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Production and Operations Management Pre-Test Questions - 2890 Verified Questions

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Production and Operations Management

Pre-Test Questions

Course Introduction

Production and Operations Management focuses on the effective planning, organization, and control of resources and processes that create goods and services. The course explores key concepts such as production planning, process design, capacity management, inventory control, quality assurance, and supply chain management. Through the study of both manufacturing and service operations, students will learn how to optimize workflow, reduce costs, improve quality, and increase customer satisfaction. Emphasis is placed on analytical techniques, decision-making tools, and modern technologies that contribute to operational excellence in a competitive global environment.

Recommended Textbook

Operations Management Managing Global Supply Chains 1st Edition by Ray R. Venkataraman

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29 Chapters

2890 Verified Questions

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Chapter 1: Introduction to Managing Global Operations and Supply Chains

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Sample Questions

Q1) Operations management in an organization ______.

A)is concerned only with short-term strategies as the environment is rapidly changing

B)guides corporate strategy

C)is a part of functional strategy

D)has declined in importance in recent years

Answer: C

Q2) See the operations profile on Zara.How does Zara attract customers?

A)speed to market

B)poor quality

C)keeping styles available for extended periods

D)slow turnaround

Answer: A

Q3) Which of the following statements is true with respect to offshoring and outsourcing?

A)Offshoring is a subset of outsourcing.

B)Outsourcing is a subset of offshoring.

C)Companies typically engage in either outsourcing or offshoring but not both.

D)Offshoring practices are common in the early stages of the product life cycle.

Answer: A

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Chapter 2: Operations and Supply Chain Strategies

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Sample Questions

Q1) Which of the following statements is true about order winners and order qualifiers?

A)Order winners are more important to a firm than order qualifiers.

B)Order qualifiers are more important to a firm than order winners.

C)Both order winners and order qualifiers are important to a firm.

D)Neither order winners nor order qualifiers are important to a firm.

Answer: C

Q2) ERP stands for ______.

A)enterprise resource planning

B)emergency research planning

C)enterprise resource and production

D)emergency resource planning

Answer: A

Q3) Which of the following terms is correctly paired with its description?

A)Critical success factors (CSFs): strategic factors that a company requires to compete in a given industry

B)Core competencies: factors that identify the firm as belonging to an industry

C)Business strategy: strategy that governs mergers and acquisitions

D)Corporate strategy: strategy that governs day-to-day operations

Answer: A

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Page 4

Chapter 3: Project Management

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Sample Questions

Q1) Which of the following is NOT a popular approach to risk mitigation?

A)simply accept the risk

B)minimize the risk

C)share the risk

D)avoid doing risky projects

Answer: D

Q2) Project scheduling includes ______.

A)assigning the project to multiple managers

B)estimating the duration for each activity in a project

C)estimating the cost involved for each activity in a project

D)identifying the equipment needed to complete a project

Answer: B

Q3) Which of the following are challenges faced by project managers?

A)Project team members are more loyal to the project than to their parent departments.

B)Project team members may live in different parts of the world.

C)Project team members may speak the same language.

D)Project team members may have the same cultural background.

Answer: B

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Chapter 4: Supplement: Project Management

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Sample Questions

Q1) In considering crashing activities,we first want to crash activities that are ______.

A)the least costly to crash

B)the most costly to crash

C)easiest to crash

D)most difficult to crash

Q2) In establishing the project's baseline,the time-phased budget ______.

A)allows us to identify the correct sequencing of tasks

B)enables the project team to determine the points in the project when actual costs are likely to exceed budgeted costs

C)identifies the individual work packages and tasks necessary to complete the project

D)provides the managerial responsibilities for tasks in a project

Q3) If a project has an expected completion time of 15 weeks with a variance of 4 weeks,the probability that the project will be completed in 18 weeks is ______.

A)less than 34%

B)between 44% and 68%

C)between 69% and 83%

D)more than 93%

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Chapter 5: Product and Service Innovations

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Sample Questions

Q1) Mass customization is an approach that has been applied in ______.

A)the automobile industry

B)oil refineries

C)glass production

D)steel production

Q2) During the testing and validation process,______.

