Operations Management Exam Review
Course Introduction
Operations Management is a course that explores the principles, practices, and strategies involved in transforming resources into goods and services efficiently. It covers key topics such as process design, capacity planning, inventory management, quality control, supply chain management, and project management. Students learn to analyze and improve organizational operations by applying quantitative and qualitative techniques, ensuring optimal productivity, cost effectiveness, and customer satisfaction. The course emphasizes real-world application through case studies, simulations, and problem-solving exercises, preparing students to tackle operational challenges in various industries.
Recommended Textbook
Operations Management 11th Edition by William J. Stevenson
Available Study Resources on Quizplus
25 Chapters
2405 Verified Questions
2405 Flashcards
Source URL: https://quizplus.com/study-set/2678
Page 2
Chapter 1: Introduction to Operations Management
Available Study Resources on Quizplus for this Chatper
70 Verified Questions
70 Flashcards
Source URL: https://quizplus.com/quiz/53444
Sample Questions
Q1) The responsibilities of the operations manager are:
A)planning, organizing, staffing, procuring, and reviewing
B)planning, organizing, staffing, directing, and controlling
C)forecasting, designing, planning, organizing, and controlling
D)forecasting, designing, operating, procuring, and reviewing
E)designing and operating
Answer: B
Q2) Companies are either producing goods or delivering services.This means that only one of the two types of operations management strategies are used.
A)True
B)False
Answer: False
Q3) Marketing depends on operations for information regarding ___________.
A)productivity
B)lead time
C)cash flow
D)budgeting
E)corporate intelligence
Answer: B
To view all questions and flashcards with answers, click on the resource link above.
Page 3
Chapter 2: Competitiveness, Strategy, and Productivity
Available Study Resources on Quizplus for this Chatper
73 Verified Questions
73 Flashcards
Source URL: https://quizplus.com/quiz/53443
Sample Questions
Q1) Productivity tends to be only a very minor factor in an organization's ability to compete.
A)True
B)False
Answer: False
Q2) In an assembly operation at a furniture factory, six employees assembled an average of 450 standard dining chairs per 5-day week.What is the labor productivity of this operation?
A)90 chairs/worker/day
B)20 chairs/worker/day
C)15 chairs/worker/day
D)75 chairs/worker/day
E)none of the above
Answer: C
Q3) Improving efficiency will guarantee a similar improvement in productivity.
A)True
B)False
Answer: False
To view all questions and flashcards with answers, click on the resource link above. Page 4
Chapter 3: Forecasting
Available Study Resources on Quizplus for this Chatper
164 Verified Questions
164 Flashcards
Source URL: https://quizplus.com/quiz/53442
Sample Questions
Q1) A manager wants to choose one of two forecasting alternatives.Each alternative was tested using historical data.The resulting forecast errors for the two are shown in the table.Analyze the data and recommend a course of action to the manager.
Answer: 11ea6d31_2dc1_4f95_ada9_e70ec2fcf903_TB2514_00
11ea6d31_2dc1_4f96_ada9_a70bf4b01ae7_TB2514_00
11ea6d31_2dc1_76a7_ada9_9d7c34d6d3d7_TB2514_00
Q2) Exponential smoothing adds a percentage (called alpha) of last period's forecast to estimate next period's demand.
A)True
B)False
Answer: False
Q3) A manager is using the equation below to forecast quarterly demand for a product: Y<sub>t</sub> = 6,000 + 80t where t = 0 at Q2 of last year
Quarter relatives are Q1 = .6, Q2 = .9, Q3 = 1.3, and Q4 = 1.2. What forecasts are appropriate for the last quarter of this year and the first quarter of next year?
Answer: For Q4 of this year t = 6
For Q1 of next year t = 7 11ea6d31_2dc0_3e10_ada9_bd11521bf5f9_TB2514_00
To view all questions and flashcards with answers, click on the resource link above.
