

Operations Management
Textbook Exam Questions
Course Introduction
Operations Management is a foundational course that explores the processes and strategies involved in designing, operating, and improving the systems that produce goods and deliver services. Students will learn about key concepts such as process analysis, quality management, supply chain coordination, inventory control, and project management. Emphasis is placed on both manufacturing and service environments, enabling students to understand how operations drive efficiency, cost reduction, and customer satisfaction. Through real-world case studies and practical applications, students gain insight into how organizations utilize operations management principles to achieve competitive advantage and respond effectively to dynamic market demands.
Recommended Textbook operations management an integrated approach 6th edition by r. dan reid
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Page 2

Chapter 1: Introduction to Operations Management
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Sample Questions
Q1) While Operations Management focuses on privately owned firms, governments provide many services and some goods, like:
Answer: postal service; family, social, and aged assistance and care, health care, transportation, safety and security, transportation facility maintenance, education and libraries, real estate title and ownership recording, professional licensing, skill testing, recreation and related licensing (fishing and hunting), historic preservation.
Q2) 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
Q3) Operations management is a result of a single event, the industrial revolution.
A)True
B)False
Answer: False
Q4) What are the three major functions through which every business is managed?
Answer: finance, marketing, and operations management
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Chapter 2: Operations Strategy and Competitiveness
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Sample Questions
Q1) An operations strategy should not impact the firm's supply chain design.
A)True
B)False
Answer: False
Q2) On Tuesday George produced 100 units in 8 hours. On Wednesday he produced 120 units in 10 hours. What was his percent productivity change?
A) -0.50%
B) -4.17%
C) 4.17%
D) -4.00%
E) 4.00%
Answer: D
Q3) Operations management is only concerned with information technology applications within the firm.
A)True
B)False
Answer: False
Q4) A business strategy is like an explorer's ________________________. Answer: compass
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Chapter 3: Product Design and Process Selection
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Sample Questions
Q1) At the preliminary design and testing stage of new product design, design engineers translate technical specifications into general performance specifications.
A)True
B)False
Answer: False
Q2) Maturity and decline are also referred to as:
A) the early stages
B) the life cycle
C) the later stages
D) design for manufacture stages
E) re-engineering stages
Answer: C
Q3) Net present value is based on computing the quantity of goods a company needs to sell to just cover its costs.
A)True
B)False
Answer: False
Q4) How efficient was a process whose Standard output = 27 while Actual output = 24?
Answer: Efficiency = Actual output / Standard output = 24 / 27 0.889.
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Chapter 4: Supply Chain Management
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Sample Questions
Q1) What does the textbook define as the three most critical factors in successful partnering?
A) Impact, mission, vision
B) Impact, intimacy, vision
C) Contracting, mission, vision
D) Contracting, intimacy, mission
E) Contracting, impact, intimacy
Q2) 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.
Q3) Early supplier involvement refers to the involvement of critical suppliers for what?
A) Strategic planning
B) Assembly line design
C) Speedy delivery planning
D) Selection of new suppliers
E) New product design
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Page 6
Chapter 5: Total Quality Management
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Sample Questions
Q1) The most important factor in the success or failure of TQM efforts is the _____ of the organization's _____.
Q2) One common name for TQM based team work is:
A) quality department
B) quality support group
C) quality circle
D) quality team
E) team one
Q3) Deming pointed out that 85% of quality problems are caused by
A) Worker error
B) Numerical quotas
C) Processes and systems
D) Carelessness
E) Suppliers
Q4) Who is the "grandfather of quality control?"
A) Walter Shewhart
B) W. Edwards Deming
C) Joseph Juran
D) Phillip Crosby
E) Genichi Taguchi

Page 7
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Chapter 6: Statistical Quality Control
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Sample Questions
Q1) In six-sigma programs, individuals who have extensive training in the use of technical tools and are responsible for carrying out the implementation of Six Sigma are
A) black belts
B) green belts
C) blue belts
D) red belts
E) white belts
Q2) P-charts are used to measure:
A) continuous variation
B) intermittent random variation
C) proportion of items in a sample that is defective
D) the count of defective parts
E) proportion of items in a sample that are good
Q3) What is the formula for the sample standard deviation?
Q4) Suppose that you have created control charts to measure the length of candles. The process is in a state of control if either the x-bar chart is in control or the R-chart is in control.
A)True
B)False

