BSE Bachelor of Science in Engineering Management: Operations and Supply Chain 3 — Questions and Answers
Question 1: A facility layout that groups similar machines or functions together (e.g., all lathes in one area) is called a:
- Product layout
- Process layout (Correct answer)
- Fixed-position layout
- Cellular layout
Correct answer: Process layout
Process (functional) layouts cluster equipment by type and suit high-variety, low-volume production.
Question 2: In project management, the Critical Path Method (CPM) identifies the sequence of activities that:
- Has the most resource conflicts
- Determines the minimum project duration (Correct answer)
- Has the highest cost variance
- Requires the most skilled labor
Correct answer: Determines the minimum project duration
The critical path is the longest path through the project network and sets the earliest possible completion date.
Question 3: Total Quality Management (TQM) emphasizes which of the following as the primary driver of quality improvement?
- Post-production inspection and rejection
- Continuous improvement involving all employees (Correct answer)
- Increasing inspection staff at the end of the line
- Outsourcing defect-prone processes
Correct answer: Continuous improvement involving all employees
TQM holds that quality is everyone's responsibility and focuses on continuous, organization-wide improvement rather than end-of-line inspection.
Question 4: Which forecasting technique is most appropriate when demand shows a clear seasonal pattern combined with a long-term upward trend?
- Simple moving average
- Exponential smoothing with trend and seasonality (Holt-Winters) (Correct answer)
- Naïve forecast
- Linear regression on time alone
Correct answer: Exponential smoothing with trend and seasonality (Holt-Winters)
Holt-Winters triple exponential smoothing explicitly models level, trend, and seasonality, making it well-suited for such data.
Question 5: A company achieves a fill rate of 95% from its distribution center. This means:
- 95% of customers are satisfied with service quality
- 95% of ordered units are shipped without a backorder (Correct answer)
- 95% of orders are delivered on time
- 95% of SKUs are in stock at any given time
Correct answer: 95% of ordered units are shipped without a backorder
Fill rate (unit fill rate) measures the fraction of demand immediately satisfied from on-hand inventory without backordering.
Question 6: Six Sigma's DMAIC framework stands for Define, Measure, Analyze, Improve, and:
- Implement
- Inspect
- Control (Correct answer)
- Integrate
Correct answer: Control
Control is the final DMAIC phase, where process changes are standardized and monitored to sustain improvements.
Question 7: Which of the following best describes a Third-Party Logistics (3PL) provider?
- A company that manufactures products for another firm under contract
- An outsourced provider of logistics services such as warehousing and transportation (Correct answer)
- A software vendor that sells supply chain planning tools
- A financial institution that funds supply chain operations
Correct answer: An outsourced provider of logistics services such as warehousing and transportation
3PLs take over logistics functions (storage, freight, fulfillment) on behalf of a client, allowing the client to focus on core activities.
BSE Bachelor of Science in Engineering Management: Operations and Supply Chain 3
A facility layout that groups similar machines or functions together (e.g., all lathes in one area) is called a: