GSCM 201 Final Exam Questions with
All Correct Answers
What 2 factors determine need for strategy? - Answer-1. Importance of purchasing in
terms of value added by product line, impact of raw material costs on profitability, etc
2. Complexity of the supply market gauged by supply scarcity, pace of technology
and/or other complexity
What is the typical flow of a service supply chain? - Answer-customer input > action >
service output
Direct interaction - Answer-person-to-person interaction
Direct interaction is the least efficient because of emotion
Ex: Ordering Mcdonalds from cashier
Independent processing - Answer-Entity is acting on resources owned and controlled by
that same entity.
- Enabling innovation enables the customer!
- All training, purchasing, etc I'm doing myself
Ex: Car dealership washing car before selling it
Surrogate Action - Answer-Acting on another entity's resources
Ex: car in carwash
What is a transformation process? - Answer-Raw materials are converted into
finishedproducts using machinery, processes, and labor resources.
What are inputs? - Answer-physical material, information, or customers
ABC Analysis - Answer-A= what upper management wants to keep track of, offers 70%
of value
B= middle, 20% of value
C= lower management, 10% of value
, What does sustainability look like in operations management? - Answer-An important
aspect of operations management is minimizing the environmental impact of waste over
the entire life cycle of their products, up to the point of finaldisposal
EOQ model seeks to minimize what 2 things - Answer-Minimize sum of ordering cost
and holding cost
Minimizing holding and order cost. Where the two points intersect is the # of product
you want to order
Reorder point equation - Answer-Daily usage * time to receive order
300 lemons/day, takes 3 days to get = 900 lemons is the time to order
What are the 3 realms of operations management? - Answer-Input, transformation
process, output
Operations management ≈ manufacturing
Everything outside of this is NOT operations, like quality management, relationship
management, item returns, logistical management
What is a transforming resource? - Answer-Things involved in tranforming a
transformed resource (truck, machine, assembly line, barber)
What is a transformed resource? - Answer-what is changed (rambutans from japan now
in USA, wheat is now bread, repaired car, my hair is cut)
4 Different types of transformation - Answer-- Manufacture: physical creation of product
(ex: car factory)
-Transport: movement of materials or customers (ex: taxi service)
-Supply: change in ownership of goods (ex: buying clothes at Bohme)
-Service: treatment of customers or storage of materials (ex: hospital wards,
warehouses)
Continuous production systems (most to least volume) - Answer-1. Flow: Items flow
through sequence from first to final stage and this continually repeats
2. Mass: manufacture of "discrete parts" or assemblies using a continuous process
- Huge production which stops to test/sell them
- Having an order and filling them
Intermitted production systems (Most to least volume) - Answer-Batch: Job passes
through depts in lots of different batches. Different batches may go different places
Job-shop: Small quantity of product designed/produced per customers request by
someone with skill
All Correct Answers
What 2 factors determine need for strategy? - Answer-1. Importance of purchasing in
terms of value added by product line, impact of raw material costs on profitability, etc
2. Complexity of the supply market gauged by supply scarcity, pace of technology
and/or other complexity
What is the typical flow of a service supply chain? - Answer-customer input > action >
service output
Direct interaction - Answer-person-to-person interaction
Direct interaction is the least efficient because of emotion
Ex: Ordering Mcdonalds from cashier
Independent processing - Answer-Entity is acting on resources owned and controlled by
that same entity.
- Enabling innovation enables the customer!
- All training, purchasing, etc I'm doing myself
Ex: Car dealership washing car before selling it
Surrogate Action - Answer-Acting on another entity's resources
Ex: car in carwash
What is a transformation process? - Answer-Raw materials are converted into
finishedproducts using machinery, processes, and labor resources.
What are inputs? - Answer-physical material, information, or customers
ABC Analysis - Answer-A= what upper management wants to keep track of, offers 70%
of value
B= middle, 20% of value
C= lower management, 10% of value
, What does sustainability look like in operations management? - Answer-An important
aspect of operations management is minimizing the environmental impact of waste over
the entire life cycle of their products, up to the point of finaldisposal
EOQ model seeks to minimize what 2 things - Answer-Minimize sum of ordering cost
and holding cost
Minimizing holding and order cost. Where the two points intersect is the # of product
you want to order
Reorder point equation - Answer-Daily usage * time to receive order
300 lemons/day, takes 3 days to get = 900 lemons is the time to order
What are the 3 realms of operations management? - Answer-Input, transformation
process, output
Operations management ≈ manufacturing
Everything outside of this is NOT operations, like quality management, relationship
management, item returns, logistical management
What is a transforming resource? - Answer-Things involved in tranforming a
transformed resource (truck, machine, assembly line, barber)
What is a transformed resource? - Answer-what is changed (rambutans from japan now
in USA, wheat is now bread, repaired car, my hair is cut)
4 Different types of transformation - Answer-- Manufacture: physical creation of product
(ex: car factory)
-Transport: movement of materials or customers (ex: taxi service)
-Supply: change in ownership of goods (ex: buying clothes at Bohme)
-Service: treatment of customers or storage of materials (ex: hospital wards,
warehouses)
Continuous production systems (most to least volume) - Answer-1. Flow: Items flow
through sequence from first to final stage and this continually repeats
2. Mass: manufacture of "discrete parts" or assemblies using a continuous process
- Huge production which stops to test/sell them
- Having an order and filling them
Intermitted production systems (Most to least volume) - Answer-Batch: Job passes
through depts in lots of different batches. Different batches may go different places
Job-shop: Small quantity of product designed/produced per customers request by
someone with skill
