Introduction to Operations Management
Textbook Exam Questions
Course Introduction
Introduction to Operations Management provides students with a comprehensive overview of the core concepts, strategies, and analytical tools essential to the efficient and effective transformation of resources into goods and services. The course explores key topics such as process analysis, capacity planning, inventory management, quality control, supply chain coordination, and project management. Emphasizing both manufacturing and service operations, students will learn to evaluate operational performance, implement improvements, and understand the vital role operations management plays in achieving organizational goals and competitiveness. Case studies and real-world examples illustrate practical application, preparing students for further study and careers in operations and related fields.
Recommended Textbook operations management an integrated approach 6th edition by r. dan reid
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Chapter 1: Introduction to Operations Management
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Q1) The first military use of management science was solving complex problems of logistics control, weapons system design, and deployment of missiles during
A) World War I
B) World War II
C) The Korean War
D) The Vietnam War
E) Operation Desert Storm
Answer: B
Q2) "Job enrichment" is an approach in which workers are given a larger portion of the total task to do.
A)True
B)False
Answer: False
Q3) What were the major impacts on operations management that resulted from the widespread use of computers in the 1970s?
Answer: using quantitative models on a larger scale; development of material requirements planning; and data processing was made easier, with advances in forecasting, scheduling, and inventory management
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Chapter 2: Operations Strategy and Competitiveness
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Q1) Which of the following is a valid type of "productivity measure"?
A) multi-output productivity measure
B) partial productivity measure
C) multi-part productivity measure
D) multi-component productivity measure
E) imperfect productivity measure
Answer: B
Q2) 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
Q3) A mission statement answers what three overriding questions?
Answer: (1) What business is the organization in?, (2) Who are the customers?, (3) How will the company's core beliefs shape its business?
Q4) __________ ________ is used to improve the process of creating goods and services.
Answer: Process technology
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Chapter 3: Product Design and Process Selection
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Q1) Studying the practices of companies considered "best in class" and comparing the performance of our company against their performance is
A) competition
B) copying
C) frustration
D) benchmarking
E) notching
Answer: D
Q2) Describe why marketing should be involved in the product design process.
Answer: Marketing is impacted by product design issues because they determine the types of products that will be produced and affect marketing's ability to sell them. Marketing understands the types of product characteristics customers want and can provide operations with information on customer preferences, competition, and future trends.
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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Q1) Will's omelet factory produces 2,500 omelets a day. They've determined that their daily fixed costs are $4,000 with a variable cost of fifteen cents per omelet. (a) What is the total cost to make a day's omelets, and (b) what should Will charge for each omelet to make a 10% profit, rounded to the next whole dollar?
Q2) Global Metalworks can produce its own hinges for a weekly cost of $96,400 and a cost per hinge of $0.10. Currently an outside supplier is used for a weekly cost of $82,500 and a cost per hinge of $0.24. Current weekly demand is 98,000 units. How much larger must weekly demands grow in order to make insourcing economical?
Q3) The amount of outsourcing in industry is increasing.
A)True
B)False
Q4) Recent research suggests that most large companies have not increased their level of outsourcing.
A)True
B)False
Q5) What is the big difference between crossdocking and traditional distribution warehousing?
Q6) Global competition forces firms to offer _____________________ products.
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Chapter 5: Total Quality Management
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Q1) What are four dimensions of manufacturing quality?
Q2) If suppliers meet preset quality standards, materials
A) will need minimal arrival inspections
B) will still require full arrival inspections
C) will be package in special approved containers
D) do not have to be inspection upon arrival
E) will be paid for at a premium cost
Q3) Where is the Deming prize awarded?
A) U.S.
B) Japan
C) England
D) Germany
E) Canada
Q4) Deming believed that __________ is the key to improving quality.
A) Employee training
B) Process design
C) Properly functioning equipment
D) Having good suppliers
E) Improving the system
Q5) What are the four types of quality costs?
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Chapter 6: Statistical Quality Control
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Q1) Each day for two workweeks (10 days total), George weighs 4 bags from that day's production. If the average of the means is 14 oz. and the average range is 0.4 oz., what is the lower control limit for an x-bar chart for this process?
A) 13.7084 oz.
B) 13.8768 oz.
C) 14.2916 oz.
D) 12.8000 oz.
E) 13.5908 oz.
Q2) Ritz-Carlton employees are empowered to spend up to how much money on the spot to correct any customer complaint?
A) $25
B) $50
C) $100
D) $1000
E) $2000
Q3) Consumers willingly accept defects if ________________________.
Q4) Define statistical process control.
Q5) What does "OC" stand for?
Q6) What is the formula for an x-bar chart's center line?
Page 8
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Chapter 7: Just-In-Time and Lean Systems
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Q1) With regard to suppliers, JIT typically requires information sharing.
A)True
B)False
Q2) Under the JIT belief of visibility, describe JIT facilities.
Q3) Consider a workstation that can process 4000 units per hour. It takes 15 minutes to receive an order from the previous station. The container size is 20 units. The factory sets safety stock at 20 percent of demand during lead time. How many kanbans are needed for the workstation?
