

Operations Management
Chapter Exam Questions
Course Introduction
Operations Management is a comprehensive course that examines the processes involved in the production and delivery of goods and services. Students will explore core concepts such as process analysis, capacity planning, inventory management, quality control, supply chain strategy, and project management. The course emphasizes the integration of operations with other key business functions and introduces analytical tools and frameworks for decision-making in both manufacturing and service environments. Through case studies, practical examples, and quantitative models, students will develop the skills necessary to optimize operational efficiency, improve productivity, and contribute to overall organizational success.
Recommended Textbook Operations and Supply Chain Management The Core 3rd Edition by F. Robert Jacobs
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14 Chapters
1161 Verified Questions
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Page 2

Chapter 1: Operations and Supply Chain Management
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84 Verified Questions
84 Flashcards
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Sample Questions
Q1) Which of the following is not a way that operations and supply processes are categorized?
A) Planning
B) Return
C) Delivery
D) Selecting
E) Making
Answer: D
Q2) One of the "package of features" that make up a service is:
A) Appearance
B) Facilitating goods
C) Packaging
D) Cost
E) Implied use
Answer: B
Q3) "Green belt" programs are coordinated public works projects aimed a placing an environmentally friendly zone around major cities.
A)True
B)False
Answer: False
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Chapter 2: Strategy and Sustainability
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54 Verified Questions
54 Flashcards
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Sample Questions
Q1) The process when a company seeks to match the benefits of a successful position while maintaining its existing position by adding new features,services,and technologies into its current portfolio it is called straddling.
A)True
B)False Answer: True
Q2) An order winner is a set of screening criteria that permits a firm's products to be considered as possible candidates for purchase.
A)True
B)False Answer: False
Q3) Activity-system maps show how a company's strategy is delivered through a set of tailored activities.
A)True
B)False Answer: True
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Chapter 3: Forecasting
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101 Flashcards
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Sample Questions
Q1) In a forecasting model using simple moving average the shorter the time span used for calculating the moving average,the closer the average follows volatile trends.
A)True
B)False
Answer: True
Q2) Which of the following is a possible source of bias error in forecasting?
A) Failing to include the right variables
B) Using the wrong forecasting method
C) Employing less sophisticated analysts than necessary
D) Using incorrect data
E) Using standard deviation rather than MAD
Answer: A
Q3) In exponential smoothing,it is desirable to use a higher smoothing constant when forecasting demand for a product experiencing high growth.
A)True
B)False
Answer: True
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Page 5

Chapter 4: Strategic Capacity Management
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Sample Questions
Q1) At a decision point in a decision tree,which machine would you select when trying to maximize payoff when the anticipated benefit of selecting machine A is $45,000 with a probability of 90%;the expected benefit of selecting machine B is $80,000 with a probability of 50% and the expected benefit of selecting machine C is $60,000 with a probability of 75%?
A) Machine A
B) Machine B
C) Machine C
D) You would be indifferent between machines A and C
Q2) The capacity focus concept can be put into practice through a mechanism called which of the following?
A) Best operating level (BOL)
B) Plant within a plant (PWP)
C) Total quality management (TQM)
D) Capacity utilization rate (CUR)
E) Zero-changeover-time (ZXT)
Q3) A decision tree problem does not need probabilities or payoffs to generate a solution.
A)True
B)False
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Chapter 5: Projects
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77 Flashcards
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Sample Questions
Q1) The critical path in a CPM analysis is found by locating the activities times with zero slack.
A)True
B)False
Q2) Complex projects are often subdivided into a series of tasks that are typically configured to be not longer than several months in duration.
A)True
B)False
Q3) Calculating the early start and early finish times for each activity in a CPM analysis does not provide any useful information.
A)True
B)False
Q4) A matrix project structure is often referred to as a "skunkworks."
A)True
B)False
Q5) The critical path in a CPM analysis is always the shortest path through the network.
A)True B)False
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Chapter 6: Manufacturing and Service Processes
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Sample Questions
Q1) Using the assembly-line balancing procedure,which of the following is the theoretical minimum number of workstations if the task times for the eight tasks that make up the job are 7,4,7,8,9,4,3 and 6 minutes,and the cycle time is 8 minutes?
A) 3
B) 5
C) 6
D) 8
E) None of the above
Q2) An example of an assemble-to-order firm is Dell Computer.
A)True
B)False
Q3) Break-Even Analysis can only be used in production equipment decision making when dealing solely with fixed costs,no variable costs.
A)True
B)False
Q4) Assembling-to-order means moving the customer order decoupling point from finished goods to components.
A)True
B)False
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Chapter 7: Service Processes
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85 Flashcards
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Sample Questions
Q1) In the service-system design matrix,a face-to-face loose specs service encounter is expected to have which of the following?
A) Low sales opportunity
B) Low production efficiency
C) High production efficiency
D) Low degree of customer/server contact
E) None of the above
Q2) In a waiting line situation,multiple lines occur only when there are multiple servers.
A)True
B)False
Q3) Highest-profit customer first is a queue discipline discussed in the textbook.
A)True
B)False
Q4) The term "encounter" is defined by Webster's Dictionary as "meeting in conflict or battle" and is used to also designate meetings between consumers and service systems.
A)True
B)False
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9

