This document appears to be a multiple choice exam for an operations management course. It contains 43 multiple choice questions testing concepts related to operations processes, quality management, forecasting, inventory management, aggregate planning, MRP systems, capacity planning and more. The questions cover topics such as make-to-stock processes, process metrics, blocking in production, process flow structures, quality function deployment, value analysis, design quality dimensions, quality costs, forecasting methods, supply chain efficiency, JIT systems, aggregate planning strategies, MRP inputs and outputs, and capacity requirements determination.

1. OPS 571 Final Exam
ANSWERS ARE HERE 
1. Which of the following is true about make-to-stock processes?
A. Make-to-stock processes can be controlled based on the actual or anticipated amount of finished
goods
B. Make-to-stock process is used when demand is seasonal and the firm does not have enough
C. Services by their very nature often use make-to-stock processes.
D. A and B
2. According to your text, the most common process metric is:
A. Productivity
B. Utilization
C. Throughput time
D. Efficiency
3. ________ is when the activities in the stage must stop because there is no place to deposit the item
just completed.
A. Buffering
B. Starving
C. None of these answers
D. Blocking
4. According to Hayes and Wheelwright, which of the following is not a major process flow structure?
A. Job Shop
B. Assembly Line
C. Project
D. Batch
5. The most important performance dimension for product development projects is
A. Quality
B. Product flexibility
C. Time-to-market

2. D. Productivity
6. The major decision variables in equipment selection are:
A. Flexibility
B. Labor requirements
C. Manufacturer
D. Both A and B
7. Quality Function Deployment:
A. is a tool for translating customer requirements into concrete operating and engineering goals.
B. facilitates inter-functional cooperation between marketing, engineering, and manufacturing.
C. provides a better understanding and focus on process characteristics that require improvements.
D both a and B.
8. Which of the following statements is true about value analysis/value engineering?
A. the purpose of VA/VE is to simplify products and processes.
B the objective of VA/VE is to achieve equivalent or better performance at a lower cost.
C. VA is performed before the production stage, while VE deals with products already in production.
D both A and B.
9. In which phase of new-product design process are considerations to target market, desired level of
performance, investment requirements and financial impact made:
A. detailed engineering.
B. Preliminary process design.
C. pilot manufacturing phase.
D. concept development and product planning.
10. Which of the following is not a dimension of design quality?
A. Durability.

3. B. Serviceability.
C. Customization.
D. Features.
11. Testing is an example of:
A. Prevention costs.
B. Internal Failure costs.
C. External Failure Cost.
D. Appraisal costs.
12. Which Quality Guru advocated that senior management is responsible for 94% of quality problems?
A. Deming.
B. Ishikawa.
C. Juran.
D. Crosby.
13. Independent Demand is:
A. demand that is related to the demand for another item.
B. demand determined by the marketplace that requires forecasting.
C. Inventory whose demand comes from independent suppliers.
D. Inventory that is independent of any known rules of demand and supply.
14. Which of the following statements is true about the Q-system?
A. It does not have an EOQ, since the quality varies according to the demand.
B. The order interval is fixed not the order quanity.
C. It does not have a reorder point but rather a target inventory.
D. The system is completely determined by the two parameters, Q and R.
15. Which of the following is not an assumption of the basic economic-order quantity model?

4. A. ordering or setup costs are constant.
B. Quantity discounts are available.
C. annual demand is constant and known.
D. lead time is constant.
16. Which of the following is not a principle of work-center scheduling?
A. Schedule jobs as strings, with process steps back to back.
B. Obtain feedback each day on the jobs that are completed at each work center.
C. Once started, a job should not be interrupted.
D. Reschedule every day.
17. The assignment method is appropriate in solving problems that have the following characteristics?
A. There are ‘n’ things to be distributed to ‘n’ destinations.
B. Though each destination may handle all the things, the final assignment has each thing assigned to
one and only one destination.
C. Only one criterion should be used (minimum cost, maximum profit, for example).
D. A and C.
18. The objective of work-center scheduling include(s):
A. To meet due dates.
B. To minimize lead times.
C. To minimize finish goods inventory.
D. Both A and B.
19. The measure of the firm’s ability to make money according to Goldratt include:
A. Net profit.
B. Return on assets.
C. Cash flow.
D. Both A and C.

5. 20. Goldratt’s rule of production scheduling include all but:
A. An hour saved at a non-bottleneck is a marriage.
B. A process batch should be fixed both along its route and in time.
C. Do not balance the capacity-balance the flow.
D. Utilization and activation of a resource is not the same thing.
21. According to Goldratt and Fox, a useful performance measure to treat inventory is:
A. Quick ratio.
B. Dollar days.
C. Inventory turnover.
D. Current ratio.
22. The advantages of pure project include all but:
A. Decisions are made quickly.
B. A team member can work on several projects.
C. The project manager has full authority over the project.
D. Team pride, motivation, and commitments are high.
23. Which of the following is not a typical milestone?
A. Training of project members.
B. Completed testing of the prototype.
C. Completion of design.
D. Production of a prototype.
24. “Slack” refers to the difference between:
A. Observed and predicted times.
B. optimistic and pessimistic times.
C. Latest and earliest times.

