MQM 227 | Chapter 16 Supply Chain Q&A | Hau Lee Framework, Bullwhip Effect, Outsourcing | Illinois State University

This document presents a fully solved and verified question set for MQM 227 – Operations Management, focused on Chapter 16: Supply Chain Strategy at Illinois State University. Designed to align with the 2025/2026 academic year, it includes multiple-choice questions with the correct answers clearly marked. The questions cover essential supply chain models, outsourcing rationale, and product classification strategies with applied terminology ideal for operations management exams. Key topics include: Hau Lee’s Supply Chain Uncertainty Framework: Classifications such as Efficient, Risk-Hedging, Responsive, and Agile supply chains for different product types Fisher’s Product Categories: Functional vs. innovative products, especially in relation to life cycles and predictability Supply Chain Effects: Bullwhip effect, lack of synchronization, forward buying, and continuous replenishment Outsourcing rationale: Organizational vs. improvement-driven reasons, including risk management, flexibility, credibility, and cost reduction Ownership and Post-Purchase Costs: Differentiating taxes from ownership-related costs like energy, quality, and supply chain expenditures This resource is perfect for students in operations, logistics, or supply chain management, as well as business majors preparing for exams related to sourcing, inventory, and strategic supply network decisions. Keywords: MQM 227, supply chain strategy, Hau Lee framework, agile supply chain, bullwhip effect, outsourcing, functional products, innovative products, ownership costs, Fisher’s product categories, Illinois State University