

Operations Planning and Control Exam Practice Tests
Course Introduction
Operations Planning and Control focuses on the strategies, techniques, and tools used to manage and optimize the production and delivery of goods and services. The course covers key concepts such as demand forecasting, inventory management, production scheduling, capacity planning, and quality control. Students learn how to align operational resources with business objectives and respond efficiently to changes in market demand. Emphasis is placed on analytical methods for decision-making, utilizing quantitative models and real-world case studies to illustrate best practices in effective operations management.
Recommended Textbook
Operations Management Managing Global Supply Chains 1st Edition by Ray R. Venkataraman
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Page 2
Chapter 1: Introduction to Managing Global Operations and Supply Chains
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Sample Questions
Q1) A service supply chain ______.
A)is a stand-alone organization (i.e.,not connected to other organizations)
B)uses resources and transforms inputs (skills and knowledge)into services
C)is involved in processing the financing and other services associated with a supply chain for products
D)is less demanding of operations management than a supply chain for products
Answer: B
Q2) Which of the following statements is true about logistics operations?
A)Logistics is the transformation of raw materials into finished products.
B)Logistics refers to the transportation and activities associated with transportation of raw materials and finished goods.
C)Logistics are usually the first operations activity to be offshored.
D)Logistics are usually the first operations to be outsourced.
Answer: B
Q3) The operations function of most businesses focuses ______.
A)only on services
B)only on goods
C)on a mix of goods and services
D)on a mix of goods and financing
Answer: C

Page 3
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Chapter 2: Operations and Supply Chain Strategies
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Sample Questions
Q1) What makes one company superior to another is the extent to which ______.
A)the company's operations are guided by the firm's infrastructure
B)there is a match between the company's infrastructural and structural decisions and its core competencies
C)the choice of products the firm will manufacture is determined by its capacity to manufacture these products
D)the choice of markets the firm will serve is determined by its capacity to manufacture products for these markets
Answer: B
Q2) Which of the following statements is true with regard to the target market of a product?
A)The mileage a Honda Civic car gets is important to its target market.
B)The mileage a Ferrari car gets is important to its target market.
C)The mileage a Rolls Royce car gets is important to its target market.
D)The mileage a Lamborghini car gets is important to its target market.
Answer: A
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Chapter 3: Project Management
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Sample Questions
Q1) A merge point refers to ______.
A)a node along the critical path
B)a node with two or more immediate predecessors
C)a node with two or more immediate and successive nodes
D)a node that represents the point where cross-functional resources are pooled
Answer: B
Q2) Which of the following correctly pairs a technique with its approach?
A)The program evaluation and review technique (PERT)uses probabilistic estimation to determine the duration of an activity.
B)The critical path method (CPM)uses subjective estimation to determine the duration of an activity.
C)The program evaluation and review technique (PERT)uses optimistic estimation to determine the duration of an activity.
D)The critical path method (CPM)uses pessimistic estimation to determine the duration of an activity.
Answer: A
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Chapter 4: Supplement: Project Management
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Sample Questions
Q1) In the formula for the expected duration of an activity,______.
A)b represents the historical time to complete the activity
B)c represents the most pessimistic time to complete the activity
C)a represents the most optimistic time to complete the activity
D)a represents the most pessimistic time to complete the activity
Q2) If a project is expected to be completed in 68 days with a project variance of 21 days,what is the probability that the project will be completed within 70 days?
A)between 35% and 40%
B)between 45% and 50%
C)between 55% and 60%
D)between 65% and 70%
Q3) If the standard deviation is 1.9,the Z value is 1.65,and the expected date of completion is 25 months,then the due date for project completion is ______.
A)28.135 months
B)26.665 months
C)32.455 months
D)18.155 months
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Chapter 5: Product and Service Innovations
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Sample Questions
Q1) Which of the following statements is true with regard to the product lifecycle management (PLM)?
A)PLM focuses on managing the engineering aspects of a product throughout its useful life.
B)The decline stage is usually shorter than the growth stage in the PLM.
C)The growth stage is usually shorter than the decline stage in the PLM.
D)PLM is a manufacturing concept that refers to the decline phase of the product.
Q2) A product may fail due to ______.
A)adequate infrastructure
B)excellent supporting services
C)poor supply chain infrastructure
D)government regulations
Q3) Considerations in selecting a type of service delivery system include ______.
A)improving the efficiency of the production process
B)the opportunity for exploiting customers
C)the possibility for circumventing government regulations
D)the possibility for receiving a waiver of applicable government regulations
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Chapter 6: Supplement: Reliability
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Sample Questions
Q1) Which of the following statements is false?
A)When a system has availability,it doesn't necessarily mean that it also has high reliability.
B)Reliability considers the time it takes for a component or system to fail while it is operating.
C)Reliability takes into account any downtime associated with the repairs the system may need.
D)Reliability does not take into account the time it takes to make the component or system available for use.
Q2) A widget fails 12 times in 600 hours of operation.The MTBF of the widget is ______.
A)50 hours
B)45 hours
C)32 hours
D)31 hours
Q3) Given the failure rate of a component,we can calculate MTBF as ______.
A)the range of the failure rate across many tested components
B)the standard deviation of the failure rate across many tested components
C)the square of the failure rate
D)the reciprocal of the failure rate
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Page 8
Chapter 7: Managing for Quality
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Sample Questions
Q1) Which of the following is true with regard to poka yoke?
A)It refers to mistake-proofing.
B)It was introduced by W.Edward Deming.
C)It was introduced in 2014.
D)It is applicable only in service industries.
Q2) The Coca-Cola Company uses the same formula and basic bottle shape for Coke worldwide,but the labels on the bottles and their sizes vary depending upon the market.This illustrates ______.
A)thinking globally but acting locally
B)manufacturing locally but designing globally
C)thinking locally but acting globally
D)manufacturing globally but designing locally
Q3) Which of the following is FALSE with regard to PDSA?
A)It stands for Plan,Do,Study,Act.
B)It represents kaizen.
C)It is known as the Juran Cycle.
D)It is often represented in a circle.
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9

