MCQ: Unit-1: introduction to Operations and Supply Chain management

1."Quality is defined by the customer" is

An unrealistic definition of quality

A user-based definition of quality
A manufacturing-based definition of quality
A product-based definition of quality
2. According to the manufacturing-based definition of quality
quality is the degree of excellence at an acceptable price and the control of variability at
an acceptable cost
quality depends on how well the product fits patterns of consumer preferences
even though quality cannot be defined, you know what it is
quality is the degree to which a specific product conforms to standards
3. The supply chain concept originated in what discipline?
a)
b)
c)
d)

marketing
operations
logistics
production

4. Zero defects in manufacturing is

a.
b.
c.
d.

is a relevant goal only in electronic assembly

is readily achievable in all areas
is the goal of TQM
is an unobtainable and misleading idea

5. The supply chain management philosophy emerged in which decade?

1960s
1970s
1980s
1990s
6. A ____________ encompasses all activities associated with the flow and transformation of
goods from the raw material stage, through to the end user, as well as the associated information
flows.
production line
supply chain
marketing channel
warehouse

7. Which one of the following is not a typical question dealt with by an operations managers?
How much capacity will be needed in the months ahead?
What is a satisfactory location for a new facility?
How to motivate employees?
All are typical of operations decisions.
8. Which of the following are not key attributes of supply chain management?
inventory control
leveraging technology
customer power
all are key attributes
9. Positive, long-term relationships between supply chain participants refer to:
Co-opetitions
tailored logistics
partnerships
supply chain management
10. Which one of the following best represents a pure good?
Soap
Fast food
Attending a play
Vehicle repair
11. Which of the following statements is true of LEAN?
Lean principles focus on advanced statistical methods
Lean principles are separate body of knowledge
Lean principles have been developed over a lengthy period of time.
Lean principles include reducing waste.
12. The bullwhip effect:
is an ineffective way to motivate warehouse employees
applies to rodeos and has nothing to do with supply chain management
refers to the swaying motion associated with triple trailers
Refers to variability in demand orders among supply chain participants.

13. According to the manufacturing-based definition of quality

"quality is the degree of excellence at an acceptable price and the control of variability at
an acceptable cost"
quality depends on how well the product fits patterns of consumer preferences
even though quality cannot be defined, you know what it is
quality is the degree to which a specific product conforms to standards
14. The variability in demand orders among supply chain participants:
cannot be controlled
refers to the bullwhip effect
can be controlled with electronic order placement
is more pronounced in relational exchanges
16. Cooperative supply chain relationships developed to enhance the overall business
performance of both parties is a definition of:
third-party logistics
supply chain collaboration
dovetailing
relationship marketing
17. Process improvement technique that sorts the "vital few" from the "trivial many" is
Taguchi analysis
Pareto analysis
benchmarking
Yamaguchi analysis
18. A fishbone diagram is also known as a
cause-and-effect diagram
poka-yoke diagram
Kaizen diagram
Taguchi diagram
19. Which of the following functions is not a core function of an organisation?
The Product/Service Dev.Function
The Operations Function
The Marketing ( Including Sales ) Function
The accounting and finance function

20. What is a perfect order?

simultaneous achievement of relevant customer metrics
an order that arrives on time
an order that arrives undamaged
an order that is easy for the receiver to fill
21. Total Quality Management emphasizes
the responsibility of the Quality Control staff to identify and solve all quality-related
problems
A commitment to quality that goes beyond internal company issues to suppliers and
customers
A system where strong managers are the only decision makers
A process where mostly statisticians get involved
22. "Quality is defined by the customer" is
an unrealistic definition of quality
a user-based definition of quality
a manufacturing-based definition of quality
a product-based definition of quality
the definition proposed by the American Society for Quality Control
23. Which of the following is not one of the major categories of costs associated with quality?
prevention costs
appraisal costs
internal failures
none of the above, they are all major categories of costs associated with quality
24. According to the manufacturing-based definition of quality,
quality is the degree of excellence at an acceptable price and the control of variability
at an acceptable cost
quality depends on how well the product fits patterns of consumer preferences
even though quality cannot be defined, you know what it is
quality is the degree to which a specific product conforms to standards
25. An important feature of supply chain management is its application of electronic commerce
technology that allows companies to share and operate systems for:
Order processing, transportation scheduling, and inventory management
cost-effective flowing of raw materials
future purchasing of computer systems
future merger opportunities
26. Lean production involves

