Advanced Operations Management Review
Questions
Course Introduction
Advanced Operations Management explores the strategic and analytical aspects of managing complex production and service operations in contemporary organizations. The course covers topics such as process optimization, quality management, supply chain integration, capacity planning, lean systems, and the use of data analytics in decision-making. Through case studies, simulations, and real-world applications, students learn to evaluate operational efficiency, address challenges in global operations, and implement continuous improvement initiatives. Emphasis is placed on the alignment of operations management with organizational goals to drive competitive advantage and innovation.
Recommended Textbook operations management an integrated approach 6th edition by r. dan reid
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Page 2
Chapter 1: Introduction to Operations Management
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Sample Questions
Q1) Which business function is responsible for sales, generating customer demand, and understanding customer wants and needs?
A) finance
B) human resources
C) marketing
D) operations management
E) purchasing
Answer: C
Q2) What outsourcing functions does UPS provide for clients?
A) accounting and inventories
B) inventories and deliveries
C) accounting and deliveries
D) accounting and maintenance
E) deliveries and maintenance
Answer: B
Q3) How has information technology tools helped with supply chain management?
Answer: They enable collaborative planning and scheduling. They allow synchronized supply chain execution and design collaboration, and they allow companies to respond better and faster to changing market needs.
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Page 3
Chapter 2: Operations Strategy and Competitiveness
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Sample Questions
Q1) Suppose that a plant manager is only evaluated based on the partial productivity measure: output/(number of employees). If she replaces 10% of the workforce with robots (one robot per replaced worker), and output remains the same, what will be the percent change in this measure of productivity?
Answer: 11.1% increase
Q2) Suppose that on Monday the cost of inputs sums to $1000, and the value of outputs sums to $4000. For which of the following values on Tuesday would productivity increase?
A) inputs = $1100, outputs = $4000
B) inputs = $1100, outputs = $4200
C) inputs = $850, outputs = $3600
D) inputs = $1000, outputs = $3900
E) inputs = $2000, outputs = $8000
Answer: C
Q3) Studies have shown that companies that invest in new technologies tend to improve their financial position over those that do not.
A)True
B)False
Answer: True
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Page 4
Chapter 3: Product Design and Process Selection
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Sample Questions
Q1) What are the three elements of the service package?
A) physical goods, sensual benefits, and psychological benefits
B) sales, return policy, and warranty
C) customer service, return policy, and warranty
D) kindness, information provision, and speed
E) physiological benefits, sensual benefits, and psychological benefits
Answer: A
Q2) If the third stage of a repetitive line process cannot complete its activities as fast as stage one or two it has become a:
A) key work location
B) bottle neck
C) place not to work
D) project process location
E) none of these
Answer: B
Q3) When product and process design work together, much of the work is done in sequence rather than in parallel.
A)True
B)False
Answer: False
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Chapter 4: Supply Chain Management
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Sample Questions
Q1) ________, ________, ________ are critical factors in successful partnering.
Q2) Simuelson Industries can produce its own motors for a $60,000 fixed monthly cost and a $50 variable cost per unit. Alternatively, Simuelson Industries can purchase the motors from an outside supplier for $50,000 per month and $58 per unit.
a) What is the indifference point?
b) What option should be chosen if monthly demand is 1200 units?
Q3) Partnerships between supplier and purchaser are easier to develop when there is (are) ______________________ supplier(s).
Q4) Logo, Inc. can transport its own goods for a $140,000 annual cost and $25 per unit. A logistics supplier offers a contract for a $100,000 annual cost at $30 per unit. What is the indifference point?
Q5) Several studies report that the top three criteria for selecting suppliers are ________, ________, and ________.
Q6) Describe how consumers can use the Internet to shop in new ways.
Q7) Service organizations can also benefit from supply chain management.
A)True B)False
Q8) What are the two major advantages of crossdocking?
