Logistics and Operations Practice Exam
Course Introduction
This course provides an in-depth exploration of logistics and operations management within modern organizations. Students will learn about the strategies and techniques used to efficiently manage the flow of goods, services, and information from suppliers to customers. Key topics include inventory management, supply chain coordination, transportation systems, warehousing, production planning, and the use of technology in operations. Emphasis is placed on optimizing resources, reducing costs, and delivering value to stakeholders while maintaining flexibility and responsiveness in dynamic market environments. Real-world case studies and practical applications are integrated to illustrate best practices and current challenges in the field.
Recommended Textbook Operations Management 11th Edition by William J. Stevenson
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Chapter 1: Introduction to Operations Management
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Q1) The value of outputs is measured by the prices customers are willing to pay for goods or services.
A)True
B)False
Answer: True
Q2) Measurement of productivity in service is more straightforward than in manufacturing since it is not necessary to take into account the cost of materials.
A)True
B)False
Answer: False
Q3) The operations manager has primary responsibility for making operations system design decisions, such as system capacity and location of facilities.
A)True
B)False
Answer: False
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Chapter 2: Competitiveness, Strategy, and Productivity
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Q1) Improving efficiency will guarantee a similar improvement in productivity.
A)True
B)False
Answer: False
Q2) Which of the following is not a factor that affects productivity?
A)computer viruses
B)design of the workspace
C)use of the Internet
D)standardizing processes
E)wireless cellular phones
Answer: E
Q3) ___________ is generally used to facilitate an organization strategy that emphasizes low cost.
A)Speed to market
B)Flexibility
C)Customization
D)Sustainability
E)None of the above
Answer: E
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Page 4
Chapter 3: Forecasting
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Q1) A tracking signal focuses on the ratio of cumulative forecast error to the corresponding value of MAD.
A)True
B)False
Answer: True
Q2) Inaccuracies in forecasts along the supply chain lead to:
A)shortages or excesses of materials
B)reduced customer service
C)excess capacity
D)missed deliveries
E)all of the above
Answer: E
Q3) Detecting non-randomness in errors can be done using:
A)MSEs
B)MAPs
C)Control Charts
D)Correlation Coefficients
E)Strategies
Answer: C
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Chapter 4: Product and Service Design
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Q1) "Concurrent engineering" means that at least two engineers are involved in product design at the same time.
A)True
B)False
Q2) Basic research is done with the expectation that discoveries will have near-term commercial application.
A)True
B)False
Q3) Commonality of components is beneficial for manufacturing but not for services.
A)True B)False
Q4) The process of dismantling and inspecting a competitor's product to discover product improvement is called benchmarking.
A)True
B)False
Q5) Delayed differentiation and modular design are tactics for mass customization. A)True B)False
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Chapter 5: Strategic Capacity Planning for Products and Services
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Q1) Waiting line analysis can be useful for capacity design, especially for service systems.
A)True
B)False
Q2) Production units have an optimal rate of output where:
A)total costs are minimum
B)average unit costs are minimum
C)marginal costs are minimum
D)rate of output is maximum
E)total revenue is maximum
Q3) The utilization of a machine is 50%.The machine has a design capacity of 70 units per hour and an effective capacity of 60 units per hour.Find the efficiency of the machine.
Q4) The ratio of actual output to effective capacity is:
A)design capacity
B)effective capacity
C)actual capacity
D)efficiency
E)utilization
Q5) What quantity would be required for a profit of $2,000?
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Chapter 6: Process Selection and Facility Layout
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Sample Questions
Q1) In the use of closeness ratings for process layouts, the code "U" means the closeness between two departments is:
A)(U)nknown
B)(U)nusually important
C)of (U)sual importance
D)(U)nimportant
E)(U)ndesirable
Q2) Flexibility can be used as a competitive strategy.
A)True
B)False
Q3) For output to equal projected demand, what will be the efficiency of the production line that uses the minimum number of workstations?
A)90%
B)95%
C)97%
D)99%
E)100%
Q4) Given the following process layout data for locating six departments in the six areas shown:
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Chapter 7: Work Design and Measurement
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Q1) The standard time for a job can be obtained by multiplying the normal time by an appropriate allowance factor.
A)True
B)False
Q2) How confident can the manager be that the true proportion of time spent mowing is between .45 and .55?