Page 8
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Chapter 7: Just-In-Time and Lean Systems
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Sample Questions
Q1) The role of production employees in JIT includes all of the following except
A) Be actively engaged in improving the production process
B) Monitor quality
C) Record data
D) Follow clearly defined and limiting work rules
E) Act on the information they have
Q2) Which of the following is not a good approach for suppliers who are providing JIT services to manufacturers?
A) Use the "push system" for deliveries
B) Locate near their customers
C) Have small warehouses near the manufacturing plant
D) Use standardized containers
E) Join together with other suppliers to help each other make small deliveries
Q3) What are the responsibilities of production employees in JIT?
Q4) Matt Dillon works for a production facility that makes ball point pens. His job is to place the spring on the central ink insert. He is expected to process 200 inserts per hour. The factory uses a Kanban production system with containers that hold 50 inserts. It takes 30 minutes for Frank to receive the inserts from the previous work station. How many Kanbans are needed?
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Chapter 8: Forecasting
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Sample Questions
Q1) Over the long term, which of the following forecasting models will likely require carrying the least amount of data?
A) Naïve
B) Simple mean
C) Exponential smoothing
D) Weighted moving average
E) Moving average
Q2) A cycle is any data pattern that regularly repeats itself and is constant in length.
A)True
B)False
Q3) Moving average forecasts with a smaller number of observations are more subject to random changes in the data than those with a larger number of observations.
A)True
B)False
Q4) With the Delphi method, a group of managers meet and collectively generate a forecast.
A)True
B)False
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Page 10

Chapter 9: Capacity Planning and Facility Location
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Sample Questions
Q1) Expected values are
A) forecasted sales prices
B) forecasted revenues
C) average value of chance events
D) weighted value of the chance events
E) exponential value of the chance events
Q2) Long-term capacity requirements are identified on the basis of forecasts of future labor market supplies.
A)True
B)False
Q3) Two types of information needed when measuring capacity is the amount of available capacity and the effectiveness of capacity use.
A)True
B)False
Q4) Solving a decision tree that involves maximizing profit includes selecting the decision alternative with the highest expected value.
A)True
B)False
Q5) Describe the relation of capacity requirement and the supply chain.
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Chapter 10: Facility Layout
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Sample Questions
Q1) A wheat farm is an example of which layout type?
A) inverted
B) hybrid
C) process
D) fixed position
E) product
Q2) Process layouts have
A) less automation
B) more automation
C) fewer employees
D) more cycle time
E) less cycle time
Q3) Which of the following is more like a product layout as compared to a process layout?
A) Resources used are general purpose.
B) Facilities are less capital intensive.
C) Processing rates are slower.
D) Space requirements for inventory storage are lower.
E) Scheduling resources is more challenging.
Q4) How does material move in a product layout?
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Chapter 11: Work System Design
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Sample Questions
Q1) 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, the formula to compute the standard time is (OT)(PRF)(F).
A)True
B)False
Q2) The formula for determining the number of observations needed depends upon all except which of the following values?
A) the number of standard deviations needed for the desired confidence
B) the maximum observed value in the sample
C) the standard deviation of the sample observations
D) the mean of the sample observations
E) the desired accuracy
Q3) Establishing a performance factor is an attempt to:
A) fudge the actual times.
B) punish the worker who does not perform fast enough.
C) counterbalance any unusual patterns noted.
D) allow management to 'encourage' greater productivity.
E) use the ISO 9000 approval process.
Q4) Jobs that cost less than the value they add are said to be
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Chapter 12: Inventory Management
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Sample Questions
Q1) 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.
Q2) What does EPQ stand for?
A) ensuring purchasing quality
B) economic production quota
C) economic production quantity
D) economic purchasing quota
E) economic purchasing quantity
Q3) What is the target inventory if Frank's dairy inventory review is every 7 days and they consume an average of 15 cases of milk cartons every day? Frank's new milk carton supplier says they can deliver an order every 5 days. While Frank's material coordinator says they should order 45 cases at a time, what is their target inventory level if they do not want to maintain a safety stock?
Q4) If a firm has an annual demand of 50,000 units and average transit time (in days) is 15, what is the average transportation inventory?
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Chapter 13: Aggregate Planning
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Sample Questions
Q1) Explain the Reactive vs. Proactive Demand-based options.
Q2) Develop a chase aggregate plan without inventory and back orders. Do no hiring or firing. When demand exceeds regular production, use overtime up to its maximum and then subcontracting. When demand is less than regular production, use undertime (data given above).
(a) What are the total hours of overtime per employee for the plan?
(b) How many total units are produced using subcontracting?
(c) What are the total hours of undertime per employee for the plan?
(d) What is the total cost?
(e) What is the cost per unit?
Q3) An advantage of producing at average demand levels is that it allows for a lower investment in capacity.
A)True
B)False
Q4) An advantage of the chase aggregate plan is that it minimizes finished good holding costs.
A)True
B)False
Q5) What are the difficulties associated with back orders?
Q6) What are the characteristics of overtime?
Page 15
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Chapter 14: Resource Planning
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Sample Questions
Q1) Dell practices _____________________________.
A) focused customization
B) make to stock production
C) mass merchandising
D) mass customization
E) frozen assembly schedules
Q2) The authorized MPS is a statement of ______________________________.
A) manufacturing orders that have been authorized for release to the shop floor
B) which workers are authorized to work on which machines
C) what the company expects to build and when it expects to build it
D) authorized payments to vendors
E) where different end products are authorized to be manufactured
Q3) Discuss how MRP reports are used by the production and inventory planners.
Q4) An error in replenishment ordering can result from a(n)
A) inaccuracy in the inventory records file
B) breakdown of equipment
C) expediting of an order
D) circumstance of working excessive overtime
E) error in accounts receivables

