Operations Planning and Control
Exam Questions
Course Introduction
Operations Planning and Control focuses on the strategies, techniques, and tools necessary to efficiently manage and optimize the production and delivery of goods and services within organizations. The course examines key concepts such as demand forecasting, inventory management, capacity planning, production scheduling, material requirements planning (MRP), and quality control. Students will learn how to balance resource utilization, minimize costs, and respond effectively to changing demand and supply conditions. Through case studies and analytical methods, the course provides a comprehensive understanding of how operational decisions impact overall organizational performance and customer satisfaction.
Recommended Textbook
OM 5 5th Edition by David Alan Collier
Available Study Resources on Quizplus
23 Chapters
1926 Verified Questions
1926 Flashcards
Source URL: https://quizplus.com/study-set/3569
Page 2
Chapter 1: Goods, Services, and Operations Management
Available Study Resources on Quizplus for this Chatper
81 Verified Questions
81 Flashcards
Source URL: https://quizplus.com/quiz/70869
Sample Questions
Q1) Cell phones are good examples of how goods and services are bundled together for long-term profits.
A)True
B)False
Answer: True
Q2) Which of the following statements in the Zappos case discussion is TRUE?
A) High quality shoes are produced in factories owned by Zappos in Asia.
B) The order entry process is a support service.
C) The only type of service encounter design used by Zappos is customer to Web service (i.e., human to and from technology).
D) The return process is a primary service.
Answer: D
Q3) Which one of the following statements about sustainability is TRUE?
A) The three dimensions of sustainability are environmental, social, and technological.
B) Economic sustainability focuses solely on the quality levels of physical goods.
C) Sustainability applies to goods-producing organizations only.
D) Sustainability practices can improve productivity and eliminate waste.
Answer: D
To view all questions and flashcards with answers, click on the resource link above.
3
Chapter 2: Value Chains
Available Study Resources on Quizplus for this Chatper
87 Verified Questions
87 Flashcards
Source URL: https://quizplus.com/quiz/70871
Sample Questions
Q1) Which one of the following statements is TRUE regarding the Bookmaster case study?
A) One advantage of the virtual (web-based) value chain is mass customization using Self-service (i.e., customer labor).
B) One advantage of the bricks-and-mortar value chain is more customer convenience and scope of greater product selection.
C) One advantage of the virtual (web-based) value chain is more management control.
D) One advantage of the bricks-and-mortar value chain is less of a carbon footprint.
Answer: A
Q2) Which of the following costs is NOT considered a variable cost?
A) Labor cost
B) Transportation cost
C) Administrative cost
D) Material cost
Answer: C
To view all questions and flashcards with answers, click on the resource link above. Page 4
Chapter 3: Measuring Performance in Operations
Available Study Resources on Quizplus for this Chatper
98 Verified Questions
98 Flashcards
Source URL: https://quizplus.com/quiz/70873
Sample Questions
Q1) Airline revenue per passenger mile and hotel revenue per full-time employee are examples of _____.
A) reliability
B) value of a loyal customer
C) sustainability
D) productivity
Answer: D
Q2) Of the four models of organizational performance, which two focus on the "big picture" of organizational performance rather than on the operational-level framework?
A) Baldrige Performance Excellence framework and the value chain model
B) Balanced scorecard and the Service-Profit Chain
C) Baldrige Performance Excellence framework and the balanced scorecard
D) The value chain model and the Service-Profit Chain
Answer: C
Q3) Productivity is the ratio of the input of a process to the output.
A)True
B)False
Answer: False
To view all questions and flashcards with answers, click on the resource link above.
5
Chapter 4: Operations Strategy
Available Study Resources on Quizplus for this Chatper
82 Verified Questions
82 Flashcards
Source URL: https://quizplus.com/quiz/70875
Sample Questions
Q1) Which of the following does NOT describe how customers evaluate services in a manner that differs from the way they evaluate goods?
A) Customers rely more on information from nonpersonal sources when evaluating services prior to purchase.
B) Customers perceive greater risks when buying services than when buying goods.
C) Customers can form prior expectations of expected service quality.
D) Dissatisfaction often results from a customer's inability to properly perform or co-produce his or her part of a service.
Q2) _____ sustainability is driven by ethics and human ideals of protecting the planet and its people for the well-being of future generations.
A) Environmental
B) Social
C) Economic
D) Political
Q3) In today's global market, mass customization has become less important than it was in the past.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above.
Chapter 5: Technology and Operations Management
Available Study Resources on Quizplus for this Chatper
77 Verified Questions
77 Flashcards
Source URL: https://quizplus.com/quiz/70876
Sample Questions
Q1) MySQL database system is an example of soft technology.
