regarding location decisions?
a. Once management is committed to a specific location, many costs become relatively easy to
reduce.
b. Location decisions are important because location has a major impact on the overall risk and
profit of the company.
c. Location often has the power to make or break a company's business strategy.
d. Location decisions to support a low-cost strategy require particularly careful consideration. -
ANSWER-a. once management is committed to a specific location, many costs become relatively
easy
What term refers to the location of competing companies near each other? - ANSWER-
clustering
Which of the following is NOT an example of tangible costs?
a. depreciation
b. labor
c. public transportation facilities
d. utilities - ANSWER-c. public transportation facilities
Which of the following methods is a mathematical technique used for finding the best location
for a single distribution point that services several stores or areas? - ANSWER-center-of-gravity
method
2|Page
, OM 300 Exam 3 Newest 2025
Which of the following techniques might a service or retail organization use to make a location
decision?
a. traffic counts
b. transportation method
c. locational cost-volume analysis
d. crossover charts - ANSWER-a. traffic counts
A goods-producing location decision would likely emphasize the importance of which of the
following?
a. appearance and image
b. security and lighting
c. utility and labor costs
d. parking and access - ANSWER-c. utility and labor costs
One use of inventory is _____. - ANSWER-to provide a hedge against inflation
The objective of inventory management is to _____. - ANSWER-strike a balance between
inventory investment and customer service
Which of the following types of inventory describes inventory that has been purchased but not
processed?
a. finished-goods inventory
b. work-in-progress inventory
c. raw material inventory
d. maintenance/repair/operating supply inventory - ANSWER-c. raw material inventory
What is the cost to prepare a machine or process for production? - ANSWER-setup cost
3|Page
, OM 300 Exam 3 Newest 2025
The difference between the basic EOQ model and the production order quantity model is that
_____. - ANSWER-the production order quantity model does not require the assumption of
instantaneous delivery
Extra units that are held in inventory to reduce stockouts are called _____. - ANSWER-safety
stock
A supply chain ends with _____. - ANSWER-a satisfied customer
Which of the following statements is NOT true?
a. Supply chain management describes the coordination of all supply chain activities, starting
with raw materials, and ending with a satisfied customer.
b. The objective of supply chain management is to coordinate activities within the supply chain
to maximize the supply chain's competitive advantage and benefits to the ultimate consumer.
c. A supply chain includes suppliers; manufacturers and/or service providers; and distributors,
wholesalers, and/or retailers who deliver the product and/or service to the final customer.
d. An increased sales effort may help a firm reach its profit goals more easily than would
effective cost cutting. - ANSWER-d. An increased sales effort may help a firm reach its profit
goals more easily than would effective cost cutting.
A response strategy requires suppliers be selected based primarily on _____. - ANSWER-
capacity, speed, and flexibility
What is transferring a firm's activities that have traditionally been internal to external suppliers?
- ANSWER-outsourcing
The advantage of having a few suppliers is to _____. - ANSWER-form a long-term relationship
4|Page
OM 300 EXAM 3 NEWEST 2025 WITH COMPLETE 100
QUESTIONS AND CORRECT DETAILED ANSWERS (VERIFIED
ANSWERS) |ALREADY GRADED A+||NEWEST VERSION!!
Which of the following is the first stage of supplier selection?
a. contracting
b. supplier evaluation
c. supplier development
d. negotiations - ANSWER-b. supplier evaluation
Which of the following is NOT one of the benefits accrued from a centralized purchasing
function?
a. maintain professional control over the purchasing process
b. increase the duplication of tasks
c. leverage purchase volume for better pricing
d. devote more resources to the supplier selection and negotiation process - ANSWER-b.
increase the duplication of tasks
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
Which of the following statements is NOT generally an implication stemming from an increase in
the number of facilities?
a. quicker response
b. increased facility costs
c. increased customer satisfaction
d. decreased total logistics cost - ANSWER-d. decreased total logistics cost
1|Page
, OM 300 Exam 3 Newest 2025
What is the major difference in focus between a location decision in the service sector vs. the
manufacturing sector? - ANSWER-the focus in service is on revenue maximization, while the
focus in manufacturing is on cost minimization
Which of the following statements is NOT true regarding location decisions?
a. Once management is committed to a specific location, many costs become relatively easy to
reduce.
b. Location decisions are important because location has a major impact on the overall risk and
profit of the company.
c. Location often has the power to make or break a company's business strategy.
d. Location decisions to support a low-cost strategy require particularly careful consideration. -
ANSWER-a. once management is committed to a specific location, many costs become relatively
easy
What term refers to the location of competing companies near each other? - ANSWER-
clustering
Which of the following is NOT an example of tangible costs?
a. depreciation
b. labor
c. public transportation facilities
d. utilities - ANSWER-c. public transportation facilities
Which of the following methods is a mathematical technique used for finding the best location
for a single distribution point that services several stores or areas? - ANSWER-center-of-gravity
method
2|Page
, OM 300 Exam 3 Newest 2025
Which of the following techniques might a service or retail organization use to make a location
decision?
a. traffic counts
b. transportation method
c. locational cost-volume analysis
d. crossover charts - ANSWER-a. traffic counts
A goods-producing location decision would likely emphasize the importance of which of the
following?
a. appearance and image
b. security and lighting
c. utility and labor costs
d. parking and access - ANSWER-c. utility and labor costs
One use of inventory is _____. - ANSWER-to provide a hedge against inflation
The objective of inventory management is to _____. - ANSWER-strike a balance between
inventory investment and customer service
Which of the following types of inventory describes inventory that has been purchased but not
processed?
a. finished-goods inventory
b. work-in-progress inventory
c. raw material inventory
d. maintenance/repair/operating supply inventory - ANSWER-c. raw material inventory
What is the cost to prepare a machine or process for production? - ANSWER-setup cost
3|Page
, OM 300 Exam 3 Newest 2025
The difference between the basic EOQ model and the production order quantity model is that
_____. - ANSWER-the production order quantity model does not require the assumption of
instantaneous delivery
Extra units that are held in inventory to reduce stockouts are called _____. - ANSWER-safety
stock
A supply chain ends with _____. - ANSWER-a satisfied customer
Which of the following statements is NOT true?
a. Supply chain management describes the coordination of all supply chain activities, starting
with raw materials, and ending with a satisfied customer.
b. The objective of supply chain management is to coordinate activities within the supply chain
to maximize the supply chain's competitive advantage and benefits to the ultimate consumer.
c. A supply chain includes suppliers; manufacturers and/or service providers; and distributors,
wholesalers, and/or retailers who deliver the product and/or service to the final customer.
d. An increased sales effort may help a firm reach its profit goals more easily than would
effective cost cutting. - ANSWER-d. An increased sales effort may help a firm reach its profit
goals more easily than would effective cost cutting.
A response strategy requires suppliers be selected based primarily on _____. - ANSWER-
capacity, speed, and flexibility
What is transferring a firm's activities that have traditionally been internal to external suppliers?
- ANSWER-outsourcing
The advantage of having a few suppliers is to _____. - ANSWER-form a long-term relationship
4|Page
