Management Science
Exam Bank
Course Introduction
Management Science is a discipline that applies analytical methods, mathematical modeling, and problem-solving techniques to help organizations make better decisions and improve efficiency. The course introduces key concepts such as optimization, decision analysis, forecasting, simulation, and resource allocation, emphasizing their practical application in real-world business scenarios. Students learn how to structure complex managerial problems, use quantitative tools to analyze data, and interpret results to guide strategic planning and operational improvements across various industries.
Recommended Textbook
Decision Sciences and Operations Management Coursemate 4th Edition by David A. Collier
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Chapter 1: Goods, Services, and Operations Management
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Q1) Operations management is the only function by which managers can directly affect the value provided to all stakeholders - customers, employees, investors, and society.
A)True
B)False
Answer: True
Q2) Many business-to-business manufacturers think of the physical good they produce as peripheral to their service offerings.
A)True
B)False
Answer: True
Q3) The ability to download music onto a cell phone would be considered a primary service.
A)True
B)False
Answer: False
Q4) Services always involve direct customer contact.
A)True
B)False Answer: False
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Chapter 2: Value Chains
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Sample Questions
Q1) Third party "system integrators" are often used for vertical integration strategies.
A)True
B)False
Answer: False
Q2) "The perception of the benefits associated with a good, service, or bundle of goods and services in relation to what buyers are willing to pay for them" is the definition of
A)proportionality
B)competitiveness
C)value
D)equity
Answer: C
Q3) Nearly all value chains are managed from a centralized operational structure because of the inherent inefficiencies that are found in decentralized operational structures.
A)True
B)False Answer: False
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Chapter 3: Measuring Performance in Operations
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Q1) Which one of the following statements is true regarding FedEx's Service Quality Indicator SQI)?
A)FedEx's SQI is an example of volume flexibility.
B)FedEx's SQI places the most weight importance) on late pickups.
C)FedEx's SQI places the most weight importance) on damaged and lost packages.
D)FedEx's SQI places the most weight importance) on delivery on the wrong day.
Answer: C
Q2) The triple bottom line TBL or 3BL) refers to the measurement of sustainability in all of the following areas except
A)economic
B)social
C)technological
D)environmental
Answer: C
Q3) Measures and indicators of product and service performance that have a strong correlation with customer satisfaction are appropriate to monitor.
A)True
B)False
Answer: True
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Chapter 4: Operations Strategy
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Sample Questions
Q1) Professor Terry Hill's operations strategy framework provides a systems perspective of how operations is linked to corporate and marketing strategies.
A)True
B)False
Q2) Order qualifiers are goods and service features and performance characteristics that differentiate one customer benefit package from another and win a customer's business.
A)True
B)False
Q3) What are competitive priorities? Provide some examples of how OM influences the five major types of competitive priorities.
Q4) An operations strategy provides the direction on which corporate strategy is based. A)True B)False
Q5) A flexibility strategy requires capacity for both design and demand flexibility. A)True
B)False
Q6) What is the difference between corporate, business and functional strategy?
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Chapter 5: Technology and Operations Management
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Sample Questions
Q1) Industrial robots automate the skills that most humans can readily perform.
A)True
B)False
Q2) ____ consist of two or more computer-controlled machines or robots linked by automated handling devices such as transfer machines, conveyors and transport systems.
A)Computer-Aided Design/Computer-Aided Engineering CAD/CAE)
B)Computer-Aided Manufacturing CAM)
C)Enterprise Resource Planning ERP)
D)Flexible Manufacturing Systems FMS)
Q3) CAD/CAE systems are broader in scope than CIM systems.
A)True
B)False
Q4) An intermediary specializes in handling all aspects of customers' returning a manufactured good or invoking service guarantees.
A)True
B)False
Q5) A key factor that affects technology decisions is scalability. Define scalability. Explain the difference between high scalability, infinite scalability, and low scalability.
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Chapter 6: Goods and Service Design
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Q1) A parallel system has no redundancy.
A)True
B)False
Q2) The system reliability for a three-component series system is 0.8000. If the reliability of two of the components are 0.92 and 0.99, determine the reliability of the third component.
Q3) Redundancy is the use of backup components in a design.
A)True
B)False
Q4) Describe the Taguchi loss function. Contrast it to the "goal post" model.
Q5) In design specification terminology, permissible variation is called
A)nominal
B)buffer
C)tolerance
D)leeway
Q6) Failure mode and effects analysis provides a basis for improving designs.
A)True
B)False
Q7) Discuss the concept of Design for Environment DfE).
