Introduction to Operations Management Test Bank
Course Introduction
Introduction to Operations Management provides students with a comprehensive overview of the key concepts, theories, and practices involved in the effective production and delivery of goods and services. The course explores fundamental topics such as process analysis, capacity planning, supply chain management, quality control, inventory management, and project scheduling. Students will learn how organizations design and manage processes, allocate resources efficiently, and implement strategies to improve productivity and competitiveness. Through real-world case studies and practical examples, this course equips learners with the analytical tools and problem-solving skills necessary to address operational challenges in diverse business settings.
Recommended Textbook
Operations Management Processes and Supply Chains 12th Edition by Lee J. Krajewski
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Page 2
Chapter 1: Using Operations to Create Value
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Sample Questions
Q1) Quality is more easily measured in a service process than in a manufacturing process.
A)True
B)False
Answer: False
Q2) A set of activities that delivers value to external customers is a: A) supply chain. B) core process.
C) support process.
D) system.
Answer: B
Q3) ________ are often responsible for key performance measures such as cost and quality.
Answer: Operations Managers
Q4) One form of strategic alliance is the ________, in which two firms agree to cooperate to produce a product or service together.
Answer: joint venture
Q5) ________ measures the frequency with which delivery-time promises are met.
Answer: On-time delivery
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Chapter 2: Process Strategy and Analysis
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Sample Questions
Q1) An accounting professor realizes she is woefully inadequate at performing research. She discusses the art of research with a colleague and gains important insights that permit her to establish a research agenda. This is an example of:
A) competitive benchmarking.
B) functional benchmarking.
C) internal benchmarking.
D) generic benchmarking.
Answer: C
Q2) Use the information in Scenario 2.2. What is the standard time for this job element if the allowance for the process is 20%?
A) 15.06 seconds
B) 14.92 seconds
C) 13.42 seconds
D) 11.19 seconds
Answer: C
Q3) ________ automation can handle various products through programmability. Answer: Flexible
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Page 4
Chapter 3: Quality and Performance
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Sample Questions
Q1) Training employees on how to utilize a statistical quality tool would be an example of the intersection between employee involvement and analytical process thinking.
A)True
B)False
Answer: True
Q2) When a process fails to satisfy a customer:
A) it is quite often the customer's fault.
B) it is considered a defect.
C) it is time to reengineer the process.
D) it is usually half the customer's fault and half the company's fault.
Answer: B
Q3) One chart commonly used for quality measures based on product or service attributes is the \( \bar{x} \) chart.
A)True
B)False
Answer: False
Q4) ________ costs are associated with preventing defects before they happen.
Answer: Prevention
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Chapter 4: Capacity Planning
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Q1) Define each of the following capacity strategies: expansionist, wait-and-see, and follow-the-leader.
Q2) Although the fire marshal had declared the capacity of the classroom at 55 students, the introduction to operations management class was so popular, the average attendance was 75 students, literally standing room only. Squeals of excitement accompanied the successful solution of problems such as this: What is the utilization of the operations management professor?
A) 100%
B) 136%
C) 75
D) 55
Q3) Long-term capacity plans deal with:
A) investments in new facilities.
B) workforce size.
C) inventories.
D) overtime budgets.
Q4) Capacity decisions should be linked closely to ________ and ________ throughout the organization.
Q5) Define utilization and give a service process example of it.
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Chapter 5: Constraint Management
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Sample Questions
Q1) Consider consecutive processes A-B-C, where process A has a capacity of 20 units per hour, process B has a capacity of 25 units per hour, and process C has a capacity of 30 units per hour. Where would an operations manager want any inventory?
A) in front of process A
B) in front of process B
C) in front of process C
D) Inventory should not exist anywhere.
Q2) Use the information in Table 5.2. Using the traditional method, what is the profit if the company manufactures the optimal product mix (consider variable costs only-overhead is not included in this profit calculation)?
A) less than or equal to $6,500
B) greater than $6,500 but less than or equal to $6,700
C) greater than $6,700 but less than or equal to $6,900
D) greater than $6,900
Q3) Use the information in Table 5.5. How many stations are required?