A)market research for the product is gathered

B)the production process is validated

C)product design is initiated

D)raw materials for the product are evaluated

Q3) Which of the following is LEAST likely to be a method by which customers and the service provider interact today?

A)face-to-face

B)via telephone

C)through websites and social media

D)by postal correspondence

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Chapter 6: Supplement: Reliability

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Sample Questions

Q1) If MTBF represents mean time between failures,and MTTR represents mean time to repair,then availability is given by ______.

A)MTBF / MTTR

B)MTBF / (MTBF + MTTR)

C)MTBF / (MTBF - MTTR)

D)MTTR / MTBF

Q2) A product consists of four components with reliability of 0.85,0.87,0.89,and 0.91,respectively.The first and third components each have a backup with reliability of 0.95 and 0.90,respectively.Calculate and indicate product reliability.

A)77.71%

B)62.80%

C)39.40%

D)89.10%

Q3) In product design,simpler designs with fewer components are ______.

A)more likely to fail

B)likely to function with the same reliability as designs with more components

C)likely to improve reliability

D)more expensive to repair

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Chapter 7: Managing for Quality

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Q1) Companies can set more stringent quality requirements for their suppliers by ______.

A)implementing a comprehensive supplier certification program

B)requiring vendors to obtain ISO certification

C)terminating suppliers if they supply certain percentage of defective input

D)not outsourcing any raw material purchases

Q2) To meet stockholder expectations of returns on their investment,a company finding a serious defect in its product should ______.

A)balance the cost of fixing the problem with the cost of potential liability from injuries to consumers

B)offer to buy back stock and boost share prices

C)inform its customers and take corrective action in a timely manner

D)declare bankruptcy

Q3) Walter A.Shewhart ______.

A)worked as a statistician in Bell Laboratories during the 1920s

B)developed the assembly line

C)is associated with the Deming Wheel

D)introduced the concept of interchangeable parts

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9

Chapter 8: Quality Improvement and Control Tools

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Sample Questions

Q1) Common cause variations ______.

A)are the result of random natural differences

B)are so called because they occur frequently

C)occur only occasionally under special circumstances

D)are the result of government interference in business

Q2) Which of the following types of charts are correctly paired with its description?

A)C-charts are used to monitor countable occurrences,such as the number of nonconformities or defects per unit.

B)P-charts are used to monitor the timing of defects or errors in a product or service.

C)C-charts are used to monitor the timing of defects or errors in a product or service.

D)P-charts are used to monitor the defects per million opportunities in a product or service.

Q3) The two most common types of attribute control charts are ______.

A)c-charts and range-charts

B)c-charts and p-charts

C)mean-charts and range-charts

D)p-charts and range-charts

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Chapter 9: Capacity Planning

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Sample Questions

Q1) The uncertainty in projecting demand for products means ______.

A)there is always a gap between available capacity and required capacity

B)there is always going to be a shortage of a product in relation to demand for a product

C)there is always going to be a surplus of a product in relation to demand for a product

D)the manufacturing lead time is going to be fluctuating

Q2) Which of the following is NOT a step in effective global capacity management?

A)capacity planning cycle

B)monitoring and response

C)constraint management

D)overstock inventory management

Q3) Which of the following is NOT a measure of an organization's capacity?

A)number of employees

B)truckloads of material received

C)units of product produced

D)size of its market share

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Chapter 10: Supply Chain Design and Location Planning

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Sample Questions

Q1) Which of the following is an industry where violations of intellectual property rights are still prevalent in China?

A)electronics industry

B)food-retailing industry

C)book-publishing industry

D)furniture-making industry

Q2) Clustering occurs where ______.

A)there is a concentration of critical resources in a particular region

B)population is sparse

C)there are not many consumers

D)government requires production facilities to be located

Q3) The ability of an organization to transfer its earnings to another country is an example of ______.

A)environmental factors

B)political factors influencing location decisions

C)commerce restrictions

D)technological factors

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12

Chapter 11: Process Design and Layout Planning

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Sample Questions

Q1) Which of the following is NOT true of a fixed-position layout?

A)The product remains stationary in the plant.

B)The resources are brought to the product's location.

C)It works well for project-type processes such as shipbuilding.

D)It is also referred to as a straight-line layout.

