OPS 571 Final Exam (Newest) –
1. A major competitive dimension that forms a company's strategic
operational competitive position in their strategic planning is which
of the following?
Cost or price
2. In setting up a kanban control system you need to determine the
number of kanban card sets needed. If the expected demand during
lead time is 25 per hour, the safety stock is 20 percent of the demand
during lead time, the container size is 5, and the lead time to
replenish an order is 5 hours, what the number of kanban card sets
3. Which of the following is a multifactor measure of productivity?
Output/(Labor + Capital + Energy)
Output/All resources used
4. Which of the following is an alternative possible service encounter
included in the service-system design matrix?
Automated teller (ATM)
5. In development of an operations and supply chain strategy, which of
the following may be an important product-specific criteria to
Supplier after-sale support
Production lot size
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6. Which of the following is one of Dr. Eli Goldratt's rules of production
scheduling for optimized production technology?
An hour lost at a bottleneck saves an hour for the entire system
Do not allow bottlenecks to govern the flow of the line
Utilization and activation of a resource are not the same
Balance the capacities, not the flows
7. You have just been assigned to oversee a series of projects.
Functional areas will loan you personnel for each project, and
separate project managers will be responsible for separate projects.
These project managers will report to you. Which project
management structure is being used?
8. Which of the following is a reason that firms must develop more new
products than ever?
Commitments to joint venture partners
Product life cycles are shorter
They are replacing old customers with new ones
To amortize heavy investments in development labs
9. We would expect to see which of the following in an MRP system's
inventory status file?
End items produced
Late/early delivery records
10. The centroid method for plant location uses which of the following
Inbound transportation costs
Volume of goods to be shipped between existing points
Transport times between facilities
Correlation matrix of existing facilities
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11. The Pareto principle is best applied to which of the following
12. A company can produce a small lot of products the first time at a
cost of $2,000. If their 85 percent learning curve allows them to
reduce their costs on each lot, what is the total cost of producing 5
13. You are a consultant called in to estimate the costs after the
employees learn how to do a job more efficiently by repetition of new
product. You find a company can produce a product the first time at
a cost of $5,000. If their 90 percent learning curve allows them to
reduce their costs on each unit, what is the total cost of producing
100 units of the new product?
14. A material requirements planning system is an example of which
of the following scheduling systems?
Infinite loading, backward scheduling
Finite loading, backward scheduling
Infinite loading, forward scheduling
Finite loading, forward scheduling
15. Capacity planning that involves hiring, layoffs, some new tooling,
minor equipment purchases, and subcontracting is considered as
which one of the following planning horizons?
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16. You want to determine the upper control line for a p-chart for
quality control purposes. You take several samples of a size of 100
items in your production process. From the samples, you determine
the fraction defective is 0.05 and the standard deviation is 0.01. If
the desired confidence level is 99.7 percent, which of the following is
the resulting UCL value for the line?
17. The objectives of work center scheduling include which of the
Providing variety to workforce
Following all the priority rules
Minimizing setup costs
18. For which of the following should we use an R-chart to monitor
Deciding whether an airliner has sufficient fuel for its trip
Determining whether vehicles from a motor pool will run
Weighing trucks at a highway inspection station to determine if
they are overloaded
Student grades measured from 1 to 100
19. Which of the following is a major factor that distinguishes service
design and development from manufacturing design and
The service package has the same legal protection available to
The service process and service product can be developed
Manufacturing is far more capital intensive than services.
The service package is the major output of the development
20. Which of the following is a time-to-market performance measure
used in judging product development performance?
Frequency of new-product introductions
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571 Final Exam Questions and Answers
21. In business forecasting, what is usually considered a mediumterm
One to six months
Three months to two years
Six weeks to one year
One to five years
22. There are many applications of poka-yokes in service
organizations. Which of the following is one of the three-T's used to
23. Assuming no safety stock, what is the reorder point (R) given an
average daily demand of 78 units and a lead time of 3 days?
24. Which of the following is a measure of operations and supply
management efficiency used by Wall Street?
Earnings per share growth
Dividend payout ratio
25. A project starts out as which of the following?
Critical path method (CPM)
A latest-start-time estimate
A series of milestones
A statement of work
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26. The ability to rapidly and inexpensively switch production from
one product to another enables what are sometimes referred to as:
Economies of shape
Economies of scope
Economies of size
Economies of scale
27. According to the theory of constraints, which of the following is a
financial measurement that can be used to measure the firm's ability
to make money?
28. What is a work breakdown structure?
A depiction of the activities making up a project
A Gantt chart
A list of the activities making up the higher levels of the project
A definition of the hierarchy of project tasks, subtasks, and
29. If a firm produced a standard item with relatively stable demand,
the smoothing constant alpha (reaction rate to differences) used in
an exponential smoothing forecasting model would tend to be in
which of the following ranges?
5 to 10 percent
60 to 120 percent
20 to 80 percent
20 to 50 percent
30. What transportation mode has very high initial investment costs
but gives a very low cost per mile for products that are highly
specialized and require no packaging?
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