OMGT All Quizzes: Operations & Supply Chain Management Practice Questions, Review &
Exam Prep Guide
business process is a structural set of activities designed to produce a specific output - ANS
✔✔true
business process management consist of the following steps except.... - ANS ✔✔bottleneck
identification
(includes: design, optimize, execute, monitor)
which of the following is NOT a benefit of using business process management - ANS
✔✔increased value added time
(benefits: reduced waste, improved process consistency, increased productivity)
productivity is expressed as......... - ANS ✔✔output divided by input
a car wash services 200 customers in a 4-hour span on a lovely Saturday afternoon. The car
wash employs 5 washers at $6 per hour. An appropriate measure of productivity is: - ANS
✔✔1.7 cars/$
when an organization compares products, services, and processes against those of organizations
known to be leaders in one or more aspect of their operations, they are engaging in......... - ANS
✔✔benchmarking
continuous flow is more efficient but less flexible than job shop because...... - ANS
✔✔continuous flow produces products in extreme high volume
___________ products involve no customization but ____________ products are completely
customized driven by actual customer orders. - ANS ✔✔make to stock, make to order
, which of the following refers to a production environment where a product can be made from
common components after receipt of a customer's order - ANS ✔✔assemble to order
the maximum level of output of a system in a certain time period under ideal conditions is
the....... - ANS ✔✔theoretical capacity
if the maximum output level of a piece of equipment is at a rate of 400 units per hour and the
actual output during an hour is 350 units., which of the following is the capacity utilization rate?
- ANS ✔✔87.5%
Assume a fixed cost for a process of $120,000. The variable cost to produce each unit of product
is $35 and the selling price for the finished product is $50. Which of the following is the number
of units that has to be produced and sold to break-even? - ANS ✔✔8,000
a company is considering producing a product for a new market. The fixed costs required for
manufacturing and delivering the product is $50,000. Labor and material costs are estimated to
be approximately $25.00 per product. If the product is sold for $35.00 each, the firm's break-
even volume would be - ANS ✔✔5,000 units
Jimbo Elrod has obtained fixed and variable cost information for four potential locations for his
professional wrestling school and summarized it in tabular form below. All values are in dollars.
Jimbo plans to charge the same amount for tuition regardless of where he decides to establish
his school. If he believes that 700 students will matriculate each year, which location will result
in the lowest total cost?
Site Fixed Cost Variable Cost
A 10,0000 24
B 12,000 20
C 14,000 18
D 16,000 17 - ANS ✔✔Location B
Exam Prep Guide
business process is a structural set of activities designed to produce a specific output - ANS
✔✔true
business process management consist of the following steps except.... - ANS ✔✔bottleneck
identification
(includes: design, optimize, execute, monitor)
which of the following is NOT a benefit of using business process management - ANS
✔✔increased value added time
(benefits: reduced waste, improved process consistency, increased productivity)
productivity is expressed as......... - ANS ✔✔output divided by input
a car wash services 200 customers in a 4-hour span on a lovely Saturday afternoon. The car
wash employs 5 washers at $6 per hour. An appropriate measure of productivity is: - ANS
✔✔1.7 cars/$
when an organization compares products, services, and processes against those of organizations
known to be leaders in one or more aspect of their operations, they are engaging in......... - ANS
✔✔benchmarking
continuous flow is more efficient but less flexible than job shop because...... - ANS
✔✔continuous flow produces products in extreme high volume
___________ products involve no customization but ____________ products are completely
customized driven by actual customer orders. - ANS ✔✔make to stock, make to order
, which of the following refers to a production environment where a product can be made from
common components after receipt of a customer's order - ANS ✔✔assemble to order
the maximum level of output of a system in a certain time period under ideal conditions is
the....... - ANS ✔✔theoretical capacity
if the maximum output level of a piece of equipment is at a rate of 400 units per hour and the
actual output during an hour is 350 units., which of the following is the capacity utilization rate?
- ANS ✔✔87.5%
Assume a fixed cost for a process of $120,000. The variable cost to produce each unit of product
is $35 and the selling price for the finished product is $50. Which of the following is the number
of units that has to be produced and sold to break-even? - ANS ✔✔8,000
a company is considering producing a product for a new market. The fixed costs required for
manufacturing and delivering the product is $50,000. Labor and material costs are estimated to
be approximately $25.00 per product. If the product is sold for $35.00 each, the firm's break-
even volume would be - ANS ✔✔5,000 units
Jimbo Elrod has obtained fixed and variable cost information for four potential locations for his
professional wrestling school and summarized it in tabular form below. All values are in dollars.
Jimbo plans to charge the same amount for tuition regardless of where he decides to establish
his school. If he believes that 700 students will matriculate each year, which location will result
in the lowest total cost?
Site Fixed Cost Variable Cost
A 10,0000 24
B 12,000 20
C 14,000 18
D 16,000 17 - ANS ✔✔Location B