A)90 percent
B)95 percent
C)95.5 percent
D)99 percent
E)99.7 percent
Q3) If the manager wants to be 95.44 percent confident that the true proportion of time spent mowing is within .02 (plus or minus) of the sample proportion, what should be her sample size?
A)400
B)1,000
C)1,600
D)2,000
E)2,500
Q4) What is the observed time for this task?
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Chapter 8: Location Planning and Analysis
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Q1) A location analysis has been narrowed down to two locations, Akron and Boston.The main factors in the decision will be the supply of raw materials, which has a weight of .50, transportation cost, which has a weight of .40, and labor cost, which has a weight of .10.The scores for raw materials, transportation, and labor are for Akron 60, 80, and 70, respectively; for Boston 70, 50, and 90, respectively.Given this information and a minimum acceptable composite score of 75, we can say that the manager should:
A)be indifferent between these locations
B)choose Akron
C)choose Boston
D)reject both locations
E)build a plant in both cities
Q2) If annual demand is estimated to be 20,000 units, which location should the company select?
A)Atlanta
B)Phoenix
C)either Atlanta or Phoenix
D)reject both Atlanta and Phoenix
E)build at both locations
Q3) For what range of output would you prefer site C?
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Chapter 9: Management of Quality
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Sample Questions
Q1) Poor quality has a positive effect on productivity because it usually takes longer to produce a good part.
A)True
B)False
Q2) A chart showing the number of occurrences by category would be used in:
A)Pareto analysis
B)interviewing
C)cause-and-effect diagrams
D)benchmarking
E)none of the above
Q3) The Baldrige award is based on seven categories.Which is not one of those?
A)Relative profitability
B)Strategic planning
C)Human resource focus
D)Information and Analysis
E)Leadership
Q4) Broadly defined, quality refers to the ability of a product or service to occasionally meet or exceed customer expectations.
A)True
B)False
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Chapter 10: Quality Control
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Sample Questions
Q1) "Process capability" compares "process variability" to the "tolerances."
A)True
B)False
Q2) If the process proportion of defectives is unknown, using .10 alpha risk control limits, do any of the sample proportions indicate an out-of-control process proportion of defectives?
Q3) The number of runs with respect to the sample median is:
A)3
B)4
C)5
D)6
E)none of these
Q4) An x-bar control chart can only be valid if the underlying population it measures is a normal distribution.
A)True
B)False
Q5) Processes that are in control eliminate variations.
A)True
B)False
Q6) If the process proportion of defectives is unknown, what is the estimate of it?
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Chapter 11: Aggregate Planning and Master Scheduling
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Sample Questions
Q1) The assignment of work to specific machines and people are examples of aggregate planning.
A)True
B)False
Q2) Linear programming to produce an aggregate plan:
A)will produce the best plan if accurate inputs are used
B)is the most widely used technique
C)(a) and (b)
D)will produce a plan that may not be the best plan
E)requires an excel spread sheet
Q3) Accommodating peak demands and effectively using labor resources during periods of low demand would be the goal of aggregate planners in ....
A)Manufacturing
B)Military
C)Archeology
D)Libraries
E)Financial Services
Q4) How should overtime capacity be utilized?
Q5) What are total costs for each period?
Q6) What are total carrying costs?
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Chapter 12: MRP and ERP
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Q1) In an MRP master schedule, the planning horizon is often separated into a series of times periods called:
A)pegging
B)lead times
C)stacked lead times
D)time buckets
E)firm, fixed and frozen
Q2) Initially, a master production schedule - the output from MRP - may not represent a feasible schedule.
A)True
B)False
Q3) Project Management approaches can help in a conversion to an ERP system.
A)True
B)False
Q4) In MRP, EOQ models tend to be less useful for materials at the lowest levels than for upper level assemblies of the bill of materials since higher-level assemblies have larger dollar investments.
A)True B)False
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Chapter 13: Inventory Management
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Sample Questions
Q1) What is the economic order quantity for resin?
A)50 kilograms
B)100 kilograms
C)250 kilograms
D)500 kilograms
E)1,000 kilograms
Q2) To provide satisfactory levels of customer service while keeping inventory costs within reasonable bounds, two fundamental decisions must be made about inventory: the timing and size of orders.
A)True
B)False
Q3) Suppose that usage of cooking oil at Harry's Fish Fry is normally distributed with an average of 15 gallons/day and a standard deviation of two gallons/day.Harry has just fired the manager and taken over operating the restaurant himself.Harry has asked you to help him decide how to reorder cooking oil in order to achieve a service level which is seven times the risk of stockout (7/8).Lead time is eight days.Assume that cooking oil can be ordered as needed.