Page 16
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Chapter 15: Scheduling
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Sample Questions
Q1) A scheduling technique for jobs that follow the same path through two operations is
Q2) Discuss how companies can benefit from both infinite and finite loading.
Q3) The process batch should be variable.
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
Q5) Under OPT, lead times are _____________ rather than ________________.
Q6) What are the three steps for the Johnson's Rule?
Q7) The transfer batch should always equal the process batch.
A)True
B)False
Q8) What are some important considerations to make when developing an operational schedule?
Q9) What are the three kinds of constraints defined by TOC? Page 17
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Page 18

Chapter 16: Project Management
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Sample Questions
Q1) There are four activities on the critical path, and they have standard deviations of 1, 2, 4, and 2. The standard deviation of the critical path is ______.
A) 3
B) 5
C) 9
D) 16
E) 25
Q2) An activity in a network diagram has an optimistic time estimate of five days, a most likely time estimate of seven days, and a pessimistic time estimate of 15 days. Its expected time is eight days.
A)True
B)False
Q3) Every project has a ____________________.
Q4) A project is a unique, one-time event that is intended to achieve an objective in a given time period.
A)True
B)False
Q5) Deterministic time estimate makes a _______________ time estimate for each project ___________.
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Chapter 17: Spreadsheet Modeling: An Introduction
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Sample Questions
Q1) In Excel, ___________________ references do not change when you copy them.
A) absolute
B) comparative
C) analogous
D) relative
E) correlative
Q2) The MATCH function in Excel returns the relative position in the array that matches the lookup value.
A)True
B)False
Q3) In Excel, the command to print Cell Comments is selected under which menu/submenu?
A) Print
B) Page Setup
C) Tools
D) View
E) Insert
Q4) Define and describe a model.
Q5) Describe and discuss the two different types of model inputs.
Q6) The sample standard deviation is found by using the Excel ___________ function.
Page 20
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Chapter 18: Introduction to Optimization
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Sample Questions
Q1) In Solver, the __________ is the cell that you want to maximize or minimize.
Q2) What are the four steps to setting up an optimization problem with Excel Solver?
Q3) For an optimization problem a(an) __________________ violates at least one of the constraints.
A) infeasible solution
B) inoptimal solution
C) suboptimal solution
D) unbounded solution
E) simplex solution
Q4) Formulate the following as a linear program. Frank's art class must provide instructions on painting (P), carving (C), and clay modeling (M). Frank has a limited material budget of $3,000. The costs per student usage for the supplies are $25, $18, and $14, respectively. Frank must provide instruction and practice opportunities for each method. What is the optimum combination of art supplies Frank should procure for the class?
Q5) Sensitivity reports show what will happen if certain problem parameters are changed from their current values.
A)True
B)False
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Chapter 19: Waiting Line Models
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Sample Questions
Q1) Which system performance option to change a waiting line system is related to the concept of division of labor?
A) changing the priority rule
B) changing the number of lines
C) changing the number of phases
D) changing customer arrival rates
E) changing the number of service facilities
Q2) Which of the following is least likely to be considered an infinite customer population?
A) customers in an amusement park
B) a class of 500 students who might visit their professor during office hours
C) customers in a grocery store
D) cars taking Exit 76 off of a freeway during rush hour
E) fast food restaurant employees waiting to use the restroom
Q3) Consider a single-line, single-server waiting line system. Suppose that customers arrive according to a Poisson distribution at an average rate of 60 per hour, and the average (exponentially distributed) service time is 45 seconds per customer. What is the average utilization of the system?
Q4) What are the two elements that define a waiting line system?
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Chapter 20: Master Scheduling and Rough-Cut Capacity Planning
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Sample Questions
Q1) In future periods, MPS Shipments - Customer orders between current and next scheduled MPS shipment is called ________________________.
Q2) 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 direct labor for Model B?
A) 0.20
B) 4.00
C) 7.00
D) 5.00
E) 4.60
Q3) CPOPF is the acronym for Capacity Planning (using) Overall Promising Factors.
A)True
B)False
Q4) The MPS is said to be ________________________ between final assembly and cumulative manufacturing lead times.
Q5) Discuss the Master scheduler responsibility.
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