Operations Strategy
Exam Bank
Course Introduction
Operations Strategy examines the long-term planning and decision-making processes that align an organizations operations with its overall business strategy. The course explores how firms develop, implement, and sustain operational capabilities to create competitive advantage, focusing on areas such as capacity planning, product and process innovation, supply chain management, and quality improvement. Through analysis of case studies and industry best practices, students will learn to design and execute strategies that enhance operational efficiency, adaptability, and value delivery in both manufacturing and service environments.
Recommended Textbook
Operations Management Creating Value Along the Supply Chain 7th Edition by Roberta S. Russell
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Page 2
Chapter 1: Operations Management
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Sample Questions
Q1) The work of W.Edwards Deming is most closely associated with A)MRP
B)TQM
C)supply chain management
D)time and motion studies
Answer: B
Q2) Core competencies tend to be processes and not products or technologies.
A)True
B)False
Answer: True
Q3) Linear programming,simulation,and waiting line theory are most closely associated with which era in the historical development of operations management?
A)human relations
B)operations research
C)globalization
D)Internet revolution
Answer: B
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Page 3
Chapter 2: Quality Management
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Sample Questions
Q1) Deming advocated the elimination of both common cause and special cause variation as a way to improve a process.
A)True
B)False
Answer: True
Q2) The Deming Wheel is also known as the plan-do-check-act PDCA)cycle.
A)True
B)False Answer: True
Q3) Total quality management represents a set of management principles that focus on quality improvement in all the functional areas within a company.
A)True
B)False Answer: True
Q4) The dimension of quality related to the life-span of a product before replacement is known as durability.
A)True
B)False Answer: True
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Chapter 3: Statistical Quality Control
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Sample Questions
Q1) Tolerances and specifications limits report similar information for a given product design.
A)True
B)False
Answer: True
Q2) Variable control charts are used for quantitative measures such as weight or time.
A)True
B)False
Answer: True
Q3) If a pattern is evident in the points plotted on a control chart,the points are always considered evidence that the process is in control.
A)True
B)False
Answer: False
Q4) Statistical process control is a subset of statistical quality control.
A)True
B)False
Answer: True
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Page 5
Chapter 4: Product Design
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Sample Questions
Q1) All of the following can improve a product's reliability except A)simplifying product design
B)improving individual component reliability
C)changing the product warranty
D)adding redundant components.
Q2) Product design has a tremendous impact on the quality of a manufactured good or service.
A)True
B)False
Q3) One quantitative measure of maintainability is mean time to repair MTTR).
A)True
B)False
Q4) An effective design process matches product characteristics with customer requirements.
A)True
B)False
Q5) Collaborative product design CPD)software provides interconnectivity among members of a product's supply chain.
A)True
B)False
Page 6
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Chapter 5: Service Design
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Sample Questions
Q1) The number of parallel servers in waiting line analysis is referred to as the number of phases.
A)True
B)False
Q2) Consider an espresso stand with a single barista.Customers arrive to the stand at the rate of 28 per hour according to a Poisson distribution.Service times are exponentially distributed with a service rate of 35 customers per hour.The probability that there are exactly 3 customers in the system is
A)0.0000
B)0.1024
C)0.4096
D)0.5120
Q3) Briefly describe the traditional cost relationship in waiting line analysis.
Q4) If service times are exponentially distributed then service rates are normally distributed.
A)True
B)False
Q5) Do waiting lines only form when the service operation is understaffed? Explain?
Q6) How can psychology be used to improve waiting lines? Provide an example.
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Chapter 6: Processes and Technology
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Sample Questions
Q1) Producing a high volume of a single product is a characteristic of batch production. A)True
B)False
Q2) Steel,paper,paints,and chemicals are examples of products that use A)batch production.
B)repetitive production.
C)continuous production.
D)mass production.
Q3) Batch production is also known as a job shop because it creates more jobs than any of the other process choices
A)True
B)False
Q4) One disadvantage of mass production is its A)efficiency.
B)speed of production.
C)low per-unit costs.
D)lack of responsiveness.
Q5) What is a process strategy and how does it affect the firm?
