Decision Sciences Exam Review
Course Introduction
Decision Sciences is an interdisciplinary course that explores the use of analytical methods, quantitative models, and data-driven approaches in making effective business and organizational decisions. Students will examine techniques such as statistical analysis, optimization, simulation, and risk assessment to solve complex problems and support strategic planning. The course also integrates practical case studies and real-world applications, equipping learners with the tools to interpret data, evaluate alternatives, and implement actionable solutions across diverse industries.
Recommended Textbook
OM 5 5th Edition by David Alan Collier
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23 Chapters
1926 Verified Questions
1926 Flashcards
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2
Chapter 1: Goods, Services, and Operations Management
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81 Verified Questions
81 Flashcards
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Sample Questions
Q1) Customer participation in manufacturing processes and activities is generally high.
A)True
B)False
Answer: False
Q2) Which one of the following statements is TRUE regarding a customer benefit package (CBP)?
A) A CBP consists of a primary good and a primary service coupled together.
B) A variant is a CBP feature that strictly adheres to the standard CBP.
C) The size of the circles in the CBP framework can signify the relative importance of each good and service.
D) When defining a CBP, the features determined by management accurately describe customers' wants and needs.
Answer: C
Q3) Product safety is an example of a(n) _____ sustainability practice.
A) environmental
B) social
C) economic
D) technological Answer: B
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Page 3
Chapter 2: Value Chains
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Sample Questions
Q1) Which of the following statements in the perspective of a value chain is TRUE?
A) Pre- and postproduction services complete the ownership cycle for a good or service.
B) Offshoring is the process of having suppliers provide goods and services that were previously provided internally.
C) Value chain integration includes improving external processes for the client, and not the internal processes.
D) A value chain is a narrower concept than a supply chain that focuses more on the physical movement of goods, not services.
Answer: A
Q2) The focus of preproduction services is on gaining a customer while that of postproduction services is on keeping the customer.
A)True
B)False
Answer: True
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Chapter 3: Measuring Performance in Operations
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Sample Questions
Q1) Which of the following is NOT a financial performance measure at an organizational level?
A) Labor and material costs
B) Revenue and profit
C) Return on assets
D) Earnings per share
Answer: A
Q2) Which of the following performance perspectives in the balanced scorecard model includes measures like productivity, flow time, and asset utilization?
A) Financial perspective
B) Customer perspective
C) Innovation and learning perspective
D) Internal perspective
Answer: D
Q3) Empathy is the caring attitude and individualized attention provided to customers.
A)True
B)False
Answer: True
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Chapter 4: Operations Strategy
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Sample Questions
Q1) Which of the following statements in the Lawn Care Company (LCC) case study is TRUE?
A) The LCC already had experience and capabilities in the residential lawn application service and market segment, and was considering using this expertise to enter the golf and park market segment.
B) The gross margin on grass seed and fertilizer were higher than on the lawn application service.
C) Service management skills play a major role in the LCC current strategy and vision of the business at the time of the case.
D) Social sustainability is an important issue for this business in today's market.
Q2) _____ is being able to make whatever goods and services a customer wants, at any volume, at any time for anybody, and for a global organization, from any place in the world.
A) Strategic planning
B) Mass customization
C) Enterprise resource planning
D) Business analytics
Q3) Explain the concepts of search, experience, and credence attributes.
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Chapter 5: Technology and Operations Management
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Sample Questions
Q1) Low scalability was one of the reasons for failure of many early Internet-based companies.
A)True B)False
Q2) Information technology has been equally important to business to business, business to customer, and customer to customer interactions.
A)True B)False
Q3) FedEx is an example of a customer-to-customer value chain.
A)True B)False
Q4) Procter & Gamble use bricks-and-mortar intermediaries. A)True B)False
Q5) Discuss the components, hardware, and software of a computer-integrated manufacturing system (CIMS).
Q6) Explain the concept of industrial robots.
