OM 300 Final Concepts Exam
Questions with Complete
Solutions
What is a cause-and-effect diagram? - Answer- a brainstorming tool to identify process
elements that may affect an outcome
Which of the following is NOT a common TQM tool? - Answer- queuing models
Which of the following TQM tools would be best suited for determining the most
important problems? - Answer- Pareto chart
Attribute inspection measures - Answer- if the product is good or bad.
What are the two key questions for an operations manager in the inspection process? -
Answer- When to inspect? Where to inspect?
Which of the following is NOT one of the ten determinants of service quality? - Answer-
Convention
What is the purpose of Statistical Process Control (SPC)? - Answer- ensuring
processes meet standards
Which type of control chart should be used when it is possible to have more than one
mistake per item? - Answer- C-chart
What does it mean for a process to be "capable"? - Answer- The process output is
capable of meeting set specifications.
Supply chain management describes the coordination of all supply chain activities,
starting with _______ and ending with _______. - Answer- raw materials; satisfied
customers
What is transferring a firm's activities that have traditionally been internal to external
suppliers? - Answer- Outsourcing
What is developing the ability to produce goods or services previously purchased or
actually buying a supplier or a distributor? - Answer- vertical integration
Which of the following strategies is part collaboration, part purchasing from few
suppliers, and part vertical integration? - Answer- keiretsu networks
, Which of the following mitigation tactics could reduce economic risk? - Answer-
purchasing contracts that address price fluctuations
As orders are relayed from retailers, to distributors, to wholesalers, to manufacturers,
the fluctuations in order quantities increase at each step in the sequence. What is this
called? - Answer- bullwhip effect
A lawnmower assembly plant uses a variety of nuts, bolts, screws, and other fasteners
in its operation. Its supplier delivers these items directly to the point of use on the
assembly line and ensures that there are always sufficient quantities of fasteners to
maintain the production schedule. This is an example of... - Answer- vendor-managed
inventory.
Which of the following would NOT reduce the bullwhip effect? - Answer- Increase end-
of-quarter sales bonuses
What is the term for an approach that seeks efficiency of operations through the
integration of all material acquisition, movement, and storage activities? - Answer-
Logistics management
Which of the following remedies may reduce the bullwhip effect? - Answer- share
demand information throughout the supply chain
The objective of inventory management is to - Answer- strike a balance between
inventory investment and customer service.
Which of the following is NOT a type of inventory? - Answer- MRP
Which of the following is NOT a function of inventory? - Answer- To increase total
invested capital
When an inventory manager uses ABC analysis, which of the following will they
consider to be the most critical A item? - Answer- highest dollar-volume each year
Shrinkage is - Answer- retail inventory that is unaccounted for between receipt and sale.
Which of the following should a company include as part of an item's holding cost? -
Answer- investment costs, including taxes and insurance
The creation of goods and services is referred to as: - Answer- Production
The set of activities that relate to the creation of goods and services through the
transformation of inputs to outputs is referred to as - Answer- operations management.
Questions with Complete
Solutions
What is a cause-and-effect diagram? - Answer- a brainstorming tool to identify process
elements that may affect an outcome
Which of the following is NOT a common TQM tool? - Answer- queuing models
Which of the following TQM tools would be best suited for determining the most
important problems? - Answer- Pareto chart
Attribute inspection measures - Answer- if the product is good or bad.
What are the two key questions for an operations manager in the inspection process? -
Answer- When to inspect? Where to inspect?
Which of the following is NOT one of the ten determinants of service quality? - Answer-
Convention
What is the purpose of Statistical Process Control (SPC)? - Answer- ensuring
processes meet standards
Which type of control chart should be used when it is possible to have more than one
mistake per item? - Answer- C-chart
What does it mean for a process to be "capable"? - Answer- The process output is
capable of meeting set specifications.
Supply chain management describes the coordination of all supply chain activities,
starting with _______ and ending with _______. - Answer- raw materials; satisfied
customers
What is transferring a firm's activities that have traditionally been internal to external
suppliers? - Answer- Outsourcing
What is developing the ability to produce goods or services previously purchased or
actually buying a supplier or a distributor? - Answer- vertical integration
Which of the following strategies is part collaboration, part purchasing from few
suppliers, and part vertical integration? - Answer- keiretsu networks
, Which of the following mitigation tactics could reduce economic risk? - Answer-
purchasing contracts that address price fluctuations
As orders are relayed from retailers, to distributors, to wholesalers, to manufacturers,
the fluctuations in order quantities increase at each step in the sequence. What is this
called? - Answer- bullwhip effect
A lawnmower assembly plant uses a variety of nuts, bolts, screws, and other fasteners
in its operation. Its supplier delivers these items directly to the point of use on the
assembly line and ensures that there are always sufficient quantities of fasteners to
maintain the production schedule. This is an example of... - Answer- vendor-managed
inventory.
Which of the following would NOT reduce the bullwhip effect? - Answer- Increase end-
of-quarter sales bonuses
What is the term for an approach that seeks efficiency of operations through the
integration of all material acquisition, movement, and storage activities? - Answer-
Logistics management
Which of the following remedies may reduce the bullwhip effect? - Answer- share
demand information throughout the supply chain
The objective of inventory management is to - Answer- strike a balance between
inventory investment and customer service.
Which of the following is NOT a type of inventory? - Answer- MRP
Which of the following is NOT a function of inventory? - Answer- To increase total
invested capital
When an inventory manager uses ABC analysis, which of the following will they
consider to be the most critical A item? - Answer- highest dollar-volume each year
Shrinkage is - Answer- retail inventory that is unaccounted for between receipt and sale.
Which of the following should a company include as part of an item's holding cost? -
Answer- investment costs, including taxes and insurance
The creation of goods and services is referred to as: - Answer- Production
The set of activities that relate to the creation of goods and services through the
transformation of inputs to outputs is referred to as - Answer- operations management.
