OMGT Final Test Questions Well Answered Latest Update 2025
ABC Corp. is a major national retailer utilizing regional distribution center. What factor or factors
are most likely to lead ABC into continually reevaluating its outbound logistics?
A-changes in the price vendors charge for products
B-changes in product offerings and its customer base
C-changes in the delivery time from vendors
D-changes in the price ABC charges for its product - Answers B-changes in product offerings
and its customer base
the development and management of supplier relationships to acquire goods and services in a
way that aids in achieving the immediate needs of the business - Answers Strategic Sourcing
phenomenon of variability magnification as we move from the customer to the producer in the
supply chain.
effect of the lack of synchronization and supply chain members - Answers Bullwhip effect
retailers respond to the price cut by stocking up, in some cases buying a year's supply - Answers
Forward buying
inventory is replaced frequently, as part of an ongoing process - Answers Continuous
Replenishment
staples that people buy in a wide range of retail outlets, such as grocery stores and gas stations
- Answers Functional products
Four types of supply chain strategies - Answers 1-Efficient Supply Chains
2-Risk-hedging supply chains
3-Responsive supply chains
4-Agile supply chains
moving some of a firm's internal activities and decision responsibility to outside providers -
Answers Outsourcing
Why outsource? - Answers To bring in expertise and resources not found inside,
improve ongoing internal activity, shorten cycle time
Management functions that support the complete cycle of material flow:
purchase and internal control material
,planning and control of work-in-process
purchasing, shipping, and distribution of the finished product. - Answers Logistics
Being environmentally responsible has become a business imperative
Many firms are looking to their supply chains to deliver "green" results
Financial results can often be improved through going green
A comprehensive green sourcing effort should assess how a company uses items that are
purchased internally
It is also important to reduce waste - Answers green sourcing
weeks of supply - Answers (average inventory value/COGS) x 52
Inventory Turnover - Answers cost of goods sold/average inventory
managing the entire organization so that it excels on all dimensions of products and services
that are important to the customer - Answers Total Quality Management
A philosophy and set of methods companies use to eliminate defects in their products and
processes - Answers Six Sigma
DMAIC Cycle - Answers Define, Measure, Analyze, Improve, Control
an international reference for quality - Answers ISO 9000
primarily concerned with environmental management - Answers ISO 14000
ISO 9000 quality management priciples - Answers Customer Focus
Leadership
Involvement of people
Process approach
Continual improvement
Factual approach to decision making
Mutually beneficial supplier relationships
Fluctuation in process output - Answers Process Variation
Integrated activities designed to achieve high-volume, high-quality production using minimal
inventories of raw materials, work-in-process, and finished goods - Answers Lean production
, Lean is based on the logic that nothing will be produced until it is needed
A sale pulls a replacement from the last position in the system
This triggers an order to the factory production line
Each upstream station then pulls from the next station further upstream - Answers Lean Logic
Lean production requires a "push and pull" system of inventory replenishment. - Answers False
Group technology is a philosophy wherein similar parts are grouped together and the processes
required to make the parts are arranged as a work cell. - Answers True
In the textbook, the expression "quality at the source" means that we need to purchase the best
quality a supplier or vendor can provide. - Answers False
Quality at the source - Answers do it right the first time and, when something goes wrong, stop
the process or assembly line immediately
One of the many lean techniques that have been successfully applied in service firms is the
upgrading of housekeeping. - Answers True
Which of the following are related to lean production?.
A)A philosophy of waste elimination
B)Lean consumption
C)Never running out of inventory
D)The Wahei-Subaru method
E)Full use of capacity - Answers A)A philosophy of waste elimination
In the textbook, Toyota's Fujio Cho identified which of the following types of waste to be
eliminated?
A-Excess quality
B-Motion
C-Excess capacity
D-Underproduction
E-Excess demand - Answers B-Waste of motion
Seven Prominent Types of Waste to be Eliminated from the Supply Chain - Answers 1) waste
from overproduction, (2) waste of waiting time, (3) transportation waste, (4) inventory waste, (5)
ABC Corp. is a major national retailer utilizing regional distribution center. What factor or factors
are most likely to lead ABC into continually reevaluating its outbound logistics?
