OPM FINAL EXAM QUESTIONS AND ANSWERS | COMPLETE STUDY GUIDE &
PRACTICE TEST 2026/2027
A functional organizational structure requires that the project be - ANS ✔✔led by a project
manager who can negotiate assistance from personnel in other functional areas
Which one of the following statements is false?
a. the critical path is the sequence of activities between a project's start and finish that takes
the shortest time to complete
b. the activities along the critical path determine the completion time of the project
c. there may be more than one critical path in a project network
d. if one of the activities on the critical path is delayed, the entire project will be delayed - ANS
✔✔a
The project duration in a network can be determined by the largest value of which variable
associated with the critical path?
earliest finish time, earliest start time, slack time, activity time - ANS ✔✔earliest finish time
When the latest start time is known, total slack for an activity may be determined using - ANS
✔✔earliest start time
Total project costs are the sum of - ANS ✔✔direct costs, indirect costs, and penalty costs
Crash time is defined as - ANS ✔✔the shortest possible time to complete an activity
, Suppose that the normal time for activity C is 10 weeks with a normal cost of $6k. We can crash
it to only 4 weeks at a TC of $12k.
The total activity cost if we crash it to 7 weeks will be - ANS ✔✔$9k
A PERT analysis of a small project determined that the duration of the critical path is 10 weeks
w/ a variance of 2 weeks. What project duration can be promised that will have only a 5%
chance of time overrun? - ANS ✔✔12.3 weeks
Which of the following can put pressure on a company to carry small levels of inventory?
high ordering cost, the potential for stockouts and backorders, the need to increase workforce
productivity, high cost of capital - ANS ✔✔high cost of capital
Inventory used to absorb uneven rates of demand or supply is referred to as - ANS
✔✔anticipation inventory
What is the primary lever to reduce cycle inventory? - ANS ✔✔reduce the lot sizes
The Mickey and Mouse Cat Food Factory runs an aggressive marketing campaign and much to
the delight, orders surge to twice their previous level. If their operations manager uses an EOQ
policy, what is the impact on the order quantity? - ANS ✔✔The order quantity will be 40%
higher
For what percentage of the time will the condition of "no safety stock" adequately cover the
demand for an item (assume demand during lead time is normally distributed)? - ANS ✔✔50%
A P system has an advantage over the Q system - ANS ✔✔because orders from multiple items
from one supplier can be combined into a single purchase order
PRACTICE TEST 2026/2027
A functional organizational structure requires that the project be - ANS ✔✔led by a project
manager who can negotiate assistance from personnel in other functional areas
Which one of the following statements is false?
a. the critical path is the sequence of activities between a project's start and finish that takes
the shortest time to complete
b. the activities along the critical path determine the completion time of the project
c. there may be more than one critical path in a project network
d. if one of the activities on the critical path is delayed, the entire project will be delayed - ANS
✔✔a
The project duration in a network can be determined by the largest value of which variable
associated with the critical path?
earliest finish time, earliest start time, slack time, activity time - ANS ✔✔earliest finish time
When the latest start time is known, total slack for an activity may be determined using - ANS
✔✔earliest start time
Total project costs are the sum of - ANS ✔✔direct costs, indirect costs, and penalty costs
Crash time is defined as - ANS ✔✔the shortest possible time to complete an activity
, Suppose that the normal time for activity C is 10 weeks with a normal cost of $6k. We can crash
it to only 4 weeks at a TC of $12k.
The total activity cost if we crash it to 7 weeks will be - ANS ✔✔$9k
A PERT analysis of a small project determined that the duration of the critical path is 10 weeks
w/ a variance of 2 weeks. What project duration can be promised that will have only a 5%
chance of time overrun? - ANS ✔✔12.3 weeks
Which of the following can put pressure on a company to carry small levels of inventory?
high ordering cost, the potential for stockouts and backorders, the need to increase workforce
productivity, high cost of capital - ANS ✔✔high cost of capital
Inventory used to absorb uneven rates of demand or supply is referred to as - ANS
✔✔anticipation inventory
What is the primary lever to reduce cycle inventory? - ANS ✔✔reduce the lot sizes
The Mickey and Mouse Cat Food Factory runs an aggressive marketing campaign and much to
the delight, orders surge to twice their previous level. If their operations manager uses an EOQ
policy, what is the impact on the order quantity? - ANS ✔✔The order quantity will be 40%
higher
For what percentage of the time will the condition of "no safety stock" adequately cover the
demand for an item (assume demand during lead time is normally distributed)? - ANS ✔✔50%
A P system has an advantage over the Q system - ANS ✔✔because orders from multiple items
from one supplier can be combined into a single purchase order