Chapter 4: Product and Service Design
Available Study Resources on Quizplus for this Chatper
77 Verified Questions
77 Flashcards
Source URL: https://quizplus.com/quiz/53441
Sample Questions
Q1) Applied research is the major R & D effort of business organizations because of the desire for commercial applications.
A)True
B)False
Q2) The goal of value analysis is to find ways of _______.
A)I.Reducing the cost of parts and materials
B)II.Improving the performance of the product or service
C)III.Incorporating multiple cultural values in global system design
D)Both I and III
E)Both I and II
Q3) Designing for recycling helps facilitate ______.
A)Reduced legal liability
B)Compliance with regulatory environments
C)Increased product reliability
D)Reduced standardization costs
E)None of the above
Q4) "Concurrent engineering" means that at least two engineers are involved in product design at the same time.
A)True
B)False
Page 6
To view all questions and flashcards with answers, click on the resource link above.
Chapter 5: Strategic Capacity Planning for Products and Services
Available Study Resources on Quizplus for this Chatper
103 Verified Questions
103 Flashcards
Source URL: https://quizplus.com/quiz/53439
Sample Questions
Q1) Outsourcing some production is a means of supporting a constraint.
A)True
B)False
Q2) If the unit cost to buy something is less than the variable cost to make it, the decision to make or buy is based solely on the fixed costs.
A)True
B)False
Q3) Which alternative would you select for a quantity of 24,000 units per year?
Q4) What quantity would be required for a profit of $2,000?
Q5) Capacity increases are usually acquired in fairly large "chunks" rather than in smooth increments.
A)True
B)False
Q6) The utilization of a machine is 50%.The machine has a design capacity of 70 units per hour and an effective capacity of 60 units per hour.Find the efficiency of the machine.
Q7) What are total costs to make a quantity of 15,000 units per year?
Q8) What would be your cost savings for the preferred alternative, for 32,000 units per year, compared to the other alternative? Page 7
To view all questions and flashcards with answers, click on the resource link above.
Page 8
Chapter 6: Process Selection and Facility Layout
Available Study Resources on Quizplus for this Chatper
151 Verified Questions
151 Flashcards
Source URL: https://quizplus.com/quiz/53437
Sample Questions
Q1) There are three basic process types - Input, Processing and Output.
A)True
B)False
Q2) Which type of processing system tends to produce the most product variety?
A)Assembly
B)Job-Shop
C)Batch
D)Continuous
E)Project
Q3) What are total weekly costs for the least costly process layout?
A)$2,800
B)$3,150
C)$3,500
D)$4,000
E)$4,500
Q4) Accounting, purchasing, and inventory control are fairly routine with process layouts.
A)True
B)False
Q5) What is the maximum possible cycle time?
To view all questions and flashcards with answers, click on the resource link above. Page 9
Chapter 7: Work Design and Measurement
Available Study Resources on Quizplus for this Chatper
151 Verified Questions
151 Flashcards
Source URL: https://quizplus.com/quiz/53436
Sample Questions
Q1) The Occupational Safety and Health Act (OSHA) is a regulatory burden that has been proven to have little impact on the safety and welfare of workers.
A)True
B)False
Q2) One potential disadvantage of "self-directed teams" is higher training costs.
A)True
B)False
Q3) What will be the effect on sample size in work sampling of increasing the permissible maximum error?
A)increase the number of observations needed
B)decrease the number of observations needed
C)no effect on sample size
D)sometimes increase and sometimes decrease the sample size, depending on the analyst
E)impossible to say without additional information
Q4) Micromotion studies should be limited to periodic activities where breakthrough improvements are possible.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 10
Chapter 8: Location Planning and Analysis
Available Study Resources on Quizplus for this Chatper
80 Verified Questions
80 Flashcards
Source URL: https://quizplus.com/quiz/53434
Sample Questions
Q1) Advanced communications has aided globalization.
