DBA Operations Management and Supply Chain Strategy 2

Question 1

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

Accepted Answer

Expanding company ownership to include upstream suppliers or downstream distributors

Answer

Vertical integration means a company controls more stages of its supply chain — backward integration acquires suppliers; forward integration acquires distribution channels.

Question 2

In project management, what does the Critical Path Method (CPM) identify?

Accepted Answer

The longest sequence of dependent tasks that determines the minimum project duration

Answer

The critical path is the longest chain of dependent activities in a project network; any delay on this path directly delays the project's completion date.

Question 3

Which supply chain risk mitigation strategy involves maintaining extra inventory to buffer against supply disruptions?

Accepted Answer

Safety stock

Answer

Safety stock is buffer inventory held above forecast demand to protect against stockouts caused by demand variability or supply disruptions.

Question 4

What is 'demand forecasting' and why is it critical in supply chain management?

Accepted Answer

Estimating future customer demand to align supply, production, and inventory planning

Answer

Demand forecasting uses historical data, market intelligence, and quantitative methods to estimate future demand, enabling proactive supply chain planning.

Question 5

In the context of US operations, what is 'process reengineering' (BPR)?

Accepted Answer

Radical redesign of core business processes to achieve dramatic improvements in performance

Answer

Business Process Reengineering (Hammer & Champy, 1993) involves fundamentally rethinking and radically redesigning processes to achieve dramatic improvements in cost, quality, speed, and service.

DBA - Doctor of Business Administration Practice Test

DBA - Doctor of Business Administration Practice Test

DBA Operations Management and Supply Chain Strategy 2