Chapter 8: Quality Improvement and Control Tools
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Sample Questions
Q1) Refer to Data Table A.The value for D3 is ______.
A)0
B)0.223
C)2.059
D)2.282
Q2) A sampling distribution ______.
A)describes the randomness of the variation in a sample's values
B)shows how much of the entire population varies from the sample
C)is similar to a histogram
D)shows from which parts of the population a sample is chosen
Q3) The process capability index (Cp)______.
A)is the primary measure used to track process capability
B)shows how well a process is centered between specification limits
C)shows the cost of noncompliance with government regulations
D)shows the cost of noncompliance with ISO requirements
Q4) Which of the following statements is correct?
A)A mean chart monitors the variation between samples.
B)A range chart monitors the variability due to special causes.
C)A range chart monitors the variability due to common causes.
D)A range chart monitors the standard deviation resulting from common causes.
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Chapter 9: Capacity Planning
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Sample Questions
Q1) Using overtime or a second shift is considered ______.
A)a short-term capacity decision
B)a long-term capacity decision
C)a seasonal capacity decision
D)a permanent capacity decision
Q2) With a level capacity plan,______.
A)the company produces on a given day what is demanded on that day
B)the company produces at a steady rate and stores inventory
C)the firm may experience fluctuations in employment
D)the firm has low revenue margins due to high per-unit costs
Q3) Which of the following is NOT a requirement of strategic capacity planning?
A)forecasting demand over several years
B)looking at demand and growth trends
C)looking at cyclical demand patterns
D)establishing a policy on discounts and rebates
Q4) Which of the following is NOT a short-term capacity planning decision?
A)capacity control
B)analyzing weekly schedules and bottlenecks
C)balancing the workload
D)relocating the plant

Page 11
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Chapter 10: Supply Chain Design and Location Planning
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Sample Questions
Q1) Which of the following is a more advanced quantitative technique for location analysis?
A)breakeven analysis
B)factor rating method
C)the transportation method
D)center-of-gravity method
Q2) The number of locations a firm needs and their sizes depend on ______.
A)government regulations
B)ISO certification standards
C)target markets
D)employee preferences
Q3) Which of the following is NOT a factor that influences the choice of a global location?
A)host country market size
B)total cost
C)infrastructure
D)lead time
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Chapter 11: Process Design and Layout Planning
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Q1) The most significant advantage of automation over human labor is ______.
A)consistency in performance
B)high variance in time taken to perform a task
C)increased frequency of errors
D)the extensive need for programming
Q2) There are several advantages in using robots in manufacturing processes.Which of the following is NOT one of these advantages?
A)Robots can perform difficult tasks.
B)Robots can perform repetitive tasks.
C)Robots can perform dangerous tasks.
D)Robots can perform inexpensive tasks.
Q3) Work-in-process (WIP)inventory is used ______.
A)as a buffer to increase the chain's flexibility
B)to respond to government requirements
C)to meet ISO standards
D)to be in compliance with good accounting practices
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Chapter