Q7) How does customer relationship management (CRM) help a firm gain competitive advantage?
Page 7
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Chapter 6: Goods and Service Design
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Sample Questions
Q1) If the individual reliabilities are denoted by p<sub>1</sub>, p<sub>2</sub>, . . ., p<sub>n</sub>, which of the following best represents the system reliability R<sub>p</sub> of an n-component parallel system?
A) Rp = 1 - (1 + p<sub>1</sub>) (1 + p<sub>2</sub>) (1 + p<sub>3</sub>) . . . (1 + p<sub>n</sub>)
B) Rp = 1 - (1 - p<sub>1</sub>) (1 - p<sub>2</sub>) (1 - p<sub>3</sub>) .
. (1p<sub>n</sub>)
C) Rp = (p<sub>1</sub>) (p<sub>2</sub>) (p<sub>3</sub>) . . . (p<sub>n</sub>)
D) Rp = (p<sub>1</sub>) + (p<sub>2</sub>) + (p<sub>3</sub>) + . . . (p<sub>n</sub>)
Q2) Low-customer-contact areas of an organization are sometimes described as the "front room or front office."
A)True
B)False
Q3) Service design must be addressed from two perspectives-the service delivery system and the service encounter.
A)True
B)False
Q4) Explain the concept of Design for Manufacturability (DFM).
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Page 8
Chapter 7: Process Selection, Design, and Analysis
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Sample Questions
Q1) A car rental company at a major airport has 80% of its fleet of 200 cars rented each day on average. Cars are rented for an average of 5 days. How many rentals are processed each day on average?
Q2) An automobile emission testing center tests 50 vehicles per hour. Each inspector can inspect one vehicle every four minutes. If the center wants a utilization of 90%, how many inspectors are required?
A) Two
B) Three
C) Four
D) Five
Q3) _____is the fraction of time a workstation or individual is busy over the long run.
A) Utilization
B) Cycle time
C) Throughput
D) Turnaround time
Q4) An automobile emission testing center has six (6) inspectors and tests 60 vehicles per hour. Each inspector can inspect thirteen (13) vehicles per hour. What is the center's utilization?
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9
Chapter 8: Facility and Work Designs
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Sample Questions
Q1) All of the following are common objectives of layout studies EXCEPT to:
A) minimize delays in materials handling and customer movement.
B) minimize the number of workstations.
C) provide for good housekeeping and maintenance.
D) maintain flexibility.
Q2) Describe approaches used for process layout design.
Q3) Which of the following statements is NOT true about fixed-position layouts?
A) Work-in-process remains stationary.
B) They require a high level of planning and control.
C) The volume of demand is very high.
D) They are used in the production of heavy machine tools and locomotives.
Q4) A fixed-position layout is based on the sequence of operations that is performed during the manufacturing of a good or delivery of a service.
A)True
B)False
Q5) Cycle time in assembly-line balancing is the maximum amount of time it takes to process a part at some workstation along the line.
A)True
B)False
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Chapter 9: Supply Chain Design
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Sample Questions
Q1) The _____ method takes into account the location of facilities and markets, demand, and transportation costs in arriving at the best location for a single facility.
A) global sourcing
B) inventory management
C) multisite management
D) center-of-gravity
Q2) An automobile company that installs satellite radio at the dealership instead of at the factory is applying a postponement strategy.
A)True
B)False
Q3) Explain the concept of postponement and provide an example of it.
Q4) _____ is the process of delaying product customization until the product is closer to the customer at the end of a supply chain.
A) Postponement
B) Sourcing
C) Deferral
D) Multisite management
Q5) Explain how the center of gravity is determined.
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Chapter 10: Capacity Management
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Sample Questions
Q1) A food packaging plant has planned shipments over the next six weeks of 9,500, 8,500, 10,000, 8,800, 8,200, and 9,000 packages. The plant normally operates 2 shifts per day, five days per week. During each shift, 1000 food products can be packaged and ready to ship. What is the plant's weekly capacity? At what percentage of capacity is the plant actually operating?
