OSCM 303 FINAL EXAM 2025
QUESTIONS AND ANSWERS
A product's life cycle is divided into four stages, which are introduction, growth, maturity, and
decline - ANS True
Operations management is applicable : - ANS to all firms, whether manufacturing or service
Which is not true regarding differences between goods and services? - ANS It is easier to
automate services
Which of the following is not a supply chain contract? - ANS Direct shipping
Which of the following is not true about distribution network configuration decisions? -
ANS Organizations decide on their pricing during this period
A company has two divisions. Division A produces 500 units per day using 100 labor hours per
day. If Division B has the exact same labor productivity as Division A and produces 600 units per
day, we can say that they use 150 labor hours per day - ANS False
Supply chain management is challenging. Which of the following makes it less challenging? -
ANS Reducing demand uncertainty
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,Which of the following is not a reason for firms to have global operations? - ANS pursue
stockholder approval ratings
Company A achieved an inventory turnover ratio of 12 and B achieved an inventory turnover
ratio of 14. Everything else being equal, we can say A performs better than B - ANS False
Consider a firm with a 2007 net income of $20 million, revenue of $60 million and cost of goods
sold of $25 million. If the balance sheet amounts show $2 million of inventory and $500,000 of
property, plant & equipment, the inventory turnover is 0.04 - ANS False
Which of the following falls under operational-level decisions ? - ANS Quality management
Pull-based supply chains is based on true customer demand - ANS True
Which of the following was not part of our definition of supply chain management (SCM) when
we said the goal of SCM is to produce and distribute the merchandise? - ANS At the right
profit margin
Which of the following costs supply chain management tries to minimize? - ANS All system-
wide costs from transportation, distribution and warehouse to all kinds of inventory related
costs from raw material, work-in-progress to finished goods
The ability of an organization to produce goods or services that have some uniqueness in their
characteristics is: - ANS competing on differentiation
Which of the following falls under Strategic-Level Decisions? - ANS Product Design
Which is not true regarding differences between goods and services? - ANS For services, it is
the product and for tangible goods, it is the provider that is transportable
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, Which of the following is not a distribution strategy? - ANS Postponement
The bullwhip effect refers to the increasing fluctuations in orders that often occur as orders
move through the supply chain - ANS True
XYZ Electronics supplies electronic components to a company that manufactures them into
home appliances. One of the components has an annual demand of 250 units, and this is
constant throughout the year. Holding cost is estimated to be $1 per unit per year and the
ordering cost is $20 per order
1. To minimize cost, XYZ should order 100 units each time an order is placed
2. If XYZ orders the optimal quantity, it would place 8 orders throughout the year
3. If XYZ orders the optimal quantity, it would carry an average inventory of 50 units
4. The total cost of ordering the optimal quantity is 200 - ANS 1. True
2. False
3. True
4. False
Which of the following is not a reason for firms to have global operations? - ANS Improve
layout decisions
Supply chain management is challenging. Which of the following makes it less challenging? -
ANS Reducing demand uncertainty
COPYRIGHT © 2025 FYNDLAY ALL RIGHTS RESERVED 3
QUESTIONS AND ANSWERS
A product's life cycle is divided into four stages, which are introduction, growth, maturity, and
decline - ANS True
Operations management is applicable : - ANS to all firms, whether manufacturing or service
Which is not true regarding differences between goods and services? - ANS It is easier to
automate services
Which of the following is not a supply chain contract? - ANS Direct shipping
Which of the following is not true about distribution network configuration decisions? -
ANS Organizations decide on their pricing during this period
A company has two divisions. Division A produces 500 units per day using 100 labor hours per
day. If Division B has the exact same labor productivity as Division A and produces 600 units per
day, we can say that they use 150 labor hours per day - ANS False
Supply chain management is challenging. Which of the following makes it less challenging? -
ANS Reducing demand uncertainty
COPYRIGHT © 2025 FYNDLAY ALL RIGHTS RESERVED 1
,Which of the following is not a reason for firms to have global operations? - ANS pursue
stockholder approval ratings
Company A achieved an inventory turnover ratio of 12 and B achieved an inventory turnover
ratio of 14. Everything else being equal, we can say A performs better than B - ANS False
Consider a firm with a 2007 net income of $20 million, revenue of $60 million and cost of goods
sold of $25 million. If the balance sheet amounts show $2 million of inventory and $500,000 of
property, plant & equipment, the inventory turnover is 0.04 - ANS False
Which of the following falls under operational-level decisions ? - ANS Quality management
Pull-based supply chains is based on true customer demand - ANS True
Which of the following was not part of our definition of supply chain management (SCM) when
we said the goal of SCM is to produce and distribute the merchandise? - ANS At the right
profit margin
Which of the following costs supply chain management tries to minimize? - ANS All system-
wide costs from transportation, distribution and warehouse to all kinds of inventory related
costs from raw material, work-in-progress to finished goods
The ability of an organization to produce goods or services that have some uniqueness in their
characteristics is: - ANS competing on differentiation
Which of the following falls under Strategic-Level Decisions? - ANS Product Design
Which is not true regarding differences between goods and services? - ANS For services, it is
the product and for tangible goods, it is the provider that is transportable
COPYRIGHT © 2025 FYNDLAY ALL RIGHTS RESERVED 2
, Which of the following is not a distribution strategy? - ANS Postponement
The bullwhip effect refers to the increasing fluctuations in orders that often occur as orders
move through the supply chain - ANS True
XYZ Electronics supplies electronic components to a company that manufactures them into
home appliances. One of the components has an annual demand of 250 units, and this is
constant throughout the year. Holding cost is estimated to be $1 per unit per year and the
ordering cost is $20 per order
1. To minimize cost, XYZ should order 100 units each time an order is placed
2. If XYZ orders the optimal quantity, it would place 8 orders throughout the year
3. If XYZ orders the optimal quantity, it would carry an average inventory of 50 units
4. The total cost of ordering the optimal quantity is 200 - ANS 1. True
2. False
3. True
4. False
Which of the following is not a reason for firms to have global operations? - ANS Improve
layout decisions
Supply chain management is challenging. Which of the following makes it less challenging? -
ANS Reducing demand uncertainty
COPYRIGHT © 2025 FYNDLAY ALL RIGHTS RESERVED 3
