OPMA 3306 Final Exam Cracker Actual Questions
And Correct Detailed Answers
OPMA 3306 Operations Management Final
1. Which of the following best describes the "Bullwhip Effect" in a
supply chain?
A. The reduction of costs as volume increases.
B.The distortion of demand information as it moves upstream from
the retailer to the manufacturer.
C. The speed at which a product moves through a factory.
D.The process of outsourcing non-core competencies.
Answer:B
Rationale: The bullwhip effect occurs when small fluctuations in
consumer demand lead to progressively larger fluctuations in orders
placed by wholesalers and manufacturers.
2. In the Economic Order Quantity (EOQ) model,what happens to the
optimal order quantity if the annual demand doubles while all other
factors remain constant?
A.The EOQ doubles.
B.The EOQ remains the same.
C. The EOQ increases by approximately 41%(the square root of 2).
D.The EOQ decreases by half.
Answer:C
Rationale:The EOQ formula involves the square root of demand
(\(\sqrt{2DS/H}\)). IfD doubles, the result is |(\sqrt{2}|) times the
original EOQ.
3. In a Critical Path Method (CPM) network, "Slack" (or Float) is defined
as:
A.The total duration of the project.
B.The amount of time an activity can be delayed without delaying the
project completion date.
,C.The time difference between the Early Start and the Early
Finish.
D.The cost associated with crashing a project.
Answer:B
,Rationale: Slack is calculated as (Late Start-Early Start)or (Late Finish -
Early Finish). Critical path activities always have zero slack.
4. Which of the following is a key characteristic of a Process-
Focused (Job Shop)facility?
A.High volume and low variety.
B. Highly standardized products.
C. Low volume and high variety of products.
D.Continuous flow of materials.
Answer:C
Rationale:Process-focused facilities are organized around specific
activities (like a machine shop) and are designed to handle
custom or low-volume orders.
5. When using a p-chart for Statistical Process Control, what are we
primarily measuring?
A.The weight of an item.
B. The number of defects per unit.
C. The proportion of defectiveitems in a sample.
D.The range of measurements in a subgroup.
Answer:C
Rationale: P-charts are attribute control charts used specifically to track
the percentage or proportion of non-conforming (defective)items.
6. What is the primary goal of Six Sigma quality management?A. To
increase the speed of the assembly line.
B. To reduce process variation so that the defectrate is extremely low
(3.4 per million).
C.To eliminate the need for inventory.
D.To outsource all manufacturing to lower-cost regions.
Answer:B
Rationale: Six Sigma focuses on process capability and reducing
variability to ensure high consistency and quality.
7.In Linear Programming, what does the "Shadow
Price"represent?
A. The cost of a product in the black market.
B.The amount the objective function value would change given a one-
unit increase in a constraint's right-hand side.
C.The price of a product after a discount.
, D. The cost of labor in a different country.
Answer:B
Rationale: Shadow prices indicate the marginal value ofan
additional unit ofa limited resource.
8. Which inventory classification (ABC Analysis) typically represents the
top 15-20% of items that account for 70-80% of the total annual dollar
usage?
A.Class A
B.Class B
C.Class C
D.Class D
Answer:A
Rationale: Class A itemns are the most critical"vital few" that require
the tightest inventory control and most frequent review.
9. Just-In-Time (JIT) systems view inventory as:
A.A safety net against supplier failure.
B. An asset that should be maximized.
C. Waste (Muda) that hides underlying process problems.
D.A necessary requirement for all business models.
Answer:C
Rationale: JIT philosophy emphasizes reducing inventory to expose
inefficiencies,defects, and bottlenecks.
10. In a Project Crashing scenario, which activity should be crashed
first to reduce the project duration?
A.The activity with the highest cost.
B.The activity on the critical path with the lowest marginal crash cost.
C.The activity with the most slack.
D. The last activity in the project network.
Answer:B
Rationale: To reduce project time at minimum cost,you must choose a
critical activity (so the end date actually moves) with the cheapest cost
to accelerate.
11.In the Theory of Constraints (TOC), wha is the primary
recommendation for managing a bottleneck?
A. Increase the capacity of non-bottleneck stations.
B. Ensure the bottleneck is never idle and work flows through it
constantly.