A)True
B)False
Q2) Technology provides the capability of eliminating many of the traditional components of value chains.
A)True
B)False
Q3) Integrated operating systems (IOSs) include various hard and soft technologies.
A)True
B)False
Q4) What sales price must be charged for Alternative 2 to break even?
A) Less than or equal to $2.00
B) More than $2.00 but less than or equal to $3.00
C) More than $3.00 but less than or equal to $4.00
D) More than $4.00 but less than or equal to $5.00
Q5) Enterprise resource planning (ERP) systems consist of a single module that is implemented to maintain the level of autonomy.
A)True
B)False
Q6) Differentiate between hard technology and soft technology.
Page 7
To view all questions and flashcards with answers, click on the resource link above.
Chapter 6: Goods and Service Design
Available Study Resources on Quizplus for this Chatper
118 Verified Questions
118 Flashcards
Source URL: https://quizplus.com/quiz/70868
Sample Questions
Q1) Suppose that a manufacturing specification of a dimension is 1.0 ± 0.05. The permissible range of variation from 0.95 to 1.05 is called the tolerance.
A)True
B)False
Q2) Which of the following is NOT a principal issue in service-encounter design?
A) Process and job design
B) Customer-contact behavior and skills
C) Service-provider selection, development, and empowerment
D) Recognition and reward
Q3) Building a House of Quality begins by identifying the:
A) competitive evaluation.
B) marketplace evaluation.
C) voice of the customer.
D) design of a customer benefit package.
Q4) A(n) _____ is included in service provider publications and advertisements.
A) artifact
B) service-encounter design
C) explicit service guarantee
D) service-upset clause
Q5) Discuss the concept of Design for Environment (DfE).
To view all questions and flashcards with answers, click on the resource link above. Page 8
Chapter 7: Process Selection, Design, and Analysis
Available Study Resources on Quizplus for this Chatper
116 Verified Questions
116 Flashcards
Source URL: https://quizplus.com/quiz/70870
Sample Questions
Q1) Make-to-stock goods and services are made according to a fixed design, and the customer has no options from which to choose.
A)True
B)False
Q2) The work activity that effectively limits throughput of a process is known as a
A) process boundary
B) service blueprint
C) bottleneck
D) process map
Q3) In using the product-process matrix, the most appropriate match between products and processes occurs along the diagonal of the matrix.
A)True
B)False
Q4) What type of process would a paper mill most likely use?
A) Project
B) Job shop
C) Flow shop process
D) Continuous flow process
To view all questions and flashcards with answers, click on the resource link above. Page 9
Chapter 8: Facility and Work Designs
Available Study Resources on Quizplus for this Chatper
92 Verified Questions
92 Flashcards
Source URL: https://quizplus.com/quiz/70877
Sample Questions
Q1) 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.
Q2) A _____ layout consists of a functional grouping of equipment or activities that do similar work.
A) product
B) process
C) cellular
D) fixed-position
Q3) What is the cycle time?
A) 6 minutes/unit
B) 7 minutes/unit
C) 8 minutes/unit
D) 9 minutes/unit
Q4) Changes in goods and services for a firm's customer benefit package do not impact facility layouts.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 10
Chapter 9: Supply Chain Design
Available Study Resources on Quizplus for this Chatper
87 Verified Questions
87 Flashcards
Source URL: https://quizplus.com/quiz/70878
Sample Questions
Q1) Summarize the supply chain operations reference (SCOR) model.
Q2) Which one of the following statements about sustainable supply chains is FALSE?
A) Cannibalization of parts for use and repair of other equipment is part of a reverse logistics supply chain.
B) Reverse logistics includes using raw materials and parts to assemble new finished goods.
C) A green sustainable supply chain process develops outputs that can be reclaimed and reused at the end of their life-cycle.
D) For products that are of high enough value, it is normally more cost-effective to remanufacture or refurbish the product.
Q3) The center-of-gravity method takes all the following into account EXCEPT the: A) location of facilities and markets.
B) demand.
C) transportation costs.
D) production costs.
Q4) Delivery reliability is measured by perfect order fulfillment.
A)True
B)False
Q5) What are the key functions of a supply chain?
To view all questions and flashcards with answers, click on the resource link above. Page 11
Chapter 10: Capacity Management
Available Study Resources on Quizplus for this Chatper
89 Verified Questions
89 Flashcards
Source URL: https://quizplus.com/quiz/70879
Sample Questions
Q1) The job that represents the bottleneck in this process is that of the _____.