A)True
B)False
Q2) The center of gravity method is used to _______ travel time, distance and costs.
A)Normalize
B)Eliminate
C)Average
D)Minimize
E)Document
Q3) What would the total annual costs be for the Phoenix location with an annual output of 10,000 units?
A)$280,000
B)$140,000
C)$220,000
D)$300,000
E)$156,000
Q4) Technology has made communication with global operations as easy as local communication.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 11
Chapter 9: Management of Quality
Available Study Resources on Quizplus for this Chatper
102 Verified Questions
102 Flashcards
Source URL: https://quizplus.com/quiz/53432
Sample Questions
Q1) In order for TQM to be successful, it is essential that most of the organization be
A)members of quality circles
B)under contract
C)ISO certified
D)trained in error detection techniques
E)in agreement with the philosophy and its goals
Q2) Total quality management is a collection of techniques, such as quality control charts, ISO 9000, and quality function deployment.
A)True
B)False
Q3) Focusing a supply chain on ________________ is a modern way of ensuring high quality inputs and a ready supply of process-improvement ideas.
A)lowest cost-per unit sourced
B)close, collaborative ties with suppliers
C)suppliers that emphasized continuous-flow production
D)ISO 14000 customers
E)partners pursuing similar strategies
To view all questions and flashcards with answers, click on the resource link above. Page 12
Chapter 10: Quality Control
Available Study Resources on Quizplus for this Chatper
141 Verified Questions
141 Flashcards
Source URL: https://quizplus.com/quiz/53431
Sample Questions
Q1) The purpose of statistical process control is to ensure that historical output is random.
A)True
B)False
Q2) An operator collected the following time series data from a process:
Q3) Approving the effort that occurs during the production process is known as acceptance sampling.
A)True
B)False
Q4) If a point on a control chart falls outside one of the control limits, this suggests that the process output is non-random and should be investigated.
A)True
B)False
Q5) If the process is known to produce 11 percent defectives on average, using three sigma control limits, do any of the sample proportions indicate an out-of-control process proportion of defectives?
Q6) "Process capability" compares "process variability" to the "tolerances."
A)True
B)False
Page 13
To view all questions and flashcards with answers, click on the resource link above.
Chapter 11: Aggregate Planning and Master Scheduling
Available Study Resources on Quizplus for this Chatper
81 Verified Questions
81 Flashcards
Source URL: https://quizplus.com/quiz/53429
Sample Questions
Q1) Which of the following best describes aggregate planning?
A)the link between intermediate term planning and short term operating decisions
B)a collection of objective planning tools
C)make or buy decisions
D)an attempt to respond to predicted demand within the constraints set by product, process and location decisions
E)manpower planning
Q2) What are total overtime costs?
Q3) Simulation to produce an aggregate plan:
A)will produce the best plan
B)is the most widely used technique
C)both (a) and (b)
D)will produce a plan that may not be the best plan
E)requires a minimum of 4 iterations to be accurate
Q4) Aggregate planning is used to establish general levels of employment, output, and inventories over an intermediate-range of time.
A)True
B)False
Q5) Prepare a master schedule based on the following information:
To view all questions and flashcards with answers, click on the resource link above. Page 14
Chapter 12: MRP and ERP
Available Study Resources on Quizplus for this Chatper
89 Verified Questions
89 Flashcards
Source URL: https://quizplus.com/quiz/53428
Sample Questions
Q1) The inventory records contain information on the status of each item by time period.
A)True
B)False
Q2) The gross requirements at one level of an MRP plan determine the gross requirements at the next lower level continuing on down to the lowest levels shown on the bill of material.
A)True
B)False
Q3) How many Dark Chocolate Eggs should be ordered?
A)310
B)450
C)500
D)550
E)600
Q4) Lot-for-lot ordering in MRP eliminates the holding costs for parts that are carried over to other periods.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above.