Elimination of cost only

Improvement of quality only
Improvement of speed only
Elimination of all types of waste

27. All of the following costs are likely to decrease as a result of better quality except
customer dissatisfaction costs
maintenance costs
scrap costs
warranty and service costs
28. Inspection, scrap, and repair are examples of
internal costs
external costs
costs of dissatisfaction
societal costs
29. Which of the following activities is not a direct responsibility of operations management?
Determining the exact mix of products and services that the customers will want
Designing the operation's products,services and processes
Developing an operations strategy for the operations
Planning and controlling the operation
30. Total Quality Management emphasizes
the responsibility of the Quality Control staff to identify and solve all quality-related
problems
a commitment to quality that goes beyond internal company issues to suppliers
and customers
a system where strong managers are the only decision makers
a process where mostly statisticians get involved
31. A successful TQM program incorporates all of the following except
continuous improvement
employment involvement
benchmarking
centralized decision making authority

32. Which of the following would not be normally considered as a key feature of Operations
Management?

Operations is the part of an organisation which creates wealth through the management of
the transformation process
World class Operations can give an organisation competitive advantage
Most new technology is implemented in Operations areas
Operations is the area of a business where most people work

33. "Kaizen" is a Japanese term meaning

a foolproof mechanism
Just-in-time (JIT)
a fishbone diagram
continuous improvement
34. Costs of dissatisfaction, repair costs, and warranty costs are elements of cost in the
Taguchi Loss Function
Pareto Chart
ISO 9000 Quality Cost Calculator
Process Chart
35. A quality loss function utilizes all of the following costs except
the cost of scrap and repair
the cost of customer dissatisfaction
inspection, warranty, and service costs
sales costs
costs to society
36. Which of the following is the least likely decision to be made by Operations Managers?
Selecting the location and layout of a facility
Deciding which market areas to manufacture products for
How much capacity is required to balance demand
Designing and improving the jobs of the workforce
37. Pareto charts are used to
identify inspection points in a process
outline production schedules
organize errors, problems or defects
show material flow

38. Among the tools of TQM, the tool ordinarily used to aid in understanding the sequence of
events through which a product travels is a

Pareto chart
Flow chart
check sheet
Taguchi map
39. Which one of the following would not generally be considered an aspect of operations
management?
Work methods
Secure financial resources
Maintain quality
Product or service design
40. Which one of the following is not a typical question dealt with by an operations managers?
How much capacity will be needed in the months ahead?
What is a satisfactory location for a new facility?
How to motivate employees?
All are typical of operations decisions.
41. A worker operates a shear press. She notices that the metal sheets she is cutting have curled
edges. Who should get the first "shot" at solving the problem?
the foreman
a member of the Quality Control department
the operator herself
the employee's supervisor
42. Which of the following is not a key activity of an operations manager?
Understanding the needs of customer
Continually learning
Managing cash flows
Exploiting technology to produce goods and services
43. A recent consumer survey conducted for a car dealership indicates that, when buying a car,
customers are primarily concerned with the salesperson's ability to explain the car's features, the
salesperson's friendliness, and the dealer's honesty. The dealership should be especially
concerned with which dimensions of service quality?
communication, courtesy, and credibility
competence, courtesy, and security
competence, responsiveness, and reliability
communication, responsiveness, and reliability
44. Which one of the following best represents a pure service?
Bank loans

Computer diagnosis and repair

Attending a theatre play
Fast food restaurant
45. Which one of the following best represents a pure good?
Salt
Fast food
Attending a play
Vehicle repair
46. Which one of the following would not generally be considered an aspect of operations
management?
Schedule work
Secure financial resources
Maintain quality
Oversee the transformation process
47. Which one of these was not mentioned in the list of recent trends in operations management?
Total quality management
Worker involvement
Global competition.
Automation.
48. Which came last in the development of manufacturing techniques?
Lean production.
Division of labor.
Mass production.
Craft production.
49. Which function typically employs more people than any other functional area?
Information System
Operations
Marketing
Finance

50. Which of the following is not a type of operations?

Goods production
storage/transportation
entertainment
price reduction
51. Which of the following is not true about a lean production system?
It puts emphasis on quality, flexibility, and time reduction.
It puts emphasis on reducing a company's labor force.
It is involved in maintaining and improving the system with lower amounts of
inventory.
It relies on buffers against unforeseen occurrences.
52. The inputs to a transformation process include all of the following except
Material
People
Information
Assembly
53. ____ is an example of a pure good.
Restaurant
Dentist
Coal Mining
Education
54. Which one of the following is not a typical question dealt with by an operations manager?
How much capacity will be needed in the months ahead?
What is a satisfactory location for a new facility?
Which products/services should be offered?
All are typical of operations decisions.
55. Which one does not use operations management?
A CPA firm.
A bank.
A hospital
They all use it.