A) service technician
B) inspector
C) billing clerk
D) shipping clerk
Q2) An assembly line normally operates two shifts a day, five days per week. Each shift can produce 475 assemblies. What is the weekly capacity?
Q3) According to the David Christopher, Orthopedic Surgeon, case study, which of the following statements is TRUE?
A) Total setup and changeover time for both surgeons was 15 percent of total workload time.
B) The best option to fix the demand-capacity shortage is to eliminate hip and shoulder replacement surgeries.
C) The surgery mix is analogous to a product mix.
D) The best option to fix the demand-capacity shortage is to hire a third surgeon.
Q4) Capacity lag strategy results in constant capacity shortages.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 12
Chapter 11: Forecasting and Demand Planning
Available Study Resources on Quizplus for this Chatper
95 Verified Questions
95 Flashcards
Source URL: https://quizplus.com/quiz/70880
Sample Questions
Q1) The mean absolute percentage error (MAPE) is:
A) less than or equal to 5%.
B) more than 5% but less than or equal to 10%.
C) more than 10% but less than or equal to 15%.
D) more than 15% but less than or equal to 20%.
Q2) The simple regression intercept (a) and the slope (b) for the data in Table 6 is:
A) Y = 2.4 + 3.4X.
B) Y = 2.8 + 4.4X.
C) Y = 2.8 + 5.4X.
D) Y = 2.4 + 4.4X.
Q3) Seasonal patterns can occur over the weeks during a month, over days during a week, or hours during a day.
A)True
B)False
Q4) The three-period moving average for the next week (week 5) is:
A) less than or equal to 100.
B) more than 100 but less than or equal to 110.
C) more than 110 but less than or equal to 120.
D) more than 120 but less than or equal to 130.
To view all questions and flashcards with answers, click on the resource link above. Page 13
Chapter 12: Managing Inventories
Available Study Resources on Quizplus for this Chatper
117 Verified Questions
117 Flashcards
Source URL: https://quizplus.com/quiz/70881
Sample Questions
Q1) Which of the following is NOT TRUE regarding inventory management?
A) The two fundamental inventory decisions are: where to order and what to order.
B) Inventory management applies to goods and to services.
C) Different types of inventory characteristics require different approaches for control.
D) Stock-keeping units (SKUs) are often aggregated or partitioned into groups with similar characteristics or dollar value.
Q2) Which of the following statements is TRUE?
A) The level of safety stock maintained decreases when the desired cycle service level increases.
B) The level of safety stock maintained decreases when the standard deviation of demand during lead time increases.
C) In a fixed-period inventory system, the value of Q is kept the same from one cycle to another.
D) In a fixed-order-quantity system, the reorder point is the average demand during the lead time, plus the additional safety stock when demand is uncertain.
Q3) Discuss the two types of stockouts.
To view all questions and flashcards with answers, click on the resource link above. Page 14
Chapter 13: Resource Management
Available Study Resources on Quizplus for this Chatper
106 Verified Questions
106 Flashcards
Source URL: https://quizplus.com/quiz/70882
Sample Questions
Q1) Aggregate planning and disaggregation methods in goods-producing industries involve fewer levels of planning than service-providing organizations, because service organizations deal with more than just materials.
A)True
B)False
Q2) Explain the three levels of resource planning.
Q3) An example of aggregation would be an ice cream manufacturer developing targets to produce a number of gallons of each flavor along with the purchasing requirements for specific ingredients for a one-week period.
A)True
B)False
Q4) Define resource management and list its key objectives.
Q5) A bill of materials (BOM) characterizes the structure of dependent demand among all items that comprise a finished good.
A)True
B)False
Q6) Work center load reports are used in capacity requirements planning (CRP).
A)True
B)False
Page 15
To view all questions and flashcards with answers, click on the resource link above.
Chapter 14: Operations Scheduling and Sequencing
Available Study Resources on Quizplus for this Chatper
79 Verified Questions
79 Flashcards
Source URL: https://quizplus.com/quiz/70883
Sample Questions
Q1) Appointments can be viewed as a reservation of service time and capacity.
A)True
B)False
Q2) UPS, the world's largest package delivery company, is highly dependent on scheduling but not sequencing.
A)True
B)False
Q3) Using the earliest due date (EDD) rule, the average tardiness for the five jobs is _____.
A) less than or equal to 5 days
B) more than 5 but less than or equal to 10 days
C) more than 10 but less than or equal to 15 days
D) more than 15 but less than or equal to 20 days
Q4) Using the first come, first served (FCFS) rule to sequence these jobs, the average waiting (flow) time is _____.