Page 15
Chapter 13: Inventory Management
Available Study Resources on Quizplus for this Chatper
162 Verified Questions
162 Flashcards
Source URL: https://quizplus.com/quiz/53427
Sample
Questions
Q1) In a supermarket, a vendor's restocking the shelves every Monday morning is an example of:
A)safety stock replenishment
B)economic order quantities
C)reorder points
D)fixed order interval
E)blanket ordering
Q2) In the quantity discount model, if holding costs are given as a percentage of unit price, a graph of the total cost curves will have the same EOQ for each curve.
A)True
B)False
Q3) In the A-B-C classification system, items which account for fifteen percent of the total dollar-volume for a majority of the inventory items would be classified as:
A)A items
B)B items
C)C items
D)A items plus B items
E)B items plus C items
To view all questions and flashcards with answers, click on the resource link above.
16
Chapter 14: Jit and Lean Operations
Available Study Resources on Quizplus for this Chatper
88 Verified Questions
88 Flashcards
Source URL: https://quizplus.com/quiz/53426
Sample Questions
Q1) The single-minute exchange of die is a system for reducing defective product.
A)True
B)False
Q2) Kanban is the Japanese term for autonomation.
A)True
B)False
Q3) The comprehensive approach used in lean systems to deal with quality includes:
A)designing quality into products and processes
B)insisting vendors provide high quality materials
C)making workers responsible for producing high quality
D)A, B and C
E)100% inspection of raw materials, work-in-process and finished goods
Q4) Setup time and its associated cost can often be reduced by the use of group technology.
A)True
B)False
Q5) Kanban focuses on specific part numbers; CONWIP does not.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 17
Chapter 15: Supply Chain Management
Available Study Resources on Quizplus for this Chatper
89 Verified Questions
89 Flashcards
Source URL: https://quizplus.com/quiz/53424
Sample Questions
Q1) Most people working for a business organization are somehow involved with the supply chain of that business.
A)True
B)False
Q2) A 30% reduction in product and service variety won't really affect the efficiency of a supply chain.
A)True
B)False
Q3) RFID eliminates the need for counting and bar-code scanning.
A)True
B)False
Q4) Vendor analysis has the greatest potential for savings for items which have:
A)low cost per unit
B)low annual cost-volume
C)high cost per unit
D)high annual usage
E)high annual cost-volume
Q5) Gate keeping manages the cost of shipping returned goods.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 18
Chapter 16: Scheduling
Available Study Resources on Quizplus for this Chatper
134 Verified Questions
134 Flashcards
Source URL: https://quizplus.com/quiz/53423
Sample Questions
Q1) A major difference between manufacturing and service systems in terms of scheduling is:
A)variability in arrival and service rates
B)processing cost per unit
C)the number of units to be processed
D)length of processing time
E)output rate
Q2) What is the throughput time for the optimal schedule?
A)24 hours
B)25 hours
C)26 hours
D)28 hours
E)50 hours
Q3) If Eva uses the first come, first served (FCFS) priority rule to schedule these jobs, what will be the average completion time?
A)3 hours
B)5 hours
C)7 hours
D)7.2 hours
E)8 hours
To view all questions and flashcards with answers, click on the resource link above. Page 19
Chapter 17: Project Management
Available Study Resources on Quizplus for this Chatper
137 Verified Questions
137 Flashcards
Source URL: https://quizplus.com/quiz/53422
Sample Questions
Q1) What is the probability that the critical path for this project will be completed within 52 weeks?
A)0.1554
B)0.3108
C)0.3466
D)0.6554
E)0.8277
Q2) Given this information about activity 3-4: ES = 10, EF = 15, LS = 16, and LF = 21, we can determine that the amount of slack associated with the activity is:
A)0
B)1
C)5
D)6
E)11
Q3) The earliest finish time for an activity is equal to the latest finish time minus the activity slack.
A)True
B)False
Q4) What are the estimated expected (mean) times (in weeks) for activities A-H?
