MGT 295 FINAL EXAM QUESTIONS ANSWERED CORRECTLY LATEST UPDATE 2026
What is Operations and Supply Chain Management? - Answers The management of processes that
create goods/services and move them through the supply chain.
Why is Operations Management important? - Answers It improves efficiency, lowers costs, and
increases customer satisfaction.
What is supply chain management? - Answers The coordination of suppliers, manufacturers,
warehouses, and stores to deliver products efficiently.
Difference between effective and efficient? - Answers Effective = achieving goals; Efficient = achieving
goals with minimal waste/cost.
Who are stakeholders? - Answers People affected by a company's actions such as employees,
customers, suppliers, and communities.
Difference between shareholders and stakeholders? - Answers Shareholders focus on profits;
stakeholders include everyone impacted by the business.
What is the triple bottom line? - Answers Measuring business success through people, planet, and
profit.
Who benefits from the triple bottom line? - Answers Businesses, society, and the environment.
What are the 3 steps in risk management? - Answers Identify risks, assess risks, and respond/control
risks.
What is forecasting? - Answers Predicting future demand to support business decisions.
Difference between qualitative and quantitative forecasting? - Answers Qualitative uses
opinions/judgment; quantitative uses numerical data.
What are short-term forecasts used for? - Answers Daily or weekly operations, usually less than 3
months.
What are medium-term forecasts used for? - Answers Planning capacity and staffing, usually 3
months-2 years.
What are long-term forecasts used for? - Answers Strategic planning and expansion, usually 2+ years.
Difference between demand and capacity? - Answers Demand is customer need; capacity is the
ability to produce.
What is strategic capacity management? - Answers Planning long-term production capabilities to
meet demand.
What is best operating level? - Answers The level of output where average unit cost is lowest.
What is capacity utilization? - Answers The percentage of total capacity currently being used.
How do you calculate capacity utilization? - Answers Actual output ÷ Best operating level × 100.
What are economies of scale? - Answers Cost advantages from producing large quantities.
What are economies of scope? - Answers Cost advantages from producing multiple product types
together.
What is a project? - Answers A temporary activity with a specific goal and timeline.
What is the first step of every project? - Answers Statement of Work (SOW).
What is project management? - Answers Planning, organizing, and controlling resources to complete
a project.
What is a Gantt chart? - Answers A project scheduling chart showing tasks over time.
What is on the horizontal axis of a Gantt chart? - Answers Time.
What is on the vertical axis of a Gantt chart? - Answers Project tasks/activities.
What is CPM? - Answers Critical Path Method used to identify the longest path of project tasks.
What is slack time? - Answers The amount of time a task can be delayed without delaying the project.
What is crashing? - Answers Adding resources to shorten project duration.
Difference between goods and services? - Answers Goods are tangible and inventoried; services are
intangible experiences and cannot be inventoried.
What are the 3 steps of manufacturing? - Answers Purchasing materials, transforming materials,
delivering products.
What is days of supply? - Answers The number of days inventory will last.
What is a process layout? - Answers Equipment grouped by function.
What is a product layout? - Answers Equipment arranged by production sequence.
What is a fixed-position layout? - Answers Product stays in one place while workers/materials move.
What is a service process? - Answers A process that delivers intangible customer experiences.
What is customer experience? - Answers The overall interaction a customer has with a business.
What is Operations and Supply Chain Management? - Answers The management of processes that
create goods/services and move them through the supply chain.
Why is Operations Management important? - Answers It improves efficiency, lowers costs, and
increases customer satisfaction.
What is supply chain management? - Answers The coordination of suppliers, manufacturers,
warehouses, and stores to deliver products efficiently.
Difference between effective and efficient? - Answers Effective = achieving goals; Efficient = achieving
goals with minimal waste/cost.
Who are stakeholders? - Answers People affected by a company's actions such as employees,
customers, suppliers, and communities.
Difference between shareholders and stakeholders? - Answers Shareholders focus on profits;
stakeholders include everyone impacted by the business.
What is the triple bottom line? - Answers Measuring business success through people, planet, and
profit.
Who benefits from the triple bottom line? - Answers Businesses, society, and the environment.
What are the 3 steps in risk management? - Answers Identify risks, assess risks, and respond/control
risks.
What is forecasting? - Answers Predicting future demand to support business decisions.
Difference between qualitative and quantitative forecasting? - Answers Qualitative uses
opinions/judgment; quantitative uses numerical data.
What are short-term forecasts used for? - Answers Daily or weekly operations, usually less than 3
months.
What are medium-term forecasts used for? - Answers Planning capacity and staffing, usually 3
months-2 years.
What are long-term forecasts used for? - Answers Strategic planning and expansion, usually 2+ years.
Difference between demand and capacity? - Answers Demand is customer need; capacity is the
ability to produce.
What is strategic capacity management? - Answers Planning long-term production capabilities to
meet demand.
What is best operating level? - Answers The level of output where average unit cost is lowest.
What is capacity utilization? - Answers The percentage of total capacity currently being used.
How do you calculate capacity utilization? - Answers Actual output ÷ Best operating level × 100.
What are economies of scale? - Answers Cost advantages from producing large quantities.
What are economies of scope? - Answers Cost advantages from producing multiple product types
together.
What is a project? - Answers A temporary activity with a specific goal and timeline.
What is the first step of every project? - Answers Statement of Work (SOW).
What is project management? - Answers Planning, organizing, and controlling resources to complete
a project.
What is a Gantt chart? - Answers A project scheduling chart showing tasks over time.
What is on the horizontal axis of a Gantt chart? - Answers Time.
What is on the vertical axis of a Gantt chart? - Answers Project tasks/activities.
What is CPM? - Answers Critical Path Method used to identify the longest path of project tasks.
What is slack time? - Answers The amount of time a task can be delayed without delaying the project.
What is crashing? - Answers Adding resources to shorten project duration.
Difference between goods and services? - Answers Goods are tangible and inventoried; services are
intangible experiences and cannot be inventoried.
What are the 3 steps of manufacturing? - Answers Purchasing materials, transforming materials,
delivering products.
What is days of supply? - Answers The number of days inventory will last.
What is a process layout? - Answers Equipment grouped by function.
What is a product layout? - Answers Equipment arranged by production sequence.
What is a fixed-position layout? - Answers Product stays in one place while workers/materials move.
What is a service process? - Answers A process that delivers intangible customer experiences.
What is customer experience? - Answers The overall interaction a customer has with a business.