Q2) Which type of automation is appropriate for processes designed to produce large volumes of standardized products that have relatively long life cycles?

A)fixed

B)flexible

C)constant

D)continuous

Q3) A benefits of lean processes includes ______.

A)a reduction in inventories

B)an increase in the size of manufacturing plants

C)longer lead times

D)shrinking markets

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13

Chapter 12: Supplement: Tools

Analyzing, Designing, and Selecting Processes and Layouts

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Sample Questions

Q1) Which of the following is NOT a factor in determining the total cost of materials handling in manufacturing process layouts?

A)the cost of moving a load between departments

B)the number of loads to be moved between departments

C)the distance between departments

D)the number of employees in each department

Q2) As real-life layout problems are typically large,arriving at an optimal solution to such problems ______.

A)is very expensive

B)is time consuming

C)is nearly impossible

D)is quickly accomplished by using computers

Q3) Working drawings refer to ______.

A)assembly charts

B)detailed instructions for all major parts of the product

C)<i>gozinto charts</i>

D)assembly drawings

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Page 14

Chapter 13: Supplier Management

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Sample Questions

Q1) Which of the following is a plan to contract with multiple suppliers to ensure that backup supplies are available?

A)joint venture

B)strategic alliance

C)multiple-sourcing strategy

D)Keiretsu network

Q2) Standard purchase orders are used for ______.

A)purchases to be made on approximate dates when inventories run low in specified quantities

B)long-term purchases on multiple dates over a period of time

C)one-time purchases

D)weekly purchases

Q3) A request for proposal (RPF)is sometimes called a ______.

A)request for pricing

B)request for quotation

C)request for information

D)request for invoice

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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) An advantage of LTL shipping is that ______.

A)it costs less than FedEx or UPS

B)the transit times are shorter than FTL

C)it is particularly convenient for very large consignments

D)it is very suitable for shipping liquids

Q3) In regard to motor-carrier shipping,which of the following statements is true?

A)LTL means larger-than-truckload.

B)FTL means full truckload.

C)FTL means fixed truckload.

D)FTL means floating truckload.

Q4) Transportation of goods has become a complex undertaking due to ______.

A)increased use of computers and digitization

B)unstable oil prices

C)government regulations

D)the Interstate Commerce Commission

Page 16

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Chapter 15: Demand Management and Customer Service

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Sample Questions

Q1) Local suppliers have ______ lead times while global suppliers in a multitiered supply chain have ______ lead times.

A)longer,longer

B)longer,shorter

C)shorter,longer

D)shorter,shorter

Q2) Demand planning has a ______ time horizon,while managing consumer demand focuses on the ______.

A)long-term,short term

B)short-term,long term

C)short-term,short term

D)long-term,long term

Q3) ______ require the firm to project its aggregate demand from the present to several years in the future.

A)Intermediate-term demand planning decisions

B)Long-term demand planning decisions

C)Short-term demand planning decisions

D)Immediate demand planning decisions

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Chapter 16: Demand Forecasting Methods

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Sample Questions

Q1) The ______ measures the random variation,which is the variation of the actual (observed)y values from the predicted y values ( ).

A)correlation coefficient

B)error sum of squares (SSE)

C)coefficient of determination

D)standard error of the estimate

Q2) ______ is a short-term time series forecasting method in which the average of the most recent demand periods is used to predict demand in the future period.

A)Moving average

B)Naïve approach

C)Linear regression

D)Exponential smoothing

Q3) Demand forecasts of individual items are needed for ______.

A)short-term activities like production scheduling

B)medium-term activities like sales planning

C)long-term activities like new product introduction

D)strategic activities like service acquisition

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Chapter 17: Lean Operations and Supply Chains

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Sample Questions

Q1) Which of the following is a lean initiative that is consistent with sustainability practices?

A)increase in use of raw materials

B)avoiding overproduction

C)increased frequency of quality inspections

D)employing more quality control personnel

Q2) Rework leads to additional inspection costs,yield losses,and the loss of goodwill on the part of customers.This is an example of ______.

A)mura

B)muda

C)heijunka

D)poke yoke

Q3) Which of the following is not representative of muda?