Q8) Discuss the concept of servicescape.
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Chapter 7: Process Selection, Design, and Analysis
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Q1) Little's Law
A)Removes process bottlenecks
B)Is a form of simulation
C)Focuses on finished goods inventory
D)Evaluates average process performance
Q2) A legal defense preparation is an example of a project.
A)True
B)False
Q3) In service operations, significant volume increases can and frequently are made without changes in the service process, as would be expected in manufacturing.
A)True
B)False
Q4) The "line of customer visibility" shows the separation between the back office and front office activities in a service flowchart.
A)True B)False
Q5) Improving process designs nearly always focus on decreasing costs.
A)True
B)False
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Chapter 8: Facility and Work Design
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Q1) Cycle time in assembly line balancing is the maximum amount of time it takes to process a part at some workstation along the line.
A)True
B)False
Q2) A line balancing solution has been developed for the assembly line for fertilizer spreaders at Green Grass, Inc. The desired output rate of 30 spreaders per hour will be achieved. The sum of times for all tasks performed on the line is 1200 seconds for each spreader assembled. Which of the following statements must be true?
A)The cycle time is 30 seconds per spreader.
B)The theoretical minimum number of work stations is 10.
C)If the solution calls for 12 stations, the efficiency is 80%.
D)If the solution calls for 11 stations, the efficiency is 80%.
Q3) Cellular layouts are designed according to the functional characteristics of equipment much in the same fashion as process layouts.
A)True
B)False
Q4) Differentiate between a "flow blocking delay" and a "lack of work delay." How can each be reduced?
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Chapter 9: Supply Chain Design
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Sample Questions
Q1) A great servicescape and facility layout can usually overcome a poor location decision.
A)True
B)False
Q2) The weights typically used in the center-of-gravity method are
A)Transportation costs
B)Distances
C)Volumes of goods
D)Times
Q3) In designing an efficient supply chain, an organization would need high levels of inventory stored in many small distribution centers.
A)True
B)False
Q4) For General Motors' supply chain, the ____ is the push-pull boundary.
A)Supplier
B)Factory
C)Dealer
D)Custom
Q5) Explain the typical structure of a supply chain.
Q6) What are the key functions of a supply chain?
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Chapter 10: Capacity Management
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Sample Questions
Q1) Long setup times increase capacity and improve flexibility.
A)True
B)False
Q2) Revenue Management Systems RMS)
A)are batched daily
B)rely solely on overbooking
C)are cost minimization models
D)are time-dependent
Q3) For a non-bottleneck activity,
A)Utilization must be near 100%
B)An hour lost has no effect on total process or factory output
C)Use large order sizes to minimize setups
D)Work-in-process buffer inventory should be placed in front of non-bottlenecks
Q4) A measure of capacity is the number of seats on an airplane per flight.
A)True
B)False
Q5) Complementary goods or services balance seasonal demand cycles and therefore use excess capacity available.
A)True
B)False
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Chapter 11: Forecasting and Demand Planning
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Sample Questions
Q1) In forecasting, irregular variation that is explainable can normally be discarded.
A)True
B)False
Q2) An R<sup>2</sup> of 0.80 means
A)80% of the variability in the independent variable is explained by the dependent variable
B)80% of the variability in the dependent variable is explained by the independent variable
C)80% of the variability in the dependent variable is not explained by the independent variable
D)Multiple regression was used
Q3) For single exponential smoothing,
A)Large values of alpha \(\alpha\)) place more emphasis on recent data
B)Small values of alpha \(\alpha\)) place more emphasis on recent data
C)Very volatile time series with substantial random variability should use a large value for alpha \(\alpha\))
D)Very stable time series with little random variability should use small values for alpha \(\alpha\))
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Chapter 12: Managing Inventories
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Sample Questions
Q1) Airline flights to ski areas near Denver, Colorado, probably have different means and variances throughout the year. This is an example of dynamic demand.
A)True
B)False
Q2) Stochastic demand inventory models are easier to analyze and solve than deterministic models.
A)True
B)False
Q3) Setup costs depend on the number of items manufactured.
A)True
B)False
Q4) In general, total ordering costs are equal to total inventory holding cost for the optimal solution to the EOQ model.
A)True
B)False
Q5) Inventory holding costs can be accurately measured by accounting departments.
A)True
B)False
Q6) What are the four categories of inventory costs?
Page 14
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Chapter 13: Resource Management
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Q1) Lot sizing rules on a parent item do not affect the gross requirements of all lower level component items.
A)True
B)False
Q2) After a master production schedule is created for finished goods, the demand for all materials and components necessary can be calculated, not forecasted.
