CSM Operations & Supply Chain Management Flashcards
6 cards from real CSM practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 6 CSM Operations & Supply Chain Management flashcards as text
In strategic management, 'outsourcing' a business function is most justified when:
Answer: An external provider can perform it more cost-effectively without sacrificing strategic value
Outsourcing is strategically sound when a non-core function can be performed better or cheaper externally, freeing resources for activities that drive competitive differentiation.
The Theory of Constraints (TOC) helps operations managers by:
Answer: Identifying and managing the single bottleneck limiting overall system throughput
TOC, developed by Eliyahu Goldratt, focuses on identifying the one constraint that limits the entire system's output and exploiting or elevating it to improve overall performance.
What is 'capacity planning' in operations management?
Answer: Determining the production resources needed to meet current and future demand
Capacity planning ensures an organization has sufficient production, labor, and equipment resources to meet anticipated demand while minimizing excess or shortfall.
The 'bullwhip effect' in supply chains describes:
Answer: Small demand fluctuations at the retail level causing amplified order variability upstream
The bullwhip effect occurs when minor demand changes at the consumer level are progressively amplified as orders move upstream, causing inefficient overproduction and excess inventory.
Total Quality Management (TQM) emphasizes:
Answer: Organization-wide participation in continuously improving processes, products, and services
TQM is a comprehensive management philosophy that involves all employees and departments in continuously improving quality to enhance customer satisfaction and organizational performance.
Which metric measures what percentage of customer orders are delivered completely, correctly, and on time?
Answer: Perfect order rate
The perfect order rate measures the percentage of orders that are delivered without any errors in quantity, condition, documentation, or timing — a comprehensive supply chain performance indicator.