Business Operations
Practice Questions
Course Introduction
Business Operations explores the core activities, processes, and strategies that organizations use to deliver value to customers and achieve organizational goals. This course examines key operational functions such as process management, supply chain logistics, quality control, and resource optimization. Emphasizing both manufacturing and service sectors, students will analyze real-world case studies, apply process improvement methodologies, and learn how operational decisions impact overall business performance. The course prepares students to identify inefficiencies, implement best practices, and align operations with broader business objectives to drive sustainable growth and competitiveness.
Recommended Textbook
Introduction to Operations and Supply Chain Management 3rd Edition by Cecil
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Page 2
B. Bozarth
Chapter 1: Introduction to Operations and Supply Chain Management
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Sample Questions
Q1) The association for operations management is AOM.
A)True
B)False
Answer: False
Q2) Jon was a mathematical whiz.He had a flair for developing spreadsheets,using statistics,and creating simulations to show the effects of changes in policy and infrastructure.His skills equipped him well for his operations and supply chain position as:
A)a service manager.
B)an analyst.
C)a commodity manager.
D)a sourcing manager.
Answer: B
Q3) Operations management activities are ________ and ________ intensive. Answer: information;decision
Q4) An activity or firm that is positioned earlier in the supply chain relative to another activity or firm is said to be ________. Answer: upstream
Q5) A(n)________ supervises production in a manufacturing setting. Answer: production manager
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Chapter 2: Operations and Supply Chain Strategies
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Sample Questions
Q1) "I've never seen flavored marshmallows this size before!" Alice squealed as she emptied the shelves at the local grocery store.The rest of the shoppers would have to make do with the other seventy bags of miniature and standard-size marshmallows during this winter's hot chocolate festival.For Alice,the jumbo size feature is an order winner.
A)True
B)False
Answer: True
Q2) Performance dimensions on which customers expect a minimum level of performance are called:
A)order winners.
B)minimum performers.
C)recommended daily allowances.
D)order qualifiers.
Answer: D
Q3) The externally supportive stage of alignment is more desirable than the externally neutral stage of alignment.
A)True
B)False
Answer: True
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Chapter 3: Process Choice and Layout Decisions in Manufacturing and Services
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Sample Questions
Q1) A sporting apparel manufacturer that produces t-shirts to commemorate significant athletic achievements for proud students and alumni probably uses:
A)a fixed position layout.
B)batch manufacturing.
C)a continuous flow process.
D)a production line.
Answer: B
Q2) The three dimensions of service positioning are the service package,the degree of customization and the amount of customer contact.
A)True
B)False
Answer: True
Q3) The ________ includes all value-added physical and intangible activities that a service organization provides to the customer.
Answer: service package
Q4) The product process matrix uses a scale of ________ and ________. Answer: volume;standardization
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Chapter 4: Business Processes
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Sample Questions
Q1) A set of tasks or activities that addresses the main value-added activities of an organization is a:
A)process.
B)primary process.
C)support process.
D)development process.
Q2) The Six Sigma ________ process outlines the steps that should be followed to improve existing business processes.
Q3) While efficiency can exceed 100%,percent value-added time has a maximum of 100%.
A)True
B)False
Q4) Your university sends a contingent of top-ranking officials to Las Vegas hotels to study ways to improve dormitory living conditions.This is an example of process benchmarking.
A)True
B)False
Q5) What is the general procedure for developing a swim lane process map?
Q6) When should a process be art,not science? Provide examples to frame your discussion.
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Q7) The first lane of a swim lane process map is usually reserved for ________.
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Chapter 5: Managing Quality
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Sample Questions
Q1) Taguchi defines quality in terms of:
A)parts per million.
B)losses.
C)lot tolerance percent defective.
D)acceptable quality levels.
Q2) Producer's risk rises as consumer's risk falls.
A)True
B)False
Q3) Describe the ISO 9000 family of standards,including the objectives and process of becoming certified.
Q4) Since the regional manager is somewhat of a quality expert,he needs your help in formulating a control chart that will monitor the process performance to target.Develop the appropriate limits and create a chart.Is the process in control?
Q5) What is the center line for the appropriate chart?
A)0.0129
B)10.875
C)0.0435
D)3.29
Q6) What are the seven core ideas of total quality management?
Page 7
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Chapter 6: Managing Capacity
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Sample Questions
Q1) What is the break even point for location D if Jimbo decides to charge $21 per student?