56.Zero defects in manufacturing

is an unobtainable and misleading ideal

is the goal of TQM

is readily achievable in all areas
is a relevant goal only in electronic assembly
57. Which one is not generally considered an advantage of using models for decision-making?
Providing a systematic approach to problem solving.
Emphasizing quantitative information.
Providing an exact representation of reality.
Requiring users to be specific about objectives.
58. Quality is conformance to specifications-This definition of quality is from point of view of
Customer
Manufacturer
Quality Circle Forum
TQM
59. Which came last in the development of manufacturing techniques?
Lean production.
Division of labor.
Mass production.
Interchangeable parts.
60. The goal of Total Quality Management is:
Customer satisfaction
Product differentiation
Brand equity
Acting globally
61. Which of the following is not a typical supply chain member?
Retailers Creditor
Wholesaler
Producer
Customer
62. Quality is both quantitative and
Supportive
Qualitative
Measurable
Conclusive
63. When suppliers, distributors, and customers partner with each other to improve the
performance of the entire system, they are participating in a ________

Channel Of Distribution
Value Delivery Network
Supply Chain
Supply And Demand Chain
64. A company's channel decisions directly affect every ________.
customer's choices
employee in the channel
channel member
Marketing decision.
65. From the economic system's point of view, the role of marketing intermediaries is to
transform the assortment of products made by producers into the assortment of products wanted
by ________ Channel members.
manufacturers
marketers
distributors
consumers
66. Intermediaries play an important role in matching ________.
dealer with customer
manufacturer to product
information and promotion
supply and demand
67. Marketing logistics involves getting the right product to the right customer in the right place
at the right time. Which one of the following is not included in this process?
implementing the plan for the flow of goods and services
planning the physical flow of goods and services
controlling the physical flow of goods, services, and information
gathering customer's ideas for new products

68. Raw materials and specialised services procured are converted into useful service offerings
and finaly distributed to customers in following Industry
Hotel
Cement
Sugar
Refinery

69. Which of the following is not an area of responsibility for a logistics manager?

inventory
purchasing
warehousing
marketing
70. To reduce inventory management costs, many companies use a system called ________,
which involves carrying only small inventories of parts or merchandise, often only enough for a
few days of operation.
reduction-inventory management
supply chain management
economic order quantity
just-in-time logistics
limited inventory logistics
71. A Supply Chain includes the chain of entities involved in the
planning,procurement,production and ------------- of products and services
Distribution
Supply
Demand
Transport
72. In a SC,Material flows in one direction while _________from in both direction
Process
Information
Product
Semifinished Goods
73. Companies manage their supply chains through ________.
information
transportation modes
competitors
the Internet
skilled operators
74. Julie Newmar recognizes that her company needs to provide better customer service and trim
distribution costs through teamwork, both inside the company and among all the marketing
channel organizations. Julie will begin the practice of ________.
intermediation
customer relationship management
supply chain management
horizontal marketing system management
75. There are four generic processes involved in any SCM-Planning for operations,Sourcing
decisions,Manufacturing related activities and

Purchase
Inventory
Information
Distribution
76. Lean production involves
Improvement of speed only
Improvement of quality only
Elimination of all types of waste
Elimination of cost only
77. Today, a growing number of firms now outsource some or all of their logistics to ________
intermediaries.
competitors
third-party logistics providers
channel members
cross-functional teams
78. Most operations produce a mixture of both products and services. Which of the following
businesses are closest to producing pure services?
Counsellor/Therapist
Restaurant
IT company
Steel company
79. If a sample of parts is measured and the mean of the measurements is outside the control
limits the process is
in control, but not capable of producing within the established control limits
out of control and the process should be investigated for assignable variation
within the established control limits with only natural causes of variation
monitored closely to see if the next sample mean will also fall outside the control
limits
80. A quality circle holds a brainstorming session and attempts to identify the factors responsible
for flaws in a product. Which tool do you suggest they use to organize their findings?
Ishikawa diagram
Pareto chart
process chart
control charts
81. When a sample measurement falls inside the control limits, it means that
each unit manufactured is good enough to sell

