OPERATIONS AND SUPPLY CHAIN
MANAGEMENT 2026 PRACTICE QUESTION SET
TWO
◉ Operations Manager. Answer: They allocate resources.
◉ Capital. Answer: Facilities and equipment
◉ Competitive Advantage. Answer: Developing capabilities that
customers value, can be sustained over the long-term, and
competitors find difficult to replicate.
◉ Inseparability. Answer: The process of separating production
from consumption; cannot be done for services because they are
produced and consumed simultaneously.
◉ Technology. Answer: The application of knowledge, tools,
processes, and procedures to solve problems.
◉ Product Design. Answer: The characteristics, features, and
performance of the product; how the product functions; does not
fundamentally change the product. Example: changing Coca-Cola's
beverage containers from glass to aluminum.
,◉ Product Technology. Answer: The application of knowledge to
improve the product.
◉ Process. Answer: How to accomplish a task.
◉ Process Design. Answer: How a product is made; can
fundamentally alter the nature of the product. Example: changing
the taste of Coca-Cola.
◉ Process Technology. Answer: The application of knowledge to
improve a process.
◉ Cross-Functionality. Answer: When individuals with different
expertise work towards a common goal; this is an essential business
process.
◉ Concurrent Engineering. Answer: Completing product design and
process design simultaneously.
◉ Functional Areas. Answer: Subsystems within an organization,
such as marketing, finance, and accounting, that are linked together
by a common organizational goal.
,◉ Strategy. Answer: Consists of the organizational goals and the
methods of implementing the goals; every element of the SWOT
analysis should be considered when developing strategies.
◉ Key Policies. Answer: Main goals of an organization.
◉ Organizational Structure. Answer: The formal relationships
among different functional areas that aids in communication.
◉ Relative Advantage. Answer: Where one entity has an advantage
over another; will often trade their specialized products for those
that they do not produce; companies with a relative advantage are
able to produce products at a lower cost than their competitors.
◉ North American Free Trade Agreement (NAFTA). Answer: A free
trade agreement between the United State, Mexico, and Canada to
reduce tariffs and other trade restrictions.
◉ General Agreement on Tariffs and Trade (GATT). Answer: A trade
agreement designed to reduce tariffs and other trade restrictions.
◉ Sustainability. Answer: Balancing the interconnected obligations
to economic viability, society, and the environment (the triple
bottom line).
, ◉ What is the percentage of businesses that operate within the
service sector?. Answer: 88 percent
◉ Supporting Goods. Answer: Supplies and equipment that aid in
the development of products and services.
◉ Market Share. Answer: The percentage of sales in a particular
market.
◉ VIRAL. Answer: Value, Inimitable, rare, aptitude, and lifespan.
◉ SWOT Analysis. Answer: Analyzing the internal (strengths and
weaknesses) and external (opportunities and threats)
environments.
◉ Requirements for developing competitive advantage. Answer:
SWOT, business process, competitive capabilities, and customer
requirements.
◉ Learning Curve. Answer: Continuously improving a product to
make it better and cheaper.
◉ Synergy. Answer: Teamwork where the whole is greater than the
sum of its parts.
MANAGEMENT 2026 PRACTICE QUESTION SET
TWO
◉ Operations Manager. Answer: They allocate resources.
◉ Capital. Answer: Facilities and equipment
◉ Competitive Advantage. Answer: Developing capabilities that
customers value, can be sustained over the long-term, and
competitors find difficult to replicate.
◉ Inseparability. Answer: The process of separating production
from consumption; cannot be done for services because they are
produced and consumed simultaneously.
◉ Technology. Answer: The application of knowledge, tools,
processes, and procedures to solve problems.
◉ Product Design. Answer: The characteristics, features, and
performance of the product; how the product functions; does not
fundamentally change the product. Example: changing Coca-Cola's
beverage containers from glass to aluminum.
,◉ Product Technology. Answer: The application of knowledge to
improve the product.
◉ Process. Answer: How to accomplish a task.
◉ Process Design. Answer: How a product is made; can
fundamentally alter the nature of the product. Example: changing
the taste of Coca-Cola.
◉ Process Technology. Answer: The application of knowledge to
improve a process.
◉ Cross-Functionality. Answer: When individuals with different
expertise work towards a common goal; this is an essential business
process.
◉ Concurrent Engineering. Answer: Completing product design and
process design simultaneously.
◉ Functional Areas. Answer: Subsystems within an organization,
such as marketing, finance, and accounting, that are linked together
by a common organizational goal.
,◉ Strategy. Answer: Consists of the organizational goals and the
methods of implementing the goals; every element of the SWOT
analysis should be considered when developing strategies.
◉ Key Policies. Answer: Main goals of an organization.
◉ Organizational Structure. Answer: The formal relationships
among different functional areas that aids in communication.
◉ Relative Advantage. Answer: Where one entity has an advantage
over another; will often trade their specialized products for those
that they do not produce; companies with a relative advantage are
able to produce products at a lower cost than their competitors.
◉ North American Free Trade Agreement (NAFTA). Answer: A free
trade agreement between the United State, Mexico, and Canada to
reduce tariffs and other trade restrictions.
◉ General Agreement on Tariffs and Trade (GATT). Answer: A trade
agreement designed to reduce tariffs and other trade restrictions.
◉ Sustainability. Answer: Balancing the interconnected obligations
to economic viability, society, and the environment (the triple
bottom line).
, ◉ What is the percentage of businesses that operate within the
service sector?. Answer: 88 percent
◉ Supporting Goods. Answer: Supplies and equipment that aid in
the development of products and services.
◉ Market Share. Answer: The percentage of sales in a particular
market.
◉ VIRAL. Answer: Value, Inimitable, rare, aptitude, and lifespan.
◉ SWOT Analysis. Answer: Analyzing the internal (strengths and
weaknesses) and external (opportunities and threats)
environments.
◉ Requirements for developing competitive advantage. Answer:
SWOT, business process, competitive capabilities, and customer
requirements.
◉ Learning Curve. Answer: Continuously improving a product to
make it better and cheaper.
◉ Synergy. Answer: Teamwork where the whole is greater than the
sum of its parts.
