Operations Management Exam
Bank
Course Introduction
Operations Management is a course that explores the core principles and practices involved in the efficient production and delivery of goods and services. It covers topics such as process analysis, capacity planning, inventory management, supply chain coordination, quality control, and lean systems. By examining both manufacturing and service settings, students learn how to design, operate, and improve organizational processes to achieve strategic goals, enhance productivity, and deliver value to customers. The course emphasizes analytical tools and real-world applications to address operational challenges and drive continuous improvement.
Recommended Textbook
Supply Chain Management Strategy Planning and Operation 6th Edition by Sunil Chopra
Available Study Resources on Quizplus
17 Chapters
1295 Verified Questions
1295 Flashcards
Source URL: https://quizplus.com/study-set/194
Page 2
Chapter 1: Understanding the Supply Chain
Available Study Resources on Quizplus for this Chatper
76 Verified Questions
76 Flashcards
Source URL: https://quizplus.com/quiz/2772
Sample Questions
Q1) The replenishment cycle occurs at the
A) customer/retailer interface.
B) retailer/distributor interface.
C) distributor/manufacturer interface.
D) manufacturer/supplier interface.
Answer: B
Q2) Walmart's supply chain features clusters of stores around distribution centers, which facilitates
A) high transportation costs.
B) frequent but inexpensive replenishment at the stores.
C) rapid design cycles from their R&D group.
D) sharing of information with suppliers.
Answer: B
Q3) The cycle view of the supply chain is useful when considering operational decisions, because it specifies the roles and responsibilities of each member of the supply chain.
A)True
B)False
Answer: True
To view all questions and flashcards with answers, click on the resource link above.
3
Chapter 2: Supply Chain Performance: Achieving Strategic
Fit and Scope
Available Study Resources on Quizplus for this Chatper
75 Verified Questions
75 Flashcards
Source URL: https://quizplus.com/quiz/2773
Sample Questions
Q1) Discuss the two keys to the success or failure of a company.
Answer: A company's success or failure is thus closely linked to the following keys:
1. The competitive strategy and all functional strategies must fit together to form a coordinated overall strategy. Each functional strategy must support other functional strategies and help a firm reach its competitive strategy goal.
2. The different functions in a company must appropriately structure their processes and resources to be able to execute these strategies successfully.
Q2) Globalization has increased the opportunities and decreased the risks for supply chains.
A)True
B)False Answer: False
Q3) A company's product development strategy defines the set of customer needs that it seeks to satisfy through its products and services.
A)True
B)False Answer: False
To view all questions and flashcards with answers, click on the resource link above.
Page 4
Chapter 3: Supply Chain Drivers and Metrics
Available Study Resources on Quizplus for this Chatper
69 Verified Questions
69 Flashcards
Source URL: https://quizplus.com/quiz/2774
Sample Questions
Q1) ________ measures the incremental costs that are independent of the size of the order.
A) Average sale price
B) Incremental variable cost per unit
C) Incremental fixed cost per order
D) Incremental indirect cost per order
Answer: C
Q2) Seasonal inventory should be used when
A) a company can rapidly change the rate of its production system at a very low cost.
B) changing the rate of production is expensive (e.g., when workers must be hired or fired).
C) adjusting to a period of low demand without incurring large costs.
D) the world is perfectly predictable.
Answer: A
Q3) Cycle inventory is inventory that is built up to counter predictable variability in demand.
A)True
B)False
Answer: False
To view all questions and flashcards with answers, click on the resource link above.
Page 5
Chapter 4: Designing Distribution Networks and Applications to e-Business
Available Study Resources on Quizplus for this Chatper
75 Verified Questions
75 Flashcards
Source URL: https://quizplus.com/quiz/2775
Sample Questions
Q1) Which distribution network design is being used when the distributor/retailer delivers the product to the customer's home instead of using a package carrier?
A) Manufacturer storage with direct shipping
B) Manufacturer/distributor storage with customer pickup
C) Distributor storage with package carrier delivery
D) Distributor storage with last mile delivery
Q2) Explain how distributors add value to a supply chain and improve its performance.
Q3) Which of the following is a disadvantage of distributor storage with last mile delivery?
A) Transportation cost is higher than any other distribution option.
B) Information cost is similar to distributor storage with package carrier delivery.
C) Customer experience is very good, particularly for bulky items.
D) Returnability is easier to implement than other options.