A)True
B)False
Q3) What is capacity requirements planning (CRP)?
Q4) An electronics company wants to develop an MRP schedule for one of its key components, a specialized chip. The lot size is 600, the lead time is 2 weeks, there are 900 units on hand with 300 of those as safety stock and 500 already allocated. There are gross requirements for 2000 units in week 3 and 1500 units in week 5. There are 600 units scheduled to be received in week 1.
a. What is the number of units available in week 3?
b. What is the planned order receipt for week 5?
Q5) Define a Master Production Schedule MPS) and explain how it differs from a final assembly schedule.
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Chapter 14: Operations Scheduling and Sequencing
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Sample Questions
Q1) High flow times reduce WIP inventory.
A)True
B)False
Q2) The following five jobs, along with their processing time and due dates, are given below.
\[\begin{array} { c c c }
& \text { Processing } & \text { Days Due } \\
\text { Jab } & \text { Time days) } & \text { Fram Today } \\
\hline\text { A } & 8 & 12 \\
\text { B } & 4 & 9 \\
\text { C } & 3 & 6 \\
\text { D } & 7 & 7 \\
\text { E } & 5 & 20
\end{array}\]
a.Use the Shortest Processing Time Rule (SPT) and determine the average flow-time for the five jobs
b.Use the Earliest Due Date Rule (EDD) and determine the average lateness and tardiness.
Q3) What four 4) decisions are considered in designing an appointment system?
Q4) Describe Johnson's sequencing rule for the two-resource sequencing problem.
Page 16
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Chapter 15: Quality Management
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Sample Questions
Q1) The dpmo or epmo for a three-sigma quality level is
A)66,807
B)6,210
C)233
D)3.4
Q2) The Deming philosophy focuses on bringing about improvements in product and service quality by reducing uncertainty and variability in goods and services design and associated processes.
A)True
B)False
Q3) ISO 9000 is best used by firms with mature quality systems as a means of refining their quality practices.
A)True
B)False
Q4) ISO 9000:2000 principles consist of all of the following except
A)Involvement of people
B)Mutually beneficial supplier relationships
C)Zero defects
D)System approach to management
Q5) Describe the rationale underlying ISO 9000:2000.
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Chapter 16: Quality Control and Spc
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Q1) An airline found that on average, 0.62% of the luggage they received from passengers at LAX( Los Angeles Airport) is lost or damaged. On a typical day, 1000 pieces of luggage pass through this airport. The upper control limits for a p chart for monitoring the daily fraction nonconforming?
Q2) Define "quality at the source."
Q3) A steel company is interested in determining if a particular process in its mini?mill is capable of meeting customer expectations. The thickness of steel has an upper limit of .540 mm and a lower limit of .480 mm. The process has a standard deviation of .02 mm. a. What is the process capability index (C<sub>p</sub>) for this process?
b. What must the standard deviation of the process be changed to for the C<sub>p</sub> to equal 1.00?
Q4) Quality control focuses on the design of a good or service to ensure meeting customer expectations.
A)True
B)False
Q5) Both the p-chart and the c-chart use variable data.
A)True
B)False
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Chapter 17: Lean Operating Systems
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Sample Questions
Q1) Lean Six Sigma is simply the union of lean approaches with quality improvement techniques, each of which has been used independently in other applications.
A)True
B)False
Q2) Southwest Airlines illustrates the application of "lean principles" when it
A)reduces airplane turnaround time at airport gates.
B)assigns airplane seats.
C)serves all passengers in-flight dinners.
D)requires a change of ticket fee for missing a scheduled flight.
Q3) The number of Kanban cards is directly proportional to the amount of work-in-process inventory.
A)True
B)False
Q4) Explain the concept of Single Minute Exchange of Die (SMED).
Q5) Which of the following "lean" ideas is false?
A)Activities not adding value are a waste.
B)Accidents are a form of waste.
C)A pull system produces waste.
D)Overproduction is a form of waste.
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Chapter 18: Project Management
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Q1) Which is incorrect regarding the critical path?
A)Shortest time to complete a project
B)Longest time to complete a project
C)Project path with 0 slack
D)Delays in activities will delay the project
Q2) Immediate predecessors are activities that must be completed immediately before an activity may start.
A)True
B)False
Q3) In which stage in the project life cycle would a Gantt chart be used?
A)Define
B)Plan
C)Organize
D)Control
Q4) Which statement is true regarding activities not on the critical path?