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Sample Questions
Q1) The daily output required from an assembly line is 80 units.If the line operates 4 hours a day,what is the cycle time per unit?
A)3 hours
B)3 minutes
C)3 seconds
D)3 days
Q2) A <i>gozinto</i> chart is another name for ______.
A)an assembly drawing
B)an assembly chart
C)a Pareto chart
D)a route sheet
Q3) The measure of how well a process uses the time available to complete it is called ______.
A)cycle time
B)flow time
C)idle time
D)balance efficiency
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Page 14

Chapter 13: Supplier Management
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Sample Questions
Q1) A <i>returns contract</i> is another name for a ______ contract.
A)buyback
B)quantity-flexibility
C)cost-plus
D)fixed-price
Q2) Which type of risk arises from suppliers' inability to meet delivery lead times or increase production because of capacity problems?
A)demark risk
B)market risk
C)implementation risk
D)strategy risk
Q3) Total cost of ownership ______.
A)is the purchase price of the supplies
B)includes the overall costs (both direct and indirect)of purchasing,inspecting,handling,transporting,and disposing
C)is the selling price of the supplies
D)is the pocket price of the supplies
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Chapter 14: Logistics Management
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Sample Questions
Q1) With LTL,______.
A)we are talking about less-than-tariff load
B)shippers may combine orders from several shippers
C)shipping is not regulated
D)shipping may not meet ISO requirements
Q2) Warehousing management ensures that ______.
A)goods are properly stored
B)goods are properly tracked
C)goods are properly distributed
D)goods are properly marketed
Q3) Which of the following is NOT one of the functions performed by global freight forwarders?
A)obtaining rate quotes
B)chartering and booking space on carriers
C)ensuring products are packaged properly
D)preparing all the necessary documentation
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16

Chapter 15: Demand Management and Customer Service
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Sample Questions
Q1) Customer dissatisfaction resulting from service failure could lead to ______.
A)positive publicity
B)gaining trust of customers
C)negative publicity
D)increased employee commitment
Q2) CPA in customer service management stands for ______.
A)customer profitability analysis
B)company profitability analysis
C)collective profitability analysis
D)convenient profitability analysis
Q3) Demand management activities have an impact on a company's ______.
A)functional areas
B)corporate strategy
C)compliance requirements
D)potential for ISO Certification
Q4) The deviation of actual demand from the forecast is called ______.
A)overforecasting error
B)underforecasting error
C)forecasting error
D)none of these
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Chapter 16: Demand Forecasting Methods
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Sample Questions
Q1) ______ are periodic,fairly short-term fluctuations in demand often caused by human activities or weather.
A)Cyclical variations
B)Seasonal variations
C)Irregular variations
D)Random variations
Q2) ______ is a part or component of an end product whose demand depends on the demand for the end product.
A)Dependent demand item
B)Independent demand item
C)Variable demand item
D)Seasonal demand item
Q3) Which of the following statements is FALSE about good forecasts?
A)They should be easy to interpret so that users have confidence in the forecasts.
B)The costs of preparing the forecasts should outweigh its benefits.
C)Any deviations from actual demand should be small.
D)They should be available within a reasonable timeframe.
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18