6. D. finish and start times.
25. Which of the following statements are true about time-series forcasting?
A. Time series analysis is based on the idea that the history of occurrences over time can be used to
predict the future.
B. Agent liability. Time series analysis tries to understand the system underlying and surrounding the
item being forecast.
C. Under time-series methods, demand is divided into the time-based components such as daily, weekly,
etc.
D. Time series methods are useful for long-range forecasts when the demand pattern is erratic.
26. Which of the following product promotional activities would probably help make the supply chain
more efficient?
A. Special packaging for a specific event that occurs one time each year.
B. A 2 for 1 price promotion.
C. Price promotions that expire on a specific date.
D. An “everyday” low price strategy where prices are not dependent on quantity delivered with a
specific order.
27. According to Hau Lee, which of the following types of products need to be delivered with efficient
supply-chains?
A. Grocery Products.
B. High technology products.
C Customer products.
D. Innovative products.
28. Supply-chain response relates to the following?
A. How quickly a customer order can be filled.
B. How quickly a company can react to a new competing product.
C. How inexpensive the product is.
D. Both A and B.

7. 29. Which of the following statements is not true about capacity management in operations?
A. Capacity planning itself has different meaning to individual at different levels within the operations
management hierarchy.
B. the definition of capacity, in an operations management context, makes a clear distinction between
efficient and inefficient use of capacity.
C. When looking at capacity, operations managers need to look at both resource input and product
outputs.
D. An operations management view also emphasizes the dimension of capacity.
30. Capacity utilization rate can be computed as:
A. Capacity used-best.
B. Capacity used x best.
C. Capacity used/best.
D. Capacity used + best.
31. Lean systems typically require?
A. delivery of large lots at frequent intervals.
B Buyer inspection of goods and materials.
C. multiple sources from which to purchase.
D. long-term relationships and commitments.
32. Which of the following is not true about JIT systems?
A. The JIT system is based on the philosophy of eliminating waste and utilizing the full capacity of the
worker.
B. Under JIT the ideal lot size is one.
C. JIT is typically applied to repetitive manufacturing.
D. The goal of JIT is to drive all inventory queues to a moderate level thus minimizing inventory
investment and shortening lead times.
33. Which of the following is not an element of JIT?

8. A. small-lot production.
B. quickly changing schedule.
C. Multifunction worker.
D. Kanan pull system.
34. Which of the following would not be classified as a time-series technique?
A. Simple moving average.
B. Exponential smoothing.
C. Box Jenkins technique.
D. Regression model.
35. Which phase most closely describes the Delphi forecasting technique?
A. consumer survey.
B. random individual opinions.
C. group of expert’s opinions.
D. test markets.
36. Aggregate planners balance?
A. demand and costs.
B. demand and inventories.
C. demand and capacity.
D. supply and inventories.
37. Which of the following accurately descrives a chase strategy?
A. The firms produces the same amount each day over the planning period and deals with the variations
in demand through the use of inventory or overtime.
B. The firm produces at the same level for several months, and then adjusts production to another level
and produces at that level for several more months.
C. The firm produces exactly what is needed each month.

9. D. All of the above could describe the strategy depending on the organization.
38. Which of the following is not a cost relevant to aggregate production planning?
A. Basic production costs.
B. Quantity discounts.
C. Cost associated with changes in the production rate.
D. Inventory holding costs.
39. Which MRP system input element specifies how many and when the firm plans to build each end
item?
A. Master Production schedule.
B. Bill of Material.
C. Inventory records file.
D. Capacity Planning.
40. Which of the following most closely describes net material requirements?
A. gross requirements-on hand-planned order receipts.
B. gross requirements-on-hand+ planned order receipts.
C. gross requirements-planned order receipts.
D. gross requirements-planned order releases.
41. Which of the following is not an advantage of MRP?
A. Reduced idle time.
B. Reduced inventory.
C. Reduced sales price.
D. MRP is flexible-easy to veer away from the schedule is need arises.
42. The steps to determining capacity requirements include:
A. Using decision trees to evaluate capacity alternatives

10. B. Calculating equipment and labor requirements to meet product line forecasts
C. Projecting labor and equipment availabilities over the planning horizon
D. B and C
43. Service capacity
A. is highly time and location dependent
B. is subject to less volatile demand fluctuations
C. utilization directly impacts service quality
D. A and C