DBA Operations Management and Supply Chain Strategy

Question 1

What is the core principle of 'lean manufacturing' as applied in US operations management?

Accepted Answer

Eliminating waste (muda) to improve flow and create value for customers

Answer

Lean manufacturing, derived from the Toyota Production System, focuses on identifying and eliminating all forms of waste — overproduction, waiting, transportation, inventory, motion, over-processing, and defects.

Question 2

In supply chain management, what does 'the bullwhip effect' describe?

Accepted Answer

The amplification of demand variability as orders move up the supply chain from retailer to manufacturer

Answer

The bullwhip effect occurs when small fluctuations in consumer demand cause increasingly larger oscillations in orders at each upstream stage of the supply chain.

Question 3

What is 'Six Sigma' in operations management?

Accepted Answer

A data-driven quality management approach targeting no more than 3.4 defects per million opportunities

Answer

Six Sigma is a disciplined, statistical methodology (using DMAIC: Define, Measure, Analyze, Improve, Control) aimed at reducing process variation and defects to near-zero levels.

Question 4

Which inventory management model determines the optimal order quantity that minimizes total inventory costs?

Accepted Answer

Economic Order Quantity (EOQ) model

Answer

The EOQ model balances ordering costs against holding costs to find the quantity that minimizes the total cost of managing inventory.

Question 5

In US supply chain management, what is 'nearshoring'?

Accepted Answer

Relocating production or sourcing to geographically close countries (e.g., Mexico for US firms)

Answer

Nearshoring moves operations to nearby countries rather than distant locations, reducing lead times, transportation costs, and supply chain risk while maintaining some cost advantages.

DBA - Doctor of Business Administration Practice Test

DBA - Doctor of Business Administration Practice Test

DBA Operations Management and Supply Chain Strategy