Course Introduction
Management Science
Chapter Exam Questions
Management Science is an analytical and systematic approach to solving complex organizational problems and improving decision-making. This course introduces students to quantitative techniques such as linear programming, decision analysis, simulation, and forecasting, and demonstrates their application to real-world business scenarios in areas such as operations, finance, marketing, and logistics. Emphasis is placed on developing problem-solving skills, utilizing mathematical models, and leveraging data-driven insights to optimize resources, increase efficiency, and support strategic planning in diverse managerial contexts.
Recommended Textbook Operations Management 5th Canadian Edition by William J. Stevenson
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Page 2
Chapter 1: Introduction to Operations Management
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Sample Questions
Q1) The impact of globalization for manufacturing companies has been reduced reliance on long international supply chains because of the increasing cost to ship components and finished goods to foreign markets.
A)True
B)False
Answer: False
Q2) The marketing function's main concern is with:
A) producing goods or providing services.
B) assessing customer wants and needs.
C) procuring materials, supplies, and equipment.
D) performing economic analysis of investment proposals.
E) securing monetary resources.
Answer: B
Q3) Which of the following does not relate to system design?
A) Long term capacity
B) Location of facilities
C) Inventory management
D) Process design
E) Departmental layout
Answer: C
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Chapter 2: Competitiveness, Strategic Planning, and Productivity
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Q1) Tracking productivity measures over time enables managers to judge organizational performance and to decide where improvements are needed.
A)True
B)False
Answer: True
Q2) A measure of productivity which reflects a combination of some or all of the resources used to obtain a certain output is:
A) labour productivity.
B) machine productivity.
C) multifactor productivity.
D) materials productivity.
E) overhead productivity.
Answer: C
Q3) Time-based strategies focus on reducing the time required to accomplish certain activities,such as new product development or delivery to the customer.
A)True
B)False
Answer: True
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Chapter 3: Demand Forecasting
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Sample Questions
Q1) Which of the following might be used to forecast the cyclical component of a time series?
A) An associated leading variable
B) Centred moving average (CMA)
C) Delphi technique
D) Exponential smoothing
E) Seasonal relatives
Answer: A
Q2) A manager uses the following equation to predict monthly receipts: Yt= 40,000 + 150t.What is the forecast for December if t = 0 for the month of April?
A) 40,050
B) 41,050
C) 41,200
D) 41,300
E) 41,500
Answer: C
Q3) What is this year's seasonally adjusted forecast for each season?
Answer: Spring 44.421; Summer 32.192; Fall 56.159; Winter 84.981
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Chapter 4: A: Product Design
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Q1) Which of the following is a disadvantage of standardization in product and service design?
A) Increased number of items held in inventory
B) Increased training costs
C) Decreased expenditures on perfecting designs
D) Decreased product variety
E) Economies of scale
Q2) Which of the following is not a typical source of ideas for new or redesigned products?
A) Front-line employees
B) Marketing research
C) Inventory records
D) Reverse engineering
E) Research and development
Q3) Internal research and development efforts are the primary source of ideas for new products for all business organizations.
A)True
B)False
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Chapter 4: B: Product Design
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Q1) A certain product is comprised of two components: X and Y.Component X has a random failure rate of one in every ten years,while component Y's random failure rate is one in every five years.This product has a mean time to wear-out of eight years with a standard deviation of one year.What would be the reliability of this product if component Y were backed up with an identical component?
Q2) The Readylite Company produces a flashlight which is perfectly reliable except for two components: the battery,which has a random failure rate of one in every five hours of operation; and the light bulb,which has a random failure rate of three in every ten hours.If the company includes a backup light bulb with each flashlight,what is the probability that the flashlight will perform reliably for one hour (excluding light bulb replacement time,if any)?
A) 0.6720
B) 0.7280
C) 0.8736
D) 0.9100
E) 0.9600
Q3) "Independent components" cannot exist in the same product.
A)True
B)False
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Chapter 5: A: Strategic Capacity Planning
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Sample Questions
Q1) What are total costs for the break-even quantity?
Q2) How many rose bushes would she have to produce and sell in order to break even?
A) 1,500
B) 2,400
C) 3,000
D) 4,000
E) 6,000
Q3) If her available land has design and effective capacities of 3,000 and 2,000 rose bushes per year respectively,and she plans to grow 1,200 rosebushes each year on this land,what will be the efficiency of her use of this land?
A) 0%
B) 40%
C) 60%
D) 67%
E) 100%
Q4) The more uniform the mix of products being produced,the more opportunity there is to increase the effective capacity of the system.
A)True
B)False
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Chapter 5: B: Strategic Capacity Planning
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Q1) Expected monetary value gives the actual payoff one can expect in a given situation involving risk.