Chapter 8: Sales and Operations Planning
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Sample Questions
Q1) The aggregate operations planning variable "workforce level" refers to the number of workers needed to accomplish the planned production.
A)True
B)False
Q2) In conducting aggregate operations planning there are a number of required inputs.Which of the following are inputs considered external to the firm?
A) Inventory levels and market demand
B) Raw material availability and competitor's behavior
C) Current workforce and economic conditions
D) Current physical capacity and market demand
E) Subcontractor capacity and inventory levels
Q3) From an operational perspective yield management is least effective under which of the following circumstances?
A) Demand can be segmented by customer
B) The product can be sold in advance
C) The product can be kept to be sold when demand is stronger
D) Fixed costs are high and variable costs are low
E) Demand is highly variable
Q4) Describe the aggregate sales and operations planning process.
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Chapter 9: Material Requirements Planning
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Sample Questions
Q1) Generally,determining lot sizes in MRP systems is simple.
A)True
B)False
Q2) "Projected available balance" is a term referring to unsold finished goods inventory.
A)True
B)False
Q3) Which of the following is considered a primary report in an MRP system?
A) Planned order schedule
B) Peg report
C) Planning report
D) Inventory accuracy report
E) Aggregate production plan report
Q4) Which of the following is one of the main purposes of a MRP system?
A) Educate personnel in basic work rules
B) To determine the amount of materials needed to produce each end item.
C) Stimulate the work force
D) Decrease labor requirements
E) Increase inventory accuracy
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Chapter 10: Quality Management and Six Sigma
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149 Flashcards
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Sample Questions
Q1) Design of experiments is a statistical methodology often used in six-sigma projects.It aims to accomplish which of the following?
A) Keep careful track of the occurrences of each possible defect
B) Determine the cause and effect relationships between process variables and output
C) Report defects to management on a Pareto chart
D) Carefully change each individual process variable until the cause of a defect is found
E) Eliminate defects by finding out whom or what is causing them
Q2) What is the symbol designating the capability index?
Q3) The term CTQ stands for "Cost Through Quality" which is another way to express Philip Crosby's idea that "Quality is Free."
A)True
B)False
Q4) ISO 14000 is primarily concerned with environmental management.
A)True
B)False
Q5) What does it mean when we say that a process is capable?
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Chapter 11: Inventory Management
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Sample Questions
Q1) What is the term for there being no relationship between demands for various items?
Q2) The standard fixed-time period model assumes that inventory is never counted but determined by EOQ measures.
A)True
B)False
Q3) Using the fixed-order quantity model,which of the following is the total ordering cost of inventory given an annual demand of 36,000 units,a cost per order of $80 and a holding cost per unit per year of $4?
A) $849
B) $1,200
C) $1,889
D) $2,267
E) $2,400
Q4) One of the drivers of the direct-to-store (direct distribution)approach is the upstream migration of value-added logistics services.
A)True
B)False
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Chapter 12: Lean Supply Chains
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Sample Questions
Q1) Imagine comparing a manufacturing operation using regular lot-sizing and the same operation with a Kanban/lean production approach.What would be your expectations of the difference between the total cost (i.e. ,inventory holding costs + setup/ordering costs)of each?
A) Inventory holding cost will increase non-linearly with inventory
B) Total costs will be lower for the regular lot-size operation
C) Total costs will be lower for the Kanban/lean production operation
D) The order quantity will be larger for the Kanban/lean production approach
E) As long as the total quantity is the same,total costs will be the same
Q2) Subcontractor networks are not very important in Japanese manufacturing. A)True B)False
Q3) Name Fujio Cho's seven prominent types of waste to be eliminated.

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Chapter 13: Global Sourcing and Procurement
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Sample Questions
Q1) The total value of all items held in inventory for the firm valued at cost is which of the following?
A) Cost of goods to be sold
B) Average aggregate inventory value
C) Weeks supply of goods
D) Inventory turnover
E) None of the above
Q2) If the average aggregate inventory value is $1,200,000 and the cost of goods sold is $600,000,which of the following is weeks of supply?
A) 1,040
B) 606
C) 104
D) 60.6
E) 2.0
Q3) A stable supply process is one where the manufacturing process and the underlying technology are mature and the supply base is well established.
A)True
B)False
Q4) The acronym RFP stands for: ________________________
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Chapter 14: Location, Logistics, and Distribution
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Sample Questions
Q1) One of the objectives of facility location analysis is to select a site with the lowest total cost.Which of the following costs should be excluded from the analysis?
A) Historical costs
B) Inbound distribution costs
C) Land
D) Construction
E) Regional costs
Q2) Hub and spoke systems combine the idea of consolidation and that of cross docking.
A)True
B)False
Q3) A major problem in a plant location decision based on the factor-rating system is that simple point-rating schemes do not account for the wide variance of costs that may occur within each factor used in the analysis.
A)True
B)False
Q4) Compare and contrast the factor-rating system and the transportation method of linear programming as used in facility location decisions.
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Page 16