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Chapter 5: Total Quality Management
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Sample Questions
Q1) The Malcolm Baldrige Award criteria category that includes continuous improvement programs, employee training, and functioning of teams is
A) Leadership
B) Strategic planning
C) Information and analysis
D) Human resource development and management
E) Business results
Q2) Who is the "grandfather of quality control?"
A) Walter Shewhart
B) W. Edwards Deming
C) Joseph Juran
D) Phillip Crosby
E) Genichi Taguchi
Q3) A useful tool for translating customers' everyday language into specific technical requirements is Quality Function Deployment.
A)True
B)False
Q4) What are the four types of quality costs?
Q5) Histograms report the ________________________ of a variable's observed values.
Page 7
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Chapter 6: Statistical Quality Control
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Sample Questions
Q1) Suppose a process has been monitored daily for the last ten days and the number of machine failures each day was noted. The results follow:
Day Number: 1 2 3 4 5 6 7 8 9 10
Number of Failures: 8 9 6 10 12 4 9 11 9 12
Compute control limits for a c-chart that monitors the average number of machine failures per day. Is the process in a state of control?
Q2) What program at Intel enforces the policy to make chips in the same way at all facilities?
A) "make-same"
B) "copy-exactly"
C) "duplicate-same"
D) "duplicate-exactly"
E) "one-size-fits-all"
Q3) Product specifications are preset, whereas control limits are computed after observing data.
A)True
B)False
Q4) What is the formula for an x-bar chart's control limits?
Q5) Define acceptance sampling.
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Chapter 7: Just-In-Time and Lean Systems
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Sample Questions
Q1) What are the responsibilities of production employees in JIT?
Q2) Just-In-Time relies on cross-functional worker skills.
A)True
B)False
Q3) The manufacturing process in JIT starts with the final assembly schedule.
A)True
B)False
Q4) Describe the "kaizen blitz."
Q5) By focusing on __________ processes, JIT is able to achieve high-volume production of high-quality, low-cost products.
A) downstream
B) upstream
C) change-over
D) gateway
E) value-added
Q6) Materials and work in process move farther and more often under ____________________.
Q7) Scheduling two, 12-hour shifts and a 4-hour housekeeping and repair shift each workday is an example of ___________________.
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Chapter 8: Forecasting
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Sample Questions
Q1) CPFR is an iterative process.
A)True
B)False
Q2) Time series models are generally more difficult to use than causal models.
A)True
B)False
Q3) The first round of an exponential smoothing process is often begun by setting the second period forecast equal to ___________________.
Q4) What are the 9 steps utilized in the most complete form of CPFR?
Q5) A qualitative forecast is made subjectively by the forecaster.
A)True
B)False
Q6) When developing the linear trend line you must calculate _________ before __________.
Q7) Which of the following is not typically done jointly by CPFR trading partners?
A) set forecasts
B) plan production
C) replenish inventories
D) raise capital
E) evaluate their success in the marketplace
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Chapter 9: Capacity Planning and Facility Location
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Sample Questions
Q1) Economies of scale occur when a company is operating _______________________.
A) at its best operating level and increases its output
B) at its best operating level and decreases its output
C) below its best operating level and decreases its output
D) above its best operating level and increases its output
E) below its best operating level and increases its output
Q2) The cost of space in Silicon Valley is higher now than it was in the late 1990s.
A)True
B)False
Q3) Expected values are
A) forecasted sales prices
B) forecasted revenues
C) average value of chance events
D) weighted value of the chance events
E) exponential value of the chance events
Q4) Capacity decisions at the strategic level include the size of workforce.
A)True
B)False
Q5) How are capacity planning and location analysis similar?
Q6) What conditions make effective capacity differ from design capacity?
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Chapter 10: Facility Layout
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Sample Questions
Q1) What is the formula efficiency?
Q2) As the cycle time of a process decreases, its output also decreases.
A)True
B)False
Q3) Which of the following is least like a product layout?
A) high-volume paper mill
B) automobile plant
C) hospital
D) single-line cafeteria
E) car wash
Q4) Which popular facility layout software package uses a from-to matrix?
