Operations Management Review
Questions
Course Introduction
Operations Management is a foundational course that explores the design, operation, and improvement of the processes that produce and deliver goods and services. Students will learn about key concepts such as process analysis, capacity planning, supply chain management, quality control, and inventory management. Through case studies and analytical tools, the course emphasizes the strategic importance of efficient operations and equips students with the skills to optimize resources, enhance productivity, and deliver value in diverse organizational settings.
Recommended Textbook operations management an integrated approach 6th edition by r. dan reid
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Chapter 1: Introduction to Operations Management
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Sample Questions
Q1) What type of commerce makes up the highest percentage of electronic transactions?
A) B2C
B) C2C
C) B4B
D) B2B
E) B4C
Answer: D
Q2) While service and manufacturing firms contribute more to the economy and offer more jobs at all levels, ________________________ are also important to our lives and the economy.
Answer: Agriculture, fishing, and forestry; construction, and extraction (mining, oil and natural gas, industrial gases).
Q3) Which of the following concepts is linked the least with Henry Ford?
A) scientific management
B) mass production
C) mass customization
D) technology
E) interchangeable parts
Answer: C
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Chapter 2: Operations Strategy and Competitiveness
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Sample Questions
Q1) How does Federal Express maintain its ability to compete on time during peak demand periods?
A) it subcontracts overload to other firms
B) it purchases more planes
C) overtime
D) it uses a very flexible part-time workforce
E) it purchases more vans
Answer: D
Q2) When does productivity increase?
A) inputs increase while outputs remain the same
B) inputs decrease while outputs remain the same
C) outputs decrease while inputs remain the same
D) inputs and outputs increase proportionally
E) none of the above
Answer: B
Q3) During week one, on average, the aircraft cleaning staff was able to totally clean an airplane in 45 minutes using 3 cleaners. During week two the average time to clean an aircraft went to 40 minutes with one of the cleaning staff off sick. Week two productivity changed in which direction and by how much?
Answer: Week two productivity is 20 minutes/staff, productivity decreased
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Chapter 3: Product Design and Process Selection
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Sample Questions
Q1) Pre-fabricated furniture with choices of fabric colors is an example of which product and service strategy?
A) assemble-to-deliver
B) make-to-stock
C) assemble-to-order
D) make-to-order
E) make-to-package
Answer: C
Q2) In break-even analysis, in order to make a profit the company must
A) sell above the break-even point
B) sell below the break-even point
C) sell at a loss
D) sell at the break-even point
E) sell on consignment
Answer: A
Q3) For what types of decisions is break-even analysis appropriate?
Answer: deciding how much of a product must be sold to make a profit, evaluating different processes, deciding whether it is better to make or buy a product, and deciding between different products
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Page 5
Chapter 4: Supply Chain Management
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Sample Questions
Q1) What is a network internal to an organization called?
A) supernet
B) internet
C) intranet
D) supranet
E) internalnet
Q2) What is the common term for a process of developing a long-term relationship with a supplier based on mutual trust, shared vision, shared information, and shared risks?
A) Marrying
B) Cohabitating
C) Sharing
D) Partnering
E) Diversifying
Q3) Partnerships between supplier and purchaser are easier to develop when there is (are) ______________________ supplier(s).
Q4) The Internet has created greater competition between suppliers.
A)True
B)False
Q5) List some benefits derived from E-commerce.
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Chapter 5: Total Quality Management
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Sample Questions
Q1) A quality circle is
A) An approach for the use of control charts
B) An award for quality improvements
C) An inspection stamp found on meat
D) A team of volunteer production employees and their supervisors who meet regularly to solve quality problems
E) A symbol used on flow charts
Q2) Quality at the source involves inspecting goods after they are produced.
A)True
B)False
Q3) Suppose that a product has three parts, each of which must work in order for the product to function. The reliabilities of the parts are .898, .933, and .946, respectively. What is the reliability of the product?
Q4) Which of the following is not an important cost of poor quality?
A) Product recalls
B) Litigation resulting from product liability issues
C) Loss of business
D) Overhead
E) Dissatisfied customers
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Chapter 6: Statistical Quality Control
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Sample Questions
Q1) On a control chart, what separates common from assignable causes of variation?
A) x-bar lines
B) Control limits
C) Specification limits
D) Production limits
E) Mean divided by standard deviation
Q2) A graph that shows the probability or chance of accepting a lot given various proportions of defects in the lot is called an ____________________.
Q3) What is the formula for an x-bar chart's control limits?
Q4) What is the formula for the sample standard deviation?
Q5) Suppose a process has been monitored daily for the last ten days and the number of machine failures each day was noted. The results follow:
Day Number: 1 2 3 4 5 6 7 8 9 10
Number of Failures: 8 9 6 10 12 4 9 11 9 12
Compute control limits for a c-chart that monitors the average number of machine failures per day. Is the process in a state of control?
Q6) What does "OC" stand for?
Q7) What is the formula for an R chart's center line?
Page 8
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Chapter 7: Just-In-Time and Lean Systems
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Sample Questions
Q1) What are the responsibilities of production employees in JIT?