A) 3
B) 4
C) 5
D) 6
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Page 7
Chapter 6: Lean Systems
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Sample Questions
Q1) The theory of constraints accepts existing system bottlenecks and works to maximize throughput given these constraints, while value stream mapping endeavors to understand how existing processes can be altered to eliminate bottlenecks and other wasteful activities.
A)True
B)False
Q2) Group technology collects similar parts into families and organizes machine tools into separate cells.
A)True
B)False
Q3) A plant's manufacturing process has a takt time of 72 seconds per unit. This results in a process output of how many units per hour?
Q4) ________ is a methodology consisting of five workplace practices that are conducive to visual controls and lean production.
Q5) Five S practices can be applied to both manufacturing and service settings and can include offices, work spaces, tool rooms, and shop floors.
A)True
B)False
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Chapter 7: Project Management
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Sample Questions
Q1) Projects often cut across organizational lines.
A)True
B)False
Q2) A project manager hires a few new coders to help speed up the new software project and deliver the package on time to an important client. The manager has engaged in:
A) resource leveling.
B) resource allocation.
C) resource acquisition.
D) resource enhancement.
Q3) Using the information shown in Table 7.1, what is the latest start time for activity E?
A) 2
B) 3
C) 5
D) 8
Q4) A pure project organizational structure houses the project in a specific functional area.
A)True
B)False
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Chapter 8: Forecasting
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Sample Questions
Q1) Use the information provided in Table 8.3. For every sale call made, the number of books sold increases by:
A) 14.74 books.
B) 104.6 books.
C) 83.30 books.
D) 7.25 books.
Q2) Use the information from Table 8.8. The pizza shop manager believes that a combination forecast might improve her ability to predict future demand, and thus improve keeping fresh ingredients on hand. She decides to use the 3-week simple moving average and exponentially smoothed average forecast, giving them equal weight. The smoothing constant is .10 and the previously forecasted demand for week 6 was 39.28 pizzas. What is her forecast for week #7?
A) 35.5 pizzas
B) 37.4 pizzas
C) 38.2 pizzas
D) 40.2 pizzas
Q3) ________ is a time-series method used to estimate the average of a demand time series by averaging the demand for the n most recent time periods.
Q4) ________ are assumed to "cause" the results that a forecaster wishes to predict.
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Chapter 9: Inventory Management
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Sample
Questions
Q1) ________ inventory is the surplus inventory that a company holds to protect against uncertainties in demand, lead-time, and supply.
Q2) Use the information in Scenario 9.7. What is the annual cost of holding the safety stock necessary to maintain the 98% service level?
A) less than or equal to $30
B) greater than $30 but less than $40
C) greater than $40 but less than $50
D) greater than $50
Q3) EOQ should be used if you use a make-to-order strategy and the customer specifies that the entire order be delivered in one shipment.
A)True
B)False
Q4) In an EOQ model, as the annual demand for an item increases, the EOQ for the item
Q5) ________ consists of items such as components or assemblies needed for a final product in manufacturing.
Q6) A(n) ________ is an order that cannot be satisfied, resulting in the loss of a sale.
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Page 11
Chapter 10: Operations Planning and Scheduling
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Sample Questions
Q1) A manufacturing firm's sales and operations plan generates both a production plan and a staffing plan.
A)True
B)False
Q2) What is a product family?
Q3) The terms "aggregate plan" and "sales and operations plan" are synonymous.
A)True
B)False
Q4) Use the information in Table 10.4. How much total slack will be generated from the schedule?
A) fewer than six days
B) six days
C) seven days
D) greater than seven days
Q5) The purpose of a rotating schedule is to:
A) assign each employee to work the same days and hours each week.
B) assign senior employees more opportunity to have weekends off.
C) deal with certain undesirable aspects of several individual workforce schedules.
D) make sure the legal constraints imposed on workforce schedules are satisfied.
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Chapter 11: Resource Planning
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Sample Questions
Q1) Material requirements planning (MRP) is a computerized information system developed specifically to aid in managing dependent demand inventory and scheduling replenishment orders.
A)True
B)False
Q2) Use Table 11.2 to answer this question. Mutt decides to operate on a level MPS plan for weeks 1 through 4. What MPS quantity brings them into week 5 with the same ATP as if they had adopted a more traditional approach?