Q2) An order fulfillment process normally operates two shifts a day, five days per week. Under normal conditions, 380 orders can be processed per shift. What is the daily capacity?
Q3) The labor utilization rate (%) for the service technician is closest to _____.
A) 20%
B) 40%
C) 60%
D) 80%
Q4) According to the Theory of Constraints, _____ is the amount of money generated per time period through actual sales.
A) throughput
B) nonbottleneck (NBN) work activity
C) nonphysical constraint
D) utilization
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Chapter 11: Forecasting and Demand Planning
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Sample Questions
Q1) Describe some of the issues that managers must consider in applying forecasting methods in practice.
Q2) Regression models are often used in forecasting to incorporate causal variables that may influence a time series.
A)True
B)False
Q3) A long-range forecast typically covers a planning horizon of 3 to 12 months.
A)True
B)False
Q4) An R<sup>2</sup> of 0.70 mean 30% of the variability in the dependent variable was explained by the independent variable.
A)True
B)False
Q5) A(n) _____ is a one-time variation that is explainable.
A) cyclical pattern
B) random variation
C) irregular variation
D) seasonal variation
Q6) Explain how forecasting is used at different levels of an organization.
Page 13
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Chapter 12: Managing Inventories
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Sample Questions
Q1) Independent demand:
A) can be calculated.
B) is related to other stock-keeping units (SKUs).
C) is also called finished-goods inventory.
D) needs to be forecasted.
Q2) The economic order quantity (EOQ) rounded to the next highest number is:
A) less than 25 pumps.
B) more than 25 but less than or equal to 35 pumps.
C) more than 35 but less than or equal to 45 pumps.
D) more than 45 but less than or equal to 55 pumps.
Q3) Heather, manager of a large medical supply house that operates 45 weeks per year and 5 days per week, has decided to implement a fixed-period inventory system for all class A items. One such item has the following characteristics:
Demand = 8,000 units/year
Order cost = $40/order
Holding cost = $4/unit/year
If Heather wishes to minimize total cost (thereby approximating the economic order quantity (EOQ)), what should be T, the number of workdays between orders (i.e., review period)?
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Page 14
Chapter 13: Resource Management
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Sample Questions
Q1) An inventory item can be:
A) only a parent.
B) only a component.
C) both a parent and a component.
D) either a parent or a component, but not both.
Q2) Which is the most comprehensive solution for a firm if a load report shows not enough capacity is available?
A) Revise the bill of materials (BOM) and increase capacity.
B) Change the action bucket.
C) Change the master production schedule (MPS) and add capacity.
D) Rerun materials requirements planning (MRP).
Q3) If A has a gross requirement to build 200 units and an on-hand inventory for A of 60, determine the net requirement for D if its current on-hand inventory balance for D is 200 (all other components have no (zero) current inventory).
A)Less than or equal to 1,000 units
B)Greater than 1,000 but less than or equal to 1,500 units
C)Greater than 1,500 but less than or equal to 2,000 units
D)Greater than 2,000 but less than or equal to 2,500 units
Q4) What are the components of a materials requirements planning (MRP) record?
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Chapter 14: Operations Scheduling and Sequencing
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Sample Questions
Q1) Explain the three categories of criteria used to evaluate job sequencing performance. For each category, provide two example measures.
Q2) Using staff scheduling method, the most overstaffed day is _____.
A) Friday only
B) Monday only
C) Tuesday only
D) Thursday only
Q3) Using the earliest due date (EDD) rule, the average flow time for the five jobs is _____.
A) more than 10 but less than or equal to 20 days
B) more than 20 but less than or equal to 30 days
C) more than 30 but less than or equal to 40 days
D) more than 40 days
Q4) Using the shortest processing time (SPT) rule to sequence these jobs, the average waiting (flow) time is _____.