A) 16
B) 3600
C) 50
D) 10
E) 60
Q4) The broad view of JIT is now often termed __________________________.
A) vendor-managed inventory
B) business process reengineering
C) lean production
D) cycle time management
E) e-distribution
Q5) JIT changes happen in sequence because ________________________.
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Chapter 8: Forecasting
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Q1) Moving average forecasts with a larger number of observations are more responsive than those with a smaller number of observations.
A)True
B)False
Q2) Suppose that Sally's company uses exponential smoothing to make forecasts. Further suppose that last period's demand forecast was for 20,000 units and last period's actual demand was 21,000 units. Sally's company uses a smoothing constant (?) equal to 40%. What should be the forecast for this period?
A) 20,000
B) 21,000
C) 20,600
D) 20,400
E) 19,600
Q3) What are the most frequently used forecasting techniques?
A) Linear regression
B) Simple mean
C) Exponential smoothing
D) Weighted moving average
E) Econometric models
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Chapter 9: Capacity Planning and Facility Location
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Q1) Large facilities can benefit from the concept of _____________________ by creating a plant within a plant (PWP).
A) just-in-time
B) focused factories
C) economies of scale
D) supply chain
E) hierarchical management
Q2) When evaluating location alternatives the firm should look at
A) only qualitative factors
B) only quantitative factors
C) both qualitative and quantitative factors
D) weighted average values
E) decision support models only
Q3) Which of the following is not a valid assumption of the break?even model?
A) only one product is involved
B) everything which is produced will be sold
C) the revenue per unit will be the same regardless of volume
D) the fixed cost per unit will be the same regardless of volume
E) the variable cost per unit will be the same regardless of volume
Q4) An area that has further encouraged globalization is the growth of __________.
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Chapter 10: Facility Layout
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Q1) Managers use a from-to matrix for facility layout design to identify both the number of trips and the direction of those trips.
A)True
B)False
Q2) An REL chart can contain ratings of both desirability of closeness and undesirability of closeness.
A)True
B)False
Q3) A hospital is an example of which layout type?
A) inverted
B) hybrid
C) process
D) fixed position
E) product
Q4) In product layouts, the material moves continuously and uniformly through a series of workstations until the product is completed.
A)True
B)False
Q5) What are the four basic layout types?
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Chapter 11: Work System Design
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Q1) What is the approach to job design which involves an increase in responsibility for work planning and/or inspection?
A) job enlargement
B) job rotation
C) job involvement
D) job enrichment
E) job enhancement
Q2) The first unit of a product took 400 hours to complete. The firm plans to produce 8 units in the first month and 10 units in the second month. If an 80% learning curve is expected, how many hours will the firm use to work on the product during the second month?
A) 4000.0 hours
B) 2526.0 hours
C) 3886.4 hours
D) 2138.4 hours
E) 1748.0 hours
Q3) Expanding a job horizontally through increasing the scope of work assigned is called
Q4) Describe why understanding learning curves is important to the organization.
Q5) What are the advantages of the alternative workplace?
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Chapter 12: Inventory Management
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Q1) Any inventory turnover less than 4 is considered to be poor performance.
A)True
B)False
Q2) Inventory record accuracy is especially critical for master production schedule users.
A)True
B)False
Q3) What is the total annual inventory cost (using basic EOQ )of a product whose annual demand is 12,000 units, daily demand is 40, daily production is 60, order cost is $80, and holding cost is $6? (Round to the nearest dollar.)
Q4) What is the formula for calculating the maximum inventory level?
A) Imax = H(1-d/p)
B) Imax = Q(1-d/p)
C) Imin = Q(1-s/p)
D) Imax = Q(1-d/s)
E) Imin = Q(1-d/h)
Q5) What are items used in support of manufacturing and maintenance called?
Q6) What is another name for speculative inventory?
Q7) What are the characteristics of a single-period inventory model?
Q8) List some advantages of small order quantities.
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Chapter 13: Aggregate Planning
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Q1) Which of the following is an advantage of producing at average demand levels?
A) inventory fluctuates
B) allows for a lower investment in capacity
C) minimizes space needs for inventory
D) minimizes finished good holding costs
E) makes it difficult to calculate average production
Q2) Demand-based options include two reactive options and two proactive options.
A)True
B)False
Q3) Which of the following best describes subcontracting?
A) provides additional output capacity during periods of high demand
B) it is a strategic decision
C) cost per unit is less for subcontracting
D) used when a company has no in-house capability
E) it defines the company's core business
Q4) Demand patterns cannot be smoothed through pricing incentives, reduced prices for out-of-season purchases, or nonprime service times.
A)True
B)False
Q5) What are the characteristics of the marketing plan?
Page 15
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Chapter 14: Resource Planning
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Q1) The gross requirements of a given component part are determined from planned orders of the parent.
A)True
B)False
Q2) List the major users of ERP systems.
Q3) For any period the beginning inventory, plus any replenishment order due, less the gross requirement equals planned orders.
