2026/2027 ACCURATE QUESTIONS WITH
CORRECT DETAILED ANSWERS ||
100% GUARANTEED PASS
<RECENT VERSION>
1. True/False: Operations managers are finding online auctions a fertile area
for disposing of discontinued inventory. - ANSWER ✔ True
2. True/False: The key to effective supply chain management is to get many
suppliers to compete with each other, in order to drive down prices. -
ANSWER ✔ False
3. True/False: Even though a firm may have a low cost strategy, supply chain
strategy can select suppliers primarily on response or differentiation. -
ANSWER ✔ False
4. True/False: The supply chain for a brewery would include raw ingredients
such as hops and barley but not the manufactured goods such as bottles and
cans. - ANSWER ✔ False
5. True/False: Supply chain management faces additional challenges, such as
those related to quality production and distribution systems, when
companies enter growing global markets. - ANSWER ✔ True
,6. True/False: McDonald's was able to utilize existing plants and transportation
systems in preparing the supply chain for opening its stores in Moscow. -
ANSWER ✔ False
7. True/False: When using the low-cost strategy for supply chain management,
the firm should invest aggressively to reduce production lead time. -
ANSWER ✔ False
8. True/False: Savings in the supply chain exert more leverage as the firm has a
lower net profit margin. - ANSWER ✔ True
9. True/False: A reduction in inventory costs is one reason for making rather
than buying. - ANSWER ✔ False
10.True/False: Outsourcing refers to transferring a firm's activities that have
traditionally been internal to external suppliers. - ANSWER ✔ True
11.The 5S's
a. have the "flavor" of a housekeeping list
b. are a checklist for lean operations
c. have become a list of seven items in American practice
d. can be used to assist with necessary changes in organizational culture
e. All of these are true. - ANSWER ✔ e. All of these are true.
12.The list of 5S's, although it looks like a housekeeping directive, supports
lean production by
a. identifying non-value items and removing them, in the
"sort/segregate" item
b. reducing inventory, in the "standardize" item
, c. increasing variability through standardized procedures, in the
"standardize" item
d. eliminating wasted motion through ergonomic studies, in the
"support" item
e. building good safety practices, in the "shine/sweep" item - ANSWER
✔ a. identifying non-value items and removing them, in the
"sort/segregate" item
13.In the quest for competitive advantage, which of the following is a JIT
requirement?
a. small number of job classifications
b. reduced number of vendors
c. reduced space for inventory
d. quality by suppliers
e. All of the above are JIT requirements. - ANSWER ✔ e. All of the
above are JIT requirements.
14.Which one of the following does not exemplify JIT used for competitive
advantage?
a. Acme Foods decides to decrease the number of its suppliers to just a
few.
b. Ajax, Inc. is proud to announce that incoming goods are delivered
directly to the point of use.
c. Ardoyne Builders has a scheduled preventive maintenance program.
d. Cheramie Trucking trains workers to specialize and become very
efficient in one job.
e. Cajun Contractors has reduced the amount of space for inventory. -
ANSWER ✔ d. Cheramie Trucking trains workers to specialize and
become very efficient in one job.
15.Which one of the following is not a requirement of JIT systems?
a. quality deliveries on time
b. low setup time
c. training support
, d. strong job specialization
e. employee empowerment - ANSWER ✔ d. strong job specialization
16.Great Lakes Barge and Baggage Company makes, among other things,
battery-operated bilge pumps. Which of the following activities is not part of
JIT? They
a. communicate their schedules to suppliers
b. produce in long production runs to reduce the impact of setup costs
c. use a pull system to move inventory
d. continuously work on reducing setup time
e. produce in small lots - ANSWER ✔ b. produce in long production
runs to reduce the impact of setup costs
17.Aggregate planning is capacity planning for... - ANSWER ✔ the
intermediate range (3 to 18 months)
18.What is one thing not needed for aggregate planning? - ANSWER ✔ a
mathematical model
19.Which of the following statements about aggregate planning is true?
a. advertising/promotin
b. work station loading..
c. overtime/idle time
d. aggregate planning uses the adjustable part of capacity to meet
production requirements
e. all of the above - ANSWER ✔ d. aggregate planning uses the
adjustable part of capacity to meet production requirements
20.Dependence on an external source of supply is found in which of the
following aggregate planning strategies? - ANSWER ✔ subcontracting