A-changes in the price vendors charge for products
B-changes in product offerings and its customer base
C-changes in the delivery time from vendors
D-changes in the price ABC charges for its product - Answers B-changes in product offerings
and its customer base
the development and management of supplier relationships to acquire goods and services in a
way that aids in achieving the immediate needs of the business - Answers Strategic Sourcing
phenomenon of variability magnification as we move from the customer to the producer in the
supply chain.
effect of the lack of synchronization and supply chain members - Answers Bullwhip effect
retailers respond to the price cut by stocking up, in some cases buying a year's supply - Answers
Forward buying
inventory is replaced frequently, as part of an ongoing process - Answers Continuous
Replenishment
staples that people buy in a wide range of retail outlets, such as grocery stores and gas stations
- Answers Functional products
Four types of supply chain strategies - Answers 1-Efficient Supply Chains
2-Risk-hedging supply chains
3-Responsive supply chains
4-Agile supply chains
moving some of a firm's internal activities and decision responsibility to outside providers -
Answers Outsourcing
Why outsource? - Answers To bring in expertise and resources not found inside,
improve ongoing internal activity, shorten cycle time
Management functions that support the complete cycle of material flow:
purchase and internal control material
,planning and control of work-in-process
purchasing, shipping, and distribution of the finished product. - Answers Logistics
Being environmentally responsible has become a business imperative
Many firms are looking to their supply chains to deliver "green" results
Financial results can often be improved through going green
A comprehensive green sourcing effort should assess how a company uses items that are
purchased internally
It is also important to reduce waste - Answers green sourcing
weeks of supply - Answers (average inventory value/COGS) x 52
Inventory Turnover - Answers cost of goods sold/average inventory
managing the entire organization so that it excels on all dimensions of products and services
that are important to the customer - Answers Total Quality Management
A philosophy and set of methods companies use to eliminate defects in their products and
processes - Answers Six Sigma
DMAIC Cycle - Answers Define, Measure, Analyze, Improve, Control
an international reference for quality - Answers ISO 9000
primarily concerned with environmental management - Answers ISO 14000
ISO 9000 quality management priciples - Answers Customer Focus
Leadership
Involvement of people
Process approach
Continual improvement
Factual approach to decision making
Mutually beneficial supplier relationships
Fluctuation in process output - Answers Process Variation
Integrated activities designed to achieve high-volume, high-quality production using minimal
inventories of raw materials, work-in-process, and finished goods - Answers Lean production
, Lean is based on the logic that nothing will be produced until it is needed
A sale pulls a replacement from the last position in the system
This triggers an order to the factory production line
Each upstream station then pulls from the next station further upstream - Answers Lean Logic
Lean production requires a "push and pull" system of inventory replenishment. - Answers False
Group technology is a philosophy wherein similar parts are grouped together and the processes
required to make the parts are arranged as a work cell. - Answers True
In the textbook, the expression "quality at the source" means that we need to purchase the best
quality a supplier or vendor can provide. - Answers False
Quality at the source - Answers do it right the first time and, when something goes wrong, stop
the process or assembly line immediately
One of the many lean techniques that have been successfully applied in service firms is the
upgrading of housekeeping. - Answers True
Which of the following are related to lean production?.
A)A philosophy of waste elimination
B)Lean consumption
C)Never running out of inventory
D)The Wahei-Subaru method
E)Full use of capacity - Answers A)A philosophy of waste elimination
In the textbook, Toyota's Fujio Cho identified which of the following types of waste to be
eliminated?
A-Excess quality
B-Motion
C-Excess capacity
D-Underproduction
E-Excess demand - Answers B-Waste of motion
Seven Prominent Types of Waste to be Eliminated from the Supply Chain - Answers 1) waste
from overproduction, (2) waste of waiting time, (3) transportation waste, (4) inventory waste, (5)
