MBA6012
Operations & SCM
Comprehensive Final Test (Qns & Ans)
2025
1. Which of the following is a key objective of supply chain
management?
- A) Increasing inventory levels
- B) Reducing operational costs
- C) Enhancing product obsolescence
- D) Limiting supplier relationships
- ANS: B) Reducing operational costs
©/2025
, - Rationale: A key objective of supply chain management is
to optimize processes to reduce operational costs while
maintaining efficiency and quality.
2. What is the primary purpose of implementing a just-in-time
(JIT) inventory system?
- A) To increase buffer stock
- B) To minimize inventory holding costs
- C) To lengthen lead times
- D) To diversify supplier base
- ANS: B) To minimize inventory holding costs
- Rationale: JIT aims to minimize inventory holding costs by
receiving goods only as they are needed in the production process.
Fill-in-the-Blank Questions
3. The __________ effect refers to the phenomenon where small
fluctuations in demand at the retail level cause progressively
larger fluctuations in demand at the wholesale, distributor,
manufacturer, and raw material supplier levels.
- ANS: Bullwhip
- Rationale: The bullwhip effect describes how variations in
consumer demand can lead to significant discrepancies up the
supply chain.
©/2025
,4. __________ is the process of coordinating and integrating all
activities involved in sourcing, procurement, conversion, and
logistics management.
- ANS: Supply chain integration
- Rationale: Supply chain integration involves coordinating
and integrating all supply chain activities to improve efficiency
and effectiveness.
True/False Questions
5. True or False: Total Quality Management (TQM) is a supply
chain strategy aimed at improving customer satisfaction by
integrating quality control processes throughout the supply chain.
- ANS: True
- Rationale: TQM focuses on continuous improvement and
quality control to enhance customer satisfaction throughout the
supply chain.
6. True or False: Outsourcing in supply chain management refers
to the practice of producing goods and services in-house rather
than obtaining them from external suppliers.
- ANS: False
©/2025
, - Rationale: Outsourcing involves obtaining goods and
services from external suppliers rather than producing them in-
house.
Multiple Response Questions
7. Which of the following are advantages of adopting lean
manufacturing principles in operations management? (Select all
that apply)
- A) Reducing waste
- B) Increasing production costs
- C) Improving process efficiency
- D) Enhancing product variety
- ANS: A) Reducing waste, C) Improving process efficiency
- Rationale: Lean manufacturing focuses on reducing waste
and improving process efficiency to create value and streamline
operations.
8. Which strategies can be used to mitigate the bullwhip effect in
supply chain management? (Select all that apply)
- A) Demand forecasting
- B) Order batching
- C) Lead time reduction
©/2025
Operations & SCM
Comprehensive Final Test (Qns & Ans)
2025
1. Which of the following is a key objective of supply chain
management?
- A) Increasing inventory levels
- B) Reducing operational costs
- C) Enhancing product obsolescence
- D) Limiting supplier relationships
- ANS: B) Reducing operational costs
©/2025
, - Rationale: A key objective of supply chain management is
to optimize processes to reduce operational costs while
maintaining efficiency and quality.
2. What is the primary purpose of implementing a just-in-time
(JIT) inventory system?
- A) To increase buffer stock
- B) To minimize inventory holding costs
- C) To lengthen lead times
- D) To diversify supplier base
- ANS: B) To minimize inventory holding costs
- Rationale: JIT aims to minimize inventory holding costs by
receiving goods only as they are needed in the production process.
Fill-in-the-Blank Questions
3. The __________ effect refers to the phenomenon where small
fluctuations in demand at the retail level cause progressively
larger fluctuations in demand at the wholesale, distributor,
manufacturer, and raw material supplier levels.
- ANS: Bullwhip
- Rationale: The bullwhip effect describes how variations in
consumer demand can lead to significant discrepancies up the
supply chain.
©/2025
,4. __________ is the process of coordinating and integrating all
activities involved in sourcing, procurement, conversion, and
logistics management.
- ANS: Supply chain integration
- Rationale: Supply chain integration involves coordinating
and integrating all supply chain activities to improve efficiency
and effectiveness.
True/False Questions
5. True or False: Total Quality Management (TQM) is a supply
chain strategy aimed at improving customer satisfaction by
integrating quality control processes throughout the supply chain.
- ANS: True
- Rationale: TQM focuses on continuous improvement and
quality control to enhance customer satisfaction throughout the
supply chain.
6. True or False: Outsourcing in supply chain management refers
to the practice of producing goods and services in-house rather
than obtaining them from external suppliers.
- ANS: False
©/2025
, - Rationale: Outsourcing involves obtaining goods and
services from external suppliers rather than producing them in-
house.
Multiple Response Questions
7. Which of the following are advantages of adopting lean
manufacturing principles in operations management? (Select all
that apply)
- A) Reducing waste
- B) Increasing production costs
- C) Improving process efficiency
- D) Enhancing product variety
- ANS: A) Reducing waste, C) Improving process efficiency
- Rationale: Lean manufacturing focuses on reducing waste
and improving process efficiency to create value and streamline
operations.
8. Which strategies can be used to mitigate the bullwhip effect in
supply chain management? (Select all that apply)
- A) Demand forecasting
- B) Order batching
- C) Lead time reduction
©/2025
