Operations and Supply Chain Management (C720)

Operations and Supply Chain Management (C720)

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Free Operations and Supply Chain Management (C720) Questions

1.

Segmentation involves classifying customers based on their importance. Which tools are used to classify customers

  • ABC classification (Pareto's Law)

  • Customer profitability analysis

  • Balanced investment strategy

  • Customer loyalty program

  • None of the above
  • Only A and B

Explanation

Correct Answer F: Only A and B

Explanation:

ABC classification (Pareto's Law) is used to prioritize customers based on their value to the business, while customer profitability analysis helps identify profitable customers by evaluating the cost of serving them. These tools are key for classifying customers according to their importance.

Why other options are wrong:

C) Balanced investment strategy: This focuses on managing investments, not classifying customers.

D) Customer loyalty program: While useful for customer retention, it is not specifically a tool for classifying customers.

E) None of the above: This option is incorrect since ABC classification and customer profitability analysis are valid tools for classification.


2.

The SCOR model addresses these functions in a supply chain

  • Plan, source, make, deliver, return, and enable

  • Supply, create, operate, return, and enable

  • Source, complement, order, return, and enable

Explanation

Correct Answer A: Plan, source, make, deliver, return, and enable

Explanation:

The SCOR (Supply Chain Operations Reference) model is a framework used for improving supply chain performance. It defines six key functions:

Plan: Strategy development for supply and demand management

Source: Procurement of raw materials and components

Make: Manufacturing and production processes

Deliver: Logistics and distribution of goods

Return: Handling product returns and reverse logistics

Enable: Managing resources, performance, and compliance

Why other options are wrong:

B) Supply, create, operate, return, and enable: The SCOR model does not use "supply," "create," or "operate" as its core functions. These terms do not fully align with the SCOR framework.

C) Source, complement, order, return, and enable: "Complement" and "order" are not standard SCOR components. The SCOR model specifically includes "plan," "make," and "deliver" instead.


3.

A sporting goods store relies on a periodic system to manage its inventory of sellable products. What is a disadvantage of this type of inventory system?

  • A need for physical counting to determine exact inventory

  • A need for the technology to manage inventory bar codes

  • A significant initial investment of financial capital

  • A costly plan of regular system maintenance and updates

Explanation

Explanation
A key disadvantage of a periodic inventory system is the need for physical counting at the end of each period to determine the exact inventory levels. Unlike perpetual systems, it does not track inventory in real time, which can lead to inaccuracies or delays in replenishment. Technology requirements, high initial costs, and maintenance are more associated with perpetual systems rather than periodic systems.
Correct answer:
A need for physical counting to determine exact inventory
4.

Which of the following metrics is primarily used to assess the efficiency of a production process in terms of the time taken from the start to the completion of a task

  • Employee skills

  • Cycle time

  • Core technology

  • Quality

Explanation

Correct Answer B: Cycle time

Explanation:

Cycle time is the key metric used to measure the efficiency of a production process by calculating the time taken from the start to the completion of a task or production cycle. A shorter cycle time typically indicates greater production efficiency.

Why other options are wrong:

A) Employee skills: While employee skills are important, they do not directly measure the time efficiency of a production process.

C) Core technology: Core technology refers to the underlying tools and systems, but does not directly measure time efficiency in production.

D) Quality: Quality focuses on the correctness of the output, but does not directly measure the time taken in the process.


5.

A medical facility calls patients after they have been treated to determine their level of satisfaction. Which cost of quality does this scenario illustrate?

  • External failure costs
  • Prevention costs
  • Appraisal costs
  • Internal failure costs

Explanation

Explanation
Costs of quality are commonly categorized into prevention, appraisal, internal failure, and external failure costs. Appraisal costs are associated with activities used to measure, evaluate, or assess products and services to ensure they meet quality standards. These activities often include inspections, testing, and customer satisfaction surveys.

