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Exam with Solution - Operations and Supply Chain Management | GSC 3600, Exams of Production and Operations Management

Wayne State University (WSU)Production and Operations Management
Prof. Tingting Yan

Material Type: Exam; Professor: Yan; Class: Oprns&Supply Chain Mgt; Subject: Global Supply Chain Managmt; University: Wayne State University; Term: Winter 2013;

Typology: Exams

2013/2014

Uploaded on 02/14/2014

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Introduction to Operations and Supply Chain Management, 3e (Bozarth/Handfield)
Chapter 1 Introduction to Operations and Supply Chain Management
1) Every organization has an operations function.
Answer: TRUE
Diff: 1 Page Ref: 3
Reference: Why Study Operations and Supply Chain Management?
Keywords: organization, operations, function
2) Most organizations function as part of a larger supply chain.
Answer: TRUE
Diff: 1 Page Ref: 3
Reference: Why Study Operations and Supply Chain Management?
Keywords: organization, supply, chain, supply chain
3) The supply chain is a network of manufacturers and service providers that work together to
convert and move goods from the raw materials stage to the end user.
Answer: TRUE
Diff: 1 Page Ref: 3
Reference: Why Study Operations and Supply Chain Management?
Keywords: organization, supply, chain, network
4) To participate in a supply chain, a firm must actually handle the physical goods at some point.
Answer: FALSE
Diff: 2 Page Ref: 3
Reference: Why Study Operations and Supply Chain Management?
Keywords: decision, supply, chain, operations
5) Information and materials are two examples of inputs to the transformation process.
Answer: TRUE
Diff: 1 Page Ref: 4
Reference: Why Study Operations and Supply Chain Management?
Skill: AACSB: Communication
Keywords: information, materials, input, transformation
6) The transformation process can be used to describe the production of intangible services.
Answer: TRUE
Diff: 1 Page Ref: 5
Reference: Why Study Operations and Supply Chain Management?
Keywords: transformation, operations, input, output
7) Inputs to the transformation process are tangible, but the outputs may be tangible or
intangible.
Answer: FALSE
Diff: 1 Page Ref: 5
Reference: Why Study Operations and Supply Chain Management?
Keywords: transformation, operations, input, output
1
Copyright ยฉ 2013 Pearson Education, Inc. publishing as Prentice Hall
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Introduction to Operations and Supply Chain Management, 3e (Bozarth/Handfield) Chapter 1 Introduction to Operations and Supply Chain Management

