Operations Management Test Questions
Course Introduction
Operations Management explores the principles and practices involved in the efficient and effective transformation of inputs into goods and services. This course covers core topics such as process design, capacity planning, supply chain management, quality control, and inventory management. Students will learn how operational strategies align with business objectives, apply analytical tools to solve real-world problems, and examine case studies that highlight best practices in various industries. The course equips students with the knowledge and skills necessary to optimize resources, improve productivity, and drive organizational excellence in both manufacturing and service environments.
Recommended Textbook operations management 5th edition by r. dan reid
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Page 2
Chapter 1: Introduction to Operations
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Sample Questions
Q1) The objective of supply chain management is to have every member of the chain compete against each other to enhance competitive abilities.
A)True
B)False
Answer: False
Q2) Manufacturers often provide services like
Answer: Shipping,helping customers use products,repairs,replacement parts,warranty service,and credit.
Q3) What are the two key features of scientific management?
Answer: First,it is assumed that workers are motivated only by money and are limited only by their physical ability.Second,management should perform "planning" separately from the workers who perform the "doing."
Q4) What are environmental issues faced by business?
Answer: air pollution,water pollution,global warming,and waste disposal
Q5) One of the most important trends in companies today is competition based on time. A)True
B)False
Answer: True
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Chapter 2: Operations Strategy and Competitiveness
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Sample Questions
Q1) Operational efficiency is:
A)driving the business strategy
B)ensuring the right tasks are performed
C)decreasing the firm's input requirements
D)increasing the firm's output
E)performing operations tasks well
Answer: E
Q2) Order winners and qualifiers:
A)are consistent between manufacturing and service organizations
B)only matter when responding to formal competitive bid requests
C)remain constant over time
D)change over time
E)only apply to quasi-manufacturing firms
Answer: D
Q3) What are some general technological trends in the marketplace?
Answer: point-of-sale scanners,automation,computer-assisted processing,electronic purchasing,electronic order tracking,and e-commerce
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Page 4
Chapter 3: Product Design and Process Selection
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Sample Questions
Q1) When product and process design work together,much of the work is done in sequence rather than in parallel.
A)True
B)False
Answer: False
Q2) Compared to intermittent operations,repetitive operations
A)have higher material handling costs
B)have greater efficiency
C)have slower processing rates
D)have more flexibility
E)are less specialized
Answer: B
Q3) Name an operational consideration that a firm must take into consideration when designing a new product
Answer: Type of processes already used in the company,
Q4) One source of new product ideas is a product manager.
A)True
B)False
Answer: True
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Chapter 4: E-Commerce and Supply Chain Management
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Sample Questions
Q1) Companies want a supply chain that makes it possible to:
A)manage all suppliers' development costs.
B)manage and adapt to all of the business dynamics.
C)manage distribution display.
D)manage distribution outlet retail prices.
E)manage customer demands.
Q2) Which of the following is not considered to be a benefit of EDI?
A)Increased human interaction
B)Reduced paperwork
C)Improved data accuracy
D)Improved tracking capability
E)Reduced clerical costs
Q3) Which of the following is least likely to be a benefit of implementing barcode scanners at retail store checkout registers?
A)Improved forecasting
B)More efficient packaging of customer orders
C)Improved inventory control
D)Faster checkout for customers
E)More accurate checkout for customers
Q4) Compare the access differences among the Internet,an intranet,and an extranet.
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Chapter 5: Total Quality Management
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Sample Questions
Q1) Quality Function Deployment (QFD)enhances communication between marketing,operations,and engineering functions.
A)True
B)False
Q2) What are the common causes of TQM failure?
Q3) Increases in international trade during the 1980s created a need for the development of ____________ standards of quality.
A)universal
B)country-specific
C)lower
D)metric
E)bilingual
Q4) W.Edwards Deming is often referred to as the father of quality control.
A)True
B)False
Q5) Name six common definitions of quality in manufacturing.
Q6) ISO certification has become a requirement for conducting business in many industries.
A)True
B)False
Page 7
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Chapter 6: Statistical Quality Control
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Sample Questions
Q1) The Six Sigma approach is organized around a _______ plan known as ________.
A)four step,PDAC
B)four step,DMAC
C)five step PDACR
D)five step DMAIC
E)five step,DMCRA
Q2) When should 100% inspection be used?
A)Whenever attributes are being measured
B)When the expected cost of a defective item exceeds the cost of inspecting a unit
C)With destructive testing
D)When the cost of inspecting a unit exceeds the expected cost of a defective item
E)100% inspection should never be used
Q3) What does "OC" stand for?
Q4) Another way to construct the control limits for variables is to use the standard deviation as an estimate of variability of the process.
A)True
B)False
Q5) Define acceptance sampling.
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Chapter 7: Just-In-Time and Lean Systems
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Sample Questions
Q1) According to JIT,workers should perform
A)system specification development
B)as directed by the supervisor
C)routine preventive maintenance activities
D)poka-yoke designs
E)quality program development
Q2) JIT supply chains often involve firms that _____________________.
