OPMA 3306 Chapter 1 & 2 study question UPDATED ACTUAL QUESTIONS AND
CORRECT ANSWERS
What are the three elements that require integration to Strategy, processes, and analytics
be successful in operations and supply chain
management?
Receivable turnover ratio Annual credit sales/Average accounts Receivable
Inventory turnover ratio cost of goods sold/Average inventory value
Asset turnover ratio Total Revenue (or Sales)/total Assets
A manufacturing company has entered into a new It will decrease
contract with a major supplier of raw materials used in
the manufacturing process. Under the new arrangement,
called vendor managed inventory, the supplier manages
their raw material inventory inside the manufacturer's
plant, and only bills the manufacturer when the
manufacturer consumes the raw material. How is this
likely to affect the manufacturer’s inventory turnover
ratio?
What is the name of the process in which one company Benchmarking
studies the processes of another firm in order to identify
best practices?
A company has recently implemented an automated It will increase
online billing and payment processing system for orders
it ships to customers. As a result, it has reduced the
average number of days between billing a customer and
receiving payment by 10 days. How will this affect the
receivables turnover ratio?
Which major OSCM concept can be described as an JUst in time (JIT) production
integrated set of activities designed to achieve high-
volume production using minimal inventories of parts that
arrive at workstations exactly when they are needed?
Which historical development in OSCM relates to the Sustainability
ability of a firm to maintain balance in a system,
considering the ongoing economic, employee, and
environmental viability of the firm?
, Shell Oil Company's motto "People, Planet and Profit" is a Triple bottome line
real-world implementation of what OSCM concept?
What is the term used to describe product attributes that competitive dimensions
attract certain customers and can be used to form the
competitive position of a firm?
What are the two main competitive dimensions related to Design quality and process quality
product delivery?
What is defined as the likelihood of disruption that would Supply chain risk
impact the ability of a company to continuously supply
products or services?
Risks caused by natural or manmade disasters, and Disruption risk
therefore impossible to reliably predict, are called
______ _. (Choose the correct answer to fill in the blank.)
Match the following common risks with the appropriate
mitigation strategy: Use Exhibit 2.3
A. Detailed Tracking alternate suppliers Country Risk=E
B. Carefully select and monitor suppliers Regulatory Risk=D
C. contingency planning insurance Logistics failure=A
D. Good legal advice, compliance Natural disaster=C
E. Currency hedging, local sourcing Major quality failure=B
The assessment of the probability of a negative event Risk Mapping
against the aggregate severity of the related loss is
called?
As operations manager, you are concerned about being Step 1: calculated machine hours
able to meet sales requirements in the coming months. (hours per machine)*(Number of Machines)=
You have just been given the following production
report: Step 2: calculated unite per machine per hour
Find the average of the monthly productivity figures (units (units produce/ total machine hours)
per machine hour)
Step 3: calculated the average
(add the units per machine)/ by number of months
CORRECT ANSWERS
What are the three elements that require integration to Strategy, processes, and analytics
be successful in operations and supply chain
management?
Receivable turnover ratio Annual credit sales/Average accounts Receivable
Inventory turnover ratio cost of goods sold/Average inventory value
Asset turnover ratio Total Revenue (or Sales)/total Assets
A manufacturing company has entered into a new It will decrease
contract with a major supplier of raw materials used in
the manufacturing process. Under the new arrangement,
called vendor managed inventory, the supplier manages
their raw material inventory inside the manufacturer's
plant, and only bills the manufacturer when the
manufacturer consumes the raw material. How is this
likely to affect the manufacturer’s inventory turnover
ratio?
What is the name of the process in which one company Benchmarking
studies the processes of another firm in order to identify
best practices?
A company has recently implemented an automated It will increase
online billing and payment processing system for orders
it ships to customers. As a result, it has reduced the
average number of days between billing a customer and
receiving payment by 10 days. How will this affect the
receivables turnover ratio?
Which major OSCM concept can be described as an JUst in time (JIT) production
integrated set of activities designed to achieve high-
volume production using minimal inventories of parts that
arrive at workstations exactly when they are needed?
Which historical development in OSCM relates to the Sustainability
ability of a firm to maintain balance in a system,
considering the ongoing economic, employee, and
environmental viability of the firm?
, Shell Oil Company's motto "People, Planet and Profit" is a Triple bottome line
real-world implementation of what OSCM concept?
What is the term used to describe product attributes that competitive dimensions
attract certain customers and can be used to form the
competitive position of a firm?
What are the two main competitive dimensions related to Design quality and process quality
product delivery?
What is defined as the likelihood of disruption that would Supply chain risk
impact the ability of a company to continuously supply
products or services?
Risks caused by natural or manmade disasters, and Disruption risk
therefore impossible to reliably predict, are called
______ _. (Choose the correct answer to fill in the blank.)
Match the following common risks with the appropriate
mitigation strategy: Use Exhibit 2.3
A. Detailed Tracking alternate suppliers Country Risk=E
B. Carefully select and monitor suppliers Regulatory Risk=D
C. contingency planning insurance Logistics failure=A
D. Good legal advice, compliance Natural disaster=C
E. Currency hedging, local sourcing Major quality failure=B
The assessment of the probability of a negative event Risk Mapping
against the aggregate severity of the related loss is
called?
As operations manager, you are concerned about being Step 1: calculated machine hours
able to meet sales requirements in the coming months. (hours per machine)*(Number of Machines)=
You have just been given the following production
report: Step 2: calculated unite per machine per hour
Find the average of the monthly productivity figures (units (units produce/ total machine hours)
per machine hour)
Step 3: calculated the average
(add the units per machine)/ by number of months