  1. Every organization has an operations function. Answer: TRUE Diff: 1 Page Ref: 3 Reference: Why Study Operations and Supply Chain Management? Keywords: organization, operations, function
  2. Most organizations function as part of a larger supply chain. Answer: TRUE Diff: 1 Page Ref: 3 Reference: Why Study Operations and Supply Chain Management? Keywords: organization, supply, chain, supply chain
  3. The supply chain is a network of manufacturers and service providers that work together to convert and move goods from the raw materials stage to the end user. Answer: TRUE Diff: 1 Page Ref: 3 Reference: Why Study Operations and Supply Chain Management? Keywords: organization, supply, chain, network
  4. To participate in a supply chain, a firm must actually handle the physical goods at some point. Answer: FALSE Diff: 2 Page Ref: 3 Reference: Why Study Operations and Supply Chain Management? Keywords: decision, supply, chain, operations
  5. Information and materials are two examples of inputs to the transformation process. Answer: TRUE Diff: 1 Page Ref: 4 Reference: Why Study Operations and Supply Chain Management? Skill: AACSB: Communication Keywords: information, materials, input, transformation
  6. The transformation process can be used to describe the production of intangible services. Answer: TRUE Diff: 1 Page Ref: 5 Reference: Why Study Operations and Supply Chain Management? Keywords: transformation, operations, input, output
  7. Inputs to the transformation process are tangible, but the outputs may be tangible or intangible. Answer: FALSE Diff: 1 Page Ref: 5 Reference: Why Study Operations and Supply Chain Management? Keywords: transformation, operations, input, output 1
  1. In general, operations management activities are information and decision intensive. Answer: TRUE Diff: 2 Page Ref: 5 Reference: Why Study Operations and Supply Chain Management? Keywords: information, decision, operations, management
  2. Of the three flows linking organizations in a supply chain, information and monetary flows always move upstream and physical flows always move downstream. Answer: FALSE Diff: 2 Page Ref: 6 Reference: Why Study Operations and Supply Chain Management? Skill: AACSB: Communication Keywords: information, monetary, information, flows, supply, chain
  3. A second-tier supplier is downstream from a first-tier supplier in the supply chain. Answer: FALSE Diff: 2 Page Ref: 6 Reference: Why Study Operations and Supply Chain Management? Keywords: downstream, supply, chain, tier
  4. Most of the participants in a supply chain are both suppliers and customers. Answer: TRUE Diff: 2 Page Ref: 6 Reference: Why Study Operations and Supply Chain Management? Keywords: supply, chain, supplier, customer
  5. Electronic commerce refers to the use of information technology solutions to automate business transactions. Answer: TRUE Diff: 1 Page Ref: 10 Reference: Important Trends Skill: AACSB: Use of Information Technology Keywords: electronic, commerce, e-commerce, information, technology
  6. The drive for efficiency has decreased the level of globalization in the world economy over the last twenty years. Answer: FALSE Diff: 2 Page Ref: 10 Reference: Important Trends Keywords: globalization 2
  1. Which of the following is NOT a flow typically found in a supply chain? A) physical B) information C) monetary D) risk Answer: D Diff: 2 Page Ref: 3 Reference: Why Study Operations and Supply Chain Management? Skill: AACSB: Communication Keywords: supply, chain, flow
  2. Which of the following is primarily a supply chain management decision? A) from whom to purchase materials B) how many of each item should be produced C) the mix of labor skill and automation D) plant location Answer: A Diff: 3 Page Ref: 4 Reference: Why Study Operations and Supply Chain Management? Keywords: supply, chain, decision, supplier
  3. ________ is an example of an output of the transformation process. A) Material B) Information C) Satisfied customers D) Intangible needs Answer: C Diff: 3 Page Ref: 4 Reference: Why Study Operations and Supply Chain Management? Keywords: output, transformation, process, customer
  4. Which of the following statements about the operations function is NOT correct? A) Inputs to operations can take many different forms. B) Nearly all operations activities require coordination with other business functions. C) The outputs of an operations function are always tangible. D) Operations management activities are information intensive. Answer: C Diff: 2 Page Ref: 5 Reference: Why Study Operations and Supply Chain Management? Keywords: operations, function, tangible, output 4
  1. Which of the following statements regarding the supply chain is TRUE? A) A second-tier supplier is downstream from a first-tier supplier. B) A first-tier supplier is upstream from a second-tier supplier. C) A first-tier supplier is downstream from a second-tier supplier. D) A customer is upstream from a first-tier supplier. Answer: C Diff: 2 Page Ref: 6 Reference: Why Study Operations and Supply Chain Management? Keywords: downstream, upstream, tier, supplier, customer
  2. Which of the following lists is in correct supply chain order? A) first-tier supplier โ€” manufacturer โ€” distributor B) distributor โ€” manufacturer โ€” retailer C) first-tier supplier โ€” second-tier supplier โ€” third-tier supplier D) customer โ€” retailer โ€” distributor Answer: A Diff: 2 Page Ref: 6 Reference: Why Study Operations and Supply Chain Management? Keywords: downstream, tier, supplier, distributor