Q4) Explain how the design of the distribution network affects the cost of the four supply chain drivers.
Q5) Explain the measures of customer service that are influenced by the structure of the distribution network.
To view all questions and flashcards with answers, click on the resource link above. Page 6
Chapter 5: Network Design in the Supply Chain
Available Study Resources on Quizplus for this Chatper
75 Verified Questions
75 Flashcards
Source URL: https://quizplus.com/quiz/2776
Sample Questions
Q1) A facility located primarily to obtain access to knowledge or skills that may exist within a certain region is
A) an offshore facility.
B) a source facility.
C) a server facility.
D) an outpost facility.
Q2) Explain how supply chain network design decisions are classified.
Q3) Customer order entry is
A) the point in time when the customer has access to choices and makes a decision regarding a purchase.
B) the customer informing the retailer of what they want to purchase and the retailer allocating product to the customer.
C) the process where product is prepared and sent to the customer.
D) the process where the customer receives the product and takes ownership.
Q4) When designing supply chain networks, companies must build appropriate flexibility to help counter fluctuations in exchange rates and demand across different countries.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above.
Chapter 6: Designing Global Supply Chain Networks
Available Study Resources on Quizplus for this Chatper
75 Verified Questions
75 Flashcards
Source URL: https://quizplus.com/quiz/2777
Sample Questions
Q1) The present value of a stream of cash flows is what that stream is worth in today's dollars.
A)True
B)False
Q2) The rate of return k is also referred to as the present value of capital.
A)True
B)False
Q3) Uncertainty of demand and price
A) drives the value of building flexible production capacity at a plant.
B) eliminates the value of building flexible production capacity at a plant.
C) facilitates the value of building flexible production capacity at a plant.
D) has no effect on the value of building flexible production capacity at a plant.
Q4) A decision tree is
A) a graphic device used to evaluate decisions under certainty.
B) a graphic device used to evaluate decisions under uncertainty.
C) a tabular device used to evaluate decisions under certainty.
D) a tabular device used to evaluate decisions under uncertainty.
Q5) Briefly describe the three primary risk mitigation strategies based on the idea of flexibility that supply chain managers can use.
To view all questions and flashcards with answers, click on the resource link above. Page 8
Chapter 7: Demand Forecasting in a Supply Chain
Available Study Resources on Quizplus for this Chatper
73 Verified Questions
73 Flashcards
Source URL: https://quizplus.com/quiz/2778
Sample Questions
Q1) The multiplicative form of the systematic component of demand is shown as
A) level × trend × seasonal factor.
B) level + trend + seasonal factor.
C) (level + trend) × seasonal factor.
D) level × (trend + seasonal factor).
Q2) Forecasting methods that assume that the demand forecast is highly correlated with certain factors in the environment (e.g., the state of the economy, interest rates, etc.) to make a forecast are known as
A) qualitative forecasting methods.
B) time series forecasting methods.
C) causal forecasting methods.
D) simulation forecasting methods.
Q3) The ________ is a good measure of forecast error when the underlying forecast has significant seasonality and demand varies considerably from one period to the next.
A) MAD
B) MSE
C) MKE
D) MAPE
Q4) Discuss key issues of forecasting in practice.
To view all questions and flashcards with answers, click on the resource link above. Page 9
Chapter 8: Aggregate Planning in a Supply Chain
Available Study Resources on Quizplus for this Chatper
76 Verified Questions
76 Flashcards
Source URL: https://quizplus.com/quiz/2779
Sample Questions
Q1) Use the information from Scenario 8.1 to determine the number of decision variables in this scenario.
A) 10
B) 15
C) 20
D) 24
Q2) As capacity utilization increases, A) it becomes less important to perform aggregate planning. B) it becomes more important to perform aggregate planning. C) it does not affect the importance of performing aggregate planning. D) it lessens the importance of aggregate planning.
Q3) Aggregate planning is a process by which a company determines levels of capacity, production, subcontracting, inventory, stockouts, and even pricing over a specified time horizon.
A)True
B)False
Q4) A planning horizon is usually between three and five years.
A)True
B)False
Q5) Discuss key issues to be considered when implementing aggregate planning.
Page 10
To view all questions and flashcards with answers, click on the resource link above.
