Course Introduction
Management Science
Final Exam Questions
Management Science is an interdisciplinary field that applies analytical methods, mathematical modeling, and quantitative techniques to aid in decision-making and problem-solving in organizations. This course introduces students to the core concepts of optimization, simulation, forecasting, and data analysis, enabling them to approach complex business challenges systematically. By emphasizing real-life applications, students learn how to utilize tools such as linear programming, decision analysis, and inventory management to improve operational efficiency, maximize resources, and support strategic planning in various management contexts.
Recommended Textbook
OM 3rd Edition by David Alan
Collier
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18 Chapters
1344 Verified Questions
1344 Flashcards
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Page 2
Chapter 1: Goods, Services, and Operations Management
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Sample Questions
Q1) To apply the principles of operations management, managers need to understand people, processes, and technology.
A)True
B)False
Answer: True
Q2) Value creation processes focus on primary goods and services.
A)True
B)False Answer: True
Q3) The reason that many Japanese firms captured major shares of world markets in the 1970s was the result of their focus on quality rather than efficiency.
A)True
B)False Answer: True
Q4) A customer benefit package (CBP) consists of both a primary good and a primary service.
A)True
B)False Answer: False
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Chapter 2: Value Chains
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Sample Questions
Q1) Outsourcing is the opposite of vertical integration.
A)True
B)False
Answer: True
Q2) In breakeven analysis, whenever the anticipated volume is greater than the breakeven quantity, the firm should not outsource.
A)True
B)False
Answer: True
Q3) Historically, service work was outsourced before many goods-producing jobs were.
A)True
B)False
Answer: False
Q4) Offshoring generally lowers unit costs.
A)True
B)False
Answer: True
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Chapter 3: Measuring Performance in Operations
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Sample Questions
Q1) A guest at Raphael's Italian Restaurant generally spends $150.00 on a meal. Most of Raphael's customers are local and eat at the restaurant twice a month. If the restaurant's margins are 60 percent, and a loyal customer is estimated to be worth $3000, determine the average defection rate.
Answer: VLC = P * CM * RF * BLC 3000 = (150)(.6)(24)(1/D), where D is the average defection rate D = 2160/3000 = 0.72
Q2) It costs 3 to 5 times more to keep an existing customer than to acquire a new customer.
A)True
B)False
Answer: False
Q3) When Bill Gates stated that "Microsoft is always two years away from failure," he was emphasizing the importance of A)innovation and learning
B)productivity
C)design flexibility
D)speed
Answer: A
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Page 5
Chapter 4: Operations Strategy
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Sample Questions
Q1) While it is generally difficult to change the structure of a value chain, operations managers can make strategic choices about technology and human resources.
A)True
B)False
Q2) Operational capabilities must be built before a firm should identify competitive priorities.
A)True
B)False
Q3) Requirements that are expected in a good or service are called
A)Order Qualifiers
B)Order Satisfiers
C)Order Exciters
D)Order Winners
Q4) Improving design quality usually allows a firm to charge higher prices and thus increase revenue and profit.
A)True
B)False
Q5) Explain the concept of search, experience, and credence attributes.
Q6) What do we mean by core competencies?
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Chapter 5: Technology and Operations Management
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Sample Questions
Q1) Bar codes are the modern successor to RFID tags.
A)True
B)False
Q2) During which stage of technology development and adoption is design and demand flexibility most critical?
A)Birth
B)Turbulence
C)Build-out
D)Decline
Q3) Database systems, artificial intelligence programs and voice-recognition software are examples of
A)hard technology
B)soft technology
C)computer numerical control
D)integrated operating systems
Q4) Technology has helped United Parcel Service (UPS) to become an enabler of global commerce beyond simply moving goods.
A)True
B)False
Q5) Discuss the role of technology in productivity.
Page 7
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Chapter 6: Goods and Service Design
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Sample Questions
Q1) Which of the following is not included in a failure-mode-and-effects analysis (FMEA)?
A)ways in which components might fail
B)calculation of the component reliability
C)consequences of failure
D)how potential failures can be corrected in the design
Q2) Which of the following is not an important element of reliability definition?
A)probability
B)time
C)redundancy
D)operating conditions
Q3) Customer contact requirements are either technical or behavioral in nature.
A)True
B)False
Q4) To improve system reliability, one option is to
A)use better components
B)use more components in series
C)use quality function deployment
D)eliminate redundancy
Q5) Define reliability. Include the four major elements.
Page 8
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Chapter 7: Process Selection, Design, and Analysis
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Sample Questions
Q1) Job shop processes use flexible, general purpose equipment that is capable of customizing work for individual customers.
