Operations Planning and Control
Pre-Test Questions
Course Introduction
Operations Planning and Control focuses on the systematic design, implementation, and monitoring of processes that transform inputs into finished goods and services. The course examines techniques and methodologies for effective production and service delivery, including forecasting, capacity planning, scheduling, inventory management, quality control, and process optimization. Students learn to coordinate supply, demand, and resources while leveraging quantitative tools and decision-making strategies to improve efficiency, reduce costs, and enhance responsiveness to market needs in both manufacturing and service environments.
Recommended Textbook
OM 6th Edition by David Alan Collier
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18 Chapters
572 Verified Questions
572 Flashcards
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Page 2
Chapter 1: Operations Management and Value Chains
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48 Flashcards
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Sample Questions
Q1) Purchasing is a key activity performed by operations managers that involves:
A) determining when resources such as employees and equipment should be assigned to work.
B) using technology to improve productivity and respond faster to customers.
C) coordinating the acquisition of materials, supplies, and services.
D) ensuring that goods, services, and processes will meet customer expectations and requirements.
Answer: C
Q2) A__________is one that is no longer useful once it's used, or lasts for less than three years.
A) heavy-duty good
B) nondurable good
C) hard good
D) slow-moving consumer good
Answer: B
Q3) The intangible nature of a service makes it difficult to keep a competitor from copying a service encounter design.
A)True
B)False
Answer: True
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Chapter 2: Measuring Performance in Operations and Value Chains
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Sample Questions
Q1) The time required to ramp up to an increased production output level in response to a surge in the sales of a product is a measure of _____.
A) budget variance
B) volume flexibility
C) product recalls
D) service upset
Answer: B
Q2) Which of the following performance perspectives in the balanced scorecard model includes the percent of sale from new goods and services
A) The financial perspective
B) The innovation perspective
C) The learning perspective
D) The customer perspective
Answer: D
Q3) With interlinking models, managers can objectively make internal decisions that impact external outcomes.
A)True
B)False
Answer: True
Page 4
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Chapter 3: Operations Strategy
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Sample Questions
Q1) Which of the following is one of the key areas that is addressed by operations design choices
A) Functional plans and control systems
B) Learning and innovation systems
C) Value chain integration and outsourcing
D) Quality control and mass customization
Answer: C
Q2) According to several research studies, which of the following findings is true of the role of quality in gaining competitive advantage
A) Quality is negatively related to return on investment for almost all kinds of market situations.
B) A strategy of quality improvement is usually accompanied by increased short-run profitability.
C) Quality has a trivial effect on returns in most kinds of market situations.
D) Businesses offering premium-quality goods usually have large market shares.
Answer: D
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Chapter 4: Technology and Operations Management
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Sample Questions
Q1) _____ are the modern successor to bar codes.
A) Optical switches
B) Artificial intelligence programs
C) Electro-optical sensors
D) Radio-frequency identification tags
Q2) Which of the following is a difference between firms that have high scalability and firms that have low scalability
A) Firms with high scalability incur extremely low fixed costs, whereas firms with low scalability incur extremely high fixed costs.
B) Firms with high scalability have variable costs as 80 to 85 percent of total costs, whereas firms with low scalability have variable costs as zero to five percent of total costs.
C) Firms with high scalability serve additional customers at extremely low incremental costs, whereas firms with low scalability serve additional customers at high incremental variable costs.
D) Firms with high scalability have a low contribution margin, whereas firms with low scalability have a high contribution margin.
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6
Chapter 5: Goods and Service Design
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Sample Questions
Q1) At which of the following stages are the perceptions of a firm and its goods and services created
A) The process design stage
B) The service-encounter design stage
C) The customer benefit package configuration stage
D) The market introduction and evaluation stage
Q2) For manufactured goods, design blueprints specify a target dimension, along with a range of permissible variation called the__________.
A) nominal
B) buffer
C) tolerance
D) leeway
Q3) In the context of the sevicescape, in the service-delivery system design, which of the following facilities is a part of the spatial layout and functionality
A) Room temperature
B) Company logo on company vehicles
C) Building facade
D) Free soft drinks instead of vending machines
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7
Chapter 6: Supply Chain Design
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Sample Questions
Q1) Third-party logistics providers can leverage business intelligence and analytics to create efficiencies and economies of scale in the supply chain.
A)True
B)False
Q2) In the context of intellectual property of multinational enterprises, patents protect services.
A)True
B)False
Q3) A firm that specializes in certain types of goods-producing activities, such as customized design, manufacturing, assembly, and packaging, and works for end users is called a _____.
A) third-party logistics provider
B) contract manufacturer
C) distribution center
D) vendor-managed inventory supplier
Q4) The center-of-gravity model increases the weighted distance between the facility to be located and its supply and demand points.