A) less than or equal to 20 minutes
B) more than 20 but less than or equal to 30 minutes
C) more than 30 but less than or equal to 40 minutes
D) more than 40 but less than or equal to 50 minutes
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Chapter 15: Appendix: Quality Management
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Sample Questions
Q1) The performance rating factor and allowances are based on human judgment.
A)True
B)False
Q2) Predetermined time standards are _____.
A) macromovements
B) available in books and electronic tables
C) a quick way to directly add up and get standard time
D) best suited for old and stable manufactured goods
Q3) Define work sampling. Give examples of both manufacturing and service applications.
Q4) Which of the following is NOT a practical issue when using learning curves?
A) Incentive systems and bonus plans may increase learning.
B) Complex, intellectual learning will be faster than learning simple tasks.
C) A contract phaseout may result in a lengthening of process times.
D) Keeping groups of employees together reaps a productivity benefit.
Q5) A job had a normal time of 2.43 minutes, an allowance of 20 percent, and a forecast demand of 120 units per day. How long should it take to produce one day's output?
Q6) Define and relate normal time and standard time.
Q7) Discuss the two different sides of the debate over work standards.
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Chapter 15: Quality Management
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Sample Questions
Q1) The dpmo or epmo for a three-sigma process is _____.
A) 66,807
B) 6,210
C) 233
D) 3.4
Q2) An internal audit of a hospital's medical laboratory found 108 errors in testing of patient specimens for one month or 30 days. Each day 400 patients were tested using an average of 3.2 tests per patient. What is the dpmo for this situation?
A) Less than 500
B) More than or equal to 500 but less than 1,000
C) More than or equal to 1,000 but less than 2,000
D) More than or equal to 2,000
Q3) Joseph Juran preached the 14 Points for management in his quality philosophy.
A)True
B)False
Q4) Explain the four components of the cost of quality.
Q5) Describe the rationale underlying ISO 9000:2000.
Q6) What are the Seven Quality Control (QC) Tools and what is their significance in quality improvement? Briefly explain how each tool is used.
Page 18
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Chapter 16: Quality Control and Spc
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Sample Questions
Q1) Indications in a control chart of an out-of-control situation include all of the following EXCEPT:
A) a shift in the average value.
B) the same number of points above and below the center line.
C) points that lie outside upper and lower control limits.
D) a cyclical pattern in the chart.
Q2) Describe the steps required to develop and use control charts.
Q3) Using Table 1, the sample values represent service times in minutes. For the R-chart, what is the value of UCL<sub>R</sub>?
A) Less than or equal to 1.0
B) Greater than 1.0 but less than or equal to 1.5
C) Greater than 1.5 but less than or equal to 2.0
D) Greater than 2.0 but less than or equal to 2.5
Q4) Identify the chart that is also known as fraction nonconforming or fraction defective chart.
A) A p-chart
B) A c-chart
C) An x-chart
D) An r-chart
Q5) Find the control limits for a c-chart with c-bar= 7.
Page 19
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Chapter 16: Appendix: Queuing Analysis
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Sample Questions
Q1) Since most service times follow an exponential distribution, there is no need to collect data on actual service times.
A)True
B)False
Q2) A sandwich shop near a college has a special counter, open from 11 am to 1 pm, which is used exclusively for selling pre-made sandwiches. This is much faster than making sandwiches-to-order at lunch time. The clerk can handle a customer in about one minute. Customers arrive at a rate of 40 per hour on average.
a. How long (in minutes) does a customer have to wait?
b. What percentage of the time is the employee working?
c. What is the average number of customers waiting in line?
d. What is the probability of there being 3 or more customers in the system?
Q3) What are five key assumptions for the basic, single-channel waiting line model?
Q4) Triage is a form of preemption.
A)True
B)False
Q5) What are the seven key assumptions for the multiple-server waiting line model?