And Correct Detailed Answers
OPMA 3306 Operations Management Final
1. Which of the following best describes the "Bullwhip Effect" in a
supply chain?
A. The reduction of costs as volume increases.
B.The distortion of demand information as it moves upstream from
the retailer to the manufacturer.
C. The speed at which a product moves through a factory.
D.The process of outsourcing non-core competencies.
Answer:B
Rationale: The bullwhip effect occurs when small fluctuations in
consumer demand lead to progressively larger fluctuations in orders
placed by wholesalers and manufacturers.
2. In the Economic Order Quantity (EOQ) model,what happens to the
optimal order quantity if the annual demand doubles while all other
factors remain constant?
A.The EOQ doubles.
B.The EOQ remains the same.
C. The EOQ increases by approximately 41%(the square root of 2).
D.The EOQ decreases by half.
Answer:C
Rationale:The EOQ formula involves the square root of demand
(\(\sqrt{2DS/H}\)). IfD doubles, the result is |(\sqrt{2}|) times the
original EOQ.
3. In a Critical Path Method (CPM) network, "Slack" (or Float) is defined
as:
A.The total duration of the project.
B.The amount of time an activity can be delayed without delaying the
project completion date.
,C.The time difference between the Early Start and the Early
Finish.
D.The cost associated with crashing a project.
Answer:B
,Rationale: Slack is calculated as (Late Start-Early Start)or (Late Finish -
Early Finish). Critical path activities always have zero slack.
4. Which of the following is a key characteristic of a Process-
Focused (Job Shop)facility?
A.High volume and low variety.
B. Highly standardized products.
C. Low volume and high variety of products.
D.Continuous flow of materials.
Answer:C
Rationale:Process-focused facilities are organized around specific
activities (like a machine shop) and are designed to handle
custom or low-volume orders.
5. When using a p-chart for Statistical Process Control, what are we
primarily measuring?
A.The weight of an item.
B. The number of defects per unit.
C. The proportion of defectiveitems in a sample.
D.The range of measurements in a subgroup.
Answer:C
Rationale: P-charts are attribute control charts used specifically to track
the percentage or proportion of non-conforming (defective)items.
6. What is the primary goal of Six Sigma quality management?A. To
increase the speed of the assembly line.
B. To reduce process variation so that the defectrate is extremely low
(3.4 per million).
C.To eliminate the need for inventory.
D.To outsource all manufacturing to lower-cost regions.
Answer:B
Rationale: Six Sigma focuses on process capability and reducing
variability to ensure high consistency and quality.
7.In Linear Programming, what does the "Shadow
Price"represent?
A. The cost of a product in the black market.
B.The amount the objective function value would change given a one-
unit increase in a constraint's right-hand side.
C.The price of a product after a discount.
, D. The cost of labor in a different country.
Answer:B
Rationale: Shadow prices indicate the marginal value ofan
additional unit ofa limited resource.
8. Which inventory classification (ABC Analysis) typically represents the
top 15-20% of items that account for 70-80% of the total annual dollar
usage?
A.Class A
B.Class B
C.Class C
D.Class D
Answer:A
Rationale: Class A itemns are the most critical"vital few" that require
the tightest inventory control and most frequent review.
9. Just-In-Time (JIT) systems view inventory as:
A.A safety net against supplier failure.
B. An asset that should be maximized.
C. Waste (Muda) that hides underlying process problems.
D.A necessary requirement for all business models.
Answer:C
Rationale: JIT philosophy emphasizes reducing inventory to expose
inefficiencies,defects, and bottlenecks.
10. In a Project Crashing scenario, which activity should be crashed
first to reduce the project duration?
A.The activity with the highest cost.
B.The activity on the critical path with the lowest marginal crash cost.
C.The activity with the most slack.
D. The last activity in the project network.
Answer:B
Rationale: To reduce project time at minimum cost,you must choose a
critical activity (so the end date actually moves) with the cheapest cost
to accelerate.
11.In the Theory of Constraints (TOC), wha is the primary
recommendation for managing a bottleneck?
A. Increase the capacity of non-bottleneck stations.
B. Ensure the bottleneck is never idle and work flows through it
constantly.