Q6) List some non-economic factors that can influence a firm's outsourcing decision.
Page 8
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Chapter 17: Scheduling
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Sample Questions
Q1) Johnson's rule gives an optimal sequence for jobs processed serially through a two step system.
A)True
B)False
Q2) The process of assigning work to limited resources is known as scheduling.
A)True
B)False
Q3) Minimizing overtime is one of several objectives that could be considered when constructing a schedule.
A)True
B)False
Q4) A ________ chart is used to show both planned and completed activities against a time scale.
A)Gantt
B)Dispatch
C)Sequencing
D)None of the above.
Q5) Job shop scheduling is usually performed by skilled machine operators.
A)True
B)False
Page 9
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Chapter 7: Capacity and Facilities
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Sample Questions
Q1) The process of equalizing the amount of work at each workstation in a product layout is known as
A)block diagramming.
B)precedence requirements.
C)line balancing.
D)cycle time analysis.
Q2) Product layouts have a higher degree of flexibility than process layouts.
A)True
B)False
Q3) Which of the following describes a process layout?
A)equipment is general purpose and the workers are unskilled
B)equipment is specialized and the workers are highly skilled
C)equipment is general purpose and the workers are highly skilled
D)equipment is specialized and the workers are unskilled
Q4) Cycle time refers to
A)the time required for a product to go through a process layout.
B)the time between finished units coming off an assembly line.
C)the time needed to complete the tasks at a work station.
D)the difference between task time and work station time.
Q5) Briefly describe a cellular layout and its objectives.
Page 10
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Chapter 8: Human Resources
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Sample Questions
Q1) An alternative workplace is a combination of nontraditional work locations and practices that supplements or replaces the traditional office.
A)True
B)False
Q2) ___________ illustrate the improvement rate of workers as a job is repeated.
A)Learning curves
B)Process curves
C)Learning charts
D)Process charts
Q3) Motion study,the study of the individual human motions used in a task,was developed by
A)Henry Ford.
B)F.W.Taylor.
C)Frank and Lillian Gilbreth.
D)Frederick Herzberg.
Q4) Achieving strategic quality goals for quality and customer satisfaction often requires teamwork and group participation.
A)True
B)False
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Chapter 9: Project Management
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Sample Questions
Q1) Which of the following is the universal business language most often utilized managing global projects?
A)French
B)Spanish
C)English
D)Chinese
Q2) For an activity-on-node (AON)network
A)arrows represent activities and nodes represent events.
B)nodes represent activities and arrows indicate precedence relationships.
C)arrows represent events and nodes indicate precedence relationships.
D)nodes indicate precedence relationships and arrows indicates the length of the activity time.
Q3) Briefly discuss project management and what it involves.
Q4) Using Table 9.1,the earliest start time for activity F is
A)30 weeks.
B)20 weeks.
C)14 weeks.
D)13 weeks.
Q5) What is a scope statement?
Q6) Why have projects taken on a more crucial role in operations management?
Page 12
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Chapter 10: Supply Chain Management: Strategy and Design
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Sample Questions
Q1) All the following are enablers of efficient supply chain management except A)bar codes.
B)price tags.
C)RFID tags.
D)the Internet.
Q2) Companies resist establishing green supply chains for all the following reasons except that
A)the market is soft for products with green attributes.
B)green manufacturing requires costly new equipment and practice.
C)green initiatives lower costs because fewer resources are consumed.
D)green practices face additional government,societal and social pressures.
Q3) Final end-use customers are upstream members of a supply chain.
A)True
B)False
Q4) What processes comprise the supply chain and how are the processes integrated?
Q5) Which of the following is not a key to effective supply chain management?
A)communication among members
B)independence among members
C)collaboration among members
D)trust among members
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Chapter 11: Global Supply Chain Procurement and Distribution
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Sample Questions
Q1) International trade specialists help firms overcome obstacles associated with importing products.
A)True
B)False
Q2) In an attempt to minimize inventory levels companies frequently require their suppliers to use a(n)___________ inventory management system.
A)periodic delivery
B)continuous
C)on-demand
D)All of the above.