A)4,000 students
B)4,250 students
C)4,500 students
D)5,000 students
Q2) The maximum output capability of a system,allowing for no adjustments for scheduled or unscheduled maintenance is the ________.
Q3) Building rental and depreciation on capital equipment are examples of fixed costs.
A)True
B)False
Q4) Jimbo evaluates levels of demand ranging from 100 to 2,500 students per year.Which location has the lowest cost for the greatest range of students throughout this continuum?
A)Location A
B)Location B
C)Location C
D)Location D
Q5) In waiting line theory,a customer service attendant is a(n)________.
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Chapter 7: S Advanced Waiting Line Theory and Simulation
Modeling
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Sample Questions
Q1) One assumption in most waiting line analyses is that the number of customers is ________.
Q2) In most waiting line models,customers are assumed to arrive at random intervals,based on a normal distribution.
A)True
B)False
Q3) Which of the following is characteristic of Monte Carlo simulation?
A)Results are usually not valid,but provide managers with an approximation.
B)Time compression is not possible using this technique.
C)Statistical sampling is used to create outcomes for many trials.
D)Computer packages such as Simquick and Arena can show on-screen graphics of customers moving through the system or inventory accumulation.
Q4) The term time compression refers to the phenomenon that a server tends to speed up the service process if the waiting line exceeds some critical number of customers.
A)True
B)False
Q5) A single channel single server system requires that the ________ rate be larger than the ________ rate.
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Chapter 8: Supply Management
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Sample Questions
Q1) Terms and conditions for a purchased service that indicate what services will be performed and how the service provider will be evaluated are called a:
A)request for quotation.
B)bid specification.
C)preferred supplier contract.
D)statement of work.
Q2) Maverick spending is often promoted by top management as a way to improve the bottom line and break out of a purchasing cycle.
A)True
B)False
Q3) For the average manufacturer,over 50 percent of the value of shipments comes from materials.
A)True
B)False
Q4) Use of a single supplier for a part or service in part of the business and another supplier with the same capability for a different part or service in another area of the business is known as ________.
Q5) Profit margin is the ratio of ________ to ________.
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Chapter 9: Logistics
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Sample Questions
Q1) The transportation mode with the highest dollar value of freight in the United States is:
A)water.
B)rail.
C)highway.
D)pipeline.
Q2) A(n)________ uses more than one transportation mode through physical,information,and monetary flows that are as seamless as possible.
Q3) Which of the following is an example of consolidation warehousing?
A)Large shipments from multiple suppliers are re-sorted into customized shipments to individual stores.
B)A single manufacturer takes output directly from a single manufacturing plant and sends it directly to a single customer.
C)A single manufacturer takes output from several of its manufacturing plants and combines them into one shipment to a major customer.
D)A single manufacturer holds a wide array of goods close to the source of demand.
Q4) Define logistics and explain why it is critical.
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Chapter 10: Forecasting
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Sample Questions
Q1) Which of these quantitative techniques is a causal model?
A)linear regression
B)last period
C)exponential smoothing
D)weighted moving average
Q2) Heidi runs a multiple regression for the output of cheese curds by using the daily temperature and the consumption of sweet clover.The intercept term is 23,the slope coefficient for the daily temperature is 1.5 and the slope coefficient for the consumption of sweet clover is 0.Which of these conclusions is most appropriate?
A)Heidi should collect more data.
B)The most important term in Heidi's model is the intercept.
C)As the daily temperature rises,the intercept term probably decreases.
D)Heidi should drop the sweet clover term from her model.
Q3) The slope of the regression equation is positive if the r-squared value is greater than 0.0.
A)True
B)False
Q4) Dividing actual demand by the model's forecast yields an index that can be used to adjust for ________ in the data.
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Chapter 11: Sales and Operations Planning Aggregate Planning
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Q1) In order for ________ planning to work,the mix of products or services must be essentially the same from one time period to the next or the products must have very similar resource requirements.
Q2) Each entity in a supply chain should produce its own sales and operations plan independent of the other members in order to improve the overall cost performance in a supply chain.
A)True
B)False
Q3) Last month a firm made 100 model A's using all of their available labor.If they have already taken orders for 150 model A's for next month,then their planning value must be 1.5.
A)True
B)False
Q4) What is the purpose of S&OP and what takes place at the strategic,tactical,and detailed planning and control levels?
Q5) A sales and operations plan that varies both production and inventory levels is called a(n)________ production plan.
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Q6) A(n)________ production plan matches production in each time period with the sales forecast.