A) 190
B) 150
C) 170
D) 160
Q3) One thing that an MRP II system has that an MRP system does not is ________.
Q4) A(n) ________ is a record that divides the future into time periods called time buckets.
Q5) ________ is a lot-sizing rule under which the lot size ordered covers the gross requirements of a single week.
Q6) A(n) ________ is an intermediate item that is assembled from one or more components.
Page 13
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Chapter 12: Supply Chain Design
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Sample Questions
Q1) Weeks of inventory and inventory turns are reflected in:
A) working capital.
B) operating expenses.
C) cost of goods sold.
D) cash flow.
Q2) ________ is a concept whereby some of the final activities in the provision of a service or product are delayed until the orders are received.
Q3) Compare and contrast efficient versus responsive supply chains.
Q4) A responsive supply chain typically has:
A) a low capacity cushion.
B) high inventory turns.
C) supply chain partners that emphasize low prices.
D) supply chain partners that emphasize volume flexibility.
Q5) A U.S. company faced with spiraling costs in their customer care center recreated that service in Luxembourg at a fraction of the cost. This is an example of:
A) offshoring.
B) forward integration.
C) backward integration.
D) postponement.
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Chapter 13: Supply Chain Logistic Networks
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Sample Questions
Q1) When using the load-distance method to select a new location, the decision maker can represent the number of trips to be made, the number of customers needing a physical presence, or number of tons per week, among other measures, as loads.
A)True
B)False
Q2) Which location shift would qualify as forward placement?
A) from the manufacturer to a distribution center
B) from the retailer to the wholesaler
C) from the wholesaler to the manufacturer
D) from the retailer to the manufacturer
Q3) Use the information from Table 13.1. Calculate the total load distance for this layout.
A) 3,930
B) 18,480
C) 9,240
D) 12,660
Q4) Repeated onsite expansion ultimately leads to diseconomies of scale.
A)True
B)False
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Chapter 14: Supply Chain Integration
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Sample Questions
Q1) ________ is the condition where the buyer has purchasing power when the purchasing volume represents a significant share of the supplier's sales.
Q2) Use Table 14.1 to answer the question. Kalil believes in buying in bulk, regardless of who the supplier is. Which supplier would result in the lowest total cost using this criterion?
A) Supplier A
B) Supplier B
C) Supplier C
D) Supplier D
Q3) Production shifting is a form of low-cost hopping.
A)True
B)False
Q4) Which of the following is not an internal cause of supply chain disruptions?
A) engineering changes
B) batching of orders
C) service or product promotions
D) underfilled shipments
Q5) The ________ model focuses on the supply chain processes plan, source, make, deliver, and return.
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Chapter 15: Supply Chain Sustainability
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Sample Questions
Q1) ________ is the total amount of greenhouse gasses produced to support a firm's operations.
Q2) An increase in freight density results in a decrease in carbon footprint.
A)True
B)False
Q3) Refer to Matrix 15.1. What is the break-even point for shipping a 7,500 pound shipment in class 92.5?
A) 8,679
B) 9,910 pounds
C) 10,091
D) 7,932
Q4) A shipment that is transported using two or more modes during its journey is said to be:
A) speculative.
B) cromulent.
C) bicoastal.
D) intermodal.
Q5) ISO 14001:2004 standards require that companies must be inspected by ________ on a regular basis to maintain their certification.
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Chapter 16: Supplement A Decision Making
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Sample Questions
Q1) Using the information in Table A.2, which alternative is best in accordance with a pessimistic outlook?
A) A
B) B
C) C
D) D
Q2) A manufacturing firm is considering whether to produce or outsource the production of a new product. If they produce the item themselves, they will incur a fixed cost of $950,000 per year, but if they outsource overseas there will be a $1.5 million cost per year. The advantage of outsourcing overseas is the variable cost of 95¢ per unit, which is a fraction of their $43/unit cost in their own union shop. Regardless of where these devices are made, they will sell for $98 each. What is the break-even quantity for each alternative? Solve this problem graphically and algebraically.
Q3) What is the total cost if the beekeeper keeps 8 hives?
A) $0
B) $40
C) $5
D) cannot be determined
Q4) The ________ is the volume at which total revenues equal total costs.
