OPERATIONS AND SUPPLY CHAIN MANAGEMENT TEST
QUESTIONS AND ANSWERS, 3RD EDITION BY DAVID A.
COLLIER| 100% PASS!!
1.How does teamwork in operations benefit or add value to customers?
A) Teamwork in operations adds value to the customer by reducing customer service efforts.
B) Teamwork in operations benefits the customer when coordinated decisions within an
organization produce high-quality products that customers value.
C) Teamwork in operations benefits the customer when production times are increased. -
ANSWER Teamwork in operations benefits the customer when coordinated decisions within an
organization produce high-quality products that customers value.
2.Why are team-oriented operations essential today?
A) Because cooperation is necessary for solving quality and productivity problems to remain
competitive in an increasingly global marketplace
B) Because management and labor are constantly at odds
C) Because the labor force demands it - ANSWER A) Because cooperation is necessary for
solving quality and productivity problems to remain competitive in an increasingly global
marketplace
3.Job markets have shifted between countries for manufacturing, technology, engineering, and
management jobs over the past decades. What has been a driving force in the global job
market?
A) Market domination by multinational firms
B) Free trade agreements
C)Labor costs
D)Movement of production facilities - ANSWER C) Labor costs
,4.Many automotive manufacturers have factories in multiple countries. Vehicle designs and
safety specifications are different from country to country. In which country would you expect
to see stronger safety regulations for automobiles?
A) Vietnam
B) United States
C) India
D) China - ANSWER B) United States
5.A pharmaceutical sales company needs to replace its company cars. One car company quoted
a price 15% lower than its competitor. The pharmaceutical company considered total expected
costs of ownership, including purchase price, fuel efficiency, ergonomic comfort, end-of-life
resale value, and warranty costs, and went with the higher-priced competitor to achieve _____.
A) Long-term benefits
B) Short-term benefits for insurance
C) A better look for the sake of the company's appearance
D) More comfort for the employees driving the company cars - ANSWER A) Long-term benefits
6.What is the definition of market share?
A) Market share is defined as the number of products a company offers divided by all the
products in an industry.
B) Market share is a company's sales divided by the sales of all companies in its industry.
C) The percentage of store locations a company operates in an entire market constitutes its
market share.
D) The competitive advantage a company possesses is its market share. - ANSWER B) Market
share is a company's sales divided by the sales of all companies in its industry.
7.Jane Smith is expecting her first child and is concerned about the child's safety as they travel.
Jane is shopping for a car seat. Which customer requirements will Jane prioritize, given her
stated concerns?
A) Service
,B) Product price
C) Product quality as revealed in consumer safety tests
D) Product availability - ANSWER C) Product quality as revealed in consumer safety tests
8.When conducting a SWOT analysis, which element considers the internal characteristics of a
business or project that lend an advantage within the scope of the study?
A) Strengths
B) Opportunities
C) Weaknesses
D) Threats - ANSWER A) Strengths
9.What is an advantage of the perpetual inventory system?
A) The perpetual inventory system maintains high levels of stock and keeps the company's
capital safe.
B) The costs to implement the perpetual inventory system are minimal.
C) The perpetual inventory system more accurately measures the dollar value in inventory.
D) The perpetual inventory system recognizes that accounting department values need not
match inventory amounts. - ANSWER C) The perpetual inventory system more accurately
measures the dollar value in inventory.
10.Which statement describes an advantage of the periodic inventory system?
A) The amount of inventory can be easily determined each day.
B) The number of employees required to run a periodic inventory system is large.
C) The cost to implement a periodic inventory system is relatively low.
D) A periodic inventory system is best when the business has many items for sale that sell in
large volumes.
correct - ANSWER C) The cost to implement a periodic inventory system is relatively low.
, 11.What might have caused a smartphone manufacturer to incur a stockout or run out of
inventory for a new phone when they first released it?
A) Demand and lead times were less than expected.
B) Demand and lead times did not match.
C) Demand and lead times were more than expected. - ANSWER C) Demand and lead times
were more than expected.
12.A manufacturing company is reworking its operations with a greater emphasis on social
sustainability. Which action should the manufacturing company take to address this form of
sustainability?
A) Prioritize practices for long-term savings
B) Enhance collaboration among departments
C) Foster positive community relationships
D)Give support to select political groups - ANSWER C) Foster positive community relationships
13.An organization wants to update its policies and practices to place more of an emphasis on
economic sustainability. What should the organization do to address this?
A) Design products with the highest-quality materials
B) Prioritize long-term benefits over short-term savings
C) Deliver the maximum possible value to the customer
D) Set product prices at the level that maximizes sales - ANSWER B) Prioritize long-term benefits
over short-term savings
14.A company's new leadership team wants to update the company's practices and policies to
reflect a greater level of social sustainability. What should the leadership team work on to
address this issue?
