Production and Operations Management
Midterm Exam
Course Introduction
Production and Operations Management introduces students to the fundamental concepts and practices involved in designing, operating, and improving the processes that produce goods and services. The course covers key topics such as process analysis, capacity planning, inventory management, quality control, supply chain management, and lean operations. Emphasis is placed on the strategic role of production and operations in achieving organizational goals and delivering value to customers. Through case studies and practical applications, students gain analytical tools and managerial insights necessary for effective decision-making in manufacturing and service environments.
Recommended Textbook
Introduction to Operations and Supply Chain Management 5th Edition by Cecil B. Bozarth
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Page 2
Chapter 1: Introduction to Operations and Supply Chain Management
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Sample Questions
Q1) In the Sweet Action! supply chain, the flowers produce the nectar which is collected by the bees. The busy bees take this nectar and produce honey, which is collected by the beekeeper, who puts it in quart jars and supplies it to the baker. The baker produces a lovely array of confections, which are purchased by the local restaurant. The restaurant sells these confections to their loyal diners, who gleefully consume them and nag the chef for his recipe. Which of these statements about this supply chain is best?
A)The busy bees are a second-tier supplier of the local restaurant.
B)The beekeeper is a second-tier supplier of the local restaurant.
C)The baker is a second-tier supplier of the local restaurant.
D)The local restaurant is a second-tier supplier of the loyal diners.
Answer: B
Q2) ________ is the use of information technology solutions to conduct business via electronic transfer of data and documents.
Answer: Electronic commerce
Q3) A(n)________ acquires knowledge in a specific market in which the organization purchases significant quantities of materials and services.
Answer: commodity manager
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Page 3
Chapter 2: Operations and Supply Chain Strategies
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Sample Questions
Q1) Policies and decision rules are infrastructural elements.
A)True
B)False
Answer: True
Q2) Whether the product was made or service performed to specifications is a question of:
A)conformance quality.
B)performance quality.
C)reliability quality.
D)value indices.
Answer: A
Q3) The latex division of Vandelay Industries provided support after the sale that could not be matched by any of the other players in the latex industry. This unique attribute was responsible for perhaps 60% of their sales volume and could be described as:
A)a trade-off.
B)a core competency.
C)an order winner.
D)externally neutral.
Answer: C
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Page 4
Chapter 3: Process Choice and Layout Decisions in Manufacturing and Services
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Sample Questions
Q1) The only way to ensure that a layout design is optimal is to try to evaluate literally every possible layout and compute the total distance travelled.
A)True
B)False
Answer: True
Q2) No manufacturing process can be best at everything.
A)True
B)False
Answer: True
Q3) A complete makeover by Jose Eber on daytime TV for an unemployed daytime TV viewer that has pretty much given up probably scores:
A)low on customization and high on intangible activities. B)high on customer contact and high on physical activities. C)high on customization and high on intangible activities. D)low on customer contact and low on intangible activities.
Answer: B
Q4) A(n)________ is a highly automated batch process that can reduce the cost of making groups of similar products.
Answer: flexible manufacturing system (FMS)
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Chapter 4: Business Processes
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Sample Questions
Q1) ________ are workers trained in the Six Sigma methodology that actually train and mentor other workers in Six Sigma.
Q2) Frank's Fried Chicken sends several employees over to Clair's Chicken Shack to divine the secret recipe that makes her chicken spicier and crispier, they are engaging in
Q3) The procedure of fundamental rethinking and radical redesign of business processes to achieve dramatic organizational improvements is called:
A)competitive benchmarking.
B)continuous improvement.
C)process benchmarking.
D)business process reengineering.
Q4) ________ are senior level executives of a company that own projects and have the authority and resources needed to carry them out.
Q5) Mapping does NOT:
A)create a common understanding of the content of a process.
B)define the boundaries of a process.
C)provide a detailed view of all elements external to the process.
D)provide a baseline against which to measure the impact of improvement efforts.
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Chapter 5: Managing Quality
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Sample Questions
Q1) A barbecue sauce producer makes their product in an 80-ounce bottle for a specialty store. Their historical process mean has been 80 ounces and their tolerance limits are set at 80 ounces plus or minus 1 ounce. What does their process standard deviation need to be in order to sustain a process capability ratio of 1.66?
A)0.10
B)0.20
C)0.25
D)0.33
Q2) Appraisal costs can occur when a company has NOT produced any defective items. A)True B)False
Q3) In general, producer's risk rises as consumer's risk falls. A)True B)False
Q4) Taguchi's ________ demonstrates that as soon as a quality characteristic deviates from the target value, there is a decline in the level of quality.
Q5) Describe the Taguchi quality loss function. What is its shape and what are the implications of this curve?
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Chapter 6: Managing Capacity
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Sample Questions
Q1) The first three rooms took The Painter a total of 9 hours to paint. If the learning curve rate is 85%, how long will it take The Painter to paint all 20 rooms in Stately Wayne Manor?