the process limits cannot be determined statistically

the process output exceeds the requirements
if there is no other pattern in the samples, the process is in control
82. Which of the following statements is true of LEAN?
Lean principles focus on advanced statistical methods
Lean principles are separate body of knowledge
Lean principles have been developed over a lengthy period of time.
Lean principles include reducing waste.
83. Which one does not use operations management?
Supermarket
Bank
Hospital
They all use it.
84. The trend in organizations is to place the SCM function:
Under the manufacturing function
Under the finance function
Under the engineering function
At the same level as the other major functions
85. Which of the following is NOT a factor affecting the supply chain?
Reduced number of suppliers
Increased competition
Longer product life cycles
Increased opportunities to strategically use technology
86. If two potential suppliers can deliver a part with the same quality and prices, the selection
should be based on:
Age of the firms
A coin flip
Outside evaluation
The capabilities and flexibilities of the firms

87. Just-in-time/SCM purchasing requires the following condition:

Many suppliers
Short-term contracts
Cooperation between purchasing and suppliers
Continuous competitive bidding
88. The amount of inventory kept at each stock point in a warehouse network is usually based
on:
Minimizing transportation costs
Constant demand
Tradeoffs between warehousing, inventory, and transportation costs
Product pricing strategy

89. Which of the following is true regarding control charts?

Values above the upper and lower control limits indicate points out of adjustment.
Control charts are built so that new data can be quickly compared to past performance
data.
Control charts graphically present data.
All of the above are true.
90. The goal of inspection is to
detect a bad process immediately
add value to a product or service
correct deficiencies in products
correct system deficiencies
91. Which of the following is not a typical inspection point?
upon receipt of goods from your supplier
during the production process
before the product is shipped to the customer
at the supplier's plant while the supplier is producing
after a costly process
92. What name is often given to the Japanese total approach to removing anything that does not
add value to the final product?
Jobbing processes
Lean production processes
Continuous processes.
Batch processes.
93. Lean production involves
Improvement of quality only

Elimination of cost only

Elimination of all types of waste
Improvement of speed only
94. The most common form of quality control includes:
Planning
Organizing
Inspection
Directing
95. Which of the following is not a typical supply chain member?
Retailers creditor
wholesaler
reseller
producer
96. According to the manufacturing-based definition of quality
a. "quality is the degree of excellence at an acceptable price and the control of variability at
an
acceptable cost"
b. quality depends on how well the product fits patterns of consumer preferences
c. even though quality cannot be defined, you know what it is
d. quality is the degree to which a specific product conforms to standards
97. TQM refers to
a.
b.
c.
d.

total quantity management

total quality management
total quality marketing
total quotient management

98. When suppliers, distributors, and customers collaborate with each other to improve the
performance of the entire system, they are participating in a ________
a)
b)
c)
d)

channel of distribution
value delivery network
supply chain
supply and demand chain

99. A company's channel decisions directly affect every ________.

a)
b)
c)
d)

customer's choices
employee in the channel
channel member
competitor's actions

100. A supply chain is a sequence of firms that perform activities required:

a.
b.
c.
d.

to find products that are similar

to facilitate wholesalers inventory selections
to create synergy in their training programs
to create and deliver goods to consumers

101. A supply chain is essentially a sequence of linked:

a.
b.
c.
d.

customer and prospects

supplier and manufacturer
suppliers and customers
warehousing and wholesaling units

102. From the economic system's point of view, the role of marketing intermediaries is to
transform the assortment of products made by producers into the assortment of products wanted
by ________Channel members.
a)
b)
c)
d)

manufacturers
marketers
distributors
consumers

103. Intermediaries play an important role in matching ________.

a)
b)
c)
d)

dealer with customer

manufacturer to product
information and promotion
supply and demand

104. Marketing logistics involves getting the right product to the right customer in the right place
at the right time. Which one of the following is not included in this process?
a)
b)
c)
d)

implementing the plan for the flow of goods and services

planning the physical flow of goods and services
controlling the physical flow of goods, services, and information
gathering customer's ideas for new products

105. A supply chain is a sequence of firms that perform activities required:

e.
f.
g.
h.

to find products that are similar

to facilitate wholesalers inventory selections
to create synergy in their training programs
to create and deliver goods to consumers

106. A supply chain is essentially a sequence of linked:

e.
f.
g.
h.

customer and prospects

supplier and manufacturer
suppliers and customers
warehousing and wholesaling units