Q3) Explain the concept of landed cost and discuss how it is used to make global sourcing decisions.
Q4) Outsourcing is a relatively new phenomenon used strictly by multinationals.
A)True
B)False
Q5) Postponement involves delaying shipments from suppliers until demand is more certain.
A)True B)False
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Chapter 12: Forecasting
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Sample Questions
Q1) Because of advances in technology,many service industries no longer require accurate forecasts to provide high quality service.
A)True
B)False
Q2) Discuss the importance of accurate forecasts in supply chain management.
Q3) A qualitative procedure used to develop a consensus forecast is known as
A)exponential smoothing.
B)regression methods.
C)the Delphi technique.
D)naïve forecasting.
Q4) Selecting the type of forecasting method to use depends on
A)the time frame of the forecast.
B)the behavior of demand and demand patterns.
C)the causes of demand behavior.
D)all of the above.
Q5) Forecast bias is measured by the per-period average of the sum of the forecast errors.
A)True
B)False
Q6) Explain the difference between qualitative and quantitative forecasting methods.
Page 15
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Chapter 13: Inventory Management
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Sample Questions
Q1) Buffer inventories provide independence between different stages of the production process.
A)True
B)False
Q2) The reorder point is the level of inventory that promts a new order to be placed in a continuous inventory system.
A)True
B)False
Q3) List and discuss the costs used to determine carrying cost. ,holding cost and shortage cost.
Q4) A service level of 95% means there is a 0.95 probability
A)of meeting all demand.
B)of a stockout.
C)that supply will exceed demand.
D)that demand will be met during the lead time.
Q5) Continuous inventory systems are primarily intended for lower cost items because they are easier to use requiring fewer resources.
A)True
B)False
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Chapter 13: Operational Decision-Making Tools: Simulation
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Sample Questions
Q1) What is simulation and why is it a popular decision-making tool?
Q2) After a sufficient number of simulation runs a steady state results when the variable being investigated reaches an _________ value that remains constant.
A)optimal
B)average
C)expected
D)estimated
Q3) The Monte Carlo technique selects numbers randomly from a probability distribution for use in a quantitative model.
A)True
B)False
Q4) The ______________ technique selects numbers randomly from a probability distribution for use in a trial run of a simulation.
A)Computer World
B)Monaco
C)steady-state
D)None of the above.
Q5) In what ways is simulation relevant to analyzing production problems?
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Chapter 14: Operational Decision-Making Tools: Linear Programming
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Sample Questions
Q1) A company produces product A and product B.Each product must go through two processes.Each A produced requires two hours in process 1 and five hours in process 2.Each B produced requires six hours in process 1 and three hours in process 2.There are 80 hours of capacity available each week in each process.Each A produced generates $6.00 in profit for the company.Each B produced generates $9.00 in profit for the company.If the company produces 6 units of A and 9 units of B the value of the objective function is equal to A)$36.
B)$81.
C)$108.
D)$117
Q2) The optimal solution for a linear programming problem will always occur at an extreme point.
A)True
B)False
Q3) The feasible solution space contains the values for the decision variables that satisfy the majority of the linear programming model's constraints.
A)True
B)False
Page 18
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Chapter 14: The Sales and Operations Planning Process
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Sample Questions
Q1) An optimizing technique originally developed for aggregate planning in the paint factory is the
A)linear decision rule.
B)search decision rule.
C)management coefficients model.
D)transportation technique.
Q2) A company is developing a linear programming model for its aggregate production plan.If W<sub>t</sub> = workforce size for period t,H<sub>t </sub>= number of workers hired for period t,and F<sub>t </sub>= number of workers fired for period t,then the company's workforce constraint for period 2 is
A)W<sub>2</sub> = W<sub>1</sub> + F<sub>2</sub> - H<sub>2</sub>
B)W<sub>2</sub> = H<sub>2</sub> - F<sub>2</sub>
C)W<sub>2</sub> = W<sub>1</sub> + H<sub>2</sub>- F<sub>2</sub>
D)W<sub>2</sub> = H<sub>2</sub> - F<sub>2</sub> - W<sub>1</sub>
Q3) A chase demand strategy is one of several alternatives available for managing demand.