A)True
B)False
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Chapter 7: Process Selection, Design, and Analysis
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Sample Questions
Q1) Non-value-added activities in a process design can be eliminated by:
A) using value stream mapping.
B) limiting the throughput of all processes.
C) adding multiple approval requirements for all transactions.
D) increasing process boundaries.
Q2) An accounting firm is capable of processing 20 income tax forms per day. The average number of forms in various stages of processing at any one time in the firm is 64. What is the average processing time per income tax form
A) More than 2 but less than or equal to 3 days
B) More than 3 but less than or equal to 4 days
C) More than 4 but less than or equal to 5 days
D) More than 5 days
Q3) Continuous flow processes are used to create custom goods and services. A)True
B)False
Q4) Utilization is the average time taken to complete one cycle of a process. A)True
B)False
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Chapter 8: Facility and Work Design
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Sample Questions
Q1) Which of the following is a limitation of a process layout
A) It affects the entire system if any equipment in the layout fails.
B) It has higher worker skill requirements.
C) It has highly specialized equipment requirements.
D) It generally requires a low investment for the production of machines.
Q2) The objective of assembly-line balancing is to:
A) minimize the imbalance among workstations while trying to achieve a desired output rate.
B) maximize the cost of operations while trying to reduce the cycle time.
C) maximize the cycle time while trying to minimize the cost of operations.
D) minimize the imbalance among workstations while trying to maximize the cycle time.
Q3) Identify the most suitable layout for a facility that handles a wide variety of customized orders.
A) A fixed-position layout
B) A cellular layout
C) A product layout
D) A process layout
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10
Chapter 9: Forecasting and Demand Planning
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Sample Questions
Q1) A tracking signal provides a method for monitoring a forecast by quantifying _____.
A) bias
B) throughput
C) probability
D) validity
Q2) _____ are needed to plan workforce levels, allocate budgets among divisions, and schedule jobs and resources.
A) Make-to-order operations
B) Intermediate-range forecasts
C) Short-range forecasts
D) Make-to-stock operations
Q3) A moving average (MA) method is most appropriate for data with major identifiable trends.
A)True
B)False
Q4) In the context of demand planning, customers' wants and needs define the customer benefit package.
A)True
B)False
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Chapter 10: Capacity Management
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Sample Questions
Q1) Harlose Suits owns more equipment than required for manufacturing goods during periods of regular demand in order to tackle sudden demand surges. It also has a certain reserve of produced goods to tackle material shortages. In this case, the reserve of equipment and produced goods are examples of _____.
A) a physical constraint
B) the capacity cushion
C) overbooking
D) capacity straddle
Q2) Which of the following statements is true of setup time
A) It is independent of order size for manufacturing work orders.
B) It varies with the volume of work orders.
C) It is the most insignificant part of total system capacity.
D) It is usually the same for manufacturing and service-providing applications.
Q3) The traditional operations management definition of throughput is:
A) the average number of goods or services completed per time period by a process.
B) anything in an organization that limits it from moving toward its goal.
C) associated with the capacity of a resource such as a machine, employee, or workstation.
D) a physical activity in which idle capacity exists.
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Page 12
Chapter 11: Managing Inventories in Supply Chains
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Sample Questions
Q1) In the context of fixed-quantity systems,__________is defined as the on-hand quantity (OH) plus any orders placed but which have not arrived minus any backorders (BO).
A) Inventory position
B) The reorder point
C) A stock-keeping unit
D) Work-in-process inventory
Q2) Which of the following statements is true of a fixed-period system (FPS)
A) It orders a fixed quantity of items when the inventory position reaches or drops below the reorder point (r).
B) It orders sufficient stock at the time of review to bring the inventory position up to the replenishment level (M).
C) It maintains a constant order quantity every review period.
D) It checks the inventory position on a continuous basis.
Q3) Which of the following statements is true of backorders
A) They occur as a result of excessive stock.
B) They occur when a customer is unwilling to wait for an ordered item.
C) They result in additional costs.
D) They force a customer to purchase elsewhere.
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Page 13
Chapter 12: Supply Chain Management and Logistics
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Sample Questions
Q1) TekSupply Inc., an automobile parts supplier, held an average automobile parts inventory of $4 million last year. Its cost of goods sold was $25 million. Therefore, the automobile parts experienced an inventory turnover of _____ turns last year.
A) 2.5
B) 4.25
C) 6.25
D) 9.5
Q2) Managing orders, transportation, and distribution to provide goods and services is part of the _____ function of the Supply Chain Operations Reference (SCOR) model.
A) plan
B) source
C) make
D) deliver
Q3) Air shipments have the lowest transportation cost and can carry unlimited weight.
