Operations and Supply Chain Management
Latest 2025 Real Exam with 200 Verified
Questions and Correct Answers (Graded A)
Topic 1: Operations Strategy (Questions 1-40)
Question: Which occurs in response to planned events such as advertising, publicity, or
promotion? Answer: Anticipated demand. Rationale: Anticipated demand is predictable
and results from marketing efforts, allowing for capacity planning (Heizer & Render,
11th ed., Ch. 4; aligns with operations strategy for stable forecasting).
Question: The CEO of a service company wants to change the strategy from volume sales to
high-quality products. Why use a check sheet? Answer: To develop a Pareto chart
identifying root causes of defects. Rationale: Check sheets collect data for Pareto
analysis, focusing on vital few causes (80/20 rule); supports quality strategy shift (ASCM
Quality Tools, 2025).
Question: A vehicle with a useful life of 165,000 miles demonstrates which aspect of
quality? Answer: Conformance quality. Rationale: Conformance measures how well
product meets specs (e.g., durability); contrasts with design quality (Heizer Ch. 6).
Question: What is the primary goal of operations strategy? Answer: Align organizational
goals with process capabilities. Rationale: Ensures competitive advantage through
efficient resource use (Hill's strategy framework).
Question: In a make-to-order strategy, production starts when? Answer: After receiving a
customer order. Rationale: Reduces inventory; ideal for customization (Heizer Ch. 14).
Question: Which strategy focuses on low cost and high volume? Answer: Cost leadership.
Rationale: Porter's generic strategies; e.g., Walmart model (2025 ASCM).
Question: What is core competency in operations? Answer: Unique strength providing
competitive edge. Rationale: Prahalad & Hamel; e.g., Toyota lean (Heizer Ch. 2).
Question: Scenario: Company shifts to sustainable sourcing. Impact? Answer: Increases
supply chain complexity but enhances brand value. Rationale: Triple bottom line
(people, planet, profit); 2025 sustainability focus.
, Question: Order qualifiers vs. winners? Answer: Qualifiers meet basic needs; winners
differentiate. Rationale: Terry Hill model; qualifiers = table stakes.
Question: Global strategy risk? Answer: Currency fluctuations. Rationale: Heizer Ch. 10;
hedging mitigates.
Question: What is OM outsourcing? Answer: Delegating non-core activities to specialists.
Rationale: Focus on strengths; e.g., logistics to 3PL.
Question: Balanced scorecard includes? (Select all) Answer: Financial, customer, internal
processes, learning/growth. Rationale: Kaplan & Norton; aligns strategy.
Question: Scenario: Tech firm adopts agile ops. Benefit? Answer: Faster time-to-market.
Rationale: Iterative; 2025 digital transformation.
Question: What is mission in ops strategy? Answer: Purpose and scope of organization.
Rationale: Guides decisions (Heizer Ch. 2).
Question: Competitive priorities? (Select all) Answer: Cost, quality, delivery, flexibility,
innovation. Rationale: Skinner's trade-offs.
Question: Scenario: High customization demand. Strategy? Answer: Assemble-to-order.
Rationale: Balances inventory/custom (Heizer Ch. 14).
Question: What is environmental scanning? Answer: Monitoring external factors for
strategy. Rationale: PESTLE analysis.
Question: Lean strategy goal? Answer: Eliminate waste. Rationale: Toyota Production
System.
Question: Scenario: Supply disruption. Response? Answer: Diversify suppliers. Rationale:
Risk management.
Question: What is capacity strategy? Answer: Lead, lag, or match demand. Rationale:
Heizer Ch. 9.
Question: Global ops advantage? Answer: Lower labor costs. Rationale: Offshoring.
Question: Scenario: Quality focus shift. Tool? Answer: TQM implementation. Rationale:
Continuous improvement.
Question: What is value chain analysis? Answer: Porter's primary/support activities.
Rationale: Identifies competitive strengths.
Question: Flexible manufacturing? Answer: FMS for variety. Rationale: Heizer Ch. 8.