Chapter 17: Lean Operations and Supply Chains
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Sample Questions
Q1) Unevenness in the production process,out-of-balance workflows,and uneven workloads are referred to as ______.
A)muri
B)mura
C)muda
D)heijunka
Q2) Examples of mura include ______.
A)production delays that waste the time of personnel
B)idle downstream resources when a product is not moving or being processed
C)unevenness in the production process,out-of-balance workflows,and uneven workloads
D)production required to meet government or ISO requirements
Q3) Value stream mapping (VSM)______.
A)is typically done once an organization has converted to a lean system
B)facilitates identifying sources and causes of waste
C)has the potential to increase the carbon footprint
D)is applied only in push production systems
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Chapter 18: Inventory Management
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Q1) Ordering costs ______.
A)are expressed on a per-order basis
B)are proportional to quantity ordered
C)depend on quality of products ordered
D)are usually higher than holding costs
Q2) Purchasing materials in higher volumes has the advantage of reducing ______.
A)unit cost of material
B)costs associated with storing these materials
C)avoiding the possibility of having a surplus of finished products
D)price charged to customer
Q3) Periodic review systems are ______.
A)characterized by weekly,monthly,or annual physical counts of inventory
B)best suited for businesses that sell high-volume products
C)systems where inventory is replenished halfway during a consumption cycle
D)systems where the entire inventory of a product is ordered by a single customer
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Chapter 19: Inventory Control Models
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Q1) In the economic order quantity model,ordering at the economic order quantity level implies that ______.
A)the total ordering and holding costs are equal
B)the total ordering costs are higher than the total holding costs
C)the total ordering costs are lower than the total holding costs
D)the total ordering costs are not equal to the total holding costs
Q2) The setup cost to make carpet is $20 per setup.The holding cost is $2.00 per yard per year,and the annual demand is 12,000 yards.The manufacturing facility operates 300 days,and 120 yards of the carpet are produced per day.Given this information,which of the following statements is true?
A)The daily demand rate is 40.
B)The daily demand rate is 32.8.
C)The daily demand rate is 120.
D)The daily demand rate is 12,000.
Q3) One of the assumptions of the EPQ model is that:
A)The demand varies throughout the year.
B)Shortages are allowed.
C)Quantity discounts vary over time.
D)The quantity ordered is produced incrementally.
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Page 21

Chapter 20: Sales and Operations Planning
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Sample
Questions
Q1) Companies that produce lawn mowers to meet demand during the summer months can also manufacture snow blowers for the winter.This approach is an example of
A)developing counter-seasonal products and services
B)matching supply and demand with backorders
C)matching price with demand
D)advertising and promotions
Q2) An input to sales and operations planning by the operations department includes
A)new product information
B)demand forecasts
C)workforce availability
D)capacity availability
Q3) Airlines overfill customers beyond their seating capacity in order to compensate for customers who cancel their booking.This technique is an illustration of which of the following yield management strategies?
A)overbooking
B)adjusting prices to augment demand
C)annualized hours strategy
D)using different fare classes to partition demand
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Chapter 21: Master Scheduling and Material Requirements
Planning
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Q1) The process of dividing the master scheduling planning horizon to allow for different rules for making changes is called ______.
A)MPS splitting
B)MPS dividing
C)time fencing
D)planning horizon division
Q2) Backflushing is a process where an end item's BOM is exploded to ______.
A)determine materials and components that will be required
B)determine materials and components that were used
C)determine capacity requirements from production of end items
D)determine capacity that was used for production of end items
Q3) In order for MRP implementation to be successful,______.
A)senior management should take a hard-line approach
B)employees must be trained and made aware of benefits
C)new employees must be hired
D)the whole production process must be revamped
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Chapter

MRP II, ERP, and DRP
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Q1) Developing MRP plans and schedules by assuming infinite capacity and on-time,correct delivery of materials ordered by the suppliers is known as ______.
A)assumption-based manufacture
B)open loop MRP system
C)CRP II
D)batch manufacture
Q2) When we use lot <i>splitting</i>,we ______.
A)divide a single lot into two or more sublots and process each sublot on similar work centers
B)divide a single lot into two or more sublots and manufacture each batch or sub lot in sequence
C)divide a single lot into two or more sublots and outsource the manufacture of one or more sublots
D)divide a single lot into multiple sublots and process each sublot on different work centers
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Chapter 23: Detailed Scheduling
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Q1) ______ is the total time needed to complete a group of jobs starting with the first job until the completion of the last job.
A)Average job tardiness
B)Average flow time
C)Makespan
D)Processing time
Q2) Schedules may have to be revised frequently due to factors such as machine breakdowns,processing delays at work centers,and the like.This is the drawback of ______.
A)fixed loading
B)iterative loading
C)finite loading
D)infinite loading
Q3) In reality,most businesses generally use ______.
A)a combination of forward and backward scheduling
B)forward scheduling only
C)backward scheduling only
D)advanced scheduling
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25

