Service Operations Management
Exam Bank
Course Introduction
Service Operations Management explores the strategic and operational aspects of delivering high-quality services across various industries. The course covers key concepts such as service design, process analysis, capacity planning, demand management, quality control, and customer relationship management. Students examine how technology, human resources, and service environments interact to create value for customers while maintaining operational efficiency. Through case studies and analytical tools, participants develop skills to improve service delivery, solve operational challenges, and enhance the overall customer experience in service-centric organizations.
Recommended Textbook operations management 5th edition by r. dan reid
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Page 2
Chapter 1: Introduction to Operations
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Q1) Which of the following is not true for business process reengineering?
A)It can increase efficiency.
B)It cannot be used to improve quality.
C)It can reduce costs.
D)It involves asking why things are done in a certain way.
E)It involves redesigning processes.
Answer: B
Q2) Today's business must think in terms of:
A)regional trade zones
B)the EPA
C)the U.S.Defense Department
D)the global market place
E)the curved world
Answer: D
Q3) List at least seven different possible inputs to a transformation process.
Answer: workers,managers,buildings,equipment,materials,technology,and information
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Chapter 2: Operations Strategy and Competitiveness
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Q1) Rapid technological change includes the risk of ________________________ . Answer: obsolescence.
Q2) A firm produces 500 units per day using five workers on a five-hour shift.On average,15% of the units produced are defective and must be scrapped.What is the labor productivity for non-defective units?
A)17 units/hour
B)3 units/hour
C)20 units/hour
D)85 units/hour
E)15 units/hour
Answer: A
Q3) Mass produced standard products were the main manufacturing concern until ________________________.
Answer: the 1970s
Q4) A new milling machine can process 2000 jobs in 8 hours.What is the productivity of the machine?
Answer: 250 jobs/hour
Q5) A business strategy is like an explorer's ________________________.
Answer: compass
4
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Chapter 3: Product Design and Process Selection
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Q1) Maturity and decline are also referred to as:
A)the early stages
B)the life cycle
C)the later stages
D)design for manufacture stages
E)re-engineering stages
Answer: C
Q2) What is a type of automation system that provides the flexibility of intermittent operations with the efficiency of repetitive operations?
A)CAD
B)AGV
C)AS/RS
D)FMS
E)CAM
Answer: D
Q3) Why are services more complex to design than manufactured goods?
Answer: Services produce intangible products produced with high levels of customer contact.
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Chapter 4: E-Commerce and Supply Chain Management
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Sample Questions
Q1) What does EDI stand for?
A)Easy data interchange
B)Electronic door interface
C)Electronic detachable interface
D)Elementary data integration
E)Electronic data interchange
Q2) A recent change in supply chain management has been the:
A)need for faster computers.
B)green supply chain management requirement.
C)requirement for advanced educational degrees.
D)increased government regulation.
E)need for smaller ocean transportation methods.
Q3) Which type of technology provides "point-of-sale information?"
A)Automatic guided vehicles (AGV)
B)Automatic storage and retrieval systems (ASRS)
C)Barcode scanners
D)Flexible manufacturing systems (FMS)
E)Computer aided design/computer aided manufacturing (CAD/CAM)
Q4) Name three
Chapter 5: Total Quality Management
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Sample Questions
Q1) A quality circle is a team of volunteer production employees and their supervisors who meet regularly to solve quality problems.
A)True
B)False
Q2) Employees of the organization who receive goods or services from others in the company are
A)Internal customers
B)Ultimate customers
C)Downstream customers
D)Operators
E)External customers
Q3) What is a schematic diagram of the sequence of steps involved in an operation or process?
A)Checklist
B)Control chart
C)Scatter diagram
D)Flow chart
E)Process chart
Q4) What are the steps involved in Quality Function Deployment?
Q5) What are the common causes of TQM failure?
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Chapter 6: Statistical Quality Control
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Q1) What are the two aspects to implementing the six-sigma concept?
A)numerically controlled machines and inventory management
B)numerically controlled machines and people involvement
C)numerically controlled machines and technical tools
D)technical tools and people involvement
E)inventory management and technical tools
Q2) Define attribute (as a product characteristic).
Q3) Assuming that data exhibit a normal distribution,control limits set at \(\pm\) 3 standard deviations from the mean capture how much common variation?
A)50.00%
B)80.00%
C)95.44%
D)99.74%
E)99.99%
Q4) A process can be considered in a state of control even if one observation is 1.75 standard deviations above the mean.
A)True
B)False
Q5) What is the formula for an x-bar chart's control limits?
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Chapter 7: Just-In-Time and Lean Systems
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Q1) The role of production employees in JIT includes all of the following except
A)Be actively engaged in improving the production process
B)Monitor quality
C)Record data
D)Follow clearly defined and limiting work rules
E)Act on the information they have
Q2) The benefits of long-term relationships with a small number of suppliers include all of the following except
A)Always getting the lowest price
B)Focus on improving process controls
C)Greater accountability
D)Develop stable delivery schedules
E)Eliminate paperwork
Q3) Frank's umbrella corporation is designing a kanban system.They know that they are expected to produce 100 umbrellas per hour.They've also determined that a key external resource takes 30 minutes to deliver the required material once an order has been transmitted.To start with they want to maintain a safety stock of 25 critical parts.Originally they want to start with 3 kanbans.What container size should Frank's umbrella company start with?
