Service Operations Management Practice Questions
Course Introduction
Service Operations Management explores the principles and practices involved in designing, delivering, and improving services across various industries. The course examines key concepts such as service process design, capacity management, service quality, demand forecasting, and the role of technology in service delivery. Students learn to analyze service systems, optimize resource utilization, and develop strategies for enhancing customer satisfaction and operational efficiency. Case studies highlight real-world challenges faced by service-oriented organizations, providing practical insights into managing people, processes, and performance in dynamic environments.
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 business function is responsible for planning,coordinating,and controlling the resources needed to produce a company's products and services?
A)engineering
B)finance
C)human resources
D)marketing
E)operations management
Answer: E
Q2) Increasing the level of responsibility of a job by adding planning and coordination tasks is ___________.
A)job enlargement
B)job rotation
C)job involvement
D)job enrichment
E)job backward integration
Answer: D
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Chapter 2: Operations Strategy and Competitiveness
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Sample Questions
Q1) An airline has determined that its baggage handlers handle 12,000 bags when 3 baggage handlers are on shift.What is the baggage handler productivity?
A)4,000 bags/shift
B)4,000 bags/handler
C)14,000 bags/shift
D)12,000 bags/shift
E)2,000 bags/handler
Answer: B
Q2) Last week George mowed 6 lawns in two days.This week he mowed 8 lawns in three days.In which week was George more productive?
Answer: last week
Q3) A machine shop produces hangers on two different machines.Machine 1 can produce a hanger every 15 minutes.Machine 2 can produce a hanger every 10 minutes.What is the average productivity per machine?
Answer: 5 units/hour
Q4) __________ ________ is used to improve the process of creating goods and services.
Answer: Process technology
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Chapter 3: Product Design and Process Selection
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Sample Questions
Q1) In break-even analysis,what is the break-even point?
A)the quantity where revenue equals total cost
B)the quantity where revenue equals fixed cost
C)the quantity where revenue equals variable cost
D)the quantity beyond which the firm starts to lose money
E)the quantity where variable cost equals fixed cost
Answer: A
Q2) Substituting technology for people has been argued to reduce what in the service delivery?
Answer: uncertainty of service delivery
Q3) What is included in the preliminary design and testing stage of product design?
Answer: design engineers translate general performance specifications into technical specifications,"bugs" are worked out,revising the design based on test results,and prototypes are built and tested
Q4) Intermittent operations group their resources based on similar operations or functions.
A)True
B)False
Answer: True
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Chapter 4: E-Commerce and Supply Chain Management
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Sample Questions
Q1) Annual fixed costs are $900,000 and $800,000 for outsourcing and insourcing,respectively,and variable costs are $28 and $32 for outsourcing and insourcing,respectively.If current annual demand is 22,000 units,by how much must demand increase in order for outsourcing to become cheaper?
Q2) Name three benefits of B2B e-commerce:
Q3) Which term refers to inaccurate or distorted demand information created in the supply chain?
A)Battle axe effect
B)Cobra effect
C)Bullwhip effect
D)Lasso effect
E)Whirlpool effect
Q4) What are the three "components" of a supply chain?
Q5) Rationing and shortage gaming occur when supply exceeds demand.
A)True
B)False
Q6) Global competition forces firms to offer _____________________ products.
Q7) Logistics includes what two major management functions?
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Chapter 5: Total Quality Management
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Sample Questions
Q1) Quality circles are a common application of the ________________________
Q2) The definition of quality that involves the product functioning as expected without failure is
A)Performance
B)Conformance
C)Reliability
D)Standardization
E)Endurance
Q3) What are the seven categories for Malcolm Baldrige Award criteria?
Q4) What are the common causes of TQM failure?
Q5) ISO 9000 is
A)An award for quality given annually by the U.S.Government
B)An approach to quality management that was developed in Japan by Deming
C)A set of international quality standards and a certification process for companies
D)An approach for managing self-directed teams
E)An approach for product design
Q6) A cause-and-effect diagram is also referred to as a Taguchi diagram.
A)True
B)False
Page 7
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Chapter 6: Statistical Quality Control
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Sample Questions
Q1) Statistical quality control is a subset of statistical process control.
A)True
B)False
Q2) What program at Intel enforces the policy to make chips in the same way at all facilities?
A)"make-same"
B)"copy-exactly"
C)"duplicate-same"
D)"duplicate-exactly"
E)"one-size-fits-all"
Q3) What is the formula for the sample standard deviation of a variable measured as a fraction or probability?
Q4) What is the probability of a Type I error for a control chart with limits set at \(\pm\) 3 standard deviations from the mean?
A)0.00%
B)0.26%
C)4.56%
D)20.00%
E)50.00%
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Chapter 7: Just-In-Time and Lean Systems
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Sample Questions
Q1) One aspect of flexible resources is
A)Use of multifunction workers
B)Relying on special equipment
C)Use of overtime
D)Leasing,rather than buying,equipment
E)Variable work schedules
Q2) In JIT the workforce is viewed as
A)another resource to be managed
B)another contractual obligation
C)a long-term asset
D)a short term asset
E)an asset that must be closely managed
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 is the difference between traditional and cell manufacturing?