A)True
B)False
Q2) The expected monetary value approach is most appropriate when the decision-maker is risk-neutral.
A)True
B)False
Q3) The expected value approach is used for major,non-recurring decisions involving several decision variables.
A)True
B)False
Q4) The difference between expected payoff under certainty and expected payoff under risk is the:
A) expected monetary value.
B) expected value of perfect information.
C) expected net present value.
D) expected rate of return.
E) none of the above.
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Chapter 6: A: Process Design and Facility Layout
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Q1) For output to equal projected demand,what should be the actual cycle time for this production line?
A) 54 seconds
B) 27 seconds
C) 20 seconds
D) 18 seconds
E) 14 seconds
Q2) In a product layout,the process of assigning tasks to workstations in such a way that the work stations have approximately equal time requirements is referred to as:
A) process balancing.
B) task allocation.
C) line balancing.
D) work allocation.
E) station balancing.
Q3) Process design is required only when new products or services are planned.
A)True
B)False
Q4) What is the total flow between departments B and D?
Q5) What is the minimum possible cycle time?
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Chapter 6: B: Process Design and Facility Layout
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Q1) A company produces two products (A and B)using three resources (I,II,and III).Each product A requires 1 unit of resource I and 3 units of resource II; and has a profit of $1.Each product B requires 2 units of resource I,3 units of resource II,and 4 units of resource III; and has a profit of $3.Resource I is constrained to 40 units maximum per day; resource II,90 units; and resource III,60 units.What is the constraint for resource II?
Q2) A company produces two products (A and B)using three resources (I,II,and III).Each product A requires 1 unit of resource I and 3 units of resource II; and has a profit of $1.Each product B requires 2 units of resource I,3 units of resource II,and 4 units of resource III; and has a profit of $3.Resource I is constrained to 40 units maximum per day; resource II,90 units; and resource III,60 units.What are the corner points of the feasible solution space?
Q3) A company produces two products (A and B)using three resources (I,II,and III).Each product A requires 1 unit of resource I and 3 units of resource II; and has a profit of $1.Each product B requires 2 units of resource I,3 units of resource II,and 4 units of resource III; and has a profit of $3.Resource I is constrained to 40 units maximum per day; resource II,90 units; and resource III,60 units.What is the constraint for resource I?
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Chapter 7: A: Design of Work Systems
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Sample Questions
Q1) What is the normal time (NT)for this task if the employee worked at a 20% faster pace than is average?
A) 8 seconds
B) 32 seconds
C) 40 seconds
D) 48 seconds
E) 200 seconds
Q2) Methods analysis cannot be done for jobs that do not yet exist.
A)True
B)False
Q3) Flow process charts can be useful for analyzing and improving methods.
A)True
B)False
Q4) Work measurement concentrates on how long it takes to complete a job.
A)True
B)False
Q5) How many observations would be needed to be 99.74% confident that the maximum error is 5% of the observed time?
Assume that the standard deviation of the task time is 2 seconds.
Q6) What is the observed time for this task?
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Chapter 7: B: Design of Work Systems
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Q1) According to learning curve theory,the time reduction per unit decreases as the number of units increases.
A)True
B)False
Q2) When the task is fairly complex and has a longer duration,improvement will occur over a larger number of repetitions.
A)True
B)False
Q3) A job has an 80% learning curve.If the first unit took 50 hours to complete,the third unit should take roughly how many hours?
A) 40
B) 36
C) 35
D) 32
E) 10
Q4) A 95% learning curve indicates greater learning than a 90% learning curve.
A)True
B)False
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Chapter 8: A: Location Planning and Analysis
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Q1) What would be total annual costs for the Alpha Ave.location with 20 persons living there?
A) $4,000
B) $10,000
C) $16,000
D) $20,000
E) $26,000
Q2) What are total costs for site B for a quantity of 5,000 units per year?
Q3) Location decisions are a highly important part of production system design because:
I.typically they are made rather frequently
II.they impact operating costs
III.they entail a high-cost,short-term commitment
A) I
B) II
C) III
D) II and III
E) I, II, and III
Q4) For what quantity would you be indifferent between selecting site A or site B?
Q5) What are total costs for site A for a quantity of 5,000 units per year?
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Chapter 8: B: Location Planning and Analysis
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Q1) The transportation model is a special type of linear programming model.
A)True
B)False
Q2) The transportation model method for evaluating location alternatives minimizes:
A) the number of sources.
B) the number of destinations.
C) the number of alternatives.
D) the total demand.
E) the total shipping cost.
Q3) The transportation model can be used for capacity planning.
A)True
B)False
Q4) An automobile manufacturer who has eight assembly plants and thousands of dealers throughout Canada can find the optimal distribution plan by using:
A) linear programming model.