A)less than 20 hours
B)between 20 and 30 hours
C)between 31 and 40 hours
D)more than 40 hours
Q2) The Theory of Constraints would support the statement that a chain is only as strong as its weakest link.
A)True
B)False
Q3) Which of the following statements about theoretical capacity is best?
A)Theoretical capacity allows adjustments for preventive maintenance.
B)Running a factory at its theoretical capacity for a short time is often better than permanently raising resource levels.
C)Theoretical capacity levels are usually lower than rated capacity levels.
D)Theoretical capacity levels take into account that machines occasionally break and that workers occasionally call in sick.
Q4) The ________ is the output volume level where the firm realizes a $0 net profit.
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Chapter 6: S: Advanced Waiting Line Theory and Simulation
Modeling
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Sample Questions
Q1) It is more costly to create a more realistic simulation than one that is less realistic. A)True
B)False
Q2) Why would someone choose to use simulation to analyze a waiting line problem rather than use a formula? What are the advantages and disadvantages of a simulation approach?
Q3) Barber College is the best deal in town! For only $5, you can get a shampoo and cut by any one of four untrained stylists completed in 7.5 minutes on average. Perhaps this is why customers show up on average two minutes apart (both arrival times and service times are exponentially distributed). Management is concerned about the waiting time for customers and decides to train one more student. If the arrival and service rates remain the same as in the original scenario, what happens to the number of customers in the system?
A)There are about half as many as in the original scenario.
B)There are about a third as many as in the original scenario.
C)There are about a fourth as many as in the original scenario.
D)There are about a fifth as many as in the original scenario.
Q4) If 5 minutes passes between customer arrivals then the ________ is 12/hour.
Q5) What is Monte Carlo simulation and how is it conducted?
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Chapter 7: Supply Management
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Sample Questions
Q1) Total cost analysis divides costs into direct (costs that are tied to the level of operations or supply chain activities)and indirect (costs that are not tied to the level of operations or supply chain activity).
A)True
B)False
Q2) A description method used when a product or service is proprietary or when there is a perceived advantage to using a particular supplier's product or services is:
A)description by market grade.
B)description by brand.
C)description by specification.
D)description by performance characteristics.
Q3) Business partners that transfer payments between banks using an information system are using ________.
Q4) Among the disadvantages of ________ are that different product attributes with varying qualities may be produced which can actually result in reduced supplier loyalty over time.
Q5) The bulk of insourcing costs are usually ________ costs.
Q6) What are the advantages and disadvantages of insourcing and outsourcing?
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Chapter 8: Logistics
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Sample Questions
Q1) The landlord's favorite place to buy shrimp in New Orleans was the Cajun Seafood market on Claiborne and he did not hesitate to stock up on shrimp when he dropped by the shotgun double house he bought as an investment a few years ago. Sadly, it was 685 miles one way to visit the property and even though gas was available at $1.88 per gallon and the car achieved 25 miles per gallon, it was an expensive and lengthy trip. Therefore he bought the cheapest plane tickets he could muster at $299 round trip and packed a cooler with $12 worth of ice. The shrimp were a bargain at $7.99 per pound for jumbos and he always tried to fit 35 pounds of the crustaceans in the cooler. What is the landed cost of a pound of shrimp?
A)$11.28
B)$16.88
C)$9.80
D)$14.78
Q2) An optimal design for a reverse logistics system is usually a simple reversal of the forward logistics system.
A)True
B)False
Q3) Define logistics and explain why it is critical.
Q4) What is multimodal transportation and why is it an attractive option?
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Chapter 9: Forecasting
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Sample Questions
Q1) What distinguishes collaborative planning, forecasting, and replenishment (CPFR)systems from traditional planning approaches is the emphasis on forecasting.
A)True
B)False
Q2) What is a collaborative planning, forecasting, and replenishment system and how might it benefit those who choose to use it?
Q3) ________ is unpredictable movement from one time period to the next.
Q4) The greater the randomness in the data, the ________ the value of the alpha should be in an exponential smoothing forecast.
Q5) The ________ value for a regression or multiple regression model shows the percentage of variability in the dependent variable that is explained by the independent variable(s).
Q6) A seasonal index less than 1.0 means that the model is overforecasted.
A)True
B)False
Q7) In order to indicate ________ in a forecast model, you should use the mean forecast error approach rather than the mean absolute deviation approach.
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Chapter 10: Sales and Operations Planning Aggregate Planning
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Sample Questions
Q1) What is the purpose of S&OP and what takes place at the strategic, tactical, and detailed planning and control levels?