A)True
B)False
Q2) A company can differentiate itself from its competitors by positioning itself along the diagonal of the Product-Process matrix.
A)True
B)False
Q3) Dell computers and Subway sandwiches are examples of ____ goods.
A)Custom
B)Option
C)Standard
D)Job shop
Q4) The average number of entities completed per unit time-the output rate-from a process is called ____.
A)Utilization
B)Throughput
C)Service rate
D)Work-in-process
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Chapter 8: Facility and Work Design
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Sample Questions
Q1) Which is not true regarding fixed-position layout?
A)Synonymous with project
B)High demand volume
C)An example is a sporting event
D)Used with large items
Q2) Discuss the advantages and disadvantages of utilizing virtual teams.
Q3) CRAFT is a process layout technique that tries to improve on a current solution by exchanging two or three departments at a time to determine if total materials handling costs have been reduced.
A)True
B)False
Q4) A ____ layout is an arrangement based on the sequence of operations that are performed during the manufacturing of a good or the delivery of a service.
A)Product
B)Process
C)Cellular
D)Fixed position
Q5) Explain assembly line balancing. Discuss the three types of information needed to balance an assembly line.
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Chapter 9: Supply Chain Design
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Sample Questions
Q1) Orders are passed upstream in a supply chain, while materials and finished goods are sent downstream in a supply chain.
A)True
B)False
Q2) A(n) ____ seeks to balance capacity and demand, might use only a few large distribution centers, and minimize costs of routing products from factories to retail stores and customers.
A)Responsive supply chain
B)Efficient supply chain
C)Push system
D)Pull system
Q3) Where in its supply chain does Dell, Inc. begin to use a pull system?
A)supplier
B)factory
C)distribution center
D)customer
Q4) Summarize the Supply Chain Operations Reference (SCOR) model.
Q5) Explain the difference between an efficient and a responsive supply chain, and the business context for which each works best.
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Chapter 10: Capacity Management
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Sample Questions
Q1) Explain the concept of a focused factory. Include different ways a factory can be focused.
Q2) Jack's Ice Cream Parlor produces two types of ice cream on a contract basis for a major restaurant chain using a large blender. A batch of ice cream A requires a setup time of 45 minutes, a process mixing time of 1.2 minutes per gallon, and 50 gallons are made per day. Ice cream B requires the same machine to be cleaned and setup which takes 30 minutes, a process mixing time of 2 minutes per gallon, and 100 gallons produced per day.
a.Compute the capacity required.
b.What percentage of total capacity required is setup time?
Q3) A measure of capacity is the number of seats on an airplane per flight. A)True
B)False
Q4) Varying the price of goods or services is a way of influencing demand patterns. A)True B)False
Q5) Short-term capacity decisions usually involve adjusting schedules or staffing levels. A)True B)False
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Chapter 11: Forecasting and Demand Planning
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Sample Questions
Q1) Which of the following does not fit with the Delphi method?
A)Group of experts
B)Brought together as a group
C)Process iterates until a consensus is reached
D)Qualitative as well as numerical outputs
Q2) In an exponential smoothing model, larger values of alpha place less emphasis on recent data and more on older data.
A)True
B)False
Q3) All of the following are important concepts in forecasting except
A)Determining the planning horizon length.
B)Determining the time bucket size (i.e., year, quarter, month, week, day, etc.).
C)Using a smoothing constant of 0.1 in Delphi methods of forecasting.
D)Identifying cyclical patterns.
Q4) ____ forecasts are needed to plan for facility expansion.
A)Long-range
B)Intermediate-range
C)Short-range
D)Demand planning
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Chapter 12: Managing Inventories
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Sample Questions
Q1) In a fixed quantity inventory system with certain demand, the reorder point is chosen to be the average demand during the lead time.
A)True
B)False
Q2) A hotel purchases 8,000 gallons of a cleaning product. Each gallon costs $10 and the cost of holding one gallon for a year is estimated to be $3. Ordering cost amounts to $30 per order.
a.If the hotel orders in lots of 500 gallons, how many orders does it place each year?
b.What are the ordering and holding costs, and total annual cost?
c.If the economic ordering quantity is used, how much improvement in cost will result?
Q3) Inventory holding costs can be accurately measured by accounting departments.
A)True
B)False
Q4) Overnight shipping for emergency orders and compensation for overbooking at a hotel are examples of ordering costs.
A)True
B)False
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Chapter 13: Resource Management
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Sample Questions
Q1) A bill of materials characterizes the structure of dependent demand among all items that comprise a finished good.
