OPMA FINAL EXAM QUESTIONS AND ANSWERS OPERATIONS MANAGEMENT STUDY GUIDE
2026/2027 | COMPLETE FINAL REVIEW
Supply chain - correct answer ✔✔a network of facilities that procure raw materials, transform
them into intermediate good and then final products, and deliver the products to customers
through a distribution system
Supply chain spans (3) - correct answer ✔✔procurement, internal transformation, and
distribution (is a large-scale multistage process)
Supply chain network - correct answer ✔✔diagram in SCM ppt: involves in taking inputs from
suppliers and transforming them through manufacturing then localizing them with distribution
so that the output can reach customers
Cost reduction with global supply chain - correct answer ✔✔going global will reduce labour
costs
Ford - Supplier locations quesitons - correct answer ✔✔60% of inventory from supplier campus,
led to supplier sourcing from each other, reduced lead times (8 weeks for wire harness) by more
accurately forecasting quantities to build,
Ford - Supplier locations and triple bottom line - correct answer ✔✔economic: lower
freight/transportation (logistical) costs, shorter lead times led to more supply chain and
inventory level certainty, environmental: shorter transportation reduces carbon footprint, less
inventory led to less space required, social: foreign working conditions likely below U.S.,
provided local jobs
Vertical integration - correct answer ✔✔refers to the proportion of the supply chain that a
particular company owns, the more it owns the more vertically integrated it is
,Why companies don't outsource (3) - correct answer ✔✔allows them to control the strategic
process, intellectual property and reduces coordination issues
Zara's SCM choice - correct answer ✔✔Zara makes rather than outsources to push its flexibility
and shorten lead time
Procurement/purchasing - correct answer ✔✔second step on the supply chain after finding
suppliers, involves buying services or material that are not developed internally, represent
between 50 - 80% of sales so reductions can produce big benefits
Vendor selection criteria (4) - correct answer ✔✔company, service, products, sustainability
Vendor selection criteria: Company (4) - correct answer ✔✔size, geographical locations,
operational profit, management
Vendor selection criteria: Service (4) - correct answer ✔✔deliveries on time, condition on
arrival, handling of complaints, technical assistance
Vendor selection criteria: Products (4) - correct answer ✔✔price, quality, packaging, warranty
Vendor selection criteria: Sustainability (3) - correct answer ✔✔social, environmental, carbon
footprint
Logic behind vendor development - correct answer ✔✔working closely with vendors will
improve the entire supply chain's performance
Some large companies offer "Free consulting" to their vendors to help accomplish to (3) -
correct answer ✔✔realize cost improvement, improve quality, faster and consistent delivery
, Green sourcing - correct answer ✔✔an environmentally responsible supply chain that
incorporates input from designers, engineers, and marketers
Process for green sourcing (6) - correct answer ✔✔assess the opportunities (evaluate/prioritize
cost), engage sourcing agents (cross-functional ownbership of the process), assess the supply
case (engage vendors in the process), develop sourcing strategy (establish criteria), implement
sourcing strategy (select vendors based on criteria), institutionalize the sourcing strategy
(conduct metrics and audits)
Benefits of green sourcing (2) - correct answer ✔✔is an order winner and can reduce costs
Types of purchasing (3) - correct answer ✔✔Centralized purchasing: gives purchasing power
and cost advantages but reduces flexibility/speed, stock-less purchasing: never has material
stored, orders on an as needed basis, highly flexible but logistically challenging, blanket
purchase orders: long-term purchase commitment to a supplier for items that are to be
delivered upon receipt of a shipping, a contract that gets periodically drawn down on as needed
will lower unit, holding, demand and supply uncertainty and reduce order costs
Vendor Managed Inventory (VMI) - correct answer ✔✔vendors manage the customer's
inventory of the products they supply and they order and stock what is needed
VMI: benefits and cons for customer - correct answer ✔✔benefits: less admin - order costs, less
chance of stock out, cons: need high trust in vendor, staff layoffs
VMI: benefits and cons for vendor - correct answer ✔✔benefits: knowledge of end customer
demand patterns, potential more sales from less stock out, cons: staffing, vehicles, remote
technology
Firms that excellent a procurement in SCM - correct answer ✔✔work closer with fewer
supplies: less suppliers, lower purchasing costs, lower lead times, less time spent ordering,
lower percent of late deliveries, extremely low rejected material (0.0001% vs. 1.5%), much
