1.

Defined as the use of the Internet and the Web to transact business

o E-COMMERCE
o E-BUSINESS
o BOTH

2. Is a computer network in which some of the links between nodes are carried by open connections or
virtual circuits on the Internet instead of by physical wires?

o VNP
o VPN

3. What is the meaning of the answer in no. 2.

o VIRTUAL PRIVATE NETWORK

o VARIOUS NETWORK PERSON

4. Competitive pressures have led to an increasing number of new products, shorter product
development cycles, and increased demand for customization.

o COMPETITIVE PRESSURES
o INCREASING IMPORTANCE OF E-COMMERCE
o INCRESING GLOBALIZATION

5. Inventories play a major role in the success or failure of a supply chain, so it is important to coordinate
inventory levels throughout a supply chain.

o INCREASING IMPORTANCE TO E-COMMERCE

o THE NEED TO MANAGE INVENTORIES

6. During the last decade, many organizations adopted practices such as lean production and TQM.

o TRUE
o FALSE

7. Is the sequence of organizations-their facilities, functions, and activities that are involved in producing
and delivering a product or service?

o SUPPLY CHAIN
o DEMAND CHAIN

8. Is the sales and distribution portion of the value chain?

o SUPPLY CHAIN
 o DEMAND CHAIN

9. They are dynamic, and they have many inherent uncertainties that can adversely affect the supply
chain, such as inaccurate forecasts, late deliveries, substandard quality, equipment breakdowns, and
cancelled or changed orders.

o COMPLEXITY OF SUPPLY CHAINS

o INCREASING GLOBALIZATION

10. Increasing globalization has expanded the physical length of supply chains

o COMPLEXITY OF SUPPLY CHAIN

o INCREASING GLOBALIZATION

11. Also called safety inventory

o BUFFER INVENTORY
o CYCLE INVENTORY

12. Wherever an operation is designed to use a process layout the transformed resources move
intermittently between specialized areas or departments that comprise similar operations

o BUFFER INVENTORY
o DE COUPLING INVENTORY

13. It was used to compensate for differences in the timing of supply and demand.

o ANTICIPATION INVENTORY
o DE COUPLING INVENTORY

14. Exists because material cannot be transported instantaneously between the point of supply and the
point of demand.

o ANTICIPATION INVENTORY
o PIPELINE INVENTORY

15. Occurs because one or more stages in the process cannot supply all the items it produces
simultaneously.

o BUFFER INVENTORY
o CYCLE INVENTORY

16. ‘stock’ as it is more commonly called in some countries, is defined here as the stored accumulation
of material resources in a transformation system.

o INVENTORY
o SAMPLES
17. No matter what is being stored as inventory, or where it is positioned in the operation, it will be
there because there is a difference in the timing or rate of supply and demand.

o TRUE
o FALSE

18. Every time that an order is placed to replenish stock, a number of transactions are needed which
incur costs to the company.

o TRUE
o FALSE

19. These are the costs associated with physically storing the goods. Renting, heating and lighting the
warehouse, as well as insuring the inventory, can be expensive, especially when special conditions are
required such as low temperature or high security.

o STORAGE COST
o WORKING CAPITAL COST

20. Ratio of annual cost of goods sold to average inventory investment.

o RETURN OF INVESTMENT
o INVENTORY TURNOVER

21. Means any failure in the timing or quality of goods and services delivered into an operation.

o SUPPLY FAILURE
o INVENTORY FAILURE

22. Misjudgement, where a person should have done something different.

o MISTAKES
o ERRORS

23. Are acts which are clearly contrary to defined operating procedure?

o VIOLATION
o DESECRATION

24. Is usually taken to mean failures of procedures and processes and failures that derive from a
business’s organizational structure and culture.

o ORGANIZATIONAL FAILURE
o CULTURE FAILURE

25. Design stage, a product or service might look fine on paper; only when it has to cope with real
circumstances might inadequacies become evident.
 o PRODUCT FAILURE
o PRODUCT/SERVICE DESIGN FAILURE

26. Customers may ‘fail’ in that they misuse products and services.

o ORGANIZATIONAL FAILURE
o CUSTOMERS FAILURE

27. Disruption includes all the causes of failure that lie outside of an operation’s direct influence.

o ENVIRONMENTAL DISRUPTION
o ENVIRONMENTAL DESCRATION

28. In parallel with considering how to prevent failures occurring, operations managers need to decide
what they will do when failures do occur.

o FAILURE RECOVERY
o BANKRUPTCY RECOVERY

29. Identifying how organizations can recover from failure is of particular interest to service operations
because they can turn failures around to minimize the effect on customers or even to turn failure into a
positive experience.

o CONTROL PLANNING
o FAILURE PLANNING

30. Failure prevention and recovery are incorporated in the growing field

o FAILURE PLANNING
o BUSINESS CONTINUITY

Enumeration

38-40 MAJOR ISSUES AFFECTING SUPPLY CHAIN MANAGEMENT

38. INFORMATION TECHNOLOGY

39. E-COMMERCE
40. BUSINESS-TO-BUSINESS E-COMMERCE
31-37 SEVERAL TYPES OF COST ARE DIRECTLY ASSOCIATED WITH ORDER SIZE

31. COST OF PLACING THE ORDER

32. PRICE DISCOUNT COSTS
33. STOCK-OUT COSTS
34. WORKING CAPITAL COSTS
35. STORAGE COSTS
36. OBSOLESCENCE COSTS
37. OPERATING INEFFICIENCY COSTS