  3. Which of these statements about recent trends in operations and supply chain management is BEST? A) A lower level of competition exists thanks to an increased level of globalization. B) The rate of change in markets is actually lower than 10-15 years ago once inflation is factored in. C) More companies are putting an emphasis on relationship management. D) Customers demand increased standardization in goods and services. Answer: C Diff: 2 Page Ref: 10 Reference: Important Trends Keywords: information, management, trends
  4. An electronic commerce system: A) is used to transmit information only upstream. B) can improve the speed and quality of business communication. C) is used to transmit information only downstream. D) links everyone in the supply chain except customers. Answer: B Diff: 2 Page Ref: 10 Reference: Important Trends Skill: AACSB: Use of Information Technology, Communication Keywords: e-commerce, business, communications 5
  1. Jon was a mathematical whiz. He had a flair for developing spreadsheets, using statistics, and creating simulations to show the effects of changes in policy and infrastructure. His skills equipped him well for his operations and supply chain position as: A) a service manager. B) an analyst. C) a commodity manager. D) a sourcing manager. Answer: B Diff: 1 Page Ref: 11 Reference: Operations and Supply Chain Management and You Keywords: analyst
  2. Which department is least likely to interact with the purchasing function? A) engineering B) finance C) human resources D) operations Answer: C Diff: 3 Page Ref: 12 Reference: Operations and Supply Chain Management and You Keywords: operations, purchasing, finance, engineering
  3. Planning numbers needed for effective decision making are typically developed by: A) forecasting. B) capacity planning. C) inventory management. D) process selection. Answer: A Diff: 3 Page Ref: 12 Reference: Operations and Supply Chain Management and You Keywords: forecasting
  4. The collection of people, technology, and systems within an organization that has primary responsibility for providing the organization's products or services is ________. Answer: operations Diff: 1 Page Ref: 3 Reference: Why Study Operations and Supply Chain Management? Keywords: operations, product, service
  5. Most organizations function as part of larger ________ that are linked through physical, monetary, and information flows. Answer: supply chains Diff: 1 Page Ref: 3 Reference: Why Study Operations and Supply Chain Management? Keywords: supply chain 7
  1. Operations can be considered a transformation process that takes things like materials, labor, and capital, called ________ and transforms them into goods or services, called ________. Answer: inputs, outputs Diff: 1 Page Ref: 4 Reference: Why Study Operations and Supply Chain Management? Keywords: operations, transformation, input, output
  2. The transformation process takes materials, intangible needs, and information and turns those into these three broad categories of outputs: ________, ________, and ________. Answer: tangible goods, fulfilled needs, satisfied customers Diff: 3 Page Ref: 4 Reference: Why Study Operations and Supply Chain Management? Keywords: output, transformation, process, customer
  3. Operations management activities are ________ and ________ intensive. Answer: information; decision Diff: 2 Page Ref: 5 Reference: Why Study Operations and Supply Chain Management? Keywords: decision, supply, chain, operations
  4. An activity or firm that is positioned earlier in the supply chain relative to another activity or firm is said to be ________. Answer: upstream Diff: 1 Page Ref: 6 Reference: Why Study Operations and Supply Chain Management? Keywords: upstream, supply chain
  5. Printing and binding a book take place ________ from the conversion of wood to paper pulp in a publishing supply chain. Answer: downstream Diff: 2 Page Ref: 6 Reference: Why Study Operations and Supply Chain Management? Keywords: downstream, supply chain
  6. The ________ model is used to define relationships in supply chain management. Answer: SCOR Diff: 1 Page Ref: 7 Reference: Why Study Operations and Supply Chain Management? Keywords: SCOR, supply chain
  7. A second-tier supplier is located ________ from a first-tier supplier. Answer: upstream Diff: 1 Page Ref: 6 Reference: Why Study Operations and Supply Chain Management? Keywords: upstream, supply chain 8
  1. The ________ is a leader in education and all aspects of quality improvement. Answer: ASQ or American Society for Quality Diff: 2 Page Ref: 12 Reference: Operations and Supply Chain Management and You Keywords: American society, quality, ASQ
  2. ________ is an operations activity with the purpose of designing and implementing the transformation processes that best meet the needs of the customer and firm. Answer: Process selection Diff: 3 Page Ref: 12 Reference: Operations and Supply Chain Management and You Keywords: process, selection, transformation, design
  3. ________ is the operations and supply chain activity that manages the amount and placement of finished goods and work-in-process goods within the company and the supply chain. Answer: Inventory management Diff: 3 Page Ref: 12 Reference: Operations and Supply Chain Management and You Keywords: inventory
  4. The ________ function of an organization manages the movement of physical goods throughout the supply chain. Answer: logistics Diff: 2 Page Ref: 12 Reference: Operations and Supply Chain Management and You Keywords: logistics, supply chain