To view all questions and flashcards with answers, click on the resource link above. Page 20
Chapter 18: Management of Waiting Lines
Available Study Resources on Quizplus for this Chatper
81 Verified Questions
81 Flashcards
Source URL: https://quizplus.com/quiz/53421
Sample Questions
Q1) The goal of waiting line management is to minimize waiting time.
A)True
B)False
Q2) In a single-channel system, the utilization is equal to the arrival rate divided by the service rate.
A)True
B)False
Q3) When the waiting cost incurred by customers likely varies, an appropriate queuing model is:
A)single channel, single phase
B)single channel, multiple phase
C)multiple channel, single priority
D)multiple channel, multiple phase
E)multiple channel, multiple priority
Q4) A dental office with two professionals (one dentist, one hygienist) who work together as a team would be an example of a multiple channel system.
A)True
B)False
Q5) What is average time in the system for a high priority item?
To view all questions and flashcards with answers, click on the resource link above. Page 21
Chapter 19: Linear Programming
Available Study Resources on Quizplus for this Chatper
105 Verified Questions
105 Flashcards
Source URL: https://quizplus.com/quiz/53420
Sample Questions
Q1) A linear programming problem can have multiple optimal solutions.
A)True
B)False
Q2) For the purchase combination 0 King Beds and 200 Queen Beds, which resource is "slack" (not fully used)?
A)investment money (only)
B)storage space (only)
C)both investment money and storage space
D)neither investment money nor storage space
E)cannot be determined exactly
Q3) What is the objective function?
A)$4.00 A + $1.00 B = Z
B)$0.25 A + $1.00 B = Z
C)$1.00 A + $4.00 B = Z
D)$1.00 A + $1.00 B = Z
E)$0.25 A + $0.50 B = Z
Q4) What is the constraint for resource I?
Q5) Is the production combination 10 A's and 10 B's feasible?
Q6) What is the slack (unused amount) for each resource for the optimum production combination?
Page 22
To view all questions and flashcards with answers, click on the resource link above.
Chapter 20: Extension 4: Reliability
Available Study Resources on Quizplus for this Chatper
10 Verified Questions
10 Flashcards
Source URL: https://quizplus.com/quiz/53440
Sample Questions
Q1) If a system depends on two sub-systems functioning when activated, the reliability of that system is equal to the lower reliability of the two sub-systems.
A)True
B)False
Q2) The time between failures for an electrical appliance is exponentially distributed with a mean of 25 months.What is the probability that the next failure won't occur before 30 months have elapsed?
A)Not in excess of .2
B)In excess of .2 but not in excess of .3
C)In excess of .3 but not in excess of .4
D)In excess of .4 but not in excess of .6
E)In excess of .6
Q3) Reliability is the probability that a product or system will function when activated. A)True
B)False
Q4) Availability cannot be increased without improving the time between breakdowns. A)True
B)False
To view all questions and flashcards with answers, click on the resource link above.
23
Chapter 21: Extension 5: Decision Theory
Available Study Resources on Quizplus for this Chatper
126 Verified Questions
126 Flashcards
Source URL: https://quizplus.com/quiz/53438
Sample Questions
Q1) A manager's staff has compiled the information below which pertains to four capacity alternatives under four states of nature.Values in the matrix are present value in thousands of dollars.
A.
Q2) What is the expected value for the decision alternative to write the statistics book?
A)50,000 copies
B)40,000 copies
C)32,000 copies
D)30,500 copies
E)10,500 copies
Q3) The minimax regret strategy would be:
A)A
B)B
C)C
D)D
E)E
Q4) The maximin approach involves choosing the alternative with the highest payoff.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 24
Chapter 22: Extension 7: Learning Curves
Available Study Resources on Quizplus for this Chatper
68 Verified Questions
68 Flashcards
Source URL: https://quizplus.com/quiz/53435
Sample Questions
Q1) Approximately how long will it take to produce the 15<sup>th</sup> unit?