Chapter 24: Linear Programming
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Q1) For binding constraints at optimality,the right-hand value should be ______ the left-hand value.
A)greater than B)less than C)equal to D)in proportion to
Q2) ABC,Inc.,is a small clothing manufacturer that produces polo shirts and pants using two resources: sewing machine hours and cutting machine hours.The production manager can schedule up to 240 hours of sewing machine time and up to 150 hours cutting machine time.Production of one polo shirt requires 3 hours of sewing time and 1 hour of cutting time.Each pair of pants requires 2 hours of sewing time and 1.5 hours of cutting time.Each polo shirt yields a profit of $5,and each pair of pants generates a $6 profit.The objective is to maximize profits.How many decision variables are there in this LP formulation?
A)one
B)two
C)three
D)four
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Chapter 25: The Transportation Models
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Q1) If,in a transportation problem,the total number of units demanded is equal to the total number of supply units available,the transportation problem is then described as
A)balanced
B)degenerate
C)unbalanced
D)feasible
Q2) Refer to the Shipping Costs for The Allied Motors Company.Solve the transportation problem using Excel Solver.(Remember that in balanced transportation problems all constraints-except the non-negativity constraints of the decision variables-should be set as an equal-to (=)sign in the Excel Solver dialogue.)At the optimum solution,the number of units shipped from Hampton to Newark is ______.
A)527
B)591
C)243
D)433
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Chapter 26: Waiting Line Models
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Q1) An automatic car wash with a single bay takes a constant 3 minutes to wash.The arrival rate is 10 cars per hour.Determine the average time a car spends in the system.The arrival rate of cars tends to follow a Poisson distribution.
A)5 minutes
B)6 minutes
C)3.5 minutes
D)4.5 minutes
Q2) If 50 customers arrive at a teller window in a bank during a 5-hour period,then the arrival rate is ______.
A)250 customers per hour
B)10 customers per hour
C)five customers per hour
D)50 customers per hour
Q3) The primary objective of managing waiting lines is to ______ throughout any service or manufacturing facility.
A)maximize total costs
B)minimize total costs
C)maximize total time
D)minimize production volume
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Page 28

Chapter 27: Simulation
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Q1) Consider the Demand for Microwave Ovens dataset.What is the total demand corresponding to random numbers 69,79,84,6,37,and 39?
A)13
B)9
C)10
D)11
Q2) Consider the Demand for Microwave Ovens dataset.What is the total demand corresponding to random numbers 86,47,38,81,47,and 45?
A)15
B)14
C)13
D)12
Q3) Consider the Demand for Microwave Ovens dataset.What is the total demand corresponding to random numbers 61,36,32,36,87,and 56?
A)10
B)11
C)12
D)13
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29

Chapter 28: Learning Curves
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Q1) ______ shows that as the rate of production for an item doubles,the processing time per unit of that item decreases by a constant percentage.
A)Learning rate
B)Learning coefficient
C)Learning curve
D)Learning time
Q2) Weston,Inc.,produces widgets.To manufacture a new type of widget,it took 18 iterations before the process reached a steady state of 6 hours.If Weston has a 78% learning rate,use the logarithmic approach to calculate the time it took to manufacture the first widget.
A)16.91 hours
B)18.20 hours
C)15.87 hours
D)15.35 hours
Q3) ______ is the simplest approach to solving learning curve problems.
A)The arithmetic approach
B)Using a table of learning curve coefficient values
C)The logarithmic formula approach
D)The quadratic formula approach
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Page 30

Chapter 29: Decision-Making Tools
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Q1) Refer to the data on Expected Demand for Acme Widgets.For the various demand scenarios and their associated probabilities,the option to outsource has an expected value of ______.
A)$21.58 million
B)$39.56 million
C)$36.20 million
D)$51.55 million
Q2) <i>Evaluate the results to determine if the desired objectives were achieved in the established timeframe.</i>This statement applies to which of the following steps involved in a systematic decision-making process?
A)Define the problem or challenge as clearly and concisely as possible.
B)Determine the best decision-making tool to use.
C)Evaluate each alternative solution.
D)Monitor the results.
Q3) In Hurwicz criterion,the coefficient is often called the ______.
A)coefficient of realism
B)coefficient of pessimism
C)coefficient of payoff
D)coefficient of regret
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