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Chapter 17: Supplement J Operations Scheduling
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Q1) Use the information in Table J.6. What is the average past due time at Workstation A for the critical ratio rule?
A) 0 hours
B) greater than 0 hours but fewer than or equal to 5 hours
C) greater than 5 hours but fewer than or equal to 10 hours
D) greater than 10 hours
Q2) Operations scheduling involves assigning jobs to workstations or employees to jobs for specific time periods.
A)True
B)False
Q3) ________ is a priority sequencing rule that specifies that the job that has the earliest due date is the next job to be processed.
Q4) What are single-dimension scheduling rules? Provide examples and discuss how each rule performs.
Q5) The ________ is a priority sequencing rule that is calculated by dividing the time remaining until a job's due date by the total shop time remaining for the job, including the setup, processing, move, and expected waiting times of all remaining operations, including the operation being scheduled.
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Chapter 18: Supplement K Layout
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Q1) Use the information in Figure K.1. If travel between departments is restricted to the aisles shown in Figure 1, what is the total weighted-distance (wd) score for the block plan shown in Figure 1?
A) less than or equal to 30
B) greater than 30 but less than or equal to 60
C) greater than 60 but less than or equal to 90
D) greater than 90
Q2) A(n) ________ allocates space and indicates placement of each department.
Q3) The ________ method is a mathematical model used to evaluate layouts based on proximity factors.
Q4) Use the information in Figure K.3. What is the Euclidean distance between offices B and D?
A) greater than 65 feet
B) greater than 45 but less than or equal to 65 feet
C) greater than 25 but less than or equal to 45 feet
D) less than or equal to 25 feet
Q5) The ________ method measures distance between two points with a series of 90-degree turns.
Q6) Describe the appearance and use of a closeness matrix.
Q7) Describe what is depicted in the visual representation of the detailed layout.
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Chapter 19: Supplement B Waiting Lines
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Sample Questions
Q1) If the customer population of a service system generates customers according to a Poisson distribution, the exponential distribution describes the probability that the next customer will arrive in the next T time periods.
A)True
B)False
Q2) The standard assumption in the single-server model is that customers are served according to the earliest due date, i.e., which customer needs to be finished first.
A)True
B)False
Q3) Customers are serviced at a rate of four customers per hour according to an exponential distribution. What is the probability that customer service will require fewer than 30 minutes?
A) less than or equal to 0.50
B) greater than 0.50 but less than or equal to 0.60
C) greater than 0.60 but less than or equal to 0.70
D) greater than 0.70
Q4) Comment on the tension between cost management and customer satisfaction management in a call center situation.
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21
Chapter 20: Supplement C Special Inventory Models
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Q1) Consider a noninstantaneous replenishment situation in which the production rate is 100 units per day, the demand rate is four units per day, and the economic production lot size is 500 units. Which of the following statements is True?
A) The average cycle inventory is fewer than 225 units.
B) The average cycle inventory is greater than 300 units.
C) The rate of buildup in cycle inventory during the production cycle is fewer than 100 units per day.
D) The rate of buildup in cycle inventory during the production cycle is greater than or equal to 400 units per day.
Q2) When facing quantity discounts, the EOQ found with the lowest price level is always the lowest total cost plan.
A)True
B)False
Q3) A manufacturer produces aluminum cans internally rather than purchasing them and uses the economic production lot size equation to govern this process. The length of time that the aluminum can batch runs is given by the equation ________ and the time between the start of one batch of cans to the next is found by the equation
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Chapter 21: Supplement D Linear Programming
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Sample Questions
Q1) Use the information in Table D.3. According to the optimal production plan, what is the overtime production in the second quarter?
A) two units
B) three units
C) four units
D) five units
Q2) A(n) ________ is the marginal improvement in the objective function value caused by relaxing a constraint by one unit.
Q3) The simplex method is an interactive algebraic procedure for solving linear programming problems.
A)True
B)False
Q4) What are the assumptions of linear programming? Provide examples of each.
Q5) The terms slack and surplus both refer to having too much of a resource.
A)True
B)False
Q6) A modeler is limited to two or fewer decision variables when using the ________.
Q7) ________ is useful for allocating scarce resources among competing demands.
