OPS 571 Final Exam Version 3 Answers 1) According to your text, the most common process metric is: A. Productivity B. Utilization C. Throughput time D. Efficiency 2) Which of the following is true about make-to-stock processes? A. Make-to-stock processes can be controlled based on the actual or anticipated amount of finished goods B. Make-to-stock process is used when demand is seasonal and the firm does not have enough C. Services by their very nature often use make-to-stock processes. D. A and B 3) ________ is when the activities in the stage must stop because there is no place to deposit the item just completed. A. Buffering B. Starving C. None of these answers D. Blocking 4) According to Hayes and Wheelwright, which of the following is not a major process flow structure? A. Job Shop B. Assembly Line C. Project D. Batch 5) The best process flow structure to use for making automobiles is? A. Job Shop B. Group technology cell C. A

1. OPS 571 Final Exam Version 3
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OPS 571 Final Exam Version 3 Answers
1) According to your text, the most common process metric is:
A. Productivity
B. Utilization
C. Throughput time

2. D. Efficiency
2) Which of the following is true about make-to-stock processes?
A. Make-to-stock processes can be controlled based on the actual or anticipated
amount of finished goods
B. Make-to-stock process is used when demand is seasonal and the firm does not
have enough
C. Services by their very nature often use make-to-stock processes.
D. A and B
3) ________ is when the activities in the stage must stop because there is no
place to deposit the item just completed.
A. Buffering
B. Starving
C. None of these answers
D. Blocking
4) According to Hayes and Wheelwright, which of the following is not a major
process flow structure? A. Job Shop
B. Assembly Line
C. Project
D. Batch

3. 5) The best process flow structure to use for making automobiles is?
A. Job Shop
B. Group technology cell
C. Assembly line
D. Batch Shop
6) The type of processing structure that is used to produce gasoline, chemicals,
and steel is:
A. Job Shop
B. Assembly Line
C. Continuous Flow
D. Batch
7) The most important performance dimension for product development projects
is:
A. Quality
B. Product flexibility
C. Time-to-market
D. Productivity
8) When evaluating a new product development project using net present value
analysis, which of the following will make the project more attractive?
A. Delaying the start of the project

4. B. Making the project run over a longer period of time
C. Improving (bringing forward) the date when revenue will begin
D. A and B
9) Which of the following statements is true about value analysis/value
engineering (VA/VE)?
A. The purpose of VA/VE is to simplify products and processes.
B. The objective of VA/VE is to achieve equivalent or better performance at a
lower cost.
C. VA is performed before the production stage, while VE deals with products
already in production.
D. both A and B
10) The category given the maximum point value in the Baldrige award is:
A. Business results
B. Process management
C. Strategic planning
D. Customer and market focus
11) Which of the following is not a dimension of design quality?
A. Serviceability
B. Customization

5. C. Features
D. Durability
12) Which Quality Guru advocated that senior management is responsible for
94% of quality problems?
A. Ishikawa
B. Juran
C. Crosby
D. Deming
13) Which of the following is not an assumption of the basic economic-order
quantity model?
A. ordering or setup costs are constant
B. quantity discounts are available
C. annual demand is constant and known
D. lead time is constant
14) The basic difference between P and Q systems is:
A. P models favor more expensive items
B. P model is more appropriate for important items such as critical repair parts
C. Q models are event triggered while P models are time triggered
D. Q models are time triggered while P models are event triggered
15) Which of the following statements is true about the Q-system?

6. A. It does not have an EOQ, since the quantity varies according to demand.
B. The order interval is fixed not the order quantity.
C. It does not have a reorder point but rather a target inventory.
D. The system is completely determined by the two parameters, Q and R.
16) The objectives of work-center scheduling include(s):
A. To meet due dates
B. To minimize lead times
C. To minimize finish goods inventory
D. A and B
17) A _________ approach actually schedules in detail each resource using the
setup and runtime required for each order.
A. Forward scheduling
B. Backward scheduling
C. Infinite loading
D. Finite loading
18) The assignment method is appropriate in solving problems that have the
following characteristics: A. There are ‘n’ things to be distributed to
‘n’
destinations

7. B. Though each destination may handle all the things, the final assignment has
each thing assigned to one and only one destination
C. Only one criterion should be used (minimum cost, maximum profit, for
example)
D. A and C
19) Which of the following according to Goldratt is not a component of production
cycle time?
A. Wait time
B. Maintenance time
C. Setup time
D. Process time
20) Goldratt’s rule of production scheduling include all but:
A. An hour saved at a non-bottleneck is a mirage
B. A process batch should be fixed both along its route and in time
C. Do not balance the capacity - balance the flow
D. Utilization and activation of a resource is not the same thing
21) According to Goldratt and Fox, a useful performance measure to treat
inventory is ______.
A. Inventory turnover
B. Current ratio

