1. The document is an exam guide for an OPS 571 final exam that provides 30 multiple choice questions covering operations and supply chain management topics. 2. The questions cover a range of topics including productivity measurement, service design, production processes, inventory models, project scheduling, forecasting techniques, transportation modes, and supply chain classification frameworks. 3. Correct answers are provided for each multiple choice question to aid students in preparing for the exam.

1. OPS 571 Final Exam Guide (Feb, 2019)
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Which of the following is a measure of operations and supply
management efficiency used by Wall Street?
Current ratio
Receivable turnover
Financial leverage
Earnings per share growth
Dividend payout ratio
When a company seeks to match the benefits of a successful position
while maintaining its existing position in offering customers a variety
of differing services, what is this process called?
Inter-functional analysis
Order qualifying
Order winning
Straddling
Operations capability analysis
Which of the following is a total measure of productivity?

2. Output/(Labor + Capital + Energy)
Output/Labor
All of these
Output/Materials
Output/Inputs
In the service-system design matrix, a face-to-face total customization
service encounter is expected to have which of the following?
Low degree of customer/server contact
None of these
Low production efficiency
High production efficiency
Low sales opportunity
We would expect to see in a manufacturing cell layout which of the
following?
None of these
Long production setup times
Large teams who collectively do a small part of a finished product
A small team of workers who turn out complete units of work
More in-process inventory
Which of the following is a major factor that distinguishes service
design and development from manufacturing design and
development?

3. Capacity decisions are much more critical in manufacturing
operations.
Manufacturing is far more capital intensive than services.
The service process and service product can be developed
independently.
The service package has the same legal protection available to
manufactured goods.
The service package is the major output of the development process.
The customer order decoupling point determines the position of what
in the supply chain?
Orders
Transportation facilities
Inventory
Customers
Manufacturing facilities

4. Machine breakdown and repair in a 12-machine factory having one
repair mechanic would develop which type of queuing system line
structure concerning machine breakdowns?
Single channel, single phase
None of these
Multichannel, single phase
Single channel, multiphase
Multichannel, multiphase
Assume the service rate for a queue in a truck-loading operation is 2
trucks per hour. Using the infinite queuing notion for the models
presented in the textbook, which of the following is the average
service time?
0.25 hour
0.5 hour
2 hours
1 hour
None of these
An assumption of learning curve theory is which of the following?
Unit time will decrease at a decreasing rate.
Unit time will hold constant.
Unit time will increase at an increasing rate.
Unit time will increase at a decreasing rate.
Unit time will decrease at an increasing rate.

5. The unit improvement factor for a 60 percent learning curve at 25
units is 0.0933. The first and second timings of a person doing a job
are 5 minutes and 3 minutes respectively. Which of the following is
the learning-adjusted time estimate for unit number 25?
0.0933 minute
9.33 minutes
3 minutes
4.665 minutes
0.4665 minute
For which of the following should we use a p-chart to monitor
process quality?
Letter grades on a final examination
Temperature of entrees in a restaurant
Weight errors in cans of soup
Errors in the length of a pencil
Defective electrical switches
You have been called in as a consultant to set up a Kanban control
system. The first thing to do is to determine the number of Kanban
card sets needed. Your research shows that the expected demand
during lead time for a particular component is 150 per hour. You
estimate the safety stock should be set at 25 percent of the demand
during lead time. The tote trays used as containers can hold 8 units of
stock, and the lead time it takes to replenish an order is 2 hours.

6. Which of the following is the number of Kanban card sets necessary
to support this situation?
94
68
42
47
89
Which of the following is a fixed-order-quantity inventory model?
P model
Periodic replenishment model
The ABC model
Economic order quantity model
Cycle counting model
Using the fixed-order-quantity model, which of the following is the
total ordering cost of inventory given an annual demand of 36,000
units, a cost per order of $80, and a holding cost per unit per year of
$4?
$1,889
$2,267
$849
$2,400
$1,200

7. Assume there are five jobs (i.e., A, B, C, D, and E) that need to be
sequenced in a production schedule. The remaining operating time
necessary for completion of job A is 4 days (i.e., job A will take 4
more days to complete), B will take 7 days, C will take 8 days, D will
take 2 days, and E will take 5 days. Which job should be scheduled
first if you use the SOT priority rule for job sequencing?
E
B
C
D
A
Which of the following is a "focusing step" of Dr. Eli Goldratt's
theory of constraints?
Reinforce system constraints.
If you have no system constraints, make some.
Identify system constraints.
Reduce system constraints.
Support system constraints
In implementing a lean production system you should work with
suppliers to do which of the following?
Make frequent deliveries.
Calculate lead times.
Achieve bottom-round management.

8. Freeze windows.
Use quality circles.
For an activity in a CPM analysis, the early finish time is 20 and the
late finish time is 20. Which of the following statements is true?
The slack for this activity is 20.
The activity's late start must happen before its early start.
The activity is on the critical path.
The duration of this task is 20.
The duration of this task is zero.
You have been placed in charge of a large project. Shortened
communication lines are required to ensure quick resolution of
problems as they arise. You recognize that the project is going to take
a lot of time and require a lot of team pride, motivation, and
commitment by all members. Which project management structure
should you use in this situation?
Pure project
PERT
Task force
Functional project
Matrix project
Which of the following is not a principle of reengineering?
Capture information many times, at the source and where it is
interpreted.

