CSM CSM Operations & Supply Chain Management 1

Question 1

What is the primary focus of lean management?

Accepted Answer

Eliminating waste and creating more value for customers with fewer resources

Answer

Lean management focuses on identifying and eliminating non-value-adding activities (waste) throughout a process to deliver maximum value to customers efficiently.

Question 2

Which supply chain metric measures the average number of days a company takes to convert inventory into revenue?

Accepted Answer

Days inventory outstanding (DIO)

Answer

Days Inventory Outstanding (DIO) measures how many days on average a company holds inventory before it is sold, indicating inventory management efficiency.

Question 3

The 'just-in-time' (JIT) inventory system is designed to:

Accepted Answer

Receive goods only as they are needed in the production process to minimize inventory costs

Answer

JIT reduces inventory holding costs and waste by scheduling the arrival of materials and components precisely when they are needed in the production process.

Question 4

What does 'vertical integration' mean in supply chain strategy?

Accepted Answer

A company owning and controlling multiple stages of its supply chain

Answer

Vertical integration occurs when a company acquires or develops capabilities across different stages of its supply chain, such as owning suppliers or distribution channels.

Question 5

In operations management, 'process capability' refers to:

Accepted Answer

The ability of a process to produce output within specified quality limits consistently

Answer

Process capability measures how well a process can produce outputs that meet specifications, typically expressed as Cp or Cpk indices comparing variation to tolerance limits.

(CSM) Certified Strategic Manager Practice Test

(CSM) Certified Strategic Manager Practice Test

CSM CSM Operations & Supply Chain Management 1