Q4) What are the benefits of JIT?
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Chapter 8: Forecasting
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Q1) Multiple regression is a(n)___________ of linear regression.
Q2) Suppose that you are using exponential smoothing with \(\alpha\) = 0.5 and your initial forecast 5 months ago was for 100 units.If the actual demand last month was 0 units,which of the following is definitely true?
A)The forecast for this month should be 0.
B)The model blew up.You can't use exponential smoothing anymore.
C)The forecast for last month was 0.
D)The forecast for this month should be 50.
E)We need more information to determine this month's forecast.
Q3) Suppose that you are interested in trend-adjusted exponential smoothing.Which of the following values of the trend smoothing constant,\(\beta\),would most likely be seen in practice?
A)0.10
B)0.50
C)0.75
D)0.90
E)1.00
Q4) Time series models are generally more difficult to use than causal models.
A)True
B)False
Page 10
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Chapter 9: Capacity Planning and Facility Location
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Questions
Q1) Large facilities can benefit from the concept of _____________________ by creating a plant within a plant (PWP).
A)just-in-time
B)focused factories
C)economies of scale
D)supply chain
E)hierarchical management
Q2) The concept of diseconomies of scale ________________________.
A)states that the average cost of a unit produced is reduced when the amount of output increases
B)is not realistic
C)is not valid for regulated industries
D)states that beyond a certain point the cost of each additional unit made increases E)is an approach for measuring unusable output
Q3) The ratio of actual output rate to capacity is utilization.
A)True
B)False
Q4) How are capacity planning and location analysis similar?
Q5) Discuss why marketing is important in making capacity decisions.
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Chapter 10: Facility Layout
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Q1) What is the shortest distance between two locations using north-south and east-west movements called?
A)Euclidean distance
B)triangulated distance
C)rectilinear distance
D)Socratic distance
E)latitude-longitude (LL)distance
Q2) Which of the following is least like a fixed-position layout?
A)farm
B)shipbuilding
C)bridge construction
D)building construction
E)car wash
Q3) The items listed below are stored in a one-dock warehouse.Which of them should be stored at the very back (furthest away from the dock)?
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Chapter 11: Work System Design
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Q1) Describe why understanding learning curves is important to the organization.
Q2) Output-based incentive systems are based on the assumption that some workers are motivated by money and produce more when pay is linked to performance.
A)True
B)False
Q3) What technique eliminates unnecessary tasks and improves the process for completing tasks?
A)methods analysis
B)job design
C)work measurement
D)task inversion
E)cycle counting
Q4) Which of the following is an advantage of using predetermined time data?
A)You can calculate standard times before the job begins.
B)Very little skill is required.
C)There is universal agreement in assessing the level of difficulty of different work elements.
D)No calculations are required.
E)You do not need to know much about the job.
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Chapter 12: Independent Demand Inventory Management
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Q1) In a periodic review system,if you are basing your time between orders on the EOQ,what should be its length in weeks?
A)EOQ / 52
B)EOQ / average weekly demand
C)average weekly demand / EOQ
D)52 / EOQ
E)(EOQ)(average weekly demand)
Q2) What inventory function protects against supply shortages?
Q3) Hand tools,lubricants,and cleaning supplies are usually examples of what?
A)WIP inventory
B)finished goods inventory
C)raw materials inventory
D)MRO inventory
E)distribution inventory
Q4) Which basic EOQ assumption does the EPQ model relax?
A)Lead time is known and constant.
B)Demand is known and constant.
C)Quantity discounts are not considered.
D)Orders arrive at once.
E)Back orders are not allowed.
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Chapter 13: Aggregate Planning
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Q1) When you are considering different production planning approaches,the magnitude of change:
A)is not important from an aggregate planning perspective.
B)larger changes need more dramatic measures.
C)drives the point of departure.
D)reduces the point of departure.
E)modifies the duration of change.
Q2) What are the characteristics of undertime?
Q3) The master production schedule is typically stated as:
A)resource requirements
B)sales quotas
C)work-in-process
D)specific finished goods
E)composite products
Q4) Which of the following is not typically contained in the marketing plan?
A)product design
B)target markets
C)new products
D)profit margin
E)competitive focus
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Chapter 14: Resource Planning
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Q1) MRP develops a ____________ that shows future demand,supply and inventories by time period.
A)DSI report
B)snapshot forecast
C)requirements plan
D)material movements schedule
E)time-phased schedule
Q2) What does ERP stand for?
A)educational resources planning
B)end routing procedure
C)enterprise reliability production
D)enterprise resource planning
E)easy resource planning
Q3) For any period the beginning inventory,plus any replenishment order due,less the gross requirement equals planned orders.