Q5) Describe how JIT affects the Accounting department.
Page 9
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Chapter 8: Forecasting
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Sample Questions
Q1) What is the objective of the Delphi method?
Q2) Which forecasting method is particularly good for determining customer preferences?
A)Market research
B)Executive opinion
C)Delphi method
D)Naïve method
E)Gamma method
Q3) Planalytics is a company that helps businesses use weather data to make their business plans.
A)True
B)False
Q4) A cycle is any data pattern that regularly repeats itself and is constant in length.
A)True
B)False
Q5) Companies that use collaborative planning,forecasting,and replenishment repeat its steps _____________________ and _____________________ annually.
Q6) Describe the naïve forecasting method.
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Chapter 9: Capacity Planning and Facility Location
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Sample Questions
Q1) When discussing the capacity of a facility,we need what two types of information?
A)the amount of available capacity and the productivity of workers
B)the speed of the machines and the availability of labor
C)the amount of available capacity and the effectiveness of capacity use
D)the investment in equipment and the availability of labor
E)the investment in equipment and the number of workers
Q2) Investments in building or purchasing long-term production facilities are inherently risky due to __________.
A)uncertainty in forecasting future demands
B)unexpected changes in interest rates
C)durability of materials
D)corporate mergers
E)rapid technology changes
Q3) What is the formula for effective utilization? ________________________
Q4) What are the disadvantages of globalization?
Q5) Capacity planning is complicated by the fact that capacity is usually purchased in chunks,rather than smooth increments.
A)True
B)False
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Chapter 10: Facility Layout
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Sample Questions
Q1) Facility layout decisions are _________ with a number of other ____________.
Q2) Which company is widely considered to be the leader of just-in-time production?
A)Ford
B)Timex
C)Gateway
D)Toyota
E)Sony
Q3) A process layout is seen in companies with continuous processing systems.
A)True
B)False
Q4) What is Wal-Mart's primary consideration for its store layout decision regarding the number and size of aisles in its stores?
A)predictability
B)comfort
C)ease of navigation through the store
D)customer exposure to merchandise
E)inventory control
Q5) A predecessor can be worked in parallel with a successor.
A)True
B)False
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Chapter 11: Work System Design
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Sample Questions
Q1) If OT = the mean observed time,PRF = the performance rating factor,F = the frequency of occurrence,and PFD = the percentage allowance based on time worked,the formula to compute the standard time is (OT)(PRF)(F).
A)True
B)False
Q2) An increase in the desired confidence level will decrease the number of observations necessary in a time study.
A)True
B)False
Q3) Which of the following is typically not associated with problem solving teams?
A)employees typically volunteer
B)employees are trained in problem solving techniques
C)employees contribute on a short term basis
D)employees engage in data gathering
E)employee participation is on an ongoing basis
Q4) Methods analysis eliminates unnecessary tasks and improves the process for completing tasks.
A)True
B)False
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Chapter 12: Independent Demand Inventory Management
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Q1) Consider a periodic review system with a lead time of 2 weeks,a review period of 4 weeks,average weekly demand of 100 units,standard deviation of weekly demand of 20 units,and a desired cycle-service level of 90%.(a)What is the target inventory level? (b)If it is time to review the item and 10 units are on hand,how many units should be ordered?
Q2) Any inventory turnover less than 4 is considered to be poor performance.
A)True
B)False
Q3) When is the basic EOQ model a special case of the EPQ model?
A)The demand per day approaches the demand per year.
B)The production rate per day approaches 0.
C)The production rate per day approaches infinity.
D)The back order cost approaches infinity.
E)d/p = 1.
Q4) Which inventory function provides a hedge against inflation?
A)anticipation inventory
B)fluctuation inventory
C)lot-size inventory
D)MRO inventory
E)speculative inventory
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Chapter 13: Aggregate Planning
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Sample Questions
Q1) A company's ____________ plan is a statement of the resources available to the operations group during the next 6 to 18 months.
A)project
B)master
C)strategic
D)aggregate
E)tactical
Q2) Evaluating an aggregate plan in terms of number of back orders is using what perspective?
A)cost
B)customer service
C)quality
D)operations
E)human resources
Q3) A primary objective of the master production schedule is to achieve the desired customer service level.
A)True
B)False
Q4) What are the capacity-based options in aggregate planning?
Q5) What are the inputs to the aggregate planning process?
Page 15
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Chapter 14: Resource Planning
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Sample Questions
Q1) List the major users of ERP systems.
Q2) Given the following data:
(a)What are the workloads for periods 3 and 4?
(b)There are 168 hours of operating time per machine each period.How many machines should be operated for periods 3 and 4?