A)True
B)False
Q2) A company currently has no items in inventory. The demand for the next four months is 200, 400, 250 and 350 units. Assuming a level production rate of 250 units per month, determine the month in which a backorder will materialize.
Q3) The Lot-for-Lot (LFL) rule
A)Minimizes purchase or setup costs
B)Allows the firm to take advantage of quantity discounts (price breaks) by suppliers
C)Is best applied when inventory carrying costs are high and setup/order costs are low
D)Masks the true nature of dependent demand
Q4) Resource management deals primarily with managing inventories in a value chain.
A)True
B)False
Q5) Define a Master Production Schedule (MPS) and explain how it differs from a final assembly schedule.
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Page 15
Chapter 14: Operations Scheduling and Sequencing
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Sample Questions
Q1) Triage by nurses in an emergency room would be an example of
A)Scheduling
B)Sequencing
C)Appointments
D)Shortest-processing-time rule
Q2) Sequencing is not as much of a concern when several activities use a common resource.
A)True
B)False
Q3) ScheduleAnywhere.com on-line software helps clients do all the following except
A)Schedule employees from any computer with Internet access.
B)Decide how much to overbook for each day of the week.
C)See who's scheduled and who's available.
D)Avoid scheduling conflicts.
Q4) Which of the following is an example of a situation for which a Gantt chart would be appropriate?
A)developing a factory layout
B)tracking inventory levels over time
C)monitoring job schedules
D)forecasting personnel requirements in a two-shift operation
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Chapter 15: Quality Management
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Sample Questions
Q1) Each day, a golf resort handles 700 golfers. Each guest encounters 22 "moments of truth" during a typical day. The resort is open seven days a week. If they receive 12 complaints per week, what is the epmo measure?
Q2) The dpmo or epmo for a three-sigma quality level is
A)66,807
B)6,210
C)233
D)3.4
Q3) Which does not fit with Six Sigma implementation?
A)Emphasizing critical-to-quality characteristics
B)Focusing on corporate sponsor to support team-activity
C)Creating quality system standards
D)Extensive training of employees in various tools
Q4) Which of the following describes the quality definition of fitness for use?
A)Perfection and consistency in goods and service quality
B)Doing it right the first time
C)Conforming to design specifications
D)The ability of a good or service to meet customer needs
Q5) Discuss different ways of defining quality and how these differ for goods and services.
Page 17
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Chapter 16: Quality Control and Spc
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Sample Questions
Q1) Process capability quantifies the variation that results from common causes.
A)True
B)False
Q2) Define and give an example of the three components of any control system.
Q3) The lower the rate of defects, the higher the sample size should be in p-charts.
A)True
B)False
Q4) Which one of the following statements is true?
A)Common cause variation arises from external sources that are not inherent in the process and is where statistical quality control methods are most useful.
B)If the metric is discrete, a p- or c-chart is normally used.
C)Statistical process control is not used in hospitals due to the high liability costs.
D)Statistical process control charts are used when trying to monitor and control 5- and 6-sigma quality levels.
Q5) Explain the issues associated with selecting the appropriate sample size and sampling frequency for control charts.
Q6) What is the purpose of a process-capability study and what is a process capability index?
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Chapter 17: Lean Operating Systems
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Sample Questions
Q1) Lean operating systems seek to apply the principles of continuous flow to the production of discrete parts by reducing batch size, ideally to a size of one.
A)True
B)False
Q2) Production Kanbans trigger the movement of parts.
A)True
B)False
Q3) Single minute exchange of dies (SMED) frees up capacity for other productive uses.
A)True
B)False
Q4) 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.
Q5) Discuss the differences between lean production and Six Sigma.
Q6) Define a Kanban. Describe how it helps execute a pull system.
Q7) Explain the purpose of visual controls and give examples.
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Q8) How does Total Productive Maintenance (TPM) affect lean operating systems?
Chapter 18: Project Management
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Sample Questions
Q1) A statement of work would be developed in the "Organize" step of the project life cycle.
A)True
B)False
Q2) The slack for an activity is equal to its latest finish time minus its earliest start time.
A)True
B)False
Q3) All activities on the critical path have a zero slack time.
A)True
B)False
Q4) Explain the stages of the project life cycle.
Q5) Explain the purpose of Gantt charts.
Q6) Which of the following is not considered a project?
A)Writing and implementing a computer program
B)Introducing a new product
C)Production of soft drinks
D)Building a bridge
Q7) Describe how a project fits into each of the three common organizational structures.
Page 20
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