Q3) In JIT a Kanban card is used to signal
A)The need for more parts
B)A supplier needs assistance
C)A worker is overloaded
D)A machine is ready for preventive maintenance
E)Management is inspecting operations
Q4) JIT was based on the need for
A)survival
B)waste elimination
C)better working conditions
D)consistent application of policies
E)consistent supplier performance
Q5) What are the advantages of cell manufacturing using a U-shaped cell?
Page 9
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Chapter 8: Forecasting
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Sample Questions
Q1) What is the exponential smoothing formula?
Q2) Suppose that you are using the naïve forecasting method with trend to forecast sales.Sales have been increasing by 10% per week.Two weeks ago,sales amounted to $100.What should your forecast be for this week?
A)$100
B)$ 10
C)$110
D)$121
E)$120
Q3) With the Delphi method,a group of managers meet and collectively generate a forecast.
A)True
B)False
Q4) What are the two categories of quantitative models?
Q5) What are the 9 steps utilized in the most complete form of CPFR?
Q6) The number of future periods forecast is called the ____________________.
Q7) Statistical packages such as SPSS,SAS,and Minitab,are types of forecasting software.
A)True
B)False
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Chapter 9: Capacity Planning and Facility Location
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Sample
Questions
Q1) Schools,colleges,and universities consider the size of the classrooms carefully because _____________________.
Q2) Management has decided to add capacity incrementally in smaller chunks as needed,rather than purchasing one large facility.This decision
A)is very risky
B)will result in low initial costs
C)will ultimately result in lower costs per unit if demand increases rapidly
D)positions the company to be well prepared for high demand in the future
E)can lead to a large amount of excess capacity
Q3) The maximum output rate that can be achieved by a facility under ideal conditions is design capacity.
A)True
B)False
Q4) Which of the following is not a factor in capacity planning?
A)approach used to measure capacity
B)economies of scale
C)prepare to deal with capacity in "chunks"
D)proximity to suppliers
E)identify the best operating level
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Chapter 10: Facility Layout
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Sample Questions
Q1) Marketing is not highly affected by layout planning.
A)True
B)False
Q2) What is the amount by which the efficiency of a production line falls short of 100%?
A)balance delay
B)efficiency deficiency
C)efficiency delay
D)balance shortfall
E)percentage deficiency
Q3) The See's Candies facility is an example of a product layout.
A)True
B)False
Q4) Intermittent operations are seen in organizations that produce:
A)a small variety of different products
B)high volumes of a few standard products
C)a large variety of different products
D)a large volume of many standardized products
E)assembly line manufacturing
Q5) What are the three steps in designing process layouts?
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Chapter 11: Work System Design
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Sample Questions
Q1) Developing standard time by observing an operator is called
Q2) Advantages of the alternative workplace include all except which of the following?
A)eliminating offices that people do not need
B)reducing overhead expenses
C)offers more flexibility to balance work and family
D)increased cohesiveness among employees
E)employees devote more time to customers and/or meaningful work activities
Q3) Typically the job chosen for the time study will be a routine job that is labor intensive.
A)True
B)False
Q4) What does work measurement determine?
A)how long it should take to do a job
B)what is the best way to do a job
C)who is the best worker
D)where work should be done
E)why a particular step must be included in an operation
Q5) Describe why understanding learning curves is important to the organization.
Q6) With respect to costing,what uses does a company have for standard times?
Page 13
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Chapter 12: Independent Demand Inventory Management
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Sample Questions
Q1) What is the maximum inventory of a product that is produce in batches of 1000 when 500 units are produced per day and 250 units are sold per day?
Q2) Inventory record accuracy is especially critical for master production schedule users.
A)True
B)False
Q3) If the costs (S and H)and demands (D)are the same,which of the following is true with regard to the EPQ model as compared to the EOQ model?
A)The lot size under the EPQ model is bigger than under the EOQ model.
B)The maximum inventory level is higher under the EPQ model than under the EOQ model.
C)The two models use different formulas to compute annual ordering cost.
D)The inventory depletion rate is not the same for both models.
E)Both models use the same formula to compute annual holding cost.
Q4) Discuss some of the factors on how much safety stock will be kept on hand.
Q5) Any inventory turnover less than 4 is considered to be poor performance.
A)True
B)False
Q6) When a company experiences a stockout,what are the two possibilities?
Page 14
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Chapter 13: Aggregate Planning
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Sample Questions
Q1) The comparison of aggregate plans is difficult when they produce different quantities and thus _________.
A)have different ending inventories
B)have different staffing levels
C)have different amounts of overtime
D)have different amounts of subcontracting
E)have different revenues
Q2) A disadvantage of the level aggregate plan is _________________.
A)workforce instability
B)excess hiring
C)layoffs
D)possible poor customer service from extensive use of backorders
E)excessive purchase of additional tools and equipment
Q3) During overtime worker productivity increases due to the increase salary received
A)True
B)False
Q4) Nontangible capacity can be added by the use of an on-call labor pool.
A)True
B)False
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Chapter 14: Resource Planning
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Sample Questions
Q1) Capacity requirements planning enables the company to evaluate
A)employee morale
B)its suppliers
C)its manufacturing costs
D)quality
E)how well it is using its critical work centers
Q2) Setup time is changed:
A)once each day regardless of product changes.