A) CONWIP
B) MRP
C) ALDEP
D) LAYOUT
E) CRAFT
Q5) Compare the minimum versus maximum cycle time of a process.
Q6) A heuristic solution always provides the best possible answer.
A)True
B)False
Page 12
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Chapter 11: Work System Design
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Sample Questions
Q1) What does work measurement determine?
A) how long it should take to do a job
B) what is the best way to do a job
C) who is the best worker
D) where work should be done
E) why a particular step must be included in an operation
Q2) Calculating the learning rate is a means for ____________.
Q3) What are the characteristics of self-managed teams?
Q4) A company's accepted time studies are stored in a(n) ____________ for possible future use.
A) file cabinet
B) time study vault
C) warehouse
D) jar
E) elemental time database
Q5) Typically the job chosen for the time study will be a routine job that is labor intensive.
A)True
B)False
Q6) With respect to costing, what uses does a company have for standard times?
Page 13
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Chapter 12: Inventory Management
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Sample Questions
Q1) In a two-bin system, what does the quantity in the second bin represent?
A) the EOQ
B) the EPQ
C) demand during replenishment lead time
D) the quantity in the first bin
E) safety stock
Q2) Companies can achieve cost-efficient operations by using which of the following inventory approaches?
A) work-in-process to buffer operations
B) inventory building to leverage reduced setup costs
C) JIT inventory to reduce overall cost
D) level work force maintenance through
E) speculative selling
Q3) ABC inventory assumes that a company's inventory is ____ equal and _______________ the same level of _________.
A) fully, does demand approximately, costs
B) counted, requires control for, profit
C) not, does not need, control
D) not, does not need, ordering
E) not, does not need, sales
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Chapter 13: Aggregate Planning
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Sample Questions
Q1) Accounting uses the aggregate plan for all the following except:
A) projecting cash flows
B) making short term loans
C) calculating the capital needed to support operations
D) projecting earnings
E) benchmarking operation effectiveness
Q2) Demand patterns cannot be smoothed through pricing incentives, reduced prices for out-of-season purchases, or nonprime service times.
A)True
B)False
Q3) UPS is a company that hires a very high number of __________ and _________ workers.
A) steady, part time
B) older, wiser
C) seasonal, full time
D) part time, overtime
E) seasonal , part time
Q4) What are the inputs to the aggregate planning process?
Q5) What are the disadvantages for hiring permanent employees?
Q6) Subcontracting provides _____ output capacity during periods of ______.
Page 15
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Chapter 14: Resource Planning
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Sample Questions
Q1) The current time period is referred to as __________________.
A) time zero
B) the point of departure
C) the start time
D) the action bucket
E) this year
Q2) What information system enables companies to have the right material in the right amounts available at the right time?
A) manufacturing resources planning
B) multifunctional requirements planning
C) material requirements planning
D) material relationships planning
E) manufacturing requirements planning
Q3) A computer-based information system designed to manage dependent demand inventory is _____________.
A) manufacturing resources planning
B) multifunctional requirements planning
C) material relationships planning
D) material requirements planning
E) manufacturing requirements planning
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Chapter 15: Scheduling
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Sample Questions
Q1) Which of the following sequencing rules is used for minimizing makespan in a two-stage, unidirectional process?
A) FCFS
B) S/RO
C) SPT
D) CR
E) Johnson's rule
Q2) Operation sequencing creates a work center plan based on available _______ and ______.
A) capacity, priorities
B) demand, priorities
C) capacity, demand
D) capacity, rules
E) staff, management
Q3) If all jobs are available at the same time, their flow time is the same as their _____________.
Q4) Forward scheduling sometimes causes inventory buildup if items are not delivered by the due date.
A)True
B)False
Page 17
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Chapter 16: Project Management
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Sample Questions
Q1) The TOC focuses on correct placement of buffers.
A)True
B)False
Q2) What can be used to display graphically the scheduled times for activities?