Q4) What is the economic order quantity for this item?
Q5) For the economic order quantity, what is the length of an order cycle?
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Chapter 14: Jit and Lean Operations
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Q1) If a firm's product mix is 60% of product A and 20% each of products B and C, an optimal mix-model production schedule would be successive sequences of AAABC.
A)True
B)False
Q2) In a "pull system," a quantity of inventory in front of a workstation indicates problems at that workstation.
A)True
B)False
Q3) Quality and highly capable production systems are requirements for the successful implementation of lean operations.
A)True
B)False
Q4) The ultimate objective in a lean system is:
A)low to moderate levels of inventory
B)high quality, zero defects
C)minimal waste (less than 6%)
D)balanced and rapid flow
E)all of the above
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Chapter 15: Supply Chain Management
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Q1) One disadvantage to RFID is that they require a 'line of sight' for reading.
A)True
B)False
Q2) Our organization can obtain visibility to potential trading partners on the internet by using:
A)C2C
B)B2C
C)B2B
D)C2B
E)None of the above
Q3) Managing supply chain visibility involves making sure that potential supply chain partners are aware of your organization's needs.
A)True
B)False
Q4) The purchasing cycle ends when the purchasing department is notified that the supplier has shipped the items.
A)True
B)False
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Chapter 16: Scheduling
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Sample Questions
Q1) If he uses the first come, first served (FCFS) priority rule to schedule these jobs, what will be the average completion time?
A)7.5 hours
B)5 hours
C)3 hours
D)2.5 hours
E)2 hours
Q2) What is the optimum assignment of jobs to machines?
Q3) Scheduling pertains to:
A)hiring workers
B)process selection
C)buying machinery
D)timing the use of specific resources
E)determining the lowest cost
Q4) When does idle time occur at machine B for the optimum schedule?
Q5) Given the following information concerning jobs awaiting processing at a single work center, what processing sequence will result if the critical ratio (CR) rule is used?
Q6) What is the result of the row reduction?
Q7) What is the idle time at machine B for the optimum schedule?
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Chapter 17: Project Management
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Sample Questions
Q1) The latest starting time for an activity is equal to the latest finish time minus the activity time.
A)True
B)False
Q2) What is the estimated standard deviation in the time for activity Z?
A)3 days
B)2 days
C)4 days
D)8 days
E)5 days
Q3) If the expected length of a path is more than 2.5 standard deviations less than a desired project completion time, the path would not be a factor in assessing the probability of finishing the project on time.
A)True
B)False
Q4) Activities not on the critical path have a slack time equal to zero.
A)True
B)False
Q5) What are the estimated slack times (in weeks) for activities A-H?
Q6) In crashing this project, which activity should be the first to be reduced?
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Chapter 18: Management of Waiting Lines
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Sample Questions
Q1) Why is there waiting in an infinite source queuing system?
A)poor scheduling of servers
B)slow service
C)low utilization
D)variability in arrival and service rates
E)multiple phase processing
Q2) The queuing models discussed in the text apply only to "steady state" conditions.Steady state exists only when customers arrive at a steady rate; that is, without any variability.
A)True
B)False
Q3) What is the average number of high priority items waiting in line for service?
Q4) What is the average machine downtime with two operators?
A)1.71 minutes
B)3.46 minutes
C)6.25 minutes
D)7.71 minutes
E)9.46 minutes
Q5) What is average time in line for a low priority item?
Q6) What is average time in the system for a high priority item?
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Chapter 19: Linear Programming
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Q1) A change in the value of an objective function coefficient does not change the optimal solution.
A)True
B)False
Q2) The term "range of optimality" refers to a constraint's right-hand side quantity.
A)True
B)False
Q3) In linear programming, sensitivity analysis is associated with: (I) objective function coefficient
(II) right-hand side values of constraints
(III) constraint coefficient
A)I and II
B)II and III
C)I, II and III
D)I and III
E)none of the above
Q4) What are the corner points of the feasible solution space?
Q5) What is the constraint for resource III?
Q6) What is the objective function?
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Chapter 20: Extension 4: Reliability
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Sample Questions
Q1) Waygate's residential internet modem works well but is sensitive to power-line fluctuations.On average, this product hangs up and needs resetting every 200 hours.On average about 45 minutes is needed to reset this product.What is this product's availability?
