Operations Management Exam Questions
Course Introduction
Operations Management is a foundational course that explores the strategies, processes, and techniques organizations use to transform inputs into goods and services efficiently. Students will examine key concepts such as process analysis, capacity planning, quality management, inventory control, supply chain management, and project management. Emphasizing both manufacturing and service environments, the course integrates analytical tools and real-world case studies to help students understand how to optimize productivity, ensure quality, and drive continuous improvement in organizational operations.
Recommended Textbook
Operations and Supply Chain Management
The Core 3rd Edition by F. Robert Jacobs
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Chapter 1: Operations and Supply Chain Management
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Sample Questions
Q1) Efficiency means doing the right things to create the most value for the company.
A)True
B)False
Answer: False
Q2) Internet technology has made the sharing of reliable real-time information expensive.
A)True
B)False
Answer: False
Q3) Services are intangible processes that cannot be weighed or measured.
A)True
B)False
Answer: True
Q4) SSME is an acronym standing for "Service Sector Management Economics."
A)True
B)False
Answer: False
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Page 3
Chapter 2: Strategy and Sustainability
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Sample Questions
Q1) An operations strategy must resist change because of the long term nature of equipment and personnel investments.
A)True
B)False
Answer: False
Q2) Within a sustainability framework,the economic dimension of the triple bottom line concept goes beyond just profit for the firm but also provides lasting economic benefit to society.
A)True
B)False Answer: True
Q3) By following a straddling strategy,firms can broaden their capabilities and effectively compete with more focused firms in markets requiring low cost for success.
A)True
B)False
Answer: False
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Chapter 3: Forecasting
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Sample Questions
Q1) A central premise of exponential smoothing is that more recent data is less indicative of the future than data from the distant past.
A)True
B)False
Answer: False
Q2) The standard error of the estimate of a linear regression is not useful for judging the fit between the data and the regression line when doing forecasts.
A)True
B)False
Answer: False
Q3) In general,which forecasting time frame is best to detect general trends?
A) Short-term forecasts
B) Quick-time forecasts
C) Long range forecasts
D) Medium term forecasts
E) Rapid change forecasts
Answer: C
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Page 5
Chapter 4: Strategic Capacity Management
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Sample Questions
Q1) A production facility develops virtuosity and works best when it focused on a widely varied set of production objectives.
A)True
B)False
Q2) Which of the following models uses a schematic model of the sequence of steps in a problem and the conditions and consequences of each step?
A) Probability indexing
B) Johnson's sequencing rule
C) Decision trees
D) Activity System Maps
E) Decision mapping
Q3) Long-range capacity planning requires top management participation.
A)True
B)False
Q4) A production facility works best when it focuses on a fairly limited set of production objectives.
A)True
B)False
Q5) What is a capacity cushion and why would a firm have one?
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Chapter 5: Projects
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Sample Questions
Q1) A project may be defined as a series of related jobs directed toward some major output and requiring a significant period of time to perform.
A)True
B)False
Q2) Upper level management must decide between pure,functional,and matrix structures as ways to organize projects.
A)True
B)False
Q3) When reducing the planned duration of a project using the Time-Cost CPM model we select the activity to crash by determining the cost of each alternative and selecting the one whose cost is the greatest.
A)True
B)False
Q4) In the Time-Cost CPM model,cost is assumed to be a linear function of time.
A)True B)False
Q5) The second step in managing a project is writing the Statement of Work. A)True B)False
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Chapter 6: Manufacturing and Service Processes
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Sample Questions
Q1) Which of the following basic types of process structures is one which equipment or work processes are arranged according to the progressive steps by which the product is made?
A) Project
B) Workcenter
C) Manufacturing cell
D) Assembly line
E) Continuous process
Q2) The closer the customer is to the customer order decoupling point the more quickly the customer receives the product.
A)True
B)False
Q3) According to Little's Law,which of the following ratios is used to find throughput rate?
A) Cycle time/Process time
B) Throughput time/Process velocity
C) Process velocity/Throughput time
D) Inventory/Flow time
E) Value added time/Process velocity
Q4) Give an example of a project layout.______________________
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Chapter 7: Service Processes
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Sample Questions
Q1) In the service-system design matrix,an internet and on-site technology service encounter is expected to have which of the following?
A) High sales opportunity
B) High degree of customer/server contact
C) Low production efficiency
D) High production efficiency
E) None of the above
Q2) A department of 25 machines is kept running by three operators who respond to randomly occurring equipment problems.An analyst who wanted to know how much production was being lost by machines waiting for service could use queuing theory analysis to find out.
A)True
B)False
Q3) The demand on a hospital's emergency medical services is considered a controllable arrival pattern of the calling population.
A)True
B)False
Q4) In infinite queuing theory,the average waiting time in line is denoted by what symbol? _________________________
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Chapter 8: Sales and Operations Planning
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Sample Questions
Q1) The aggregate operations plan differs in virtually every aspect in service organizations as contrasted with manufacturing organizations.
