DAO2703
Practice Questions
(on JIT/Lean, TOC, Strategic Opns & SCM)
(Solutions will be posted in Week 12)
Sem2 AY22/23
1. The four building blocks of lean operations are: product design, process design,
personnel/organizational elements, and manufacturing planning and control.
A. True
B. False
2. The small lot-sizing policy works well in a situation where both holding costs and
setup costs are high.
A. True
B. False
3. Every business organization is part of at least one supply chain.
A. True
B. False
4. Global supply chains make purchasing easier because there are more options.
A. True
B. False
5. The operational measure of throughput is "the rate at which money is generated by the
system through production of goods and services that might be sold."
A. True
B. False
6. In lean operations, a responsibility of the worker is to check the quality of their work.
A. True
B. False
7. Lean purchasing requires frequent contract bidding by multiple sources to ensure the
buyer of competitive prices.
A. True
B. False
8. Buffer inventory in front of a bottleneck is called a time buffer.
A. True
B. False
9. Which of the following is not something commonly found in lean systems?
(I) Waste reduction
(II) Output match to a detailed forecast
(III) Visual controls
(IV) Quick changeovers
(V) Long production runs
A. both I and V
B. both II and V
C. both II and IV
D. both IV and V
E. both III and V
10. According to the theory of constraints, which of the following is an operational
measurement that can be used to measure the firm's ability to make money?
A. Net profit
B. Throughput
C. Return on investment
D. Sales
E. Direct labour hours
11. The four elements that form the heart of operations strategy include
A. mission, distinctive competence, objectives, and internal analysis.
B. mission, distinctive competence, internal analysis, and external analysis.
C. mission, objectives, internal analysis, and external analysis.
D. mission, distinctive competence, objectives, and strategic decisions.
E. none of the above.
12. In the product imitator strategy, the order winner is _____ for the customer, whereas
in the product innovator strategy, the order winner is ______.
A. flexibility, price
B. flexibility, quality
C. quality, price
D. price, flexibility
E. cost, flexibility
13. A basic requirement for operating with the low inventories present in lean systems is:
A. Inventory space must be increased.
B. Inventory investment must be increased.
C. Major problems must be identified.
D. Major problems must have been solved.
E. Inventories must be reduced rapidly.
14. Which of the following statements concerning the relationship among corporate,
business, and functional strategies is correct?
A. Functional strategies guide the development of corporate strategies, which guide
the development of business strategies.
B. Business strategies guide the development of corporate strategies, which guide the
development of functional strategies.
C. Corporate strategies guide the development of business strategies, which guide the
development of functional strategies.
D. Corporate strategies guide the development of functional strategies, which guide
the development of business strategies.
E. None of the above is correct.
15. Which of the following, while desirable from some perspectives, might actually
increase the risk of supply chain disruptions?
(I) fewer supply chain partners
(II) a shorter supply chain
(III) greater supply chain visibility
A. I and II only
B. II and III only
C. I and III only
D. I only
E. I, II, and III