B) transportation model.
C) location model.
D) linear programming model and transportation model.
E) all of the choices are correct.
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Chapter 9: Management of Quality
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Sample Questions
Q1) Which of the following does not match well between quality gurus and their contribution?
A) Juran - quality is fitness for use
B) Crosby - quality is free
C) Deming - quality costs
D) Feigenbaum - quality at the source
E) All of the choices are correctly matched.
Q2) The National Quality Institute (NQI)requires organizations to achieve Level 4 - World Class designation in order to have their quality management systems certified.
A)True
B)False
Q3) Asking questions about the current process in the hope that it will lead to important insights about why the current process isn't working as well as it could is called:
A) the 5W2H approach.
B) using quality circles.
C) benchmarking.
D) a PDSA cycle.
E) none of the choices.
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Chapter 10: A: Statistical Quality Control
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Sample Questions
Q1) The purpose of control charts is to:
A) estimate the proportion of output that is acceptable.
B) inspect the quality of all outputs from a process.
C) determine if the output of a process is within specifications.
D) distinguish between random variation and assignable variation in a process.
E) all of these choices are correct.
Q2) What is the sample mean for machine #1?
A) 15
B) 16
C) 17
D) 21
E) 23
Q3) What is the sample mean for sample #1? #2? #3?
Q4) The sampling distribution of sample means taken from a process has less variability than the distribution of the process.
A)True
B)False
Q5) If the process proportion of defectives is unknown,what is the estimate of it?
Page 17
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Chapter 10: B: Statistical Quality Control
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Q1) Which one of the following would not be a reason for using acceptance sampling?
A) High cost of passing defectives
B) Large number of items
C) Destructive testing
D) Boredom and fatigue that would accompany complete inspection
E) All of the choices are reasons.
Q2) The AQL indicates:
A) acceptable quality level.
B) average quality level.
C) actual quality level.
D) aggregate quality level.
E) approximate quality level.
Q3) Acceptance sampling plans must specify the lot size,the sample size,and the acceptance/rejection criteria.
A)True
B)False
Q4) Shipments of bowling balls are sampled before delivery to a warehouse.Lots of 600 balls are checked,using 10 observations from each lot.Any lot with more than one defective is rejected.Calculate values for the operating characteristic curve for this sampling plan.
18
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Chapter 11: Supply Chain Management
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Q1) Distribution requirements planning (DRP)is a pull system based on the same logic of time-phased planning as material requirements planning (MRP).
A)True
B)False
Q2) Which of the following is an advantage of e-commerce?
I.Reduction of transaction costs
II.Shortened supply chain response times
III.Greater customer loyalty
A) I only
B) II only
C) I and II only
D) II and III only
E) I, II, and III
Q3) Overseeing the shipment of incoming and outgoing goods is the function of:
A) traffic management.
B) distribution management.
C) production management.
D) inventory management.
E) purchasing.
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Chapter 12: Inventory Management
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Q1) Which one of these would not be a factor in determining the level of the reorder point that includes safety stock?
A) The EOQ.
B) The lead time.
C) The variability of demand.
D) The demand or usage rate.
E) All of the above are factors.
Q2) Which inventory model is most appropriate if unused or unsold items cannot be carried over to subsequent periods?
A) Economic order quantity
B) Economic production quantity
C) Single period
D) Quantity discount
E) Reorder point
Q3) A machine is expected to use approximately three spare parts during its useful life.The spares cost $200 each and have no salvage value or other use.The manager has ordered five spares.Assuming a Poisson usage rate,what range of shortage cost is implied?
Q4) For the economic order quantity,what are average weekly ordering costs?
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Chapter 13: Aggregate Operations Planning
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Q1) The two primary factors in choosing an aggregate operations planning strategy are:
A) company policy and the master schedule.
B) overall costs and the master schedule.
C) company policy and overall costs.
D) company policy and the demand forecast.
E) overall costs and the demand forecast.
Q2) Master production schedules are often divided into three zones: the emergency,trading,and planning zones.
A)True
B)False
Q3) Aggregate operations planning requires which of the following information?
I.A forecast of expected demand
II.Current levels of inventory
III.Policies regarding employment
A) I only
B) II only
C) III only
D) I and II only
E) I, II, and III
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Chapter 14: Material Requirements Planning and Enterprise
Resource Planning
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Sample Questions
Q1) If 17 Ps are needed,and no on-hand inventory exists,how many Cs will be needed?
A) 8
B) 16
C) 136
D) 204
E) 272
Q2) The term pegging refers to identifying the parent items that have generated a given set of requirements for a part or subassembly.
A)True
B)False
Q3) Fixed-interval ordering in MRP places orders that cover a predetermined number of periods.