9. Treat geographically dispersed resources as though they were
centralized.
Merge information processing work into the work that produces the
information.
Link parallel activities instead of integrating their results.
Organize around outcomes not tasks.
Which of the following forecasting methodologies is considered a
qualitative forecasting technique?
Simple moving average
Market research
Exponential smoothing
Linear regression
Multiple regression
A company wants to generate a forecast for unit demand for year
2014 using exponential smoothing. The actual demand in year 2013
was 120. The forecast demand in year 2013 was 110. Using these
data and a smoothing constant alpha of 0.1, which of the following is
the resulting year 2014 forecast value?
111
100
114
120
110

10. Maintaining a stable workforce working at a constant output rate
while shortages and surpluses are absorbed by fluctuating inventory
levels, order backlogs, and allowing lost sales is which of the
following production planning strategies?
Full employment
Stable workforce, variable work hours
Skill maintenance
Level
Chase
What are two of the main objectives of ERP?
Transaction processing and logistic optimizing
Resource tracking and master schedule planning
Product tracking and customer invoicing
Transaction processing and decision support
If the best operating level of a piece of equipment is at a rate of 400
units per hour and the actual output during an hour is 300 units,
which of the following is the capacity cushion?
133 percent
25 percent
100 units per hour
125 percent
75 percent

11. Under the lot-for-lot (L4L) lot sizing technique as used in MRP, we
would expect which of the following?
A consistent lag of supply behind demand
Minimized carrying costs
Minimized setup costs
Minimized quality problems
A just-in-time management philosophy
A product tree can do which of the following?
Help to compute component usage.
Reduce product scrap.
Reduce regular time labor.
Locate raw material supplies.
Reduce labor overtime.
Very few products are moved without at least part of their journey
being by which mode of transportation?
Rail
Highway
Pipeline
Water
Air

12. In Hau Lee's uncertainty framework to classify supply chains, a
supply chain for innovative products with an evolving supply process
is called which of the following?
Responsive
Efficient
Agile
Risk hedging
Forward looking
1. The total output from a production system in one day is 500
units and the total labor necessary to produce the 500 units is 350
hours. Using the appropriate productivity measure, which of the
following numbers represents the resulting productivity ratio?
2. When a company seeks to match the benefits of a successful
position while maintaining its existing position in offering customers
a variety of differing services, what is this process called?
3. Which of the following is a measure of operations and supply
management efficiency used by Wall Street?
4. Which of the following approaches to service design is
characterized by having the customer take a greater role in the
production of the service?
5. A difference between project and continuous flow categories
of process flow structures is which of the following?

13. 6. Which of the following is a characteristic that can be used to
guide the design of service systems?
7. An advantage of a make-to-stock process is which of the
following?
It features rapid delivery of a standard product
8. Which of the following production process terms best
describes the situation when activities in a stage of production must
stop because there is no work?
9. For an infinite queuing situation, if the arrival rate for loading
trucks is 5 trucks per hour, what is the mean time between arrivals?
10. An assumption of learning curve theory is which of the
following?
11. A company's production process has an 85 percent learning
curve rate. The process has produced 1,000 units to date. A process
refinement is estimated to allow a future learning curve rate for the
identical product of 75 percent. However, the initial unit made using
the new process will take the same amount of time as the very first
unit produced using the old process. At what point, using the new
process, will the production rate exceed the production rate achieved
by the old process?
12. For which of the following should we use an R-chart to
monitor process quality?

14. 13. In setting up a Kanban control system you need to determine
the number of kanban card sets needed. If assume the expected
demand during lead time is 50 per hour, the safety stock is 20 percent
of the demand during lead time, the container size is 4, and the lead
time to replenish an order is 8 hours, what number of Kanban card
sets is needed?
120
14. Using the ABC classification system for inventory, which of
the following is a true statement?
15. A company is planning for its financing needs and uses the
basic fixed-order-quantity inventory model. Which of the following is
the total cost (TC) of the inventory given an annualdemand of
10,000, setup cost of $32, a holding cost per unit per year of $4, an
EOQ of 400 units, and a cost per unit of inventory of $150?
16. The assignment method is useful in solving scheduling
problems that have which of the following characteristics?
There are no jobs to be distributed to n machines or workers.
17. According to the theory of constraints, which of the following
is an operational measurement that can be used to measure the firm's
ability to make money?
18. Which of the following are related to lean production?
19. A simple project listing of five activities and their respective
time estimates are presented here:

15. Using CPM, which activities make up the critical path?
20. You have been placed in charge of a large project. Shortened
communication lines are required to ensure quick resolution of
problems as they arise. You recognize that the project is going to take
a lot of time and require a lot of team pride, motivation, and
commitment by all members. Which project management structure
should you use in this situation?
21. One of the principles of reengineering is which of the
following?
22. Which of the following forecasting methodologies is
considered a qualitative forecasting technique?
23. A company wants to forecast demand using the simple moving
average. If the company uses three prior yearly sales values (i.e., year
2011 = 130, year 2012 = 110, and year 2013 = 160), which of the
following is the simple moving average forecast for year 2014?
24. Which of the following is considered a "pure" production
planning strategy?
25. What are two of the main objectives of ERP?

16. 26. If the best operating level of a piece of equipment is at a rate
of 400 units per hour and the actual output during an hour is 300
units, which of the following is the capacity cushion?
27. If annual demand is 6,125 units, annual holding cost is $5 per
unit, and setup cost per order is $50, which of the following is the
EOQ lot size?
28. What are the three primary data sources used by the MRP
system?
29. What transportation mode has very high initial investment
costs but gives a very low cost per mile for products that are highly
specialized and require no packaging?
30. In Hau Lee's uncertainty framework to classify supply chains,
a supply chain for innovative products with an evolving supply
process is called which of the following?