A)Usually cannot be delayed
B)Have less slack than activities on the critical path
C)Can delay a project if they are highly variable
D)Are used to crash project completion times
Q5) Describe the four major steps in the project-planning process.
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Chapter 19: Work Measurement, Learning Curves, and Standards
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Sample Questions
Q1) Locksmith Inc. has an order from a bank for 50 specially designed safes, one for each bank branch. It is estimated that the first safe will require 75 hours of shop time and a 90% learning curve is expected. The labor rate is $15.00 per hour and the pricing policy of the company is to triple the labor cost of the order.
a. How many labor hours should the 50th unit require?
b. How many labor hours will the whole order require?
c. What is the customer's price for each safe?
Q2) Unavoidable delays should not be included in time studies.
A)True
B)False
Q3) A manufacturer made a commitment to supply 20 units of a product. The first unit took 1,200 hours to make, the second unit took 900 hours and the third unit took 768 hours. Determine the total number of hours required to make the first ten (10) items.
Q4) The groups best suited to set work standards are managers with input from industrial engineers.
A)True
B)False
Q5) Define work sampling. Give both manufacturing and service applications.
Page 21
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Chapter 20: Queuing Analysis
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Sample Questions
Q1) Which of the following is not a psychological strategy for dealing with a long wait-time?
A)Distraction
B)Telling customers the length of the wait, which allows them to decide whether to wait or to come back another time
C)Displaying artwork
D)Technology
Q2) Queuing models
A)Yield optimal solutions
B)Are generally deterministic
C)Cannot be used in manufacturing
D)Use formulas only when arrivals and service times follow certain distributions
Q3) In queuing models, what are "channels"?
A) the walking paths through service systems
B) service phases
C) the number of waiting lines in a system
D) external sources from which customers originate
Q4) With a restaurant as an example, discuss the psychological methods used to affect customers' perceptions of waiting to be seated, to be served, etc.).
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Chapter 21: Modeling Using Linear Programming
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Q1) A company is considering a rate change, either an increase or a decrease in production, and X<sub>t</sub> = production in a time period
R<sub>t</sub> = increase in production rate from Period tF1F1F1S1 F1F1F101 to Period t D<sub>t</sub> = decrease in production rate from Period tF1F1F1S1 F1F1F101 to Period t
Which of the following is correct?
A)X<sub>t</sub> F1F1F1S1 F1F1F10 X<sub>t - 1</sub> = D<sub>t</sub> F1F1F1S1 F1F1F10
R<sub>t</sub>
B)X<sub>t - 1</sub> F1F1F1S1 F1F1F10 X<sub>t</sub> = D<sub>t</sub> F1F1F1S1 F1F1F10
R<sub>t</sub>
C)X<sub>t - 1</sub> F1F1F1S1 F1F1F10 X<sub>t</sub> = R<sub>t</sub> F1F1F1S1 F1F1F10
D<sub>t</sub>
D)X<sub>t</sub> F1F1F1S1 F1F1F10 X<sub>t - 1</sub> = R<sub>t</sub> F1F1F1S1 F1F1F10
D<sub>t</sub>
Q2) Differentiate between a feasible solution and an optimal solution.
Q3) Explain the steps necessary to solve a linear programming problem using Microsoft Excel's Solver.
Q4) What characterizes a linear function?
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Chapter 22: Simulation
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Q1) Validation consists of all of the following except
A)Developing a model with high face validity
B)Validating model assumptions
C)Developing logical flow charts
D)Validating model output
Q2) In regard to a simulation model for inventory management, all of the following are correct except
A)Results in an optimal solution with a large simulation
B)Many days of simulation run are needed to obtain meaningful results
C)Lead-time can vary
D)Assumes that a specific reorder point and order quantity have been selected
Q3) In general, as the number of probabilistic components of a system increases, the more likely it is that simulation will be the best analysis approach.
A)True
B)False
Q4) A disadvantage of simulation models is that the structuring is highly dependent on the expertise of the modeler.
A)True
B)False
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Chapter 23: Work Measurement, Learning Curves, and Standards
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Q1) Which of the following is not a similarity between a decision matrix and a decision tree?
A)Time
B)States of nature
C)Alternatives
D)Probabilities
Q2) Differentiate between uncertainty and risk.
Q3) All of the following are characteristics of management decisions for which decision analysis techniques apply except
A)They must be important
B)They are probably unique
C)They are usually deterministic
D)They are complex
Q4) The expected value concept weighs each payoff for an alternative in proportion to the likelihood that the payoff will occur.
A)True
B)False
Q5) Discuss the five characteristics of management decisions when decision analysis techniques should be utilized.
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