A)True
B)False
Q2) The increasing complexity of modern operations management has made simple cut-and-try charting and graphical methods formerly used to develop aggregate operations plans impractical and obsolete.
A)True
B)False
Q3) Firms that match the production rate to the order rate by hiring and laying off employees as the order rate varies are following what is known as the chase strategy.
A)True
B)False
Q4) The widespread adoption of computing technology has led to the virtual abandonment of simple cut-and-try charting and graphical methods to develop aggregate operations plans.
A)True
B)False
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Page 10
Chapter 9: Material Requirements Planning
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Sample Questions
Q1) In MRP,how is demand information for a level 0 (zero)item derived?
Q2) The lot-for-lot (L4L)lot sizing technique minimizes carrying cost by taking into account setup costs and capacity limitations.
A)True
B)False
Q3) In a net change MRP system requirements and schedules are considered rigid and never updated.
A)True
B)False
Q4) The three main inputs to an MRP system are the bill of materials,the master schedule and the inventory records file.
A)True
B)False
Q5) The deeper one looks into the product creation sequence,the more the requirements of dependent demand items tend to smooth out and become even over time.
A)True
B)False
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Chapter 10: Quality Management and Six Sigma
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Sample Questions
Q1) In acceptance sampling,the value for the acceptance number (c)is determined by the interaction of the acceptable quality level (AQL),the lot tolerance percent defective (LTPD),the probability of rejecting a high quality lot (alpha)and the probability of accepting a low quality lot (beta).
A)True
B)False
Q2) A process that is in six-sigma control will produce no more than two defects out of every million units.
A)True
B)False
Q3) The term CTQ is used in which portion of the DMAIC methodology?
Q4) In acceptance sampling,the number of units in the sample (n)is determined by the interaction of the acceptable quality level (AQL),the lot tolerance percent defective (LTPD),the probability of rejecting a high quality lot (alpha)and the probability of accepting a low quality lot (beta).
A)True
B)False
Q5) What does the acronym "CTQ" stand for?
Page 12
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Chapter 11: Inventory Management
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Sample Questions
Q1) What is the name of a physical inventory-taking technique that focuses only on certain items and counts more often than once or twice a year?
Q2) A company has recorded the last six days of daily demand on a single product they sell.Those values are 37,115,93,112,73,and 110.The time from when an order is placed to when it arrives at the company from its vendor is 3 days.Assuming the basic fixed-order quantity inventory model fits this situation and no safety stock is needed,which of the following is the reorder point (R)?
A) 540
B) 270
C) 115
D) 90
E) 60
Q3) Assuming no safety stock,what is the reorder point (R)given an average daily demand of 100 units and a lead time of 5 days?
Q4) Distinguish between dependent and independent demand.How are these demands treated differently?
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Chapter 12: Lean Supply Chains
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Sample Questions
Q1) Value stream mapping is used to identify all of the value-adding as well as non-value-adding processes that materials are subjected to within a plant. A)True B)False
Q2) Name Fujio Cho's seven prominent types of waste to be eliminated. 1)___________________
Q3) One of the many lean techniques that have been successfully applied in service firms is leveling facility load.
Q4) Subcontractor networks are not very important in Japanese manufacturing.
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Chapter 13: Global Sourcing and Procurement
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Sample Questions
Q1) If the weeks of supply is 10 and the average aggregate inventory value is $1,000,000,what is the cost of goods sold? _______________________
Q2) If the average aggregate inventory value is $100,000 and the cost of goods sold is $450,000,which of the following is inventory turnover?
A) 19.23
B) 4.5
C) 0.8654
D) 0.2222
E) None of the above
Q3) Which of the following is an organizationally-driven reason for outsourcing?
A) Improve effectiveness by focusing on what the firm does best
B) Turn fixed costs into variable costs
C) Reduce costs through lowered cost structure and increased flexibility
D) Improve risk management
E) Improve credibility and image by associating with superior providers
Q4) If inventory turnover is 20 and cost of goods sold is $100,000,what is the average aggregate inventory value? _______________________
Q5) The acronym RFP stands for: ________________________
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Chapter 14: Location, Logistics, and Distribution
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Sample Questions
Q1) What is a closed area or compound into which foreign goods can be brought without being subject to the normal customs requirements? ____________________
Q2) Which of the following is a plant location methodology good for locating a single facility within a set of existing facilities based in distances and volumes of goods shipped?
A) Factor-rating systems
B) Centroid method
C) Decision trees
D) Linear programming
E) Regression analysis
Q3) In a hub-and-spoke system each warehouse in the system acts as a spoke.
A)True
B)False
Q4) A favorable business climate in facility location decision-making might include local government providing basic skill training for prospective members of the workforce.
A)True
B)False
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