A)Not in excess of .75
B)In excess of .75 but not in excess of .8
C)In excess of .8 but not in excess of .9
D)In excess of .9 but not in excess of .95
E)In excess of .95
Q2) Product reliability involves both short-term and long-term perspectives.
A)True
B)False
Q3) If a system depends on two sub-systems functioning when activated, the reliability of that system is equal to the lower reliability of the two sub-systems.
A)True
B)False
Q4) Availability cannot be increased without improving the time between breakdowns.
A)True
B)False
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Chapter 21: Extension 5: Decision Theory
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Q1) If you are uncertain which state of nature will occur, and use the maximin criterion, which alternative will you select?
Q2) What would be the total payoff if the heart lab were funded in both the first and second years?
A)$100,000
B)$60,000
C)$50,000
D)$40,000
E)$20,000
Q3) Graphical sensitivity analysis is limited to cases with no more than two alternatives.
A)True
B)False
Q4) The maximax strategy would be:
A)small
B)Medium
C)med.-large
D)large
E)ex-large
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Chapter 22: Extension 7: Learning Curves
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Q1) The fact that human activities typically improve when they are done on a repetitive basis is described by a/an:
A)normal distribution curve
B)learning curve
C)binomial distribution curve
D)exponential curve
E)fatigue factor allowance
Q2) An 80 percent learning curve means that with each doubling of repetitions there will be a 20 percent decrease in time per unit.
A)True
B)False
Q3) A job is expected to have a 70 percent learning curve.The first unit has been completed in 20 hours.Accordingly, the second unit can be expected to take approximately how many hours?
A)6
B)9.8
C)14
D)20
E)34
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Chapter 23: Extension 8: The Transportation Model
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Q1) Which of the following is a constraint for the customer (campaign headquarters)?
A)2X<sub>11</sub> + 9X<sub>21</sub> + X<sub>31</sub> = 20
B)5X<sub>12</sub> + 3X<sub>22</sub> + 8X<sub>32</sub> = 70
C)X<sub>11</sub> + X<sub>12</sub> + X<sub>13</sub> = 50
D)X<sub>12</sub> + X<sub>22</sub> + X<sub>32</sub> = 70
E)all of the above
Q2) An automobile manufacturer that has eight assembly plants and thousands of dealers throughout the United States can find the optimal distribution plan by using:
A)linear programming model
B)transportation model
C)weighted factor rating
D)either A or B
E)Global Information Systems
Q3) The transportation model assumes similar, homogeneous goods.
A)True
B)False
Q4) The transportation model is a special type of linear regression model.
A)True
B)False
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Chapter 24: Extension 10: Acceptance Sampling
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Q1) A firm uses acceptance sampling to evaluate batches of inputs.Ideally, the defect rate would be no more than 3.5%.The firm knows that on occasion, batches with that defect rate or better might be rejected.However, if the defect rate is less than or equal to 3.5%, the firm would like there to be very little chance of that batch being rejected.This value, 3.5%, is the firm's ______.
Q2) The Lot tolerance percent defective (LTPD) is associated with a consumer's risk.
A)True
B)False
Q3) If this lot were 20% defective, what type error would be possible? For an acceptance sampling plan with c = 2, what would be the risk of this error?
Q4) If he uses an acceptance sampling plan of n = 5 and c = 2, what is the probability that, if this batch is 40% defective, it will be rejected and receive 100% inspection prior to shipment?
A)0.1270
B)0.2730
C)0.3174
D)0.6826
E)0.7270
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Chapter 25: Extension 14: Maintenance
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Q1) Pareto analysis (using the 80/20 rule) is one method of determining when preventive maintenance activities should be performed.
A)True
B)False
Q2) Ideally, preventive maintenance will be performed before a breakdown or failure.
A)True
B)False
Q3) The major approaches used in plans to deal with breakdowns include all of the following except:
A)standby equipment
B)inventories of spare parts
C)operator repair of minor problems
D)readily available repair personnel
E)All of these are major approaches.
Q4) The optimum amount of preventive maintenance is where:
A)Total breakdown costs are a minimum.
B)Total preventive maintenance costs are a minimum.
C)Each maintenance component cost is a minimum.
D)Total maintenance costs are a maximum.
E)Total maintenance costs are a minimum.
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