OPMA FINAL EXAM QUESTIONS AND ANSWERS OPERATIONS MANAGEMENT STUDY GUIDE
2026/2027 | COMPREHENSIVE FINAL REVIEW
As discussed in class, the process choice continuum has 2 extreme types. At one extreme (low
volume, high variety) is the ___; at the other extreme (high volume, low variety) is the ___. -
✔✔job shop, flow shop
In a given production facility, all units of output follow exactly the same "path" thru the system.
This is an example of a ___ layout. - ✔✔product
Which of the following layouts would we tend to see in a job shop environment? - ✔✔process
to which of the following risks is the flow shop process especially vulnerable -
✔✔obsolescence
which of the following costs is especially prominent for job shops - ✔✔setups
6 workers worked a total of 222 hrs last week and produced 314 tables. This week, only 5
workers will be available, and together they will work a total of 163 hrs. Approximately how
many tables will they be able to produce in order for labor productivity to stay the same. -
✔✔not more than 245
Last yr producing 1 unit (worth $390) required 4 hrs of labor($24/hr) and $60 oh. This year,
producing 1 unit requires 3.5 hrs, but the cost of an hour of labor has increased by 20%. While
overhead cost remained constant, the value of a unit of output has fallen by 13%. By how much
(%) has multi factor productivity decreased? - ✔✔more than 13.5%
if last week a firm had the theoretical capacity to produce 1000 units and it actually produced
850 units its______ was 85% - ✔✔utilization
, Demand for an inventory item is 600 units/yr. For this item, its cost $80 to place an order, $5 to
hold one unit for 1 yr. Assuming that an optimal order qty is used, on avg there will be ____
orders per year. - ✔✔4.33
In a typical inventory reordering scenario, if the lead time for delivery of the item increases, the
___ will need to be increased if stockout risk is to remain unchanged. - ✔✔safety stock
Jan demand (A) = 201Jan forecast (F) = 196Use exponential smoothing to determine the
forecast for Feb when the α = 0.3. - ✔✔197.5
if what we are trying to forecast exhibits substantial seasonality then we will tend to use _____
to evaluate/ choose forecasting models - ✔✔mean absolute percentage error (MAPE)
in linear programming, the value we are trying to optimize is called the _____ - ✔✔objective
function
which of the following is a factor in determining the ROP for an inventory item? - ✔✔rate of
demand for the item
when demand for an item appears to be growing or declining at a steady rate, in time-series
forecasting that is referred to as: - ✔✔trend
suppose that last yr it cost $16 to hold a unit in inventory if this year holding cost will be $14 but
all else remains the same, what is true? - ✔✔optimal order qty will increase
it costs $110 to place an order, its purchase cost is 29.22 and holding cost is 14 percent of
purchase cost what range the optimal order qty fall
if order qtys are 400 how much money would be saved by switching to an optimal order qty? -
✔✔begin to fall at 204 units
not more than 300
2026/2027 | COMPREHENSIVE FINAL REVIEW
As discussed in class, the process choice continuum has 2 extreme types. At one extreme (low
volume, high variety) is the ___; at the other extreme (high volume, low variety) is the ___. -
✔✔job shop, flow shop
In a given production facility, all units of output follow exactly the same "path" thru the system.
This is an example of a ___ layout. - ✔✔product
Which of the following layouts would we tend to see in a job shop environment? - ✔✔process
to which of the following risks is the flow shop process especially vulnerable -
✔✔obsolescence
which of the following costs is especially prominent for job shops - ✔✔setups
6 workers worked a total of 222 hrs last week and produced 314 tables. This week, only 5
workers will be available, and together they will work a total of 163 hrs. Approximately how
many tables will they be able to produce in order for labor productivity to stay the same. -
✔✔not more than 245
Last yr producing 1 unit (worth $390) required 4 hrs of labor($24/hr) and $60 oh. This year,
producing 1 unit requires 3.5 hrs, but the cost of an hour of labor has increased by 20%. While
overhead cost remained constant, the value of a unit of output has fallen by 13%. By how much
(%) has multi factor productivity decreased? - ✔✔more than 13.5%
if last week a firm had the theoretical capacity to produce 1000 units and it actually produced
850 units its______ was 85% - ✔✔utilization
, Demand for an inventory item is 600 units/yr. For this item, its cost $80 to place an order, $5 to
hold one unit for 1 yr. Assuming that an optimal order qty is used, on avg there will be ____
orders per year. - ✔✔4.33
In a typical inventory reordering scenario, if the lead time for delivery of the item increases, the
___ will need to be increased if stockout risk is to remain unchanged. - ✔✔safety stock
Jan demand (A) = 201Jan forecast (F) = 196Use exponential smoothing to determine the
forecast for Feb when the α = 0.3. - ✔✔197.5
if what we are trying to forecast exhibits substantial seasonality then we will tend to use _____
to evaluate/ choose forecasting models - ✔✔mean absolute percentage error (MAPE)
in linear programming, the value we are trying to optimize is called the _____ - ✔✔objective
function
which of the following is a factor in determining the ROP for an inventory item? - ✔✔rate of
demand for the item
when demand for an item appears to be growing or declining at a steady rate, in time-series
forecasting that is referred to as: - ✔✔trend
suppose that last yr it cost $16 to hold a unit in inventory if this year holding cost will be $14 but
all else remains the same, what is true? - ✔✔optimal order qty will increase
it costs $110 to place an order, its purchase cost is 29.22