A) Use standard accounting practices
B) Give support to select political groups
C) Enhance collaboration among departments
D) Improve employee job security - ANSWER D) Improve employee job security
QUESTIONS AND ANSWERS, 3RD EDITION BY DAVID A.
COLLIER| 100% PASS!!
1.How does teamwork in operations benefit or add value to customers?
A) Teamwork in operations adds value to the customer by reducing customer service efforts.
B) Teamwork in operations benefits the customer when coordinated decisions within an
organization produce high-quality products that customers value.
C) Teamwork in operations benefits the customer when production times are increased. -
ANSWER Teamwork in operations benefits the customer when coordinated decisions within an
organization produce high-quality products that customers value.
2.Why are team-oriented operations essential today?
A) Because cooperation is necessary for solving quality and productivity problems to remain
competitive in an increasingly global marketplace
B) Because management and labor are constantly at odds
C) Because the labor force demands it - ANSWER A) Because cooperation is necessary for
solving quality and productivity problems to remain competitive in an increasingly global
marketplace
3.Job markets have shifted between countries for manufacturing, technology, engineering, and
management jobs over the past decades. What has been a driving force in the global job
market?
A) Market domination by multinational firms
B) Free trade agreements
C)Labor costs
D)Movement of production facilities - ANSWER C) Labor costs
,4.Many automotive manufacturers have factories in multiple countries. Vehicle designs and
safety specifications are different from country to country. In which country would you expect
to see stronger safety regulations for automobiles?
A) Vietnam
B) United States
C) India
D) China - ANSWER B) United States
5.A pharmaceutical sales company needs to replace its company cars. One car company quoted
a price 15% lower than its competitor. The pharmaceutical company considered total expected
costs of ownership, including purchase price, fuel efficiency, ergonomic comfort, end-of-life
resale value, and warranty costs, and went with the higher-priced competitor to achieve _____.
A) Long-term benefits
B) Short-term benefits for insurance
C) A better look for the sake of the company's appearance
D) More comfort for the employees driving the company cars - ANSWER A) Long-term benefits
6.What is the definition of market share?
A) Market share is defined as the number of products a company offers divided by all the
products in an industry.
B) Market share is a company's sales divided by the sales of all companies in its industry.
C) The percentage of store locations a company operates in an entire market constitutes its
market share.
D) The competitive advantage a company possesses is its market share. - ANSWER B) Market
share is a company's sales divided by the sales of all companies in its industry.
7.Jane Smith is expecting her first child and is concerned about the child's safety as they travel.
Jane is shopping for a car seat. Which customer requirements will Jane prioritize, given her
stated concerns?
A) Service
,B) Product price
C) Product quality as revealed in consumer safety tests
D) Product availability - ANSWER C) Product quality as revealed in consumer safety tests
8.When conducting a SWOT analysis, which element considers the internal characteristics of a
business or project that lend an advantage within the scope of the study?
A) Strengths
B) Opportunities
C) Weaknesses
D) Threats - ANSWER A) Strengths
9.What is an advantage of the perpetual inventory system?
A) The perpetual inventory system maintains high levels of stock and keeps the company's
capital safe.
B) The costs to implement the perpetual inventory system are minimal.
C) The perpetual inventory system more accurately measures the dollar value in inventory.
D) The perpetual inventory system recognizes that accounting department values need not
match inventory amounts. - ANSWER C) The perpetual inventory system more accurately
measures the dollar value in inventory.
10.Which statement describes an advantage of the periodic inventory system?
A) The amount of inventory can be easily determined each day.
B) The number of employees required to run a periodic inventory system is large.
C) The cost to implement a periodic inventory system is relatively low.
D) A periodic inventory system is best when the business has many items for sale that sell in
large volumes.
correct - ANSWER C) The cost to implement a periodic inventory system is relatively low.
, 11.What might have caused a smartphone manufacturer to incur a stockout or run out of
inventory for a new phone when they first released it?
A) Demand and lead times were less than expected.
B) Demand and lead times did not match.
C) Demand and lead times were more than expected. - ANSWER C) Demand and lead times
were more than expected.
12.A manufacturing company is reworking its operations with a greater emphasis on social
sustainability. Which action should the manufacturing company take to address this form of
sustainability?
A) Prioritize practices for long-term savings
B) Enhance collaboration among departments
C) Foster positive community relationships
D)Give support to select political groups - ANSWER C) Foster positive community relationships
13.An organization wants to update its policies and practices to place more of an emphasis on
economic sustainability. What should the organization do to address this?
A) Design products with the highest-quality materials
B) Prioritize long-term benefits over short-term savings
C) Deliver the maximum possible value to the customer
D) Set product prices at the level that maximizes sales - ANSWER B) Prioritize long-term benefits
over short-term savings
14.A company's new leadership team wants to update the company's practices and policies to
reflect a greater level of social sustainability. What should the leadership team work on to
address this issue?
A) Use standard accounting practices
B) Give support to select political groups
C) Enhance collaboration among departments
D) Improve employee job security - ANSWER D) Improve employee job security