A)True
B)False
Q4) MRP requires information on inventory on hand,open orders and lead times and purchase orders for each item in stock.
A)True
B)False
Page 22
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Chapter 15: A: Just-In-Time and Lean Production
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Q1) The ultimate goal of a lean system is to achieve a balanced,rapid flow of materials through the system.
A)True
B)False
Q2) Which of the following is not considered a type of waste which JIT/lean systems are designed to reduce?
A) Excess inventory
B) Product designs with little potential for recycling
C) Underutilization of employee knowledge and skills
D) Unnecessary transportation/movement of goods
E) Scrap and rework
Q3) A JIT/lean system is not effective when the industry consists of a tiered supplier network.
A)True
B)False
Q4) In a "pull system," a pile of inventory in front of a workstation indicates problems at that workstation.
A)True
B)False
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Chapter 15: B: Just-In-Time and Lean Production
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Q1) The goal of maintenance is to maintain the productive system in good working order while minimizing:
A) total preventive maintenance costs.
B) total breakdown maintenance costs.
C) total maintenance costs.
D) the difference between preventive and breakdown costs.
E) the ratio of breakdown to preventive maintenance costs.
Q2) Reliability-centered maintenance is based on historical data and ongoing monitoring of equipment condition.
A)True
B)False
Q3) Cost of equipment breakdown can include:
I.loss of output.
II.cost of idle workers.
III.damage to other equipment.
A) I only
B) II only
C) III only
D) I and III only
E) I, II, and III
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Chapter 16: Job and Staff Scheduling
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Q1) Average job flow time for a schedule sequence at a work station is:
A) total processing time divided by the number of jobs.
B) total flow time divided by the number of jobs.
C) total flow time divided by total processing time.
D) total processing time plus total late time divided by number of jobs.
E) total flow time plus total late time divided by number of jobs.
Q2) Using Johnson's rule what is the optimum sequence (first car to last)?
A) A; B; C; D; E
B) E; D; C; B; A
C) E; B; D; C; A
D) E; D; B; C; A
E) E; B; D; A; C
Q3) The purpose of a Gantt chart is to:
A) visually express the capacity of resources.
B) quantitatively analyze the optimum sequencing of resources.
C) visually represent the loading and scheduling of jobs for control purposes.
D) quantitatively analyze the capacity of production resources.
E) none of the choices.
Q4) What is the schedule sequence using the first come,first served (FCFS)priority rule?
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Chapter 17: Project Management
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Q1) In the probabilistic approach to precedence network analysis,the duration estimate annotated "tm" for any activity is the:
A) mean duration.
B) median duration.
C) most likely duration.
D) optimistic duration.
E) pessimistic duration.
Q2) In the probabilistic approach to precedence network analysis,the duration estimate that is given the highest weighting in calculating the expected duration for an activity is:
A) duration of the immediately prior activity.
B) duration of the immediately following activity.
C) most likely duration.
D) optimistic duration.
E) pessimistic duration.
Q3) The latest starting time for an activity is equal to the latest finish time minus the activity time.
A)True
B)False
Q4) What is the total cost of reducing this project by two weeks?
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Chapter 18: A: Waiting-Line Analysis
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Q1) A department has 5 semiautomatic pieces of equipment which operate for an average of 79 minutes before they must be reloaded.The reloading operation takes an average of 21 minutes per machine.Assume exponential distributions.
(i)What is the minimum number of servers needed to keep the average downtime per cycle to less than 25 minutes?
(ii)If 1 server is used,what percentage of time will the machine be down?
Q2) What is the average number of all items waiting in line for service?
Q3) For a server that already has a high utilization ratio,decreasing service capacity will only have a negligible effect on customer waiting time.
A)True
B)False
Q4) The basic multiple-server-with-priority queuing model assumes that:
A) arrival rates are exponentially distributed.
B) service times are Poisson distributed.
C) items are serviced in order of arrival.
D) items are serviced in order of priority class.
E) service activities are pre-emptive.
Q5) What is the average number of low priority items waiting in line for service?
Q6) What is server utilization?
Page 27
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Chapter 18: B: Waiting-Line Analysis
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Q1) A random variate is an integer value chosen from a specific range such as between 00 and 999.
A)True B)False
Q2) A Uniform distribution has end points of 40 and 90.A random number of 20 from a two-digit random number table equates to a simulated value of 50.
A)True B)False
Q3) When using a random number table,it is important to always start at the same point of the table so that results may be replicated.
A)True
B)False
Q4) When simulating numbers for an Exponential distribution,a table of random numbers can be used.
A)True B)False
Q5) Simulation is used to determine the optimal solution to a problem. A)True B)False
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