  5. What are three reasons that the study of operations and supply chain management is important? Answer: One reason that the study of operations management is important is that every organization must make a product or provide a service that someone values. Without this, there is no reason for the existence of the organization. The study of supply chain management is important because most organizations function as part of a larger supply chain. Finally, organizations must carefully manage their operations and supply chains in order to prosper. The better the supply chain and operations functions are coordinated, the greater chance for success of all members. Diff: 1 Page Ref: 3 Reference: Why Study Operations and Supply Chain Management? Keywords: organization, operations, supply chain 10
  1. Describe the operations function's transformation process and provide an example for each element. Answer: The transformation process view of operations management holds that inputs are transformed into outputs. Examples of inputs are raw materials, labor, capital, equipment, information, and intangible needs. The transformation process is the conversion of these inputs using either manufacturing or service operations (and sometimes both). Manufacturing operations might be painting, welding, machining, or assembling. Outputs of the transformation process are tangible goods, fulfilled needs, and satisfied customers. Specific examples may vary depending on the company chosen. Diff: 2 Page Ref: 4- Reference: Why Study Operations and Supply Chain Management? Keywords: transformation, operations, input, output
  2. Distinguish between upstream and downstream firms in a supply chain and provide an example. Answer: Upstream and downstream are relative terms that describe the position of a supply chain member from one point of reference. A supply chain member that is upstream from a firm is sending their output to the firm for use as an input. A supply chain member that is downstream from a firm is taking the firm's output and using it as an input to their own processes. It is possible for a single member of a supply chain to be both upstream and downstream from one or more members of their supply chain. Diff: 2 Page Ref: 6 Reference: Why Study Operations and Supply Chain Management? Keywords: upstream, downstream, supply chain, input, output
  3. Distinguish between first-tier and second-tier suppliers in a supply chain and provide an example. Answer: First-tier, second-tier, and any subsequent steps are measured relative to their position from a common point in the supply chain. All companies at a level (call it A) receive inputs from their first-tier suppliers (level B). These first-tier suppliers (at level B) in turn receive their inputs from their own first-tier suppliers (level C). These companies (level C) are considered second- tier suppliers of the companies at level A. Both tiers are upstream from level A, but level B is downstream from level C. Examples will vary. Diff: 2 Page Ref: 6 Reference: Why Study Operations and Supply Chain Management? Keywords: first tier, second tier, upstream, downstream, supply chain, input, output 11
  1. What are three possible career paths in operations and supply chain management? What functions would each path perform? Answer: Choices will vary, but the text lists these eight possibilities. Analyst - Uses analytical and quantitative methods to understand, predict, and improve processes within the supply chain. Production manager - Plans and controls production in a manufacturing setting. Responsible for a wide range of personnel. Service manager - Plans and directs customer service teams to meet the needs of customers and support company operations. Sourcing manager - Identifies global sources of materials, selects suppliers, arranges contracts, and manages ongoing relationships. Commodity manager - Acquires knowledge in a specific market in which the organization purchases significant quantities of materials and services. Helps formulate long-term commodity strategies and manage long-term relationships with selected suppliers. Supplier development manager - Measures supplier performance, identifies suppliers requiring improvement, and facilitates efforts to improve suppliers' processes. International logistics manager - Works closely with manufacturing, marketing, and purchasing to create timely, cost-effective import/export supply chains. Transportation manager - Manages private, third-party, and contract carriage systems to ensure timely and cost-efficient transportation of all incoming and outgoing shipments. Diff: 2 Page Ref: 11 Reference: Operations and Supply Chain Management and You Keywords: operations, function
  2. Choose any two non-operations business functions. Provide examples of an operations or supply chain activity that interfaces directly with each business function you have chosen. Answer: Examples will vary. The marketing function interfaces with operations and supply chain management during process selection, forecasting, capacity planning, planning and control, purchasing, and logistics. The finance function works closely with operations and supply chain management in process selection, forecasting, capacity planning, inventory management, and purchasing. The human resource function works directly with operations and supply chain management when making process selection and capacity planning decisions. The accounting function works with operations and supply chain management when capacity planning is being performed. The IT function is involved with operations and supply chain management while process selection, inventory management, and planning and control are taking place. Diff: 3 Page Ref: 12 Reference: Operations and Supply Chain Management and You Skill: AACSB: Reflective Thinking Keywords: e-commerce, global, relationship, supply chain 13