A) more than 20 but less than or equal to 30 minutes
B) more than 30 but less than or equal to 40 minutes
C) more than 40 but less than or equal to 50 minutes
D) more than 50 minutes
Q5) Differentiate between scheduling and sequencing.
Page 16
To view all questions and flashcards with answers, click on the resource link above.
Chapter 15: Appendix: Quality Management
Available Study Resources on Quizplus for this Chatper
56 Verified Questions
56 Flashcards
Source URL: https://quizplus.com/quiz/70867
Sample Questions
Q1) Personal fatigue and delay allowances are added to _____ to arrive at _____.
A) standard time; normal time
B) standard time; desired time
C) normal time; desired time
D) normal time; standard time
Q2) Based on data from a work-sampling study, an office worker spends 21.5 percent of his time filing. Over the work-sampling period, he was idle 12 percent of the time. If the worker filed 420 items in a 40-hour workweek while performing other activities, and if his performance rating factor for filing was 0.95, determine the standard time, in minutes, he took to file an item.
Q3) Define work measurement and what it leads to from an operations perspective.
Q4) A 90 percent learning curve implies faster learning than an 80 percent learning curve.
A)True
B)False
Q5) After developing a predetermined standard, stopwatch or work-sampling time studies need not be performed.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 17
Chapter 15: Quality Management
Available Study Resources on Quizplus for this Chatper
81 Verified Questions
81 Flashcards
Source URL: https://quizplus.com/quiz/70884
Sample Questions
Q1) Philip. B. Crosby taught his 14 Points to the Japanese in the 1950s and was a principle force in their quality reorganization.
A)True
B)False
Q2) The recognized leader and benchmark for successful Six Sigma implementation is
A) Sears, Roebuck and Co.
B) Starbucks
C) General Electric
D) Target
Q3) 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
Q4) List the three principles of total quality.
Q5) Define root cause and describe root cause analysis.
To view all questions and flashcards with answers, click on the resource link above. Page 18
Chapter 16: Quality Control and Spc
Available Study Resources on Quizplus for this Chatper
110 Verified Questions
110 Flashcards
Source URL: https://quizplus.com/quiz/70872
Sample Questions
Q1) If no special causes affect the output of a process, the process is said to be _____; and if special causes are present, the process is said to be _____.
A) qualified; not qualified
B) in control; out of control
C) capable; not capable
D) certified; not certified
Q2) For the Proctor and Gamble detergent box problem, the lower control limit for the x-bar chart is _____.
A) less than or equal to 12
B) more than 12 but less than or equal to 14
C) more than 14 but less than or equal to 16
D) more than 16
Q3) A manufacturer inspected 40 circuit boards and found a total of 640 defects. If the company wants to use statistical process control (SPC) to control the manufacturing process by monitoring the number of defects per circuit board, what type of chart should they use and what should be the control limits?
Q4) Describe the steps required to develop and use control charts.
Q5) Find the control limits for a c-chart with c-bar= 7.
To view all questions and flashcards with answers, click on the resource link above. Page 19
Chapter 16: Appendix: Queuing Analysis
Available Study Resources on Quizplus for this Chatper
38 Verified Questions
38 Flashcards
Source URL: https://quizplus.com/quiz/70866
Sample Questions
Q1) The multiple-server queuing model assumes that jockeying can take place.
A)True
B)False
Q2) What are the seven key assumptions for the multiple-server waiting line model?
Q3) Describe at least four queue disciplines.
Q4) A multiple-server queuing model has three servers with a mean service time of five customers per server per hour. It has been determined that arrivals will average 12 per hour. Arrivals follow a Poisson distribution and service times follow an exponential distribution.
a. Calculate the probability that all three service channels are idle.
b. Determine the probability of five customers in the system.
c. Determine the average number of customers waiting for service.
d. Determine the average number of customers in the system.
e. Determine the average time a customer spends waiting for service.
f. Determine the average time a customer spends in the system.
g. Determine the probability an arriving customer will wait for service.
Q5) Compare and contrast wait cost with server cost. Which is harder to estimate?
Q6) List the seven operating characteristics of a single-channel waiting line (no formulas).
To view all questions and flashcards with answers, click on the resource link above. Page 20
Q7) Discuss three categories of information necessary to develop a queuing model.