Chapter 12: Managing Inventory Throughout the Supply Chain
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Sample Questions
Q1) Tata Motors assembles cars from their own parts and subassemblies and also controls the mining and fabrication of the materials used to create those parts.When Anand ordered their luxury sedan with the platinum dashboard he knew he wouldn't be taking delivery of his dream car the next week.Rather,he would be waiting a while thanks to:
A)a mismatch between supply chain lead time and customer demand.
B)a mismatch between overall demand levels and productive capacity.
C)a mismatch between demand and the most efficient production volume.
D)a mismatch between demand and the most efficient shipment volume.
Q2) Safety stock increases when:
A)probability of a stockout increases.
B)average demand increases.
C)delivery speed increases.
D)demand fluctuations decrease.
Q3) Define the bullwhip effect and discuss the advantages of holding inventory far upstream or downstream in the supply chain.
Q4) Describe any four types of inventory and the drivers that spur their need.
Q5) In a single period system,the target ________ is the balancing point between shortage costs and excess costs.
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Chapter 13: Managing Production Across the Supply Chain
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Sample Questions
Q1) The longer the production and supplier lead times,the longer the MRP record's planning horizon needs to be.
A)True
B)False
Q2) What are three advantages of using an MRP system?
Q3) Forecasts in a company using a distribution requirements planning system are typically based on:
A)historical data from upstream supply partners.
B)historical data from downstream supply partners.
C)upstream supply partners' requirements.
D)downstream supply partners' requirements.
Q4) For a given job,the amount of processing time remaining divided by the amount of time until the job is due is its ________.
Q5) RFID tags can be used instead of a bar code system to trace the movement and location of materials.
A)True
B)False
Q6) Describe the scope,inputs,and outputs of sales and operations planning,master scheduling,and MRP.
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Chapter 14: S Supply Chain Information Systems
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Sample Questions
Q1) Which of the following statements regarding enterprise resource planning systems is NOT correct?
A)Most companies using ERP use their system to serve all of the information requirements.
B)The primary advantage of ERP systems is that they pull together all of the classic business functions into a single,tightly integrated package.
C)All of the business functions running from an ERP system use a common database.
D)Making ERP systems integrate with other applications in a business presents a significant technological challenge.
Q2) A supply chain information system that links a company with an entity upstream is called a(n):
A)customer relationship management system.
B)supplier relationship management system.
C)internal supply chain management system.
D)business process modeling tool.
Q3) Sketch the supply chain and indicate which information systems address which areas of the supply chain.
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Chapter 15: Jitlean Production
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Sample Questions
Q1) Since a JIT manufacturer has very little inventory,it is vital that all incoming parts receive a thorough inspection.
A)True
B)False
Q2) Liversuch Industries uses a kanban system to manage production of the J-15 subassembly.They have an hourly demand for 250 units and use containers that can hold 50 units each.It takes 90 minutes to fill and move a container of parts to the right place on the J-15 line that is currently rated at a 20% safety factor.How many production cards are needed?
A)540
B)100
C)9
D)1.5
Q3) The just-in-time philosophy applies only to the production floor of a manufacturing company.
A)True
B)False
Q4) The eighth waste added to Ohno's list of seven wastes is ________.
Q5) Describe any five of the wastes identified by the JIT philosophy.
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Chapter 16: Managing Projects
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Sample Questions
Q1) A project is a one-time undertaking designed to achieve a particular organization goal.
A)True
B)False
Q2) The earliest start time of an activity is dependent on the earliest finish time of its immediate predecessors.
A)True
B)False
Q3) ________ is a technique to shorten the overall length of the project that usually involves a trade-off between time and cost.
Q4) During the ________,project planners identify how to accomplish the work,how to organize for the project,and the key personnel and resources needed.
Q5) What is the total cost to complete this project as quickly as possible if each day on site costs $1000?
A)$43,100
B)$40,300
C)$39,300
D)$41,900
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Chapter 17: Developing Products and Services
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Q1) Product design refers to the development of physical products and intangible services.
A)True
B)False
Q2) The concept development phase addresses the feasibility of a product or service.
A)True
B)False
Q3) A consideration to create products and services that are easy to make is:
A)DFE.
B)CAM.
C)QFD.
D)DFM.
Q4) Quality function deployment can be used to show linkages between customer requirements and product characteristics.
A)True
B)False
Q5) ________ allows activities in different development stages to overlap with one another.
Q6) What are the phases of the product development process and what takes place in each?
Page 19
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