B)each time the operator begins the machine.
C)each time the machine is prepared to produce the desired item quantity.
D)for each shift that works on the desired item quantity manufacturing.
E)on rare occasions if it takes significant time.
Q3) A positive quantity in the current period's planned order row means that
A)lead time is too long
B)the projected available is negative
C)gross requirements are too large
D)the planned order is due to be completed in the current period
E)an order must be released
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Chapter 15: Scheduling
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Sample Questions
Q1) Using the Tibrewala,Phillippe,and Brown technique for a Monday through Sunday work week a regular,full time employee can end up with a Sunday-Monday set of days off.
A)True
B)False
Q2) What does average number of jobs in the system measure?
A)WIP inventory
B)due-date performance
C)makespan
D)job tardiness
E)job lateness
Q3) Backward scheduling determines the earliest possible completion time for a job.
A)True
B)False
Q4) Which of the following scheduling rules is a global priority rule?
A)first come,first served
B)last come,first served
C)earliest due date
D)shortest processing time
E)slack per remaining operations
Page 17
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Chapter 16: Project Management
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Sample Questions
Q1) What are the benefits of network planning techniques?
Q2) In making a forward pass through a network,activities L,M,and P are immediate predecessors for activity T,which has an activity time of 7.The early start times for activities L,M,and P are 22,17,and 27,respectively.The early finish times for activities L,M,and P are 29,27,and 33,respectively.What is the early start time for activity T?
A)17
B)24
C)27
D)33
E)40
Q3) In calculating the estimated probability of completion value a negative number is obtained.This means:
A)your calculation is wrong.
B)the project will be delayed.
C)the specified completion time is later than the expected completion time.
D)the specified completion time is earlier than the expected completion time.
E)the variance is incorrect.
Q4) What are valid reasons for reducing the time spent finishing a particular project?
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Page 18
Chapter 17: Spreadsheet Modeling: an Introduction
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Sample Questions
Q1) More times than not,modelers tend to ignore making the model flexible because:
A)they don't know how.
B)it takes too much time.
C)it provides little benefit.
D)they believe the model is a onetime use item.
E)they want to keep the model modification control to themselves.
Q2) Which of the following is equivalent to "=SUMPRODUCT(A1:A4,B2:B5)"?
A)A1*A4 + B2*B5
B)A1*B2 + A2*B3 + A3*B4 + A4*B5
C)(A1+A4)*(B2+B5)
D)(A1+A2+A3+A4)*(B2+B3+B4+B5)
E)This is an invalid function.
Q3) There are a number of different model types which do not share any commonalities.
A)True
B)False
Q4) Define an output.
Q5) In Excel,relative references do not change when you copy them.
A)True
B)False
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Chapter 18: Introduction to Optimization
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Q1) With Excel Solver,the range for the Changing Cells box must be entered with absolute references ($ signs).
A)True
B)False
Q2) If the solution to an optimization problem violates two constraints but satisfies three,it is a(an)________.
A)suboptimal solution
B)infeasible solution
C)inoptimal solution
D)unbounded solution
E)simplex solution
Q3) Describe what steps one should use if the Solver Results box says,"The conditions for Assume Linear Model are not satisfied"?
Q4) Discuss how the Solver Sensitivity Report is fundamentally different than the other reports.
Q5) A formulation is a formal,____________ statement of a constrained optimization problem
Q6) Solver's Changing Cells corresponds to the ________ in the algebraic model.
Q7) Explain what differentiates a Linear Program from a Nonlinear Program.
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Chapter 19: Waiting Line Models
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Sample Questions
Q1) Assume you have a single channel,single server,and single phase queue.Mean arrival rate is 80/hr and system capacity is 100/hr.What is the average number of customers in the system?
A)2
B)8
C)4
D)80
E)0
Q2) Which of the following waiting line systems best describes a drive-through car wash?
A)single-server,single-phase
B)single-server,multi-phase
C)multi-server,single-line,single-phase
D)multi-server,multi-line,single-phase
E)multi-server,multi-phase
Q3) _________ _________ are used to gain useful information about waiting line systems.
Q4) What are the five characteristics that define a service system?
Q5) The term _________ refers to the activity or a series of service required activities.
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Chapter 20: Master Scheduling and Rough-Cut Capacity Planning
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Q1) Which of the following is not part of the process for developing an MPS?
A)The MRP system is run.
B)Rough-cut capacity planning is used.
C)Evaluation occurs with regard to customer service,effective use of resources,and inventory investment.
D)If capacity is insufficient,the MPS is modified or capacity is expanded.
E)An MRP is proposed.
Q2) A negative number in the projected available row is ___________ a problem. A)always
B)never
C)sometimes D)usually E)50%
Q3) In future periods,MPS Shipments - Customer orders between current and next scheduled MPS shipment is called ________________________.
Q4) The MPS is said to be ________________________ between the current time and the time needed for final assembly.
Q5) Discuss how the MPS is evaluated in terms of cost.
Q6) Discuss the Master scheduler responsibility.
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