107. Which of the following is not an area of responsibility for a logistics manager?
a)
b)
c)
d)

inventory
purchasing
warehousing
marketing

108. To reduce inventory management costs, many companies use a system called ________,
which involves carrying only small inventories of parts or merchandise, often only enough for a
few days of operation.
a)
b)
c)
d)

reduction-inventory management
supply chain management
economic order quantity
just-in-time logistics

109. Companies manage their supply chains through ________.

a)
b)
c)
d)

information
transportation modes
competitors
the Internet

110. Julie Newmar recognizes that her company needs to provide better customer service and
trim distribution costs through teamwork, both inside the company and among all the marketing
channel organizations. Julie will begin the practice of ________.
a)
b)
c)
d)

intermediation
customer relationship management
integrated logistics management
supply chain management

111. Today, a growing number of firms now outsource some or all of their logistics to ________
intermediaries
a)
b)
c)
d)

competitors
third-party logistics providers
channel members
cross-functional teams

112. Supply chain concept originated in what discipline?

a)
b)
c)
d)

marketing
operations
logistics
production

113. A restaurant is an example of a

a.
b.
c.
d.

major service with accompanying goods and services

hybrid
pure service
pure tangible good

114. The supply chain management philosophy emerged in which decade?

a)
b)
c)
d)

1960s
1970s
1980s
1990s

115. A ____________ encompasses all activities associated with the flow and transformation of
goods from the raw material stage, through to the end user, as well as the associated information
flows.
a)
b)
c)
d)

production line
supply chain
marketing channel
warehouse

116. Which of the following are not key attributes of supply chain management?
a)
b)
c)
d)

inventory control
leveraging technology
c. customer power
all are key attributes

117. Positive, long-term relationships between supply chain participants refer to:
a)
b)
c)
d)

co-opetitions
tailored logistics
partnerships
supply chain management

118. The bullwhip effect:

a)
b)
c)
d)

is an ineffective way to motivate warehouse employees

applies to rodeos and has nothing to do with supply chain management
refers to the swaying motion associated with triple trailers
refers to variability in demand orders among supply chain participants.

119. The variability in demand orders among supply chain participants:

a)
b)
c)
d)

cannot be controlled
refers to the bullwhip effect
can be controlled with electronic order placement
is more pronounced in relational exchanges

120. Cooperative supply chain relationships developed to enhance the overall business
performance of both parties is a definition of:
a)
b)
c)
d)

third-party logistics
supply chain collaboration
dovetailing
relationship marketing

121. What is a perfect order?

a)
b)
c)
d)

simultaneous achievement of relevant customer metrics

an order that arrives on time
an order that arrives undamaged
an order that is easy for the receiver to fill

122. Which of the following is NOT a reason that companies are depending more on their
suppliers?
a)
b)
c)
d)

More focus on core competencies

Need for more flexibilities
Desire to share risks
More control over their suppliers

123. Which of the following is NOT a benefit of SCM Purchasing?

a)
b)
c)
d)

Consistent quality
Savings on resources
Lower costs
Less dependence on suppliers

124. What term describes a vertical expansion of job duties in order to give the worker more
responsibility?
a)
b)
c)
d)

Job enlargement
Job rotation
Job enrichment
Job design

125. What are the two basic types of production systems?

a)
b)
c)
d)

Automated and manual

Intermittent and non-intermittent process
Normal and continuous process
Continuous process and batch

126. What type of process would a paper mill be most likely to use?
a)
b)
c)
d)

Continuous flow
Project
Job shop
Flow shop

127. What technique deals with the problem of supplying sufficient facilities to production lines
or individuals that require uneven service?
a)
b)
c)
d)

Supply-demand theory
PERT
Inventory theory
Queuing theory

128. A manufacturer has been receiving excessive numbers of defective standard machine parts
from a vendor on a regular basis. What is the most effective way to design a formal inspection
system for incoming parts?
a)
b)
c)
d)

Queuing analysis
Time series analysis
Statistical quality control
Regression analysis

129. A set of simultaneous equations that has more variables than constraints has

a)
b)
c)
d)

no solution
an infinite number of solutions
a finite solution
an infinite solution

130. In a PERT/CPM network, computing the critical path requires

a) determining the total project duration
b) assigning the earliest finish time for an activity as the earliest start time for the
next
c) that the latest finishing time for an activity not delay the overall project beyond initial
expectation
d) a sophisticated and complex computer program
131. At the completion of the forward and backward passes, the slack for an activity is given by
the
a)
b)
c)
d)

difference between early start and early finish

difference between early start and latest finish
difference between latest start and early finish
amount of idle labor on the critical path