A)True
B)False
Q4) An action notice is generated
A) for planned orders in any period
B) only for orders that are to be released to the shop floor
C) only for movements to and from the warehouse
D) only when marketing needs to be notified
E) when a planned order needs to be released
Q5) MRP develops a time-phased schedule that shows future demand, supply and inventories by time period.
A)True
B)False
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Chapter 15: Scheduling
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Sample Questions
Q1) Optimized production technology (OPT) was introduced by Eli
A) Goldratt
B) Manning
C) Jefferson
D) Rosenblatt
E) Strasburg
Q2) Usage and activation of a resource are not the same.
A)True
B)False
Q3) Flow operations are often related to high volume production.
A)True
B)False
Q4) Which of the following scheduling techniques tends to break down over the long term?
A) input/output control
B) infinite loading
C) forward scheduling
D) backward scheduling
E) finite loading
Page 17
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Chapter 16: Project Management
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Q1) Shortening the total time for completing a project by incurring higher costs from shortening activities is ________.
A) normal cost
B) backward pass
C) crashing
D) leveling
E) project control
Q2) The longest connected route through the path network is the ______________________.
A) planning matrix
B) final deliverable
C) crash path
D) connector
E) critical path
Q3) What is involved in the approach for crashing projects?
Q4) Backward scheduling develops the LS and LF times.
A)True
B)False
Q5) Projects vary in terms of objectives but each has a _______________ of activities.
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Chapter 17: Spreadsheet Modeling: An Introduction
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Q1) Which of the following is not one of the standard items included in a footer?
A) file name
B) author name
C) user name
D) date
E) time
Q2) In Excel, __________________ references change when you copy them.
A) absolute
B) comparative
C) analogous
D) relative
E) correlative
Q3) In Excel, absolute references are indicated by the lack of a dollar sign character preceding either the column or the row reference.
A)True
B)False
Q4) Inputs are quantities or factors that affect the situation.
A)True
B)False
Q5) Define an output.
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Chapter 18: Introduction to Optimization
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Q1) What are the allowable constraint relationship types in optimization problems?
A) <, >, =
B) <, >, =, ,
C) =, ,
D) <, >, ,
E) , =, ,
Q2) HEAVY, Inc. produces two lines of heavy equipment, earthmoving and forestry. The largest member of the earthmoving equipment line (the E-7) and the largest member of the forestry equipment line (the F-7) are produced in the same departments and with the same equipment. HEAVY's marketing manager has judged that the firm will be able to sell as many E-7s or F-7s as the firm can produce. The contribution margins are $15,000 for each E-7 and $14,000 for each F-7. There are 170 hours available in department A and 185 hours available in department B. Each E-7 produced uses 10 hours in department A and 20 hours in department B. Each F-7 uses 15 hours in department A and 10 hours in department B. Furthermore, in order to maintain the current market position, senior management has decreed that it is necessary to build at least one F-7 for every three E-7s produced. Finally, a major dealer has ordered a total of at least five E-7s and F-7s (in any combination) for next month, so at least that many must be produced. Formulate a Linear Program to determine the best production policy for next month.
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Chapter 19: Waiting Line Models
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Q1) Which of the following is not considered to be an element of a waiting line system?
A) the customer population source
B) the service system
C) the average number of customers in the system
D) the arrival and service patterns
E) the priorities used for controlling the line
Q2) Consider a single-line, single-server waiting line system. Suppose that customers arrive according to a Poisson distribution at an average rate of 60 per hour, and the average (exponentially distributed) service time is 45 seconds per customer. What is the average number of customers in the system?
Q3) Consider a single-server queuing system (with Poisson arrivals and exponential service times). If the arrival rate is 30 units per hour, and each customer takes 30 seconds on average to be served, what is the average length of the line?
A) 1.03
B) -1.03
C) 0.166
D) 0.333
E) 0.083
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Chapter 20: Master Scheduling and Rough-Cut Capacity Planning
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Q1) Beginning Inventory + MPS Shipment - maximum of (forecast and customer orders) is called ________________________.
Q2) What is the formula for projected available in an MPS record?
A) beginning inventory + MPS shipment - forecasted demand
B) MPS shipment from previous week - forecasted demand
C) cumulative MPS shipments - cumulative forecasts
D) forecasted demand - MPS shipment from previous week
E) beginning inventory + forecasted demand - MPS shipment
Q3) Engines Corp. builds two different types of motors in three departments. Historically, department X uses 20%, department Y uses 50%, and department Z uses 30% of direct labor and machine time, respectively. In the next quarter, demand for Model A is expected to be 40,000 units, and demand for Model B is expected to be for 50,000 units. The CPOPF planning factors are: direct labor for Model A = 0.667 hrs./unit, machine time for Model A = 1.75 hrs./unit, direct labor for Model B = 1.087 hrs./unit, machine time for Model B = 0.261 hrs./unit. Calculate the amount of labor and machine time that will need to be allocated to each of the three departments next quarter.
Q4) Discuss the master scheduler's objectives when developing the MPS.
Q5) Discuss why a negative number in the available-to-promise row is always a problem.
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