Chapter 9: Sales and Operations Planning: Planning Supply and Demand in
a Supply Chain
Available Study Resources on Quizplus for this Chatper
77 Verified Questions
77 Flashcards
Source URL: https://quizplus.com/quiz/2780
Sample Questions
Q1) Discuss the impact of promotion on demand within a supply chain.
Q2) The key to which capacity management approach would involve having both volume (fluctuating demand from a manufacturer) and variety flexibility (demand from several manufacturers) to be sustainable?
A) Time flexibility from workforce
B) Use of seasonal workforce
C) Use of subcontracting
D) Use of dual facilities-dedicated and flexible
Q3) Which factor favors promotion during low-demand periods?
A) High margin
B) High ability to steal market share
C) High ability to increase overall market
D) Low margin
Q4) Seasonal demand can be met by
A) maintaining enough manufacturing capacity to meet demand in any period.
B) building up inventory during the off season to meet demand during peak seasons.
C) offering a price promotion during periods of low demand to shift some of the demand into a slow period.
D) all of the above
11
To view all questions and flashcards with answers, click on the resource link above.
Chapter 10: Coordination in a Supply Chain
Available Study Resources on Quizplus for this Chatper
76 Verified Questions
76 Flashcards
Source URL: https://quizplus.com/quiz/2781
Sample Questions
Q1) One of the best ways to solve coordination problems is
A) through teams comprised of different members of the supply chain.
B) through investments in cutting edge information technology.
C) by institution penalties for supply chain members that don't cooperate.
D) by implementing a supply chain resource planning module.
Q2) Long term boom and bust cycles that mimic the bullwhip effect include
A) calendars and greeting cards.
B) the length of hemlines.
C) university textbooks.
D) memory chips for personal computers.
Q3) In a continuous replenishment program, the wholesaler or manufacturer replenishes a retailer regularly based on
A) the POS data of the wholesaler.
B) the forecast of the retailer.
C) the POS data of the retailer.
D) the forecast of the manufacturer.
Q4) The bullwhip effect moves a supply chain away from the efficient frontier by increasing cost and decreasing responsiveness.
A)True
B)False
Page 12
To view all questions and flashcards with answers, click on the resource link above.
Chapter 11: Managing Economies of Scale in the Supply
Chain: Cycle Inventory
Available Study Resources on Quizplus for this Chatper
75 Verified Questions
75 Flashcards
Source URL: https://quizplus.com/quiz/2782
Sample Questions
Q1) Reduction of fixed cost may be achieved by aggregating lots across multiple products, customers, or suppliers.
A)True
B)False
Q2) What is the optimal order quantity?
A) 2670 cups
B) 17.8 cups
C) 1335 cups
D) 8.9 cups
Q3) Suppose the annual demand is 8,000 units and the cost per can is $3 with a holding cost of 10%. What is the required order cost per lot?
A) 32 cents
B) $3.20
C) $32
D) $1.44
Q4) Cycle inventory is the physical inventory in the supply chain due to either production or purchases demanded by the customer.
A)True
B)False
13
To view all questions and flashcards with answers, click on the resource link above.
Chapter 12: Managing Uncertainty in a Supply Chain: Safety Inventory
Available Study Resources on Quizplus for this Chatper
80 Verified Questions
80 Flashcards
Source URL: https://quizplus.com/quiz/2783
Sample Questions
Q1) What is the average flow time of a phone if the reorder point used by Mr. Barksdale is 2000 phones?
A) 1.74 weeks
B) 1.87 weeks
C) 2.00 weeks
D) 2.13 weeks
Q2) For the same safety inventory, an increase in lot size
A) decreases the fill rate but not the cycle service level.
B) increases the fill rate but not the cycle service level.
C) decreases both the fill rate and the cycle service level.
D) increases both the fill rate and the cycle service level.
Q3) The coefficient of variation measures
A) the accuracy of the demand forecast.
B) the size of the uncertainty relative to demand.
C) the relevance of cycle inventory to demand.
D) the relative certainty of the forecast.
Q4) Product availability reflects a firm's ability to fill a customer order out of available inventory.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 14
Chapter 13: Determining the Optimal Level of Product Availability
Available Study Resources on Quizplus for this Chatper
79 Verified Questions
79 Flashcards
Source URL: https://quizplus.com/quiz/2784
Sample Questions
Q1) Faced with a 3000 taco capacity constraint, what is the optimal number of fish tacos to prepare?