In this scenario, the medical facility contacts patients after treatment to evaluate their satisfaction with the service they received. This process is a way of assessing the quality of care provided. It is not preventing defects beforehand (prevention), nor correcting defects found before delivery (internal failure), nor addressing problems after customers have experienced failures (external failure). Instead, it focuses on evaluating the quality of the service delivered.
Correct answer
Appraisal costs
6.

Which term refers to a result of a product's demand exceeding expected values?

  • Lead time
  • Safety stock
  • Order point
  • Stockout

Explanation

Explanation
A stockout occurs when inventory levels are insufficient to meet demand, often because demand exceeds expectations. Lead time is the time between ordering and receiving inventory, safety stock is extra inventory held to prevent stockouts, and order point is the inventory level at which a new order should be placed.
Correct answer:
Stockout
7.

A company is transitioning to a system of reduced inventory. What is a benefit of this lean strategy?

  • Reduced costs
  • Improved product quality
  • Faster time to market
  • Reduced taxation

Explanation

Explanation
Reducing inventory is a key principle of lean methodology, aimed at minimizing waste and improving efficiency. By holding less inventory, a company reduces costs associated with storage, obsolescence, and capital tied up in unsold goods. While quality and speed may also improve indirectly, the primary and most direct benefit of this strategy is cost reduction.
Correct answer:
Reduced costs
8.

A manufacturing company is reworking its operations with a greater emphasis on social sustainability. Which action should the manufacturing company take to address this form of sustainability?

  • Use standard accounting practices

  • Enhance collaboration among departments

  • Prioritize practices for long-term savings

  • Enhance worker safety measures

Explanation

Explanation
Social sustainability focuses on the well-being and safety of people involved in or affected by operations. By enhancing worker safety measures, the company demonstrates a commitment to protecting employees, promoting fair labor practices, and fostering a responsible workplace culture. While long-term savings and departmental collaboration may support efficiency, they do not directly address social sustainability.
Correct answer:
Enhance worker safety measures
9.

A restaurant always has plenty of staff working during the evening in order to ensure that each of the many expected customers is served promptly. Which scheduling strategy is described?

  • Scheduling for chase demand
  • Appointment scheduling
  • Reservation scheduling
  • Consumer self-service

Explanation

Explanation
Scheduling for chase demand involves adjusting staffing or production levels to match fluctuations in customer demand. In this case, the restaurant increases staff during busy evening hours to meet the expected high customer volume, ensuring service efficiency and minimizing wait times. This approach contrasts with fixed schedules or reservation-based planning, where staffing is set independently of demand patterns.
Correct answer:
Scheduling for chase demand
10.

Which of the following best describes the concept of time utility in supply chain management

  • The ability to provide products at the right time to meet customer demand

  • The process of reducing costs in the supply chain

  • The assessment of product quality by the seller

  • The method of enhancing product features to increase value

Explanation

Correct Answer A: The ability to provide products at the right time to meet customer demand

Explanation:

Time utility refers to the value added by ensuring that products are available when customers need them. Effective supply chain management ensures timely delivery, reducing delays and improving customer satisfaction.

Why other options are wrong:

B) The process of reducing costs in the supply chain: Cost reduction is important in supply chain management, but it is not related to time utility, which focuses on timely availability.

C) The assessment of product quality by the seller: Quality assessment is part of quality control, not time utility. Time utility is about meeting demand schedules.

D) The method of enhancing product features to increase value: Enhancing product features relates to form utility, not time utility, which is focused on delivery timing.


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Frequently Asked Question

The course covers essential topics in operations and supply chain management, including inventory management, supplier relationships, process improvement, demand forecasting, and supply chain strategies.

The practice questions on ulosca.com are designed to reinforce your understanding of key concepts and help you prepare for exams by testing your knowledge with real-world scenarios.

Our study pack includes 150+ practice questions that are specifically tailored to the content of the course, ensuring comprehensive preparation for your exam.

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We continuously update and refine our practice questions to reflect the latest trends in operations and supply chain management. New questions are added regularly to ensure comprehensive coverage.