Operations Management
Chapter Exam Questions
Course Introduction
Operations Management explores the principles, strategies, and practices involved in the efficient production and delivery of goods and services. This course covers key concepts such as process analysis, capacity planning, quality management, supply chain coordination, inventory control, and project management. Students will learn how to analyze operational processes, identify areas for improvement, and apply quantitative and qualitative tools to optimize productivity, reduce costs, and enhance overall organizational performance. Emphasis is placed on real-world applications in manufacturing and service industries, preparing students to make informed decisions in dynamic business environments.
Recommended Textbook
Practical Management Science 5th Edition by
Wayne L. Winston
Available Study Resources on Quizplus
14 Chapters
421 Verified Questions
421 Flashcards
Source URL: https://quizplus.com/study-set/2228
Page 2
Chapter 1: Introduction to Modeling
Available Study Resources on Quizplus for this Chatper
30 Verified Questions
30 Flashcards
Source URL: https://quizplus.com/quiz/44310
Sample Questions
Q1) Verification is typically the most difficult phase of the modeling process, from a mathematical perspective.
A)True
B)False
Answer: False
Q2) Which of the following is a type of model that is key to virtually every management science application?
A)Heuristic model
B)Queuing model
C)Mathematical model
D)Regression model
Answer: C
Q3) The overall modeling process typically done in practice always requires seven steps: define the problem, collect and summarize data, develop a model, verify the model, select one or more suitable decisions, present the results to the organization, and finally implement the model and update it through time.
A)True
B)False
Answer: False
To view all questions and flashcards with answers, click on the resource link above.
Page 3
Chapter 2: Introduction to Spreadsheet Modeling
Available Study Resources on Quizplus for this Chatper
30 Verified Questions
30 Flashcards
Source URL: https://quizplus.com/quiz/44311
Sample Questions
Q1) In Excel terminology, the unknown value used in Goal Seek is called the input cell.
A)True
B)False Answer: False
Q2) A shortcut for establishing absolute references is pressing the F9 key.
A)True
B)False Answer: False
Q3) A chart is typically much more informative to a business manager than the table of numbers it is based on.
A)True
B)False Answer: True
Q4) Refer to Exhibit 2-2. Use the above information to develop a simple cash flow proforma sheet, and then apply Excel's NPV function to calculate the project value assuming a 10% discount rate. What is your answer?
Answer: The project NPV is $5,468.24 (allowing for a fraction of a volleyball)
To view all questions and flashcards with answers, click on the resource link above. Page 4
Chapter 3: Introduction to Optimization Modeling
Available Study Resources on Quizplus for this Chatper
30 Verified Questions
30 Flashcards
Source URL: https://quizplus.com/quiz/44312
Sample Questions
Q1) The proportionality property of LP models implies that the sum of the contributions from the various activities to a particular constraint equals the total contribution to that constraint.
A)True
B)False
Answer: True
Q2) If a constraint has the equation 5x + 2y 60, then the constraint line passes through the points (0,12) and (30,0).
A)True
B)False
Answer: False
Q3) Suppose the allowable increase and decrease for an objective coefficient of a decision variable that has a current value of $50 are $25 (increase) and $10 (decrease). If the coefficient were to change from $50 to $65, the optimal value of the objective function would not change.
A)True
B)False
Answer: False
To view all questions and flashcards with answers, click on the resource link above. Page 5
Chapter 4: Linear Programming Models
Available Study Resources on Quizplus for this Chatper
31 Verified Questions
31 Flashcards
Source URL: https://quizplus.com/quiz/44313
Sample Questions
Q1) Refer to Exhibit 4-3. Determine the optimal processing plan for the meat market.
Q2) Workforce scheduling problems in which the worker schedules continue week to week are:
A)continuous problems
B)transition problems
C)integrated problems
D)wraparound problems
Q3) Refer to Exhibit 4-2. The project manager is evaluating options to complete the project early so that the company can earn a bonus. He has determined that the project schedule can be compressed into a six-month schedule, with the same total number of worker-months. In that case, the staffing requirements are as shown below.Develop an optimal staffing plan for the project under the accelerated schedule.
\[\begin{array} { c c c c c c c }
& { \text { Month of Project } } \\
& 1 & 2 & 3 & 4 & 5 & 6 \\
\text { Required } & 26 & 38 & 84 & 105 & 101 & 84
\end{array}\]
Q4) Refer to Exhibit 4-1. Use Solver to formulate and solve the hospital's problem.
Q5) Refer to Exhibit 4-2. Determine the optimal staffing plan for the project.
To view all questions and flashcards with answers, click on the resource link above. Page 6
Chapter 5: Network Models
Available Study Resources on Quizplus for this Chatper
30 Verified Questions
30 Flashcards
Source URL: https://quizplus.com/quiz/44314
Sample Questions
Q1) Refer to Exhibit 5-2. Implement a LP model in Solver and determine the optimal monthly assignment plan for the firm. What is the total number of hours that will be assigned to projects each month?
Q2) The cost of an arc in a shortest path problem is equal to the distance of the arc.