Q2) Traditional production plans schedule ________________________ while JIT with Level Scheduling uses ________________________.
Q3) With regard to suppliers, JIT typically requires
A) Delivery of large lots at regular intervals
B) Buyer inspection of incoming goods and materials
C) Multiple sources from which to purchase
D) Information sharing
E) Buying parts from the cheapest supplier
Q4) The objective of quality at the source is not only to identify a quality problem, but also to
A) Determine its extent
B) Uncover its root cause
C) Rate its seriousness
D) Place blame
E) Categorize it
Q5) JIT manufacturing cannot succeed if set-up costs are too high. A)True B)False
Q6) JIT changes happen in sequence because ________________________.
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Chapter 8: Forecasting
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Sample Questions
Q1) In linear regression, what are we trying to forecast?
A) Beta parameter
B) Dependent variable
C) Independent variable
D) Y-intercept of the line
E) Slope of the line
Q2) Suppose that you are using the four-period simple moving average method to forecast sales, and sales have been decreasing by 10% every period. How will your forecasts perform?
A) Forecasts will be lower than actual.
B) Forecasts will be higher than actual.
C) Forecasts will equal actual.
D) Forecasts will be increasing.
E) Forecasts will be decreasing by 2.5% every period.
Q3) The first step in forecasting is:
A) determine what data is available
B) decide what to forecast
C) evaluate and analyze appropriate data
D) select and test the forecast model
E) establish the forecast accuracy requirements
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Chapter 9: Capacity Planning and Facility Location
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Sample Questions
Q1) At the break-even point, total cost equals total revenue.
A)True
B)False
Q2) Capacity planning is complicated by the fact that ___________________.
A) capital markets are complex
B) existing facilities may become obsolete
C) capacity is difficult to define
D) capacity is usually purchased in chunks, rather than smooth increments
E) depreciation must be calculated
Q3) Why are focused factories often the best approach in today's business environment?
Q4) A clinic has been set up to give flu shots to the elderly in a large city. The design capacity is 50 seniors per hour, and the effective capacity is 44 seniors per hour. Yesterday the clinic was open for ten hours and gave flu shots to 330 seniors.
(a) What is the design utilization?
(b) What is the effective utilization?
Q5) There they go again. There is another Burger King being built right next to a McDonald's at an Interstate Highway exit. Why does this approach make sense?
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Chapter 10: Facility Layout
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Sample Questions
Q1) A single-line cafeteria is an example of which layout type?
A) inverted
B) disjointed
C) process
D) fixed position
E) product
Q2) A hospital is an example of which layout type?
A) inverted
B) hybrid
C) process
D) fixed position
E) product
Q3) How many different layout solutions are possible with 7 departments?
A) 7
B) 720
C) 28
D) 7000
E) 5040
Q4) What are the three steps in designing process layouts?
Q5) Discuss why facility layout is important to a supply chain
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Chapter 11: Work System Design
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Sample Questions
Q1) What are the ways that standard times can help in planning and scheduling?
Q2) If OT = the mean observed time, PRF = the performance rating factor, F = the frequency of occurrence, and PFD = the percentage allowance based on time worked, what is the formula to compute the normal time?
A) (OT)(PRF)(F)
B) (OT)(PRF)(F)(1 + PFD)
C) (OT)(PRF)(F) / (1 - PFD)
D) (OT)(PRF) / (F)
E) (OT)(PRF)(F) / (1 + PFD)
Q3) Having waiters cook and having the cooks wait on tables is an example of
A) job enlargement
B) job rotation
C) job enrichment
D) job involvement
E) job enhancement
Q4) The average observed time for each work element is its __________________.
Q5) What are the steps in methods analysis?
Q6) With respect to costing, what uses does a company have for standard times?
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Q7) Developing standard time by observing an operator is called
Chapter 12: Inventory Management
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Sample Questions
Q1) What are the characteristics of a single-period inventory model?
Q2) When is the basic EOQ model a special case of the EPQ model?
A) The demand per day approaches the demand per year.
B) The production rate per day approaches 0.
C) The production rate per day approaches infinity.
D) The back order cost approaches infinity.
E) d/p = 1.
Q3) Consider a periodic review inventory system with a lead time of two weeks and a review period of seven weeks. If the standard deviation of weekly demand is 200 and the desired cycle-service level is 86%, what should the safety stock equal?
A) 305
B) 516
C) 600
D) 648
E) 1944
Q4) Lot-for-lot ordering is commonly used in materials requirements planning systems.
A)True
B)False
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Chapter 13: Aggregate Planning
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Sample Questions
Q1) One disadvantage of using undertime is
A) employee hourly rate decreases
B) employee hourly rate increases
C) product labor cost decreases
D) product labor cost increases
E) product labor cost is constant
Q2) Aggregate planning, master production scheduling, and rough-cut capacity affect a select area of the organization.
A)True
B)False
Q3) If you allocate scarce resources to customers at prices that maximize the yield to the company you are using:
A) level aggregate planning
B) chase production planning
C) price fixing
D) yield management
E) price compression
Q4) In proactive option demand-based aggregate planning, marketing tries to _____ the _____ pattern.