A) an AOA network diagram
B) an AON network diagram
C) a project structure tree
D) a Gantt chart
E) an affinity diagram
Q3) In calculating the estimated probability of completion value a negative number is obtained. This means:
A) your calculation is wrong.
B) the project will be delayed.
C) the specified completion time is later than the expected completion time.
D) the specified completion time is earlier than the expected completion time.
E) the variance is incorrect.
Q4) Every project has a ____________________.
Q5) What are valid reasons for reducing the time spent finishing a particular project?
Q6) What are the characteristics of the critical chain approach?
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Chapter 17: Spreadsheet Modeling: An Introduction
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Sample Questions
Q1) Which Excel function takes as inputs two separate ranges, then multiplies each pair of numbers in the ranges, and then adds up all these individual products?
A) RANGE
B) RANGEPRODUCT
C) PRODUCTSUM
D) SUMPRODUCT
E) DOTPRODUCT
Q2) In Excel, relative references are indicated by the lack of a dollar sign character preceding either the column or the row reference.
A)True
B)False
Q3) ___________________ perform repetitive what-if analysis quickly and easily in Excel.
A) What-If Tables
B) Repetitive Tables
C) Sensitivity Tables
D) Scenario Tables
E) Data Tables
Q4) What is the advantage of using a Stacked Column chart?
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Chapter 18: Introduction to Optimization
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Sample Questions
Q1) Sausage and Cheese Ltd. prepares three gift packages containing sausages and cheeses. The "Tasters," "Succulent," and "Gourmet" gift packages contain 3 sausages and 6 cheeses, 5 sausages and 4 cheeses, and 6 sausages and 5 cheeses, respectively. There are 2500 sausages and 3000 cheeses available for packing, and demand is unlimited. Profits are $2.50, $3.50, and $4.00 for the "Tasters," "Succulent," and "Gourmet" gift packages, respectively. The goal is to maximize profits. Let T, S, and G represent the number of gift packages produced of type "Tasters," "Succulent," and "Gourmet," respectively. What is the constraint describing the sausage capacity?
A) 2.5T + 3.5S + 4G 2500
B) 3T + 5S + 6G 2500
C) 9T + 9S + 11G 2500
D) 0.8333T + 1.9444S + 2.1818G 2500
E) 3T + 5S + 6G 2500
Q2) Not-equals-to constraints ( ) are allowable in optimization problems. A)True
B)False
Q3) Explain what differentiates a Linear Program from a Nonlinear Program.
Q4) A constraint in Excel Solver consists of what three pieces of information?
Q5) When is a Linear Program unbounded?
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Chapter 19: Waiting Line Models
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Sample Questions
Q1) Which of the following is not considered to be a valid performance measure of a waiting line system?
A) the average number of customers waiting in line
B) the customer population source
C) the average number of customers in the system
D) the average amount of time customers spend waiting
E) the system utilization rate
Q2) What occurs when a customer enters a waiting line but decides to exit before being served?
A) balking
B) walking
C) reneging
D) vacillating
E) jockeying
Q3) What are the five characteristics that define a service system?
Q4) Consider a single-line, single-server waiting line system. Suppose that customers arrive according to a Poisson distribution at an average rate of 50 per hour, and the average (exponentially distributed) service time is 45 seconds per customer. What is the probability that 4 customers are in the system?
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Chapter 20: Master Scheduling and Rough-Cut Capacity Planning
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Sample Questions
Q1) The MPS is said to be ________________________ between the current time and the time needed for final assembly.
Q2) Discuss how the MPS is evaluated in terms of cost.
Q3) In the "slushy" portion of the MPS, changes in the product mix are possible, but changes needing additional resources are not.
A)True
B)False
Q4) Changes to the MPS that are requested inside of the demand time fence must be approved by a higher authority.
A)True
B)False
Q5) The available-to-promise row in an extended MPS record shows how many committed units the company has available for delivery at a given time.
A)True
B)False
Q6) When Projected Available is negative, the Master Production Schedule must include
Q7) Discuss the Master scheduler responsibility.
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