Chapter 17: Appendix: Modeling Using Linear Programming
Available Study Resources on Quizplus for this Chatper
41 Verified Questions
41 Flashcards
Source URL: https://quizplus.com/quiz/70865
Sample Questions
Q1) The Pacific Computer Company makes two models of notebook personal computers: Model 410 with CD-ROM drive, and Model 540 with DVD drive. Profits on each model are $100 and $150, respectively. Weekly manufacturing data (in minutes) are given below: \(\begin{array}{cccc}\text { Notebook } & \text { Dept. A } & \text { Dept. B } \\ \text { Model } & \text { Manuf. Time } & \text { Manuf. Time }&\text { Assembly Time }\\ 410 & 5 & 14 & 25 \\ 540 & 10 & 7 & 40 \end{array}\)
Manufacturing time available in department A for the coming week is 300 minutes, and for department B, it is 420 minutes. Total time available during the week to assemble the fabricated units is 1600 minutes.
a. What is the objective function if the company wants to maximize profits?
b. What is the constraint corresponding to Department A assuming x<sub>1</sub> corresponds to Model 410?
c. What is the optimum solution point for this problem?
d. What is the maximum possible total profit?
To view all questions and flashcards with answers, click on the resource link above.
21
Chapter 17: Lean Operating Systems
Available Study Resources on Quizplus for this Chatper
84 Verified Questions
84 Flashcards
Source URL: https://quizplus.com/quiz/70874
Sample Questions
Q1) Production Kanbans trigger the movement of parts.
A)True
B)False
Q2) The number of Kanban cards is directly proportional to the amount of work-in-process inventory.
A)True
B)False
Q3) Discuss the seven major categories of waste as defined by Toyota Motor Company.
Q4) Which of the following is NOT a basic principle of a lean operating system?
A) Elimination of waste
B) Batching
C) Increased speed and response
D) Improved quality
Q5) Just-in-time (JIT) systems are based on the concept associated with pull systems rather than push systems.
A)True
B)False
Q6) Kanban is the Japanese term for elimination of waste.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 22
Chapter 18: Appendix: Simulation
Available Study Resources on Quizplus for this Chatper
40 Verified Questions
40 Flashcards
Source URL: https://quizplus.com/quiz/70864
Sample Questions
Q1) Given the table below with information on lead time, followed by a set of six random numbers, determine the average lead time. \(\begin{array}{ll}\text { Lead Time (days) }&\text { Frequency }\\
3 & 20 \% \\
4 & 70 \% \\
5 & 10 \%
\end{array}\) RANDOM NUMBERS: 90, 52, 54, 47, 56, and 95
Q2) Using two-digit random numbers, the interval 55-79 represents the probability of _____.
A) 0.55 to 0.79
B) 0.25
C) 0.24
D) 0.67
Q3) Which of the following statements is CORRECT regarding a simulation model for inventory management?
A) Only demand varies, while the lead time remains constant.
B) The goal is to minimize waiting time.
C) It looks at a combination of order quantity and reorder point.
D) It does not allow backorders of stockouts.
Q4) Discuss two advantages and three disadvantages of simulation models.
Page 23
To view all questions and flashcards with answers, click on the resource link above.
Chapter 18: Project Management
Available Study Resources on Quizplus for this Chatper
108 Verified Questions
108 Flashcards
Source URL: https://quizplus.com/quiz/70885
Sample Questions
Q1) Britt is managing this project, and his bossRose gives him $5,000 to speed up the original completion time (i.e., project improvement dollars). The best action is to:
A) spend it on activity G first.
B) spend it on activity F first.
C) spent it on activity C first.
D) spend one-half of it on activity C and one-half on activity E.
Q2) In the critical path method (CPM), there can only be one critical path.
A)True
B)False
Q3) The most likely activities to share resources with critical path activities are:
A) Activities A and B.
B) Activities E and A.
C) Activities A and C.
D) Activities B and D.
Q4) The project completion time is _____.
A) 12 weeks
B) 13 weeks
C) 14 weeks
D) 15 weeks
To view all questions and flashcards with answers, click on the resource link above. Page 24
Chapter 19: Appendix: Decision Analysis
Available Study Resources on Quizplus for this Chatper
44 Verified Questions
44 Flashcards
Source URL: https://quizplus.com/quiz/70863
Sample Questions
Q1) For _____, managers must take into account the risk associated with making the wrong decision.
A) recurrent payoffs
B) expected payoffs
C) one-time decisions
D) repeated decisions
Q2) Which of the following is NOT a characteristic of management decisions for which decision analysis techniques apply?
A) They must be important.
B) They are probably unique.
C) They are usually deterministic.
D) They are complex.
Q3) The decision criterion, for a one-time decision without event probabilities, which is neither aggressive nor conservative, is known as _____.
A) maximax
B) maximin
C) minimax regret
D) expected value
Q4) Explain the structure and purpose of a decision tree.
To view all questions and flashcards with answers, click on the resource link above. Page 25