OPM QUIZ 1 QUESTIONS AND ANSWERS | COMPLETE STUDY GUIDE & PRACTICE TEST
2026/2027
A manufacturing company has entered into a new contract with a major supplier of raw
materials used in the manufacturing process. Under the new arrangement, called vendor
managed inventory, the supplier manages their raw material inventory inside the
manufacturer's plant, and only bills the manufacturer when the manufacturer consumes the
raw material. How is this likely to affect the manufacturer's inventory turnover ratio? - ANS
✔✔it will increase
What is the name of the process in which one company studies the processes of another firm in
order to identify best practices? - ANS ✔✔benchmarking
A company has recently implemented an automated online billing and payment processing
system for orders it ships to customers. As a result, it has reduced the average number of days
between billing a customer and receiving payment by 10 days. How will this affect the
receivables turnover ratio? - ANS ✔✔it will increase
Plant manager (C)
Supply chain manager (D)
Project manager (A)
Business process improvement analyst (E)
Logistics manager (B) - ANS ✔✔A.
Plans and coordinates staff activities such as new product development and new facility
location.
B.
Oversees the movement of goods throughout the supply chain.
C.
2026/2027
A manufacturing company has entered into a new contract with a major supplier of raw
materials used in the manufacturing process. Under the new arrangement, called vendor
managed inventory, the supplier manages their raw material inventory inside the
manufacturer's plant, and only bills the manufacturer when the manufacturer consumes the
raw material. How is this likely to affect the manufacturer's inventory turnover ratio? - ANS
✔✔it will increase
What is the name of the process in which one company studies the processes of another firm in
order to identify best practices? - ANS ✔✔benchmarking
A company has recently implemented an automated online billing and payment processing
system for orders it ships to customers. As a result, it has reduced the average number of days
between billing a customer and receiving payment by 10 days. How will this affect the
receivables turnover ratio? - ANS ✔✔it will increase
Plant manager (C)
Supply chain manager (D)
Project manager (A)
Business process improvement analyst (E)
Logistics manager (B) - ANS ✔✔A.
Plans and coordinates staff activities such as new product development and new facility
location.
B.
Oversees the movement of goods throughout the supply chain.
C.