Q6) List the seven operating characteristics of a single-channel waiting line (no formulas).
Page 20
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Chapter 17: Appendix: Modeling Using Linear Programming
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Sample Questions
Q1) Excel Solver can handle basic linear programming but not the special transportation problem.
A)True
B)False
Q2) Constant terms in the objective function are called objective function _____.
A) variables
B) decisions
C) coefficients
D) constraints
Q3) Solutions to a linear programming model that satisfy all constraints are referred to as optimal.
A)True
B)False
Q4) Which of the following factors would generally NOT be part of a linear programming model for blending?
A) Revenue
B) Cost
C) Product/component specifications
D) Supply = demand
Q5) Explain the essence of a blending problem.
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Chapter 17: Lean Operating Systems
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Sample Questions
Q1) A(n) _____ is a flag or a piece of paper that contains all relevant information for an order such as part number, description, process area used, time of delivery, quantity available, quantity delivered, and production quantity.
A) matrix
B) metric
C) gauge
D) Kanban
Q2) Lean Six Sigma is simply the union of lean approaches with quality improvement techniques, each of which has been used independently in other applications.
A)True
B)False
Q3) Define a Kanban. Describe how it helps to execute a pull system.
Q4) If the safety stock factor is changed to 0.1 and the number of parts per container is increased to 44, how many containers will be needed?
A) 1 container
B) 2 containers
C) 3 containers
D) 4 containers
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Chapter 18: Appendix: Simulation
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Sample Questions
Q1) All of the following are verification techniques EXCEPT:
A) developing logical flowcharts.
B) developing a model with high face validity.
C) conceptualizing a problem into smaller pieces or modules.
D) enabling people other than the programmer to check codes.
Q2) Spreadsheets are extremely strong in their ability to conduct dynamic simulation analysis.
A)True
B)False
Q3) A disadvantage of a simulation model is that its structuring is highly dependent on the expertise of the modeler.
A)True
B)False
Q4) All of the following are simulation languages EXCEPT:
A) Arena.
B) GPSS (General Purpose Systems Simulator).
C) ProcessModel.
D) SystemModel.
Q5) Define simulation and give some operations management examples.
Q6) Discuss a simulator. Provide appropriate examples.
Page 23
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Chapter 18: Project Management
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Sample Questions
Q1) The largest amount of slack that any activity has in this project is:
A) 1 week.
B) 2 weeks.
C) 3 weeks.
D) 4 weeks.
Q2) If activity C is delayed by 2 weeks, then the revised earliest project completion time is:
A) 13 weeks.
B) 14 weeks.
C) 15 weeks.
D) 17 weeks.
Q3) Explain the stages of the project life cycle and what types of decisions are normally made at each stage.
Q4) The expected duration of the critical path in days is _____.
A) less than or equal to 20 days
B) greater than 20 but less than or equal to 25 days
C) greater than 25 but less than or equal to 30 days
D) greater than 30 days
Q5) Define a project. Give some non-manufacturing or non-construction examples.
Page 24
Q6) List at least six principal factors (contributors) to project success.
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Chapter 19: Appendix: Decision Analysis
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Sample Questions
Q1) Decision problems can be depicted graphically using the expected-value approach.
A)True
B)False
Q2) The minimax-regret approach to one-time decisions without event probabilities is neither aggressive nor conservative.
A)True
B)False
Q3) An aggressive or risk-taking approach to one-time decisions without event probabilities is called maximin.
A)True
B)False
Q4) Which of the following statements is TRUE of expected value of perfect information (EVPI)?
A) EVPI mostly applies to situations that require one-time decisions.
B) EVPI is a numerical value associated with a decision coupled with some event.
C) EVPI is calculated by adding the expected payoff under perfect information to the expected payoff of the optimal decision without perfect information.
D) EVPI can be computed by determining the best decision and payoff if each event occurs.
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