OPMA EXAM 2 | STUDY GUIDE, MCQS, PRACTICE QUESTIONS AND OPERATIONS
MANAGEMENT EXAM REVIEW | 2026/2027
A manufacturing shop is designed to operate most efficiently at an output of 550 units per day.
In the past month the plant averaged 490 units per day.
What was their capacity utilization rate last month? - ANS ✔✔Capacity utilization rate
89.1 ± 0.1
A company has a factory that is designed so that it is most efficient (average unit cost is
minimized) when producing 15,000 units of output each month. However, it has an absolute
maximum output capability of 17,250 units per month, and can produce as little as 7,000 units
per month without corporate headquarters shifting production to another plant. If the factory
produces 10,925 units in October, what is the capacity utilization rate in October for this
factory? - ANS ✔✔Capacity utilization rate
72.8 ± 0.1
Hoosier Manufacturing operates a production shop that is designed to have the lowest unit
production cost at an output rate of 100 units per hour. In the month of July, the company
operated the production line for a total of 175 hours and produced 16,900 units of output.
What was its capacity utilization rate for the month? - ANS ✔✔Capacity utilization rate
96.6 ± 0.1%
AlwaysRain Irrigation, Inc., would like to determine capacity requirements for the next four
years. Currently two production lines are in place for making bronze and plastic sprinklers.
Three types of sprinklers are available in both bronze and plastic: 90-degree nozzle sprinklers,
180-degree nozzle sprinklers, and 360-degree nozzle sprinklers. Management has forecast
demand for the next four years as follows:
, YEARLY DEMAND
1 (IN 000s) 2 (IN 000s) 3 (IN 000s) 4 (IN 000s)
Plastic 90 32 44 55 56
Plastic 180 15 16 17 18
Plastic 360 50 55 64 67
Bronze 90 7 8 9 10
Bronze 180 3 4 5 6
Bronze 360 11 12 15 18
Both production lines can produce all the different types of nozzles. Each machine needed for
the production of bronze sprinklers requires two operators and can produce up to 12,000
sprinklers. The plastic injection molding machine needed for the plastic sprinklers requires four
operators and can produce u - ANS ✔✔Plastic
Demand for plastic sprinklers
97
115
136
141
Percentage of capacity used
48.50 ± 1%
%
MANAGEMENT EXAM REVIEW | 2026/2027
A manufacturing shop is designed to operate most efficiently at an output of 550 units per day.
In the past month the plant averaged 490 units per day.
What was their capacity utilization rate last month? - ANS ✔✔Capacity utilization rate
89.1 ± 0.1
A company has a factory that is designed so that it is most efficient (average unit cost is
minimized) when producing 15,000 units of output each month. However, it has an absolute
maximum output capability of 17,250 units per month, and can produce as little as 7,000 units
per month without corporate headquarters shifting production to another plant. If the factory
produces 10,925 units in October, what is the capacity utilization rate in October for this
factory? - ANS ✔✔Capacity utilization rate
72.8 ± 0.1
Hoosier Manufacturing operates a production shop that is designed to have the lowest unit
production cost at an output rate of 100 units per hour. In the month of July, the company
operated the production line for a total of 175 hours and produced 16,900 units of output.
What was its capacity utilization rate for the month? - ANS ✔✔Capacity utilization rate
96.6 ± 0.1%
AlwaysRain Irrigation, Inc., would like to determine capacity requirements for the next four
years. Currently two production lines are in place for making bronze and plastic sprinklers.
Three types of sprinklers are available in both bronze and plastic: 90-degree nozzle sprinklers,
180-degree nozzle sprinklers, and 360-degree nozzle sprinklers. Management has forecast
demand for the next four years as follows:
, YEARLY DEMAND
1 (IN 000s) 2 (IN 000s) 3 (IN 000s) 4 (IN 000s)
Plastic 90 32 44 55 56
Plastic 180 15 16 17 18
Plastic 360 50 55 64 67
Bronze 90 7 8 9 10
Bronze 180 3 4 5 6
Bronze 360 11 12 15 18
Both production lines can produce all the different types of nozzles. Each machine needed for
the production of bronze sprinklers requires two operators and can produce up to 12,000
sprinklers. The plastic injection molding machine needed for the plastic sprinklers requires four
operators and can produce u - ANS ✔✔Plastic
Demand for plastic sprinklers
97
115
136
141
Percentage of capacity used
48.50 ± 1%
%
