BUS 370 Exam 1 NCSU Test Questions
with Correct and Verified Answers
2025-2026 Updated.
CHAP 1: Introduction to Operations and SCM - Answer
Operations functions - Answer also called operations;
The collection of people, technology, and systems within an organization that has primary
responsibility for providing the organization's products or services
Operations management - Answer the planning, scheduling, and control of the activities that
transform inputs into finished goods and services
2 types- manufacturing operations and service operations
transformation process - Answer One way to think about operations is as a transformation
process that takes a set of inputs and transforms them in some way to create outputs—either
goods or services—that a customer values
Supply chain - Answer a network of manufacturers and service providers that work together to
create products or services needed by end users.
These manufacturers and service providers are linked together through physical flows,
information flows and monetary flows
Supply Chain Management (SCM) - Answer active management of supply chain activities and
relationships in order to maximize customer value and achieve sustainable competitive
advantage
Supply Chain diagram - upstream and downstream - Answer chap 1 ppt, slide 9
upstream - Answer a term used to describe activities or firms that are positioned earlier in the
supply chain relative to some other activity or firm of interest;
,upstream = suppliers
downstream - Answer a term used to describe activities or firms that are positioned later in
the supply chain relative to some other activity or firm of interest;
ex: sewing a shirt takes place downstream of weaving the fabric, weaving the fabric takes place
downstream of harvesting the cotton
downstream = customers
first-tier supplier - Answer a supplier that provides products/services directly to a firm
second-tier supplier - Answer A supplier that provides products or services to a firm's first-tier
supplier
Trends in operations and SCM - Answer 1. agility: the ability to recalculate plans and deliver
the same service
2. information technology:
eCommerce
3. people: shortage of skilled knowledge workers
3 reasons to study SCM - Answer 1. pervasiveness:
every org. must make a product or service that someone values
2. Interdependence:
most orgs function as part of a larger supply chain, ex: product, ship, port, boat travel, truck,
store
3. profitability and survival:
org's must carefully manage their operations and supply chains in order to prosper, and indeed,
survive
, forecasting:
develop the planning numbers needed for effective decision making.
capacity planning:
establish strategic capacity levels ("bricks and mortar") and tactical capacity levels (workforce,
inventory).
inventory management:
manage the amount and placement of inventory within the company and the supply chain.
planning and control:
schedule and manage the flow of work through an organization and the supply chain; match
customer demand to supply chain activities.
purchasing:
identify and qualify suppliers of goods and services; manage the ongoing buyer-supplier
relationships.
logistics:
manage the movement of physical goods throughout the supply chain.
diff btw manufacturing and services (both have supply chains) - Answer Manufacturing:
produce physical goods that are used directly by consumers or other businesses.
Services: provide intangible goods
ex: transportation companies provide valuable services by moving and storing goods that
manufacturers make, design firms, software firms develop apps for consumers on their phones
cross-functional linkages - Answer manufacturers and service providers are linked together
through physical, information, and monetary flows
professional organizations - Answer 1. ASQ (american society for quality)
with Correct and Verified Answers
2025-2026 Updated.
CHAP 1: Introduction to Operations and SCM - Answer
Operations functions - Answer also called operations;
The collection of people, technology, and systems within an organization that has primary
responsibility for providing the organization's products or services
Operations management - Answer the planning, scheduling, and control of the activities that
transform inputs into finished goods and services
2 types- manufacturing operations and service operations
transformation process - Answer One way to think about operations is as a transformation
process that takes a set of inputs and transforms them in some way to create outputs—either
goods or services—that a customer values
Supply chain - Answer a network of manufacturers and service providers that work together to
create products or services needed by end users.
These manufacturers and service providers are linked together through physical flows,
information flows and monetary flows
Supply Chain Management (SCM) - Answer active management of supply chain activities and
relationships in order to maximize customer value and achieve sustainable competitive
advantage
Supply Chain diagram - upstream and downstream - Answer chap 1 ppt, slide 9
upstream - Answer a term used to describe activities or firms that are positioned earlier in the
supply chain relative to some other activity or firm of interest;
,upstream = suppliers
downstream - Answer a term used to describe activities or firms that are positioned later in
the supply chain relative to some other activity or firm of interest;
ex: sewing a shirt takes place downstream of weaving the fabric, weaving the fabric takes place
downstream of harvesting the cotton
downstream = customers
first-tier supplier - Answer a supplier that provides products/services directly to a firm
second-tier supplier - Answer A supplier that provides products or services to a firm's first-tier
supplier
Trends in operations and SCM - Answer 1. agility: the ability to recalculate plans and deliver
the same service
2. information technology:
eCommerce
3. people: shortage of skilled knowledge workers
3 reasons to study SCM - Answer 1. pervasiveness:
every org. must make a product or service that someone values
2. Interdependence:
most orgs function as part of a larger supply chain, ex: product, ship, port, boat travel, truck,
store
3. profitability and survival:
org's must carefully manage their operations and supply chains in order to prosper, and indeed,
survive
, forecasting:
develop the planning numbers needed for effective decision making.
capacity planning:
establish strategic capacity levels ("bricks and mortar") and tactical capacity levels (workforce,
inventory).
inventory management:
manage the amount and placement of inventory within the company and the supply chain.
planning and control:
schedule and manage the flow of work through an organization and the supply chain; match
customer demand to supply chain activities.
purchasing:
identify and qualify suppliers of goods and services; manage the ongoing buyer-supplier
relationships.
logistics:
manage the movement of physical goods throughout the supply chain.
diff btw manufacturing and services (both have supply chains) - Answer Manufacturing:
produce physical goods that are used directly by consumers or other businesses.
Services: provide intangible goods
ex: transportation companies provide valuable services by moving and storing goods that
manufacturers make, design firms, software firms develop apps for consumers on their phones
cross-functional linkages - Answer manufacturers and service providers are linked together
through physical, information, and monetary flows
professional organizations - Answer 1. ASQ (american society for quality)