A)any activity that does not add value

B)any activity that is unproductive

C)waste that occurs from any variation in output

D)any activity that impacts demand elasticity

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19

Chapter 18: Inventory Management

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Questions

Q1) A continuous review system ______.

A)requires stringent monitoring of inventories because they have high value

B)is best suited for the C category of items under the ABC classification scheme

C)is also known as the annual inventory system

D)is one where inventory replenishment is done annually

Q2) Inventory turnover measured annually is ______.

A)the ratio of (Annual Average Inventory Investment)to (Annual Cost of Goods Sold)

B)the ratio of (Annual Cost of Goods Sold)to (Annual Average Inventory Investment)

C)the product of (Annual Average Inventory Investment)and (Annual Cost of Goods Sold)

D)the product of (Annual Cost of Goods Sold)and (Annual Average Inventory Investment)

Q3) Which of the following is NOT one of the three basic types of inventory control systems?

A)single-period system

B)multi-period system

C)continuous review system

D)periodic review system

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Chapter 19: Inventory Control Models

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Q1) A fundamental question in inventory management is ______.

A)how much to order or produce

B)what product features to offer

C)at what price the product should be sold

D)what sort of packaging is required

Q2) In the calculation for the economic order quantity,______.

A)both ordering costs and holding costs are exact values

B)the ordering costs are approximate,but the holding costs are exact values

C)the ordering costs are exact values,but the holding costs are approximate

D)both ordering costs and holding costs are approximate

Q3) Assume that the order quantity is 1000 units,and the holding costs are $5 a unit per year.In this case,______.

A)the average inventory level is 500 units,and the total annual holding costs are $2,500

B)the average inventory level is 1,000 units,and the total annual holding costs are $5,000

C)the average inventory level is 0 units,and the total annual holding costs are $5

D)the average inventory level is 500 units,and the total annual holding costs are $5,000

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21

Chapter 20: Sales and Operations Planning

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Q1) In which phase of the SCOP process is there an increased emphasis on recycling,reusing,and selling excess inventories?

A)supply planning

B)demand planning

C)impact on existing products

D)operations planning

Q2) Which of the following is NOT a benefit of SCOP?

A)It will drive away existing customers.

B)It will attract new customers.

C)It will reduce the risks and costs associated with scarcity of raw materials.

D)It will increase quality and innovation.

Q3) In the sales and operations planning process,which of the following is an option for influencing supply?

A)price

B)backorders and reservation systems

C)advertising and promotions

D)use of subcontracting

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Chapter 21: Master Scheduling and Material Requirements

Planning

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Q1) The lot-sizing technique which almost eliminates inventory-holding costs is ______.

A)lot for lot

B)economic order quantity

C)economic production quantity

D)fixed-order quantity

Q2) The changes in firm planned orders ______.

A)happen automatically upon changes to conditions

B)require approval from senior managers

C)can be made by supervisors on the production floor

D)can be made by customers alone

Q3) Which production environment handles products that are custom designed and built to specific requirements?

A)MTO

B)MTS

C)ATO

D)ETO

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Chapter 22: Supplement: Capacity Requirements Planning,

MRP II, ERP, and DRP

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Q1) Capacity requirements planning (CRP)is most conducive for ______ production processes.

A)job-shop

B)intermittent

C)outlier

D)flow-shop

Q2) If it is not possible to increase capacity,then ______.

A)the master schedule needs to be revised

B)marketing efforts need to be reduced

C)prices have to be increased (so less product will be demanded)

D)a new facility will have to be built to meet the demand

Q3) The ______ system has a provision for feedback that enables plans generated by the system to be checked and adjusted.

A)open loop MRP

B)semi-open loop MRP

C)closed loop MRP

D)open loop CRP

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Page 24

Chapter 23: Detailed Scheduling

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Q1) The average tardiness for jobs listed in the following table under the earliest due date (EDD)rule is ______. \[\begin{array} { | c | c | c | }

\hline \text { Job } & \begin{array} { c }

\text { Processing time (in } \\

\text { days\} }

\end{array} & \begin{array} { c }

\text { Due date \{in days from } \\

\text { to day's date\} }

\end{array} \\

\hline \text { A } & 5 & 9 \\

\hline \text { B } & 11 & 18 \\

\hline \text { C } & 3 & 6 \\

\hline \text { D } & 12 & 19 \\

\hline \text { E } & 10 & 17 \\

\hline \end{array}\]

A)7.8 days

B)6.8 days

C)5.8 days

D)4.8 days

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Page 25

Chapter 24: Linear Programming

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Q1) The resource constraints are modeled in LP mathematically as ______.

