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1. OPS 571 Final Exam Guide (New, 2018)
A company's production process
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1. Which of the following is a measure of operations and supply management efficiency
used by Wall Street? Dividend payout ratio Receivable turnover Current ratio Financial
leverage Earnings per share growth
2. An activity-system map is which of the following? A diagram that shows how a
company's strategy is delivered to customers A timeline displaying major planned events
A network guide to route airlines A facility layout schematic noting what is done where
A listing of activities that make up a project
3. Which of the following is a total measure of productivity? Output/Materials
Output/Labor Output/(Labor + Capital + Energy) All of these Output/Inputs
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? Quality approach Self-
service approach Production-line approach Do-it-yourself approach Personal-attention
approach
5. Which of the following basic types of production layout formats is one that has similar
equipment or functions are grouped together? Workcenter layout Production line layout
Group technology layout Manufacturing cell layout Assembly line layout
6. Which of the following is a characteristic that can be used to guide the design of
service systems? Services are all similar. Services cannot be inventoried. Services
businesses are inherently entrepreneurial. Even service businesses have internal services.
Quality work means quality service.
7. An advantage of a make-to-stock process is which of the following? All units of output
are unique. It features rapid delivery of a standard product. It combines the best features
of other processes. It responds directly to customer orders. It allows the firm to avoid
inventory costs.

2. 8. Getting an autograph from a famous person might involve standing in which type of
queuing line structure? Single channel, single phase None of these Single channel,
multiphase Multichannel, multiphase Multichannel, single phase
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? 2.5 hours 5 hours 0.2 hour 0.1 hour None
of these
10. An assumption of learning curve theory is which of the following? Organizational
learning is not included in learning theory. The time required to do a task will vary
randomly each time the task is repeated. Unit time will decrease at an increasing rate.
Learning will not be transferred from one worker to the next. The reduction in unit time
will follow a predictable pattern.
12. For which of the following should we use a p-chart to monitor process quality?
Grades in a freshman "pass/fail" course Temperatures in a classroom The dimensions of
brick entering a kiln The weight of fluid in a container Lengths of boards cut in a mill
13. 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. Which of the following is the number of Kanban card sets
necessary to support this situation? 42 68 89 47 94
14. Which of the following is a fixed-time-period inventory model? Just-in-time model
The EOQ model Periodic system model The Q model The least cost method
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
annual demand 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? None of these $1,501,600
$1,498,200 $499,313 $500,687 A.$1,501,600 Q = 400. Average Inventory = Q/2 = 200.
Holding cost/year = $4. Thus, annual holding cost = $800. Annual set-up cost =
10,000/400 = 25 x $32 = 800. Demand x cost per unit = 10,000 x $150 = 1,500,000.
Hence, TC = $1,500,000 + 800 + 800 = $1,501,600.
16. Which of the following is a principle of work center scheduling? Reschedule every
day. Once started, a job can and should be finished even if unavoidably interrupted.

3. Assign the first worker to all of the days that require staffing. Achieve certainty in
standards and routings. Give work centers less to do then their maximum.
17. Which of the following is a "focusing step" of Dr. Eli Goldratt's theory of constraints?
Identify system constraints. Support system constraints. If you have no system
constraints, make some. Reduce system constraints. Reinforce system constraints.
18. In designing a lean production facility layout, a designer should do which of the
following? Locate flexible workstations offline. Balance capacity using job shop analysis.
Design for work flow balance. Always keep operations on a single floor of the factory.
Link operations through a push system.
19. A simple project listing of five activities and their respective time estimates are
presented here: Using CPM, which activities make up the critical path? None of these A,
B, D, E A, D, E A, C, B, D, E A, C, D, E
20. A company must perform a maintenance project consisting of seven activities. The
activities, their predecessors, and their respective time estimates are presented here:
Using CPM, which activities make up the critical path? A, C, B, F, E None of these A, B,
D, F, G A, C, E, F, G A, D, E
21. Which of the following is not a problem definition tool from the operations
consulting tool kit? Issue trees Five forces model Computer simulation Customer surveys
Gap analysis
22. Which of the following is not one of the basic types of forecasting? Simulation
Causal relationships Qualitative Time series analysis Force field analysis
23. A company has actual unit demand for three consecutive years of 124, 126, and 135.
The respective forecasts for the same three years are 120, 120, and 130. Which of the
following is the resulting MAD value that can be computed from these data? 3 1 15 123 5
C MAD = ABS[(124 - 120) + (126 - 120) + (135 - 130)]/3 = 15/3 = 5.
24. From an operational perspective, yield management is most effective under which of
the following circumstances? Inventory is perishable. The firm doing yield management
is very profitable. Demand cannot be segmented by customer. Fixed costs are low, and
variable costs are high. The customer is a "captive" of the system.
25. What is transaction processing? The decision support system used to efficiently
handle multiple transactions The movement of paperwork through a system using a

4. decision tree The scheduling of machinery to minimize time and scrap The posting and
tracking of the detailed activities of a business
26. If the actual output of a piece of equipment during an hour is 500 units and its best
operating level is at a rate of 400 units per hour, which of the following is the capacity
utilization rate? 0.75 1.00 1.25 1.33 100
27. Which of the following is an input to the master production schedule (MPS)? Planned
order schedules The bill of materials The aggregate plan The exception report Inventory
records file
28. Which of the following is considered a primary report in an MRP system? Cycle
counting reports Performance reports Planned order schedules Planning reports
Exception reports
29. The centroid method for plant location uses which of the following data? Probabilities
and payoffs Correlation matrix of existing facilities Volume of goods to be shipped
between existing points Inbound transportation costs Transport times between facilities
30. In Hau Lee's uncertainty framework to classify supply chains, a supply chain for
functional products with an evolving supply process is called which of the following?
Responsive Forward looking Efficient Risk hedging Agile
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