A) 2283
B) 1736
C) 1868
D) 2000
Q2) The margin lost from current as well as future sales if the customer does not return should be included in
A) the cost of overstocking the product.
B) the cost of stocking the product.
C) the cost of understocking the product.
D) the cost of overselling the product.
Q3) Faced with a 3000 taco capacity constraint, what is the profit resulting from an optimal mix of fish and chicken tacos?
A) $22,577
B) $25,619
C) $24,667
D) $23,580
Q4) Describe managerial levers to increase profitability within a supply chain.
To view all questions and flashcards with answers, click on the resource link above. Page 15
Chapter 14: Transportation in a Supply Chain
Available Study Resources on Quizplus for this Chatper
75 Verified Questions
75 Flashcards
Source URL: https://quizplus.com/quiz/2785
Sample Questions
Q1) A carrier uses transportation to minimize the total cost (transportation, inventory, information, and facility) while providing an appropriate level of responsiveness to the customer.
A)True
B)False
Q2) Which mode of transportation is the dominant form of freight transportation?
A) Air
B) Truck
C) Rail
D) Water
Q3) Suppose that a highway is governed by a use fee charged to motorists that is based on congestion, operation and maintenance. The total traffic t is used to determine the cost of 5t². What is the average cost per motorist?
A) 2.5
B) 5
C) 5t
D) 2.5t
Q4) Discuss the relationship between transportation strategy and competitive strategy. To view all questions and flashcards with answers, click on the resource link above. Page 16
Chapter 15: Sourcing Decisions in a Supply Chain
Available Study Resources on Quizplus for this Chatper
77 Verified Questions
77 Flashcards
Source URL: https://quizplus.com/quiz/2786
Sample Questions
Q1) Single sourcing for a product is used to
A) guarantee the supplier sufficient business when the supplier has to make a significant buyer-specific investment.
B) ensure a degree of competition.
C) ensure the possibility of a backup should a source fail to deliver.
D) control all possible sources of supply in the market.
Q2) Effective sourcing processes within a firm can
A) improve profits for the firm and total supply chain surplus.
B) reduce profits for the firm and total supply chain surplus.
C) reduce total supply chain surplus.
D) reduce profits for the firm.
Q3) As the replenishment lot size grows, the cycle inventory at the firm grows, thus increasing the cost of holding inventory.
A)True
B)False
Q4) What are some of the benefits of effective sourcing decisions?
Q5) What issues need to be considered when evaluating capability for design collaboration?
Q6) Why should on-time performance be considered in supplier selection decisions?
Page 17
To view all questions and flashcards with answers, click on the resource link above.
Chapter 16: Pricing and Revenue Management in a Supply Chain
Available Study Resources on Quizplus for this Chatper
87 Verified Questions
87 Flashcards
Source URL: https://quizplus.com/quiz/2787
Sample Questions
Q1) The forecasting function is
A) the foundation of any revenue management system.
B) unnecessary for a revenue management system.
C) an added plus for any revenue management system.
D) likely to create problems for any revenue management system.
Q2) If the corporate demand and standard deviation both decrease by 50%, how many rooms should be reserved for corporate clients?
A) 7
B) 8
C) 9
D) 10
Q3) To differentiate between the various market segments, the firm must either eliminate barriers that identify product or service attributes the segments value differently.
A)True
B)False
Q4) Unused capacity from the past is extremely valuable.
A)True
B)False
Q5) Explain how revenue management is beneficial.
To view all questions and flashcards with answers, click on the resource link above. Page 18
Chapter 17: Sustainability and the Supply Chain
Available Study Resources on Quizplus for this Chatper
75 Verified Questions
75 Flashcards
Source URL: https://quizplus.com/quiz/2788
Sample Questions
Q1) ________ reduced the amount of harmful phosphates in laundry and dish detergents in the Americas region by 14.5 percent in 2011 with a goal of reaching a reduction of 70 percent.
A) Walmart
B) BASF
C) 3M
D) Procter & Gamble
Q2) The sustainability damage from landfill additives comes in which form?
A) Potential energy lost
B) Materials lost
C) Terrible smell
D) Both A and B
Q3) An example of a relative measure of emission output is pounds of CO<sub>2</sub> per gallon of diesel fuel.
A)True
B)False
Q4) In reality, there are no actions in a supply chain that improve both sustainability and supply chain surplus.
A)True
B)False
Page 19
To view all questions and flashcards with answers, click on the resource link above.