Q2) Describe the differences between level, chase, and mixed production plans. Use the forecast in the table to show the differences by creating a plan of each type. There is no beginning inventory and regular production capacity is 350 units. Overtime costs $10 extra and is limited to 50 units per month. Subcontracting is limited to 100 units per month and costs $15 per unit. Back orders cost $40 per unit and there is a cost of $5 per month to hold a unit in inventory. There is room for only 100 units in inventory.
\[\begin{array} { | l | c | }
\hline { \text { Month } } & \text { Forecast } \\
\hline \text { Tanuary } & 250 \\
\hline \text { February } & 300 \\
\hline \text { March } & 500 \\
\hline \text { April } & 350 \\
\hline \end{array}\]
Q3) A(n)________ is a formula that is the goal of an optimization model for S&OP.
Q4) How can and why should a firm link S&OP throughout the supply chain?
Page 13
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Chapter 11: Managing Inventory Throughout the Supply Chain
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Sample Questions
Q1) The campus bookstore sells 4,000 sets of graduation regalia each year. Placing an order from their supplier costs $25 regardless of order quantity, so they usually place a large order (a half year's supply)at a time. It costs $5 per year to hold a cap and gown in inventory, primarily insurance costs for the highly flammable material. What is the difference in their holding cost if they order at their optimal order quantity compared to their current policy?
A)$4,500
B)$4,400
C)$4,200
D)$4,000
Q2) The campus bookstore sells 4,000 sets of graduation regalia each year. Placing an order from their supplier costs $25 regardless of order quantity, so they usually place a large order (a half year's supply)at a time. It costs $5 per year to hold a cap and gown in inventory, primarily insurance costs for the highly flammable material. What is their optimal order quantity?
A)150
B)200
C)1,000
D)2,000
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Chapter 12: Managing Production Across the Supply Chain
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Sample Questions
Q1) Material requirements planning is used to manage independent demand inventory.
A)True
B)False
Q2) According to the table above.What are the net requirements Front Leg Assemblies in Week 4
Q3) Distribution requirements planning is identical to material requirements planning except instead of gross requirements, a DRP record shows forecasted demand.
A)True
B)False
Q4) Confirmed demand for products is called ________ in master scheduling.
Q5) Available to promise inventory is always zero for the first week in the master production schedule.
A)True
B)False
Q6) A unit that has not been sold or otherwise committed to any other customer should be considered available to promise.
A)True
B)False
Q7) According to the table above.What is the planned order for whiskers in Week 2?
Page 15
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Chapter 12: S: Supply Chain Information Systems
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Sample Questions
Q1) A typical SRM application is:
A)negotiations.
B)market analysis.
C)order management.
D)service center management.
Q2) The term ________ represents the most basic function of information in the supply chain.
Q3) SAP and Oracle are ERP vendors.
A)True
B)False
Q4) A key performance measure for an execution and transaction processing system would be:
A)flexibility.
B)form.
C)function.
D)accuracy.
Q5) Long-term strategic questions such as facility location and sizing are addressed by ________.
Q6) How will cloud computing impact operations and supply chain management?
Q7) What are the salient features of cloud computing?
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Chapter 13: Jitlean Production
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Sample Questions
Q1) In the water and rocks analogy for Lean:
A)water represents problems.
B)water represents inventory.
C)rocks represent inventory.
D)water wears away rocks gradually just like continuous improvement programs improve quality.
Q2) One definition of waste is underutilizing employees.
A)True
B)False
Q3) A pull system is a production system in which actual downstream demand sets off a chain of events that pull material through various steps in the various process steps.
A)True
B)False
Q4) A two-card kanban system is a planning tool that links production and movement of units at only two work centers.
A)True
B)False
Q5) Any activity that does not add value to the good or service in the eyes of the consumer is ________.
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Chapter 14: Managing Projects
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Sample Questions
Q1) The professional organization that serves the needs of project management professionals is ________.
Q2) The earliest finish time is calculated by adding the activity's duration to the predecessor's earliest finish time.
A)True
B)False
Q3) What is the fastest completion time of the project with activity lengths (in days)and precedence requirements as shown in the table? \[\begin{array} { | c | c | c | }
\hline \text { Activity } & \text { Length } & \text { Predecessor } \\
\hline \text { A } & 15 & \cdots \\
\hline \text { B } & 7 & \text { A } \\
\hline \text { C } & 4 & \text { A } \\
\hline \text { D } & 8 & \text { B, C } \\
\hline
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Chapter 15: Developing Products and Services
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Sample Questions
Q1) ABC Corporation knew that XYZ Industries could provide the casings needed for their new line of typewriters like they had for the previous generations of typewriters. Therefore, they designated XYZ as the supplier for that key element, a practice known as
Q2) Provide an example from industry of a product or service that was duplicated by a competitor. Was this considered successful from the perspective of the first company? The competitor?
Q3) A modular architecture improves:
A)design for Six Sigma and design for the environment.
B)design for manufacturability and design for susceptibility.
C)design for maintainability and design for the environment.
D)design for Six Sigma and design for manufacturability.
Q4) Value may be increased by simultaneously increasing cost and decreasing functionality.
A)True
B)False
Q5) All product development efforts directly benefit the consumer.
A)True
B)False
Q6) What role does the purchasing function play in product and service design?
Page 19
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