A)True
B)False
Q4) What are the outputs of aggregate planning?
Q5) Briefly discuss the two primary objectives of aggregate planning.
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Chapter 15: Resource Planning
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Sample Questions
Q1) An enterprise resource planning (ERP)system shares information across functional areas.
A)True
B)False
Q2) A material requirements planning (MRP)system serves as both an inventory control system and as a production scheduling system.
A)True
B)False
Q3) ______________ is a lot sizing technique that orders for multiple demand periods is referred to as
A)Lot-for-lot (L4L)
B)Periodic order quantity (POQ)
C)Economic order quantity(EOQ)
D)Multiple order quantity (MOQ)
Q4) The periodic order quantity (POQ)lot sizing technique that places orders every demand period.
A)True
B)False
Q5) When is it appropriate to use material requirements planning (MRP)?
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Chapter 16: Lean Systems
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Sample Questions
Q1) The pace at which production should take place to match the rate of customer demand is known as
A)product flow time
B)jidoka time
C)kanban time
D)takt time
Q2) How does the pull system differ from the push system?
Q3) How many kanbans should circulate between two workstations if demand is 500 units per hour,lead time is 20 minutes,container sizes are 35,and the company uses a safety factor of 5%?
A)4
B)5
C)12
D)8
Q4) The authority for a worker to stop the production line when quality problems are encountered is known as poka-yoke.
A)True
B)False
Q5) What is a manufacturing cell and what is its purpose?
Q6) What role does the elimination of waste play in lean production?
Page 21
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Chapter 18: Operational Decision-Making Tools: Decision Analysis
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Sample Questions
Q1) The LaPlace criterion is a decision criterion in which each state of nature is weighted equally.
A)True
B)False
Q2) What is decision analysis?
Q3) Quantitative methods are tools available to operations managers to help make a decision but not a recommendation.
A)True
B)False
Q4) Quantitative methods are tools available to operations managers to help make a decision or recommendation.
A)True
B)False
Q5) The outcome of a decision in referred to as a payoff.
A)True
B)False
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Chapter 19: Operational Decision-Making Tools: Acceptance Sampling
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Sample Questions
Q1) A sampling plan provides a set of guidelines for accepting a lot.
A)True
B)False
Q2) Acceptance sampling involves the inspection of a non-random sample of units selected from a lot.
A)True
B)False
Q3) A(n)________________ curve is a graph showing the probability of accepting a lot for different quality levels with a specific sampling plan.
A)operating characteristic (OC)
B)average outgoing quality
C)lot tolerance percent defective
D)single-sample attribute
Q4) What is the advantage of a multiple-sampling plan?
Q5) With acceptance sampling,a lot is either rejected or accepted depending on the number of defects found in a sample.
A)True
B)False
Q6) .Is acceptance sampling consistent with TQM?
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Chapter 20: Decision-Making Tools: Facility Location Models
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Sample Questions
Q1) Common location incentives include all of the following except A)tax credits.
B)job training.
C)fixed exchange rates.
D)improvements to infrastructure.
Q2) One reason foreign firms locate facilities in the United States is to reduce their supply chain costs.
A)True
B)False
Q3) For a service operation being in the right place usually means being in a location that is convenient and easily accessible.
A)True
B)False
Q4) Transportation costs are generally a function of distance,weight,and time.
A)True
B)False
Q5) The cost and availability of labor is an important factor in a location decision. A)True
B)False
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Chapter 21: Operational Decision-Making Tools: Work Measurement
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Sample Questions
Q1) Workers often do not like to be the subject of a time study and are sometimes unwilling to cooperate.
A)True
B)False
Q2) For a particular time study a company would like to be 95% confident that the average job cycle time is within 2% of the true average job cycle time.Assume that the average job cycle time was 6.53 minutes and the standard deviation of the sample was 1.26 minutes.The number of cycles that should be used in this time study would be A)174
B)358
C)463 D)864
Q3) Determining the length of time it takes to do a job is known as work measurement. A)True B)False
Q4) The allowance factor is a percentage increase in the normal cycle time. A)True B)False
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