Q5) What are the characteristics of undertime?
Page 15
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Chapter 14: Resource Planning
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Sample Questions
Q1) Companies use ____________ to check that enough work is scheduled for operations and that the amount of work scheduled is feasible.
A) capacity management
B) closed-loop requirements planning
C) cut requirements planning
D) capacity resources planning
E) capacity requirements planning
Q2) With capacity requirements planning, the calculated workload for a work center is compared with ___________.
A) available capacity
B) calculated workloads for other work centers
C) the cost of expanding the work center
D) standard capacity
E) design capacity
Q3) Name some lot size rules.
Q4) Supply chain intelligence enables ______________ along the supply chain.
Q5) For the data provided determine the Inventory Record using a FOQ lot size rule for the hinge.
Q6) Explain how Dell Computer has become able to implement mass customization.
Page 16
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Chapter 15: Scheduling
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Sample Questions
Q1) Which of the following is not a feature of job-shop operations?
A) a process layout
B) highly skilled employees
C) special-purpose equipment and tooling
D) highly customized products
E) low volume production
Q2) Which of the following is not a feature of flow operations?
A) a process layout
B) fixed routings
C) special-purpose equipment and tooling
D) high volume production
E) high levels of labor and equipment utilization
Q3) The process batch should be variable.
A)True
B)False
Q4) What are some important considerations to make when developing an operational schedule?
Q5) Firms should balance the flow rather than the process.
A)True
B)False
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Chapter 16: Project Management
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Sample Questions
Q1) Name and describe the three ways to add safety time in the critical chain approach.
Q2) Project managers use network planning techniques to assign resources to activities.
A)True
B)False
Q3) Precedence relationships structure the sequencing of activities.
A)True
B)False
Q4) What are valid reasons for reducing the time spent finishing a particular project?
Q5) An approach for getting projects done faster and more consistently at or before the project due date is the critical chain approach.
A)True
B)False
Q6) CPM was originally developed to conceive and plan maintenance projects in chemical plants.
A)True
B)False
Q7) Define crashing as it relates to project management.
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Chapter 17: Spreadsheet Modeling: An Introduction
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Sample Questions
Q1) A model needs to do more than transform inputs to outputs; it must also:
A) modify the process
B) adjust the controllable inputs
C) have a purpose
D) control the output
E) be accurate
Q2) In Excel, what is the shortcut to view formulas on the spreadsheet?
A) Ctrl+'
B) Ctrl+`
C) Ctrl+F
D) Ctrl+^
E) Ctrl+~
Q3) In Excel, ___________________ references are indicated by a dollar sign character preceding the column and the row reference.
A) absolute
B) comparative
C) analogous
D) relative
E) correlative
Q4) Define an output.
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Chapter 18: Introduction to Optimization
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Sample Questions
Q1) The Village Butcher Shop traditionally makes its meat loaf from a combination of lean ground beef and ground pork. The ground beef contains 80 percent meat and 20 percent fat, and costs the shop 80 cents per pound; the ground pork contains 68 percent meat and 32 percent fat, and costs 60 cents per pound. Formulate a linear program to determine the amount each kind of meat that the shop should use in each pound of meat loaf if it wants to minimize its cost and to keep the fat content of the meat loaf to no more than 25 percent.
Q2) There is no single way to set up a Linear Program in a spreadsheet.
A)True
B)False
Q3) Slack values for non-binding constraints are equal to 0.
A)True
B)False
Q4) When was the Simplex Method developed?
A) 1927
B) 1937
C) 1947
D) 1957
E) 1967
Q5) _________ are limitations or requirements that must be satisfied.
Page 20
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Chapter 19: Waiting Line Models
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Sample Questions
Q1) What occurs when a customer enters one line and then switches to a different line in an effort to reduce his or her waiting time?
A) balking
B) walking
C) reneging
D) vacillating
E) jockeying
Q2) Customers walk into a bank at an average rate of 20 per hour. On average, there are 5 people waiting in line to be served. How long does the average customer wait in line?
A) 15 minutes
B) 0.25 minutes
C) 4 minutes
D) 3 minutes
E) 8 minutes
Q3) List possible priority rules for waiting line systems.
Q4) Walking occurs when a customer decides not to enter the waiting line.
A)True
B)False
Q5) Waiting line models typically assume what distribution(s)?
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Chapter 20: Master Scheduling and Rough-Cut Capacity Planning
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Sample Questions
Q1) Motorsports, Inc. builds two different types of motors. Model A has averaged 20,000 units annually, and Model B has average 30,000 units annually. The firm has historically used 80,000 direct labor hours and 10,000 hours of machine time per year to build Model A. Also, 150,000 annual direct labor hours have been allocated to Model B, along with 60,000 hours of annual machine time. What is the CPOPF planning factor for machine time for Model A?
A) 0.50
B) 2.00
C) 1.40
D) 4.50
E) 0.33
Q2) Changes to the MPS that are requested inside of the demand time fence must be approved by a higher authority.
A)True
B)False
Q3) The projected available quantity row in an MPS record keeps track of how many units are available at the beginning of each time period.
A)True
B)False
Page 22
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