A)True
B)False
Q3) The network model representation of the transportation problem has the following advantage relative to the special case of a simple transportation model:
A)it does not require capacity restrictions on the arcs of the network B)the flows in the network model don't all necessarily have to be from supply locations to demand locations
C)a network model representation is generally easier to formulate and solve D)All of these options
Q4) In network models of transportation problems, arcs represent the routes for getting a product from one node to another.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above.
7
Chapter 6: Optimization Models With Integer Variables
Available Study Resources on Quizplus for this Chatper
30 Verified Questions
30 Flashcards
Source URL: https://quizplus.com/quiz/44315
Sample Questions
Q1) Refer to Exhibit 6-2. Suppose the shipping capacity for all routes is 3000 tons per month. What is Sinclair's optimal shipping plan in that case? What is the total cost in that case?
Q2) Refer to Exhibit 6-1. This problem is an example of what type of integer programming model?
Q3) Refer to Exhibit 6-2. What is Sinclair's optimal shipping plan? What is the total cost in that case?
Q4) If Solver fails to find an optimal solution to an integer programming problem, we might be able to find a near optimal solution by specifying a smaller number for the integer optimality setting.
A)True
B)False
Q5) Solver may be unable to solve some integer programming problems, even when they have an optimal solution.
A)True
B)False
Q6) Refer to Exhibit 6-2. This problem is an example of what type of integer programming model?
To view all questions and flashcards with answers, click on the resource link above. Page 8
Chapter 7: Nonlinear Optimization Models
Available Study Resources on Quizplus for this Chatper
30 Verified Questions
30 Flashcards
Source URL: https://quizplus.com/quiz/44316
Sample Questions
Q1) In pricing models, two products are substitutes for each other if a larger price for one product tends to induce customers to demand less of the other.
A)True
B)False
Q2) In some nonlinear models, Solver will find the optimal solution only if the starting solution is reasonably close to the optimal solution.
A)True
B)False
Q3) Refer to Exhibit 7-4. Suppose you set the weights in the portfolio to a maximum of 0.45 for each stock. Is it possible to achieve a 12% return? What is the portfolio standard deviation in that case?
Q4) The sum of two concave functions is concave.
A)True
B)False
Q5) Refer to Exhibit 7-1. Suppose the company is required by regulation to charge the same price for both products. How many units of each product should the company produce in that case? What prices should it charge, to maximize profit?
To view all questions and flashcards with answers, click on the resource link above. Page 9
Chapter 8: Evolutionary Solver: An Alternative Optimization
Procedure
Available Study Resources on Quizplus for this Chatper
30 Verified Questions
30 Flashcards
Source URL: https://quizplus.com/quiz/44317
Sample Questions
Q1) Crossovers are rare as a genetic algorithm is generating chromosomes for the next generations.
A)True
B)False
Q2) Refer to Exhibit 8-4. Formulate and solve a shortest-path model using Evolutionary Solver. What is the shortest distance Steve can travel and visit all cities? What is the route?
Q3) Which of the following is not a form of non-linear pricing?
A)Two-part tariff
B)Surplus value
C)Selling only single item packs or packs of n items
D)Charging one price for the first n items and another price for the rest
Q4) Refer to Exhibit 8-2. What is the fewest number of breaks that are needed to air all eight of the commercials?
Q5) Combinatorial problems have only a finite number of feasible solutions.
A)True
B)False
Q6) Refer to Exhibit 8-1. This is an example of what type of optimization problem?
Page 10
Q7) Refer to Exhibit 8-3. Write out your model and interpret your results. Do the results make sense?
To view all questions and flashcards with answers, click on the resource link above. Page 11
Chapter 9: Decision Making Under Uncertainty
Available Study Resources on Quizplus for this Chatper
30 Verified Questions
30 Flashcards
Source URL: https://quizplus.com/quiz/44318
Sample Questions
Q1) Refer to Exhibit 9-1. Construct a decision tree to help the farmer make his decision. What should he do? Explain your answer.
Q2) Refer to Exhibit 9-2. Should the credit union purchase the report if it costs $150?
Q3) Which of the following statements is true concerning decision tree conventions?
A)Time proceeds from right to left.
B)The trees are composed of circles, triangles and ovals.
C)The nodes represent points in time.
D)Probabilities of outcomes are shown to the right of the end nodes.
Q4) The strategy region graph is a type of sensitivity analysis chart that:
A)is useful in determining whether the optimal decision changes over the range of the input variable.
B)ranks the sensitivity of the EMV to the input variables.
C)reflects how the value of information changes over a range of probabilities.
D)None of these
Q5) The solution procedure for solving decision trees is called:
A)sensitivity analysis
B)policy iteration
C)risk profiling
D)folding back
To view all questions and flashcards with answers, click on the resource link above. Page 12
Chapter 10: Introduction to Simulation Modeling
Available Study Resources on Quizplus for this Chatper
30 Verified Questions
30 Flashcards
Source URL: https://quizplus.com/quiz/44319
Sample Questions
Q1) It is usually fairly straightforward to predict the shape of the output distribution from the shape(s) of the input distribution(s).
