Management OA Comprehensive 2026-2027
Frequently Tested Questions With ELABORATED
100% Correct COMPLETE SOLUTIONS
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1. An oil refinery receives crude oil on a regular basis, which must be refined into
five different octane-rated gasoline formulas and diesel. Demand for these fuels is
easy to predict. The cost to refine the oil decreases rapidly depending on the size
of the refinery that refines the oil.
Based on this information, which process strategy should the oil refinery use in its
refining process?
a) Job shop
b) Batch flow
c) Mass customization
d) Continuous flow - ANSWER Continuous flow
2. A company wants to establish a new gas station in a location with heavy traffic.
The company performs a traffic analysis for four locations during four different
time periods. The table below depicts the number of cars that passed each
location during the four time periods:
Time Period Main Street Fell Avenue Veterans Parkway Market Street
Midnight - 6:00 a.m. 1,000 500 1,500 750
6:00 a.m. - noon 4,500 6,000 5,500 4,000
,Noon - 6:00 p.m. 6,000 4,500 6,000 5,000
6:00 p.m. - midnight 2,500 1,500 3,000 6,000
Which location should the company choose for the new gas station?
a) Main Street
b) Fell Avenue
c) Veterans Parkway
d) Market Street - ANSWER Veterans Parkway
3. A hospital administrator needs to determine how many beds to make available
for exam rooms, operating rooms, and in-patient care. The hospital board
announces they will be getting more patient referrals from specialists at a newly
opened clinic.
What should the adminstrator use to forecast how many beds to make available,
given the increased number of patients?
a) Simple moving average using data from prior years
b) Weighted moving average using patient referral data
c) Panel of experts
d) Buildup method - ANSWER Weighted moving average using patient
referral data
4. A furniture company receives an order for 100 dining tables with four legs
each. The planner has determined that the projected number of legs on hand is
60 units. If there is no previously scheduled production for legs, what will be the
planned production of legs?
a) 400
, b) 340
c) 240
d) 160 - ANSWER 340
5. What is the time horizon for medium-range forecasting?
a) 3 to 4 months
b) 6 to 18 months
c) 3 to 5 years
d) 7 to 9 years - ANSWER 6 to 18 months
6. A computer company receives an order for 100 computers from a customer
inside of its lead time. The production planner agrees to support the order.
Which two outputs will the MRP system issue?
Choose 2 answers
a) Planned order receipts
b) Expedite notice
c) Shipping confirmation
d) Master schedule quantity - ANSWER Planned order receipts
Expedite notice
7. A bicycle company receives an order to deliver 200 bicycles by the end of the
month.
Which planning process will help this company to decide the required quantity of
bicycle tires to meet the order?
a) MRP II
, b) MRP
c) Purchasing
d) MAP - ANSWER MRP
8. A large retail chain is developing an aggregate plan for its "holiday tree"
product line. It does not specify Douglas fir, pine, spruce tree, or artificial tree
variations, just overall quantity of trees to be offered throughout the holiday
season.
What is the appropriate time fence for the aggregate plan?
a) 2 to 6 months before the holiday season begins
b) 6 to 18 months before the holiday season begins
c) 24 to 36 months before the holiday season begins
d) 2 months after the prior holiday season ends - ANSWER 6 to 18 months
before the holiday season begins
9. A restaurant manager inside a major entertainment venue needs to estimate
the amount of soft drinks to order for the coming month. Cumulative convention
attendance for each event is estimated at 20,000 people. The manager
understands the historical pull-through and turnover rate metrics at the
restaurant.
Which two tools should the manager use to estimate the total amount of soft
drinks to purchase?
Choose 2 answers
a) Weighted moving average from the historical metrics for the last 30 days