C720 MGMT 4100
Operations & Supply Chain Management
Comprehensive FA Review (Qns & Ans)
2025
1. Which of the following inventory management techniques is
most suitable for healthcare organizations with critical supplies?
- A) Just-In-Time (JIT)
- B) ABC Analysis
- C) Economic Order Quantity (EOQ)
- D) Vendor Managed Inventory (VMI)
Correct ANS: A) Just-In-Time (JIT)
©2024/2025
, - Rationale: JIT is often used in healthcare settings to ensure
that critical supplies are available as needed, reducing the costs
associated with overstocking.
2. What does the term "Lead Time" refer to in supply chain
management?
- A) The time taken to manufacture a product
- B) The time between initiating and completing a process
- C) The time a customer waits for a product to be delivered
- D) The time taken to switch suppliers
Correct ANS: B) The time between initiating and completing a
process
- Rationale: Lead time refers to the total time it takes for a
process to be completed, from start to finish.
3. Which strategy focuses on extending the lifecycle of a product
to maximize profits?
- A) Revenue Management
- B) Product Life Cycle Management
- C) Demand Forecasting
- D) Supply Chain Optimization
©2024/2025
, Correct ANS: B) Product Life Cycle Management
- Rationale: Product Life Cycle Management (PLM) is focused
on maximizing revenue throughout a product’s lifecycle.
4. In the context of supply chain management, “bullwhip effect”
describes:
- A) Improved forecasting accuracy
- B) Reduced lead times
- C) Amplified demand fluctuations
- D) Streamlined communication among partners
Correct ANS: C) Amplified demand fluctuations
- Rationale: The bullwhip effect occurs when demand
variability is exaggerated as it moves up the supply chain.
5. Which performance metric is typically used to evaluate the
efficiency of a healthcare supply chain?
- A) Return on Investment (ROI)
- B) Inventory Turnover
- C) Total Cost of Ownership (TCO)
- D) Service Level Agreement (SLA)
©2024/2025
Operations & Supply Chain Management
Comprehensive FA Review (Qns & Ans)
2025
1. Which of the following inventory management techniques is
most suitable for healthcare organizations with critical supplies?
- A) Just-In-Time (JIT)
- B) ABC Analysis
- C) Economic Order Quantity (EOQ)
- D) Vendor Managed Inventory (VMI)
Correct ANS: A) Just-In-Time (JIT)
©2024/2025
, - Rationale: JIT is often used in healthcare settings to ensure
that critical supplies are available as needed, reducing the costs
associated with overstocking.
2. What does the term "Lead Time" refer to in supply chain
management?
- A) The time taken to manufacture a product
- B) The time between initiating and completing a process
- C) The time a customer waits for a product to be delivered
- D) The time taken to switch suppliers
Correct ANS: B) The time between initiating and completing a
process
- Rationale: Lead time refers to the total time it takes for a
process to be completed, from start to finish.
3. Which strategy focuses on extending the lifecycle of a product
to maximize profits?
- A) Revenue Management
- B) Product Life Cycle Management
- C) Demand Forecasting
- D) Supply Chain Optimization
©2024/2025
, Correct ANS: B) Product Life Cycle Management
- Rationale: Product Life Cycle Management (PLM) is focused
on maximizing revenue throughout a product’s lifecycle.
4. In the context of supply chain management, “bullwhip effect”
describes:
- A) Improved forecasting accuracy
- B) Reduced lead times
- C) Amplified demand fluctuations
- D) Streamlined communication among partners
Correct ANS: C) Amplified demand fluctuations
- Rationale: The bullwhip effect occurs when demand
variability is exaggerated as it moves up the supply chain.
5. Which performance metric is typically used to evaluate the
efficiency of a healthcare supply chain?
- A) Return on Investment (ROI)
- B) Inventory Turnover
- C) Total Cost of Ownership (TCO)
- D) Service Level Agreement (SLA)
©2024/2025