A)inequalities

B)equalities or inequalities

C)linearity

D)variables

Q2) In linear programming,maximizing profits or minimizing costs is an example of ______.

A)a variable

B)a resource

C)a constraint

D)an objective

Q3) The ______column(s)in the sensitivity analysis report show(s)the extent to which the profit per unit of the decision variables can be changed without affecting the current optimal solution.

A)final value

B)reduced cost

C)shadow price

D)allowable increase and allowable decrease

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Chapter 25: The Transportation Models

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Q1) Refer to the shipping costs for The Terra Cotta 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,which of the following statements is true?

A)The shipping costs from Aberdeen to Kalamazoo are $10,920.

B)The shipping costs from Cairo to Kalamazoo are $6,946.

C)The shipping costs from Escondido to Winston are $10,606.

D)The shipping costs from Danbury to Navarre are $10,908.

Q2) Refer to the data given in the table for Acme Widgets,Inc.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 lowest non-zero quantity shipped is from ______.

A)Montgomery to Visalia

B)Riverside to Visalia

C)Montgomery to Dayton

D)Bryan to Huntsville

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Chapter 26: Waiting Line Models

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Q1) Which of the following is NOT a tangible cost of waiting lines?

A)wages paid to workers while the factory remains idle

B)costs of materials used while waiting

C)lost sales because customers decided to go elsewhere

D)lost productivity while workers are idle

Q2) The owner of an amusement park has decided to open a second entry booth and hire another employee to service customers entering the park.Customers arrive at the rate of 20 per hour and will wait in a single line until one of the two employees is available to provide service.The average service time of both employees is 2 minutes to provide service.T The arrival rate follows Poisson distribution,and the service time follows a negative exponential distribution.It is estimated that the cost of customer waiting time associated with dissatisfied customers and loss of goodwill is $20 per hour.The employee at the service booth is paid $10 an hour.Determine the customer waiting time cost per day for the waiting line system.Assume total hours of operation as 10 hours per day.

A)$16.67

B)$17.67

C)$15.67

D)$14.56

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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 76,75,25,12,76,and 51?

A)8

B)13

C)6

D)11

Q2) Consider the data on Inventory for Blenders Over a 20-Day Period.Any time that ending inventory falls to 15 or below,an order is placed for 30 units of the product.The lead time for delivery varies and is shown in the column under Lead Time.If the ordering costs were $32 each time the product is ordered,what are the total ordering costs during the 20-day period?

A)$114

B)$96

C)$76

D)$182

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Chapter 28: Learning Curves

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Q1) Purple Airlines has ordered 30 small jets from its supplier.The supplier has estimated the first aircraft will require 350 days of direct labor to manufacture and assemble.Based on past experience,the supplier estimates the learning curve to be 75%.Estimate the average number of days of direct labor for all 30 jet aircrafts.

A)231.43 days

B)121.43 days

C)133.54 days

D)156.43 days

Q2) An 80% learning curve means a(n)______.

A)20% decrease in unit time as the number of repetitions or units produced doubles

B)80% decrease in unit time as the number of repetitions or units produced doubles

C)20% increase in unit time as the number of repetitions or units produced doubles

D)80% increase in unit time as the number of repetitions or units produced doubles

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Chapter 29: Decision-Making Tools

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Q1) Consider that you are getting ready to leave outside in the morning,and weather forecasters predict rain.You getting wet or staying dry and being burdened with carrying a raincoat or not are all examples of ______.

A)consequences

B)states of nature

C)payoffs

D)decision alternatives

Q2) Which of the following is a technique used for making sequential decisions that allow the decision maker to visually map each possible decision alternative to determine the best decision?

A)decision tree

B)sensitivity analysis

C)sequential analysis

D)decision priority

Q3) In a decision tree,a square node represents a ______.

A)decision point

B)state of nature

C)consequence

D)payoff

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