Q3) The ____________ details the company's planned products,quantity,and the schedule used by marketing when promising deliveries.
A)master production schedule
B)bill of material
C)inventory records
D)material product sales
E)promised deliveries
Q4) 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
Q5) What are some technological motivations for implementing ERP systems?
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Chapter 15: Scheduling
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Sample Questions
Q1) Which of the following is a measure of whether the job is done ahead of,on,or behind schedule?
A)average number of jobs in system
B)mean flow time
C)makespan
D)job tardiness
E)job lateness
Q2) A measure of response time is:
A)makespan
B)job flow time
C)due date
D)job lateness
E)job schedule time
Q3) Usage and activation of a resource are not the same.
A)True
B)False
Q4) In a service organization,a doctor's office is a good example of finite loading.
A)True
B)False
Q5) Define Johnson's rule.
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Chapter 16: Project Management
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Sample Questions
Q1) We use _____________________ time estimates when we can make a reliable estimate.
A)variable
B)probabilistic
C)estimated
D)deterministic
E)cumulative
Q2) Who is responsible for the success and failure of a project?
A)CEO
B)Program Manager
C)Project Manager
D)Project Sponsor
E)Functional Manager
Q3) 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
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Chapter 17: Spreadsheet Modeling: an Introduction
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Q1) For the Goal Seek feature in Excel,it doesn't matter whether you use absolute or relative references.
A)True
B)False
Q2) The sample standard deviation is found by using the Excel ___________ function.
Q3) In Excel,absolute references are indicated by the lack of a dollar sign character preceding either the column or the row reference.
A)True
B)False
Q4) Describe the "IF" function in Excel.
Q5) What does it mean when the formula result of the MATCH function in Excel equals 2?
A)Two items matched the Lookup_value.
B)The item labeled "2" matched the Lookup_value.
C)The Lookup_value was found in the second position of the Lookup_array.
D)An error occurred.
E)The closest item to the Lookup_value was within two units of that value.
Q6) You can edit Excel formulas by either double-click the cell,or
Q7) Describe and discuss the two different types of model inputs.
Q8) What are the five guidelines for good spreadsheet documentation?
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Chapter 18: Introduction to Optimization
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Q1) Formulate the following as a linear program. Joe's Sports Shop is sponsoring a weekly boomerang-throwing contest as part of its spring promotions.Anyone may enter,but the boomerangs used must be purchased at the shop.Demand is unlimited.Two models can be made: the regular model (with a profit of $2 each)and the super model (which yields a $5 profit).However,production facilities are limited.A regular boomerang requires 1 hour of carving and 2 hours of finishing,while a super boomerang takes 3 hours to carve and 2 hours to finish.The skilled crafters employed by the shop have indicated they will spend no more than 75 hours carving and 100 hours finishing boomerangs per week.The owner wishes to allocate production in order to maximize profits.
Q2) Explain what differentiates a Linear Program from a Nonlinear Program.
Q3) Given a Linear Program with a minimization objective,the optimal objective function value may decrease if a constraint is added to the program.
A)True
B)False
Q4) If all constraints are not fully consumed,the final result is not an optimal solution. A)True B)False
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Chapter 19: Waiting Line Models
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Sample Questions
Q1) What are the two elements that define a waiting line system?
Q2) Consider a single-line,single-server waiting line system.Suppose that customers arrive according to a Poisson distribution at an average rate of 100 per hour.The manager does not want customers to be in the system for longer than 12 minutes.How fast does the average (exponentially distributed)service time need to be in minutes in order to keep the manager satisfied?
Q3) In a single-line,multi-server,single phase model,customers form a ________ line.
Q4) The average time customers spend waiting and the average time a customer spends in the system:
A)are the same metric.
B)use the same formula.
C)are not considered.
D)are different system metrics.
E)only apply to multi-server systems.
Q5) Waiting line models are important to a company because they directly affect customer service _________.
Q6) Waiting line models __________ ________ specifies the average number of customers per time period.
Q7) Waiting line models typically assume what distribution(s)?
Page 21
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Chapter 20: Master Scheduling and Rough-Cut Capacity Planning
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Sample Questions
Q1) What data are added to create an extended MPS record that allows the firm to compute available-to-promise units?
A)time period (e.g.weeks)
B)forecast
C)customer orders
D)projected available E)MPS
Q2) Johnny Now,Inc.produces two different models of outhouses.Demand next period is expected to be 12,000 and 18,000 units for Models A and B,respectively.Model A has CPOPF planning factors of 0.75 and 0.60 for direct labor and machine time,respectively.Model B has CPOPF planning factors of 0.50 and 0.80 for direct labor and machine time,respectively.Historically department G uses 24% of the direct labor and machine time for these products,while department H uses the remaining 76%.What is the machine time requirement for department H next period?
A)5,184 hours
B)13,680 hours
C)14,400 hours
D)21,600 hours
E)16,416 hours
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