OMGT Final Exam Review: Operations & Supply Chain Management Study Guide, Key
Concepts & Practice Questions
What is a 'global scanner?' - ANS ✔✔A company that considers the entire world as sources of
supply and customers bases, as opposed to one country or region.
A company decides to explore portfolio analysis. According to the lecture, in which quadrant
would the company pursue a strategy of forming partnerships with suppliers?
e.g. SUV axle systems - ANS ✔✔Critical quadrant
The financial impact on a firm's bottom line, as a result of the reduction in a firm's COGS, is the
same as an increase in sales, equal to: - ANS ✔✔The COGS reduction, in dollars, divided by the
contribution to profit of each sales dollar.
Per the Chapter 7 lectures, which step or steps in the supply management process is typically
(but as we discussed, not always) the easiest to accomplish? - ANS ✔✔Procure to pay cycle
In a typical portfolio analysis, office supplies are placed in the:
simplify acquisition process/efficiency - ANS ✔✔Routine quadrant
The multi-criteria decision model is based on a ________ _________ system. - ANS
✔✔weighted evaluation
Ensure supply continuity, e.g: high-end car stereo - ANS ✔✔Bottleneck quadrant
maximize commercial advantage e.g. cables for install - ANS ✔✔Leverage quadrant
Quantitative measures- costs and on-time delivery performance
, Qualitative factors- management stability and trustworthiness - ANS ✔✔supplier selection
Supply Chain Management - ANS ✔✔is the broad set of activities carried out by the supply
chain management department to: analyze sourcing/purchasing needs, develop sourcing
strategies, select suppliers, analyze and negotiate price and cost, carry out all the activities
required to procure goods and services.
Why is Supply Chain Management critical? - ANS ✔✔the changing global competitive
landscape, financial impact, and performance impact
Supply Chain Management Process - ANS ✔✔assess needs, profile internally/externally, develop
the sourcing strategy, screen suppliers and create selection criteria, conduct supplier selection
negotiate, ordering, follow up and expediting, receipt and inspection, settlement and payment,
records maintenance
Where is S&OP in the top-down model of planning? - ANS ✔✔At the top of the model
What does the Master Schedule do? - ANS ✔✔Schedules the manufacturing quantity and
timing of products or product groups
What is the goal of MRP? - ANS ✔✔to answer how much of each inventory item and when it is
needed
What does BOM stand for? - ANS ✔✔Bill of Materials
Which of the following most accurately describes "Exploding the BOM"? - ANS ✔✔The process
of working backward from the master schedule to determine product components and
quantities of each from the product structure "tree".
Concepts & Practice Questions
What is a 'global scanner?' - ANS ✔✔A company that considers the entire world as sources of
supply and customers bases, as opposed to one country or region.
A company decides to explore portfolio analysis. According to the lecture, in which quadrant
would the company pursue a strategy of forming partnerships with suppliers?
e.g. SUV axle systems - ANS ✔✔Critical quadrant
The financial impact on a firm's bottom line, as a result of the reduction in a firm's COGS, is the
same as an increase in sales, equal to: - ANS ✔✔The COGS reduction, in dollars, divided by the
contribution to profit of each sales dollar.
Per the Chapter 7 lectures, which step or steps in the supply management process is typically
(but as we discussed, not always) the easiest to accomplish? - ANS ✔✔Procure to pay cycle
In a typical portfolio analysis, office supplies are placed in the:
simplify acquisition process/efficiency - ANS ✔✔Routine quadrant
The multi-criteria decision model is based on a ________ _________ system. - ANS
✔✔weighted evaluation
Ensure supply continuity, e.g: high-end car stereo - ANS ✔✔Bottleneck quadrant
maximize commercial advantage e.g. cables for install - ANS ✔✔Leverage quadrant
Quantitative measures- costs and on-time delivery performance
, Qualitative factors- management stability and trustworthiness - ANS ✔✔supplier selection
Supply Chain Management - ANS ✔✔is the broad set of activities carried out by the supply
chain management department to: analyze sourcing/purchasing needs, develop sourcing
strategies, select suppliers, analyze and negotiate price and cost, carry out all the activities
required to procure goods and services.
Why is Supply Chain Management critical? - ANS ✔✔the changing global competitive
landscape, financial impact, and performance impact
Supply Chain Management Process - ANS ✔✔assess needs, profile internally/externally, develop
the sourcing strategy, screen suppliers and create selection criteria, conduct supplier selection
negotiate, ordering, follow up and expediting, receipt and inspection, settlement and payment,
records maintenance
Where is S&OP in the top-down model of planning? - ANS ✔✔At the top of the model
What does the Master Schedule do? - ANS ✔✔Schedules the manufacturing quantity and
timing of products or product groups
What is the goal of MRP? - ANS ✔✔to answer how much of each inventory item and when it is
needed
What does BOM stand for? - ANS ✔✔Bill of Materials
Which of the following most accurately describes "Exploding the BOM"? - ANS ✔✔The process
of working backward from the master schedule to determine product components and
quantities of each from the product structure "tree".