Q8) A(n) ________ limits the ability to improve the objective function.
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Chapter 22: Supplement E Simulation
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Q1) ________ uses random numbers to generate simulation events.
Q2) The manager of a branch bank wants to build a simulation model of the lobby operation to reduce the waiting time of her customers. The number of tellers is an example of:
A) a decision variable.
B) an uncontrollable variable.
C) a time-compressed variable.
D) a dependent variable.
Q3) Random variables are under the control of the decision maker.
A)True
B)False
Q4) The manager of a branch bank wants to build a simulation model of the lobby operation to reduce the waiting time of her customers. The number of customers arriving at any point of time is an example of a(n):
A) decision variable.
B) uncontrollable variable.
C) time-compressed variable.
D) dependent variable.
Q5) What is steady state in a simulation model? Why is it important to achieve steady state?
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Chapter 23: Supplement F Financial Analysis
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Q1) The cash flow from the sale or disposal of plant and equipment at the end of a project's life is its ________.
Q2) It is estimated that the cost for the first year of college at Massive University, the state school with the best operations management program, will be $60,000 by the time your son is ready to enroll as a student. If prevailing interest rates will average 5 percent, what amount should you invest now to pay his first year's tuition eight years from now?
A) less than $35,000
B) between $35,000 and $38,000
C) between $38,000 and $41,000
D) more than $41,000
Q3) Describe the basic techniques of financial analysis.
Q4) Jake buys a new work truck every four years regardless of the condition of his current vehicle. His next truck will cost $45,000 and Jake estimates it will have a salvage value of $20,000 when it's time to buy a replacement. What is the annual depreciation?
Q5) The term ________ is often used to describe the common U.S. business practice of focusing on short-term results from low-risk projects via analysis by NPV or IRR calculations.
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Chapter 24: Supplement G Acceptance Sampling Plans
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Q1) A single-sampling plan by attributes is needed for a purchased component. Given the following information, what is the consumer's risk? Table G.1 is appended to this exam. Sample size = 75
Acceptance number (c) = 2
Acceptance quality level (AQL) = 0.01
Lot tolerance proportion defective (LTPD) = 0.05
A) .25
B) .27
C) .29
D) .31
Q2) Acceptance sampling is an inspection procedure used to determine whether to accept or reject a specific quantity of material.
A)True
B)False
Q3) The AOQL is the highest point in the plot of AOQ over all possible values of the proportion defective.
A)True
B)False
Q4) Describe the process of a double-sampling plan.
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Chapter 25: Supplement H Measuring Output Rates
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Q1) Timing the work elements using the snap-back method requires:
A) the worker to perform each job element as quickly as possible.
B) a larger sample size than using the continuous method.
C) the use of two stopwatches.
D) a smaller sample size than using the continuous method.
Q2) The key to creating a work standard is defining normal performance.
A)True
B)False
Q3) Elemental standard time data cannot be used to develop time standards for new work before production begins.
A)True
B)False
Q4) With the use of the methods time measurement approach:
A) stopwatches are needed to time the elements that go together to make a task.
B) there is a problem of biased judgment because performance ratings are needed to derive standards.
C) work must be broken down into micro-motions.
D) an analyst consults tables that contain the select times for a variety of work elements.
Q5) What is the impact of greater reliance on technology on work measurement?
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Chapter 26: Supplement I Learning Curve Analysis
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Q1) Why is the learning rate more pronounced for complex products than for simple products?
Q2) In Troix City, the learning rate is based on a tripling of output instead of the traditional doubling. The first unit of a long production run was produced in 25 hours. The process has an estimated learning rate of 90 percent. How long will the 15th unit take to produce?
A) 18.67 hours
B) 19.28 hours
C) 20.74 hours
D) 17.23 hours
Q3) A company is introducing a new product. The first unit took 1,000 hours to complete, and the fourth unit took 750 hours to complete. What is the rate of learning for this product?
A) less than 40 percent
B) greater than or equal to 40 percent but less than 60 percent
C) greater than or equal to 60 percent but less than 80 percent
D) greater than 80 percent
Q4) Once the learning curve has flattened, i.e., reached a mostly horizontal shape, the per-unit time could be described as ________.
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