A)True
B)False
Q2) A distribution for modeling the time it takes to serve a customer at a bank is probably:
A)symmetric
B)left skewed
C)right skewed
D)uniform
Q3) When n is reasonably large and p isn't too close to 0 or 1, the binomial distribution can be well approximated by which of the following distributions?
A)Uniform distribution
B)Normal distribution
C)Triangular distribution
D)None of these options
Q4) Refer to Exhibit 10-2. What is the probability that the apparel company will exceed a profit at least $0.5M from the jacket line?
To view all questions and flashcards with answers, click on the resource link above. Page 13
Chapter 11: Simulation Models
Available Study Resources on Quizplus for this Chatper
30 Verified Questions
30 Flashcards
Source URL: https://quizplus.com/quiz/44320
Sample Questions
Q1) [Part 5] Refer to Exhibit 11-1. What are the chances the firm could lose money on this project, given the price uncertainty?
Q2) Which of the following is typically not an application of simulation models?
A)Operations models
B)Financial models
C)Marketing models
D)Logistics models
Q3) In bidding models, the simulation output variable is the number of competitors who will bid.
A)True
B)False
Q4) The value at risk (VAR) is typically defined as the:
A)5th percentile of NPV distribution
B)10th percentile of NPV distribution
C)90th percentile of NPV distribution
D)95th percentile of NPV distribution
Q5) [Part 4] Refer to Exhibit 11-2. Are there any simulations which indicated there was a chance of getting negative NPV? Briefly explain in one sentence.
To view all questions and flashcards with answers, click on the resource link above. Page 14
Chapter 12: Inventory and Supply Chain Models
Available Study Resources on Quizplus for this Chatper
30 Verified Questions
30 Flashcards
Source URL: https://quizplus.com/quiz/44321
Sample Questions
Q1) Which of the following is not one of the factors which influence the decision about how much safety stock a company should hold?
A)Variance of demand during lead time
B)Variance of the length of the lead time
C)Variance of the cost of stockout
D)Desired service level
Q2) Refer to Exhibit 12-3. Formulate a Solver model and find the optimal order quantity for the cotton sweaters. What is the optimal order? How much, if any, is the maximum backlog?
Q3) Promoters of the Mulligan Golf tournament order sets of special edition clubs for $300 each that are sold during the tournament for $800 per set. Once the tournament is over, unsold sets are donated to the local Boys and Girls Clubs to be used by underprivileged youth. Based on past experience, they believe that demand for the sets will follow the Gamma distribution with alpha equal to 50 and beta equal to 20. How many sets of clubs should they order to maximize expected profit?
Q4) Refer to Exhibit 12-2. Suppose there is a storage cost of $1 per unit. Make the appropriate change to your Solver model and find the optimal order quantity in that case. Does the unit purchasing price change?
To view all questions and flashcards with answers, click on the resource link above.
Page 15
Chapter 13: Queuing Models
Available Study Resources on Quizplus for this Chatper
30 Verified Questions
30 Flashcards
Source URL: https://quizplus.com/quiz/44322
Sample Questions
Q1) Which of the following is not one of the important issues defining types of arrivals in a queuing system?
A)Whether customers arrive one at a time or in batches.
B)Whether customers are all essentially alike or are in separate priority classes.
C)Whether customers have been through the system before or not
D)Whether customers will wait in line or not
Q2) Refer to Exhibit 13-4. Use the M/M/s template to find the expected number of busy servers, and the expected fraction of time each server is busy
Q3) A requirement for steady state analysis of a queuing system is that:
A)the initial conditions are still in effect
B)the waiting time must be exponentially distributed
C)the analysis period is at least two hours
D)the service rate must be constant
Q4) Traffic intensity is a very useful measure of:
A)whether the system is stable or not
B)the number of customers in a system
C)the distribution of interarrival times
D)the amount of congestion in the system
To view all questions and flashcards with answers, click on the resource link above.
Page 16
Chapter 14: Regression and Forecasting Models
Available Study Resources on Quizplus for this Chatper
30 Verified Questions
30 Flashcards
Source URL: https://quizplus.com/quiz/44323
Sample Questions
Q1) The least squares line is the line that minimizes the sum of the residuals.
A)True
B)False
Q2) The adjusted R2 is used primarily to monitor whether extra explanatory variables really belong in a multiple regression model.
A)True
B)False
Q3) In multiple regression, the coefficients reflect the expected change in:
A)Y when the associated X value increases by one unit
B)X when the associated Y value increases by one unit
C)Y when the associated X value decreases by one unit
D)X when the associated Y value decreases by one unit
Q4) In reference to the equation , the value 0.10 is the expected change in Y per unit change in X.
\[\hat { Y } = - 0.70 + 0.10 X\]
A)True
B)False
Q5) Refer to Exhibit 14-2. Identify and interpret the percentage of variation explained (R2) for the model.
To view all questions and flashcards with answers, click on the resource link above. Page 17