lower annual shortages (4 vs. 400)
2026/2027 | COMPLETE FINAL REVIEW
Supply chain - correct answer ✔✔a network of facilities that procure raw materials, transform
them into intermediate good and then final products, and deliver the products to customers
through a distribution system
Supply chain spans (3) - correct answer ✔✔procurement, internal transformation, and
distribution (is a large-scale multistage process)
Supply chain network - correct answer ✔✔diagram in SCM ppt: involves in taking inputs from
suppliers and transforming them through manufacturing then localizing them with distribution
so that the output can reach customers
Cost reduction with global supply chain - correct answer ✔✔going global will reduce labour
costs
Ford - Supplier locations quesitons - correct answer ✔✔60% of inventory from supplier campus,
led to supplier sourcing from each other, reduced lead times (8 weeks for wire harness) by more
accurately forecasting quantities to build,
Ford - Supplier locations and triple bottom line - correct answer ✔✔economic: lower
freight/transportation (logistical) costs, shorter lead times led to more supply chain and
inventory level certainty, environmental: shorter transportation reduces carbon footprint, less
inventory led to less space required, social: foreign working conditions likely below U.S.,
provided local jobs
Vertical integration - correct answer ✔✔refers to the proportion of the supply chain that a
particular company owns, the more it owns the more vertically integrated it is
,Why companies don't outsource (3) - correct answer ✔✔allows them to control the strategic
process, intellectual property and reduces coordination issues
Zara's SCM choice - correct answer ✔✔Zara makes rather than outsources to push its flexibility
and shorten lead time
Procurement/purchasing - correct answer ✔✔second step on the supply chain after finding
suppliers, involves buying services or material that are not developed internally, represent
between 50 - 80% of sales so reductions can produce big benefits
Vendor selection criteria (4) - correct answer ✔✔company, service, products, sustainability
Vendor selection criteria: Company (4) - correct answer ✔✔size, geographical locations,
operational profit, management
Vendor selection criteria: Service (4) - correct answer ✔✔deliveries on time, condition on
arrival, handling of complaints, technical assistance
Vendor selection criteria: Products (4) - correct answer ✔✔price, quality, packaging, warranty
Vendor selection criteria: Sustainability (3) - correct answer ✔✔social, environmental, carbon
footprint
Logic behind vendor development - correct answer ✔✔working closely with vendors will
improve the entire supply chain's performance
Some large companies offer "Free consulting" to their vendors to help accomplish to (3) -
correct answer ✔✔realize cost improvement, improve quality, faster and consistent delivery
, Green sourcing - correct answer ✔✔an environmentally responsible supply chain that
incorporates input from designers, engineers, and marketers
Process for green sourcing (6) - correct answer ✔✔assess the opportunities (evaluate/prioritize
cost), engage sourcing agents (cross-functional ownbership of the process), assess the supply
case (engage vendors in the process), develop sourcing strategy (establish criteria), implement
sourcing strategy (select vendors based on criteria), institutionalize the sourcing strategy
(conduct metrics and audits)
Benefits of green sourcing (2) - correct answer ✔✔is an order winner and can reduce costs
Types of purchasing (3) - correct answer ✔✔Centralized purchasing: gives purchasing power
and cost advantages but reduces flexibility/speed, stock-less purchasing: never has material
stored, orders on an as needed basis, highly flexible but logistically challenging, blanket
purchase orders: long-term purchase commitment to a supplier for items that are to be
delivered upon receipt of a shipping, a contract that gets periodically drawn down on as needed
will lower unit, holding, demand and supply uncertainty and reduce order costs
Vendor Managed Inventory (VMI) - correct answer ✔✔vendors manage the customer's
inventory of the products they supply and they order and stock what is needed
VMI: benefits and cons for customer - correct answer ✔✔benefits: less admin - order costs, less
chance of stock out, cons: need high trust in vendor, staff layoffs
VMI: benefits and cons for vendor - correct answer ✔✔benefits: knowledge of end customer
demand patterns, potential more sales from less stock out, cons: staffing, vehicles, remote
technology
Firms that excellent a procurement in SCM - correct answer ✔✔work closer with fewer
supplies: less suppliers, lower purchasing costs, lower lead times, less time spent ordering,
lower percent of late deliveries, extremely low rejected material (0.0001% vs. 1.5%), much
lower annual shortages (4 vs. 400)