8. C. Quick ratio
D. Dollar days
22) Which of the following would not be considered in deciding how far to
minimum-cost schedule (crash) a project?
A. Project overrun penalties
B. Incentives for early completion
C. Indirect project costs (e.g. interest on a construction loan)
D. The normal duration times of tasks not on a critical path
23) The advantages of pure project include all but:
A. The project manager has full authority over the project.
B. Team pride, motivation, and commitments are high.
C. Decisions are made quickly.
D. A team member can work on several projects.
24) Which of the following is not a typical project milestone?
A. Completion of design
B. Production of a prototype
C. Training of project members
D. Completed testing of the prototype
25) Supply-chain response relates to the following:

9. A. How quickly a customer order can be filled
B. How quickly a company can react to a new competing product
C. How inexpensive the product is
D. A and B
26) According to Hau Lee, which of the following types of products need to be
delivered with efficient supply-chains?
A. Custom products
B. Innovative products
C. Grocery products
D. High technology products
27) The idea of the Value Density calculation is:
A. Finding a carrier that can handle the weight
B. Matching the weight of the product with an appropriate carrier
C. Determining how a product should be shipped considering its weight
and value
D. Finding the minimum cost carrier
28) Which of the following statements is not true about capacity management in
operations?
A. When looking at capacity, operations managers need to look at both resource
input and product outputs.

10. B. An operations management view also emphasizes the time dimension of
capacity.
C. Capacity planning itself has different meaning to individuals at different levels
within the operations management hierarchy.
D. The definition of capacity, in an operations management context,
makes a clear distinction between efficient and inefficient use of
capacity.
29) The steps to determining capacity requirements include:
A. Using decision trees to evaluate capacity alternatives
B. Calculating equipment and labor requirements to meet product line forecasts
C. Projecting labor and equipment availabilities over the planning horizon
D. B and C
30) Capacity utilization rate can be computed as:
A. Capacity used - best operating level
B. Capacity used x best operating level
C. Capacity used / best operating level
D. Capacity used + best operating level
31) Which of the following is NOT one of the more successful applications of lean
concepts in services?

11. A. Organize problem-solving groups
B. Upgrade housekeeping
C. Upgrade quality
D. Introduction of demand-push scheduling
32) A kanban card is used to signal that:
A. work is ready to be moved to the next station
B. a worker has run out of parts
C. a machine has broken down
D. work is authorized to replenish a downstream station
33) Which of the following is not true about JIT systems?
A. The JIT system is based on the philosophy of eliminating waste and utilizing
the full capability of the worker.
B. Under JIT the ideal lot size is one.
C. JIT is typically applied to repetitive manufacturing.
D. The goal of JIT is to drive all inventory queues to a moderate level
thus minimizing inventory investment and shortening lead times.
34) Which phrase most closely describes the Delphi forecasting technique?
A. consumer survey
B. random individual opinions
C. group of expert’s opinions

12. D. test markets
35) Which of the following would not be classified as a component of demand?
A. Cycle
B. Seasonality
C. Trend
D. Causal variation
36) Under exponential smoothing, if we want our forecast to be very responsive
to recent demand, the value of alpha should be:
A. moderate
B. zero
C. small
D. large
E. No, Acme is not a holder in due course because of some other reason.
37) One option for altering the pattern of demand is:
A. carrying inventory
B. using overtime
C. hiring employees
D. pricing
38) Which of the following is not a cost relevant to aggregate production

13. planning?
A. Costs associated with changes in the production rate
B. Quantity discounts
C. Basic production costs
D. Inventory holding costs
39) Aggregate planners balance:
A. demand and capacity
B. demand and inventories
C. demand and costs
D. supply and inventories
40) Which MRP system input element specifies how many and when the firm
plans to build each end item?
A. Master production schedule
B. Bills of material
C. Inventory records file
D. Capacity planning
41) Which of the following most closely describes net material requirements?
A. gross requirements - on-hand - planned order receipts
B. gross requirements - on-hand + planned order receipts
C. gross requirements - planned order receipts

14. D. gross requirements - planned order releases
42) Which of the following is true about MRP Systems?
A. demand pattern is random
B. lot sizing is EOQ
C. based on independent demand
D. objective is to meet manufacturing needs
43) Which of the following statements is not true about capacity management in
operations?
A. Capacity planning itself has different meaning to individuals at different levels
within the operations management hierarchy.
B. An operations management view also emphasizes the time dimension of
capacity.
C. When looking at capacity, operations managers need to look at both resource
input and product outputs.
D. The definition of capacity, in an operations management context,
makes a clear distinction between efficient and inefficient use of
capacity.
44) Service capacity:
A. is highly time and location dependent

15. B. is subject to less volatile demand fluctuations
C. utilization directly impacts service quality
D. A and C
45) The steps to determining capacity requirements include:
A. Using decision trees to evaluate capacity alternatives
B. Calculating equipment and labor requirements to meet product line forecasts
C. Projecting labor and equipment availabilities over the planning horizon
D. B and C
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