A)True
B)False
Q4) Supply chain intelligence enables ______________ along the supply chain.
Q5) For the data provided determine the Inventory Record using a FOQ lot size rule for the screw (H).
Page 16
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Chapter 15: Scheduling
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Q1) Which of the following is mostly like to be a policy constraint?
A)strike at the supplier's plant
B)raw material shipping problems
C)decreasing market demand
D)no overtime
E)a regular bottleneck in the product process
Q2) What does makespan measure?
A)WIP inventory
B)due-date performance
C)the amount of time it takes to finish a batch of jobs
D)job tardiness
E)job lateness
Q3) Which of the following is the least effective tactic for managing a bottleneck station?
A)Assign extra workers to the bottleneck station if necessary in order to keep it running.
B)Increase the production rate at the bottleneck station.
C)Inspect items just as soon as they come out of the bottleneck station.
D)Subcontract part of the workload at that station to other companies.
E)Assign your best people to that station to improve efficiency.
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Chapter 16: Project Management
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Q1) Which of the following can be calculated for an activity once ES,EF,LS,and LF have been calculated for the activity?
A)expected project duration
B)slack time
C)potential for crashing
D)variance in project duration
E)the relative time position for when the activity will be completed
Q2) An activity in a network diagram has an optimistic time estimate of seven days,a most likely time estimate of 11 days,and a pessimistic time estimate of 19 days.Its variance is _________.
A)2
B)4
C)6
D)12
E)24
Q3) If a delay in an activity will delay completion of the whole project,the activity has slack.
A)True
B)False
Q4) What are the benefits of network planning techniques?
Page 18
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Chapter 17: Spreadsheet Modeling: an Introduction
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Q1) One reason for intermediate spreadsheet calculations is management is often interested in more detail than the final results.
A)True
B)False
Q2) You can edit Excel formulas by either double-click the cell,or
Q3) In Excel,which function takes a range of values as its input and returns the smallest value from that range?
A)INF
B)SMALL
C)LITTLE
D)MIN
E)LOW
Q4) What are the most common useful numerical formats?
A)date,currency,and percentage
B)date,time,and custom
C)time,custom,and number
D)number,custom,and percentage
E)number,currency,and percentage
Q5) What is the advantage of using a Stacked Column chart?
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Q6) The sample standard deviation is found by using the Excel ___________ function.
Chapter 18: Introduction to Optimization
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Q1) If a firm is using a linear program to determine production amounts of its chairs and tables,which of the following constraints must be in the model?
A)non-negativity
B)labor hours
C)machine hours
D)profit maximization
E)wood availability
Q2) After running a Linear Program in Excel Solver,what message do you hope to see in the "Solver Results" box?
Q3) Three reports are available when Solver has successfully found an optimal solution.These are _______.
A)Answer Report,Sensitivity Report,and Limits Report
B)Answer Report,Sensitivity Report,and Constraints Report
C)Answer Report,Limits Report,and Constraints Report
D)Solution Report,Sensitivity Report,and Limits Report
E)Solution Report,Sensitivity Report,and Constraints Report
Q4) A formulation is a formal,____________ statement of a constrained optimization problem
Q5) A constraint in Excel Solver consists of what three pieces of information?
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Chapter 19: Waiting Line Models
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Q1) Consider a single-line,single-server waiting line system.Suppose that customers arrive according to a Poisson distribution at an average rate of 50 per hour,and the average (exponentially distributed)service time is 45 seconds per customer.What is the probability that 4 customers are in the system?
Q2) Changing from a multi-line model to a single-line model is most appropriate when the company is concerned about fairness for its customers.
A)True
B)False
Q3) Consider a single-line,single-server waiting line system.Suppose that customers arrive according to a Poisson distribution at an average rate of 50 per hour,and the average (exponentially distributed)service time is 45 seconds per customer.What is the probability that \(\le\) 2 customers are in the system?
Q4) There are many variations of the mathematical models for designing waiting lines. A)True
B)False
Q5) List examples of dedicating specific servers for specific transactions.
Q6) In a single-line,multi-server,single phase model,customers form a ________ line.
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Chapter 20: Master Scheduling and Rough-Cut Capacity Planning
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Q1) What term refers to proven capacity calculated from actual performance data?
A)manifested capacity
B)established capacity
C)demonstrated capacity
D)confirmed capacity
E)affirmed capacity
Q2) What is the formula for calculating the ATP quantity in the action bucket?
A)MPS shipment - customer orders before next replenishment
B)beginning inventory + MPS shipment - (the greater of this period's forecast or the actual customer orders promised for delivery this period)
C)beginning inventory + MPS shipment - forecasted demand
D)beginning inventory + MPS shipment - customer orders before next replenishment
E)beginning inventory + MPS shipment - customer orders this period
Q3) Beginning Inventory + MPS Shipment - maximum of (forecast and customer orders)is called ________________________.
Q4) Describe what CPOPF is.
Q5) The MPS is said to be ________________________ between final assembly and cumulative manufacturing lead times.
Q6) Discuss the Master scheduler responsibility.
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