A)4.3 hours
B)5.5 hours
C)4.7 hours
D)6.9 hours
E)3.4 hours
Q2) Developing work assignments in a job shop in a certain firm has a learning curve of 80 percent.If the second set of assignments takes 12 minutes, determine the length of time required for the following:
(A) the fifth set
(B) sets 3, 4, and 5 together
Q3) Which of the following is an example of a carryover effect?
A)capacity that was used on older products but that can be used on new products
B)previous experience that is relevant to the current scenario
C)existing products that are still in the maturity phase of their life cycle
D)forecasting errors from previous product lines
E)old supplier contracts that must still be honored
Q4) Negotiated purchasing results in lower unit costs for smaller quantities.
A)True
B)False
Page 25
To view all questions and flashcards with answers, click on the resource link above.
Chapter 23: Extension 8: The Transportation Model
Available Study Resources on Quizplus for this Chatper
20 Verified Questions
20 Flashcards
Source URL: https://quizplus.com/quiz/53433
Sample Questions
Q1) The transportation method is a linear programming technique.Linearity is present in the following way:
A)The cost of goods shipped from any source to any destination is a linear function of quantity shipped.
B)The cost of goods shipped from any source to any destination is a linear function of the cost per unit.
C)The total cost associated with a given plan is a linear function of shipping costs.
D)Cell evaluations require linear horizontal movements through the matrix.
E)Cell evaluations are linear.
Q2) In a transportation problem with three locations and two destinations, the objective function is as follows: Min 20X<sub>11</sub> + 18X<sub>21</sub> + 23 X<sub>31</sub> + 16X<sub>12</sub> + 14X<sub>22</sub> + 12X<sub>32</sub>.How much does it cost to ship one unit from location 2 to destination 1?
A)18
B)12
C)23
D)16
E)None of the above.
To view all questions and flashcards with answers, click on the resource link above. Page 26
Chapter 24: Extension 10: Acceptance Sampling
Available Study Resources on Quizplus for this Chatper
65 Verified Questions
65 Flashcards
Source URL: https://quizplus.com/quiz/53430
Sample Questions
Q1) A firm uses acceptance sampling to evaluate batches of inputs.Ideally, the defect rate would be no more than 3.5%.The firm knows that on occasion, batches with that defect rate or better might be rejected.However, if the defect rate is less than or equal to 3.5%, the firm would like there to be very little chance of that batch being rejected.This value, 3.5%, is the firm's ______.
Q2) If, based on his acceptance sample, he decides to ship this batch without inspection, which type error would be possible?
A)none
B)producer's error
C)Type I error
D)Type II error
E)both Type I and Type II error
Q3) A lot can be "accepted" or "rejected" in a double-sampling plan:
A)after one sample is taken.
B)after two samples are taken.
C)only after two samples are taken.
D)All of the above are correct.
E)Only a and b are correct.
To view all questions and flashcards with answers, click on the resource link above.
Chapter 25: Extension 14: Maintenance
Available Study Resources on Quizplus for this Chatper
38 Verified Questions
38 Flashcards
Source URL: https://quizplus.com/quiz/53425
Sample Questions
Q1) Factors affecting the decision of how much preventive maintenance is desirable typically include all of the following except:
A)age of equipment
B)type of product
C)degree of technology
D)type of production process
E)how critical to the production process
Q2) In the area of maintenance, the Pareto phenomenon is reflected in the fact that:
A)All equipment justifies about the same expense.
B)A majority of equipment will justify considerable expense.
C)A few pieces of equipment will justify little expense.
D)A few pieces of equipment will justify considerable expense.
E)No piece of equipment will justify major expense; it's better to replace.
Q3) The type of maintenance which is periodic in nature is:
A)breakdown maintenance
B)predictive maintenance
C)preventive maintenance
D)corrective maintenance
E)all of the above
To view all questions and flashcards with answers, click on the resource link above. Page 28