A)True
B)False
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Chapter 13: Resource Management
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Sample Questions
Q1) Which of the following lot sizing rules bases the order quantity on a standard-size container or pallet load
A) The lot-for-lot rule
B) The fixed-order quantity rule
C) The periodic-order quantity rule
D) The gross requirements rule
Q2) __________is the process of using the logic of dependent demand to calculate the quantity and timing of orders for all subassemblies and components that go into and support the production of the end item(s).
A) Final assembly schedule
B) Materials requirements planning explosion
C) Disaggregation
D) Capacity requirements planning
Q3) Which of the following lot sizing rules is best applied when setup or order costs are high
A) The fixed-order quantity rule
B) The lot-for-lot rule
C) The periodic-order quantity rule
D) The gross requirements rule
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Page 15
Chapter 14: Operations Scheduling and Sequencing
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Sample Questions
Q1) In a two-resource sequencing problem, _____.
A) the processing time for each job on each resource is unknown
B) flow time is maximized
C) the goal is to minimize makespan
D) a job can be processed by either of its resources in any sequence
Q2) A requirement of two-resource sequencing rule is that:
A) all jobs must begin at the same time.
B) each job must be processed first on the first resource and then on the second.
C) a maximum of two jobs can be processed at a time on each resource.
D) total processing time must be minimized.
Q3) In the context of sequencing, the earliest due date (EDD) rule:
A) minimizes the maximum number of jobs past due.
B) maximizes average flow time of jobs past due.
C) maximizes resource utilization of jobs past due.
D) minimizes the average processing time of jobs past due.
Q4) Customized scheduling spreadsheets use readily available software such as Microsoft Excel, but may be rather expensive to develop.
A)True
B)False
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Chapter 15: Quality Management
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Sample Questions
Q1) __________defines quality system standards, based on the premise that certain generic characteristics of management practices can be standardized and that a well-designed, well-implemented, and carefully managed quality system provides confidence that the outputs will meet customer expectations and requirements.
A) International Organization for Standardization (ISO) 14000:2015
B) International Organization for Standardization (ISO) 4217:2015
C) International Organization for Standardization (ISO) 14006:2011
D) International Organization for Standardization (ISO) 9000:2000
Q2) _____ concept characterizes quality performance by defects per million opportunities.
A) The poka-yoke
B) The ISO 9000:2000
C) The Gap model
D) The Six Sigma
Q3) Identify a true statement about the poka-yoke concept.
A) Many applications of poka-yoke are expensive to implement.
B) It is a manufacturing process.
C) It is a concept advocated by Dr. W. Edwards Deming.
D) Many applications of poka-yoke are deceptively simple.
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Page 17
Chapter 16: Quality Control and SPC
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Sample Questions
Q1) Which of the following is true of special cause variation
A) It cannot be explained or understood.
B) It occurs sporadically and can be prevented.
C) It cannot be detected using statistical methods.
D) It accounts for about 80 to 95 percent of the observed variation in a process.
Q2) In the context of designing control charts, which of the following is true of a sample size
A) A large sample allows small changes in process characteristics to be detected with higher probability than a small sample size.
B) A small sample is used to detect process shifts of two standard deviations or smaller.
C) A large sample size is desirable to keep the cost associated with sampling low.
D) A small sample size provides greater degrees of statistical accuracy in estimating the true state of control than a large sample size.
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Chapter 17: Lean Operating Systems
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Sample Questions
Q1) Which of the following is a difference between lean production and Six Sigma
A) The lean production technique can be used in nonmanufacturing environments, whereas Six Sigma cannot be used in nonmanufacturing environments.
B) Lean production addresses less visible problems in processes, whereas Six Sigma is more concerned with visible problems.
C) Lean production is focused on effectiveness by reducing errors and defects, whereas Six Sigma is focused on efficiency by reducing waste and improving process flow.
D) Lean production tools are more intuitive and easier to apply by anybody in the workplace, whereas many Six Sigma tools require advanced training and expertise of specialists.
Q2) Which of the following is true of a push manufacturing system
A) It leads to high work-in-process inventories and high levels of indirect labor and overhead.
B) In this system, just enough new parts are procured to replace those withdrawn.
C) In this system, finished goods are made to coincide with the actual rate of demand.
D) It leads to minimal inventories and maximum responsiveness.
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Chapter 18: Project Management
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Sample Questions
Q1) In the context of the Critical Path Method (CPM), latest start (LS) and latest finish (LF) times are computed by making a backward pass through the network, beginning with the ending project activity or activities.
A)True
B)False
Q2) The Project Evaluation and Review Technique (PERT) was developed as a means of scheduling and controlling projects with constant activity times.
A)True
B)False
Q3) Which of the following is true of a typical functional organization
A) It eliminates duplication of resources.
B) It makes communication across the organization easier and smooth.
C) A project cuts across organizational boundaries in a typical functional organization. D) Team members are assigned exclusively to projects in a typical functional organization.
Q4) Project managers do not need technical expertise.
A)True
B)False
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Page 20