Operations Management and Supply Chain: Key Concepts and Common Misconceptions

1. Which of the following statements is incorrect?

E — Cross-functional decision making should not be done without input from all affected departments.

2. The student notes listed many types of operations managers which was not included?

D — Accounting Partners

3. Which of the following statements is incorrect?

A — Raw material outputs are transformed into inputs.

4. Which was not listed as one of the four major operational decision responsibilities?

B — Quantity

5. Which of the following statements is incorrect?

B — Capacity is the minimum amount that can be transformed in a given period of time.

6. Which of the following statements is incorrect?

B — Design greatly affects operations because existing processes and products can constrain the technology available for new products.

7. Which of the following statements is incorrect?

A — In the sequential process Engineering works with customers with little or no input from Marketing or Operations.

8. Which of the following statements is incorrect?

E — During pilot production/testing prototypes are made to identify foreseen problems with manufacturing.

9. Which type of misalignment was not identified in the notes?

B — Inventory control problems with dissimilar-looking parts

10. Regarding supply chain collaboration which statement is incorrect?

C — Working with all suppliers to enhance their product design

11. Regarding QFD which statement is incorrect?

B — Quality function development is a tool for linking customer needs to Engineering drawings and specifications.

12. Which of the following statements is incorrect?

A — DFM stands for Design for Marketability.

13. Which of the following statements is incorrect?

B — A product is intangible while a service is not.

14. Which of the following statements is incorrect?

D — The service-product bundle elements are the tangible service the tangible or psychological benefits and the physical goods.

15. Which process component was not listed in the notes?

D — The ambivalence of the service environment

16. Which of the following statements is incorrect?

A — Service recovery must be swift and appropriate in the supplier's eyes.

17. Regarding customer-introduced variability which statement is incorrect?

C — Capacity variability refers to the uncertainty in the ability of customers to participate in a service.

18. Which of the following statements is incorrect?

A — High-contact services can be separated into service creation and consumption/delivery portions.

19. Which of the following statements is incorrect?

B — Standard queuing models assume unlimited waiting space and there is a maximum line length.

20. Which of the following statements is incorrect?

A — An M/M/2 queuing system has three servers.

21. Which of the following statements is incorrect?

B — Value can be created by operations and supply chains that are more productive than customers.

22. Which of the following statements is incorrect?

D — Objectives constitute a restatement of the mission in qualitative and measurable terms.

23. Which operational objective statement is incorrect?

B — Cost objectives are often best achieved by focusing on supplier requirements.

24. Which operational objective statement is incorrect?

A — Flexibility objectives focus on increasing changeover time and longer production runs.

25. Which of the following statements is incorrect?

B — The flaw in maximizing shareholder value is the ability to motivate the workforce.

26. Which was not identified as a means for gaining competitive advantage through operations?

C — Having the ability to serve a new market after competitors

27. Which of the following statements is incorrect?

D — A supply chain strategy should give serious consideration to a domestic focus.

28. Which of the following statements is incorrect?

A — An imitative-product supply chain strategy should emphasize low utilization of equipment.

29. Which of the following statements is incorrect?

B — Supply chain flows downstream toward suppliers and upstream toward customers.

30. Which was not listed as a common type of environmental and sustainable operations initiative?

C — Measure and maximize transportation and total carbon footprint

31. Which of the following statements is incorrect?

B — SCM must be loosely integrated.

32. Regarding the Purchasing function which statement is incorrect?

B — Purchasing needs specifications and drawings that implicitly describe the input to be acquired.

33. Which was not identified in the notes as a global sourcing concern?

E — Ordering lead time

34. Which of the following statements is incorrect?

C — Purchasing is typically not involved in determining the degree of supplier involvement in design.

35. Which of the following statements is incorrect?

A — Each company can determine its own performance measures as long as it sub-optimizes overall supply chain performance.

36. Which of the following statements is incorrect?

E — Unit cost is total manufacturing cost divided by the number of units produced.

37. Which of the following statements is incorrect?

D — Supply chain structure is frequently short-range in nature and requires considerable capital.

38. Which was not identified as a type of supply chain structural improvement?

D — Pursuing major product redesign

39. Which was not listed as a shortcoming of vertical integration?

C — Under-reliance on internal supplier

40. Which of the following statements is incorrect?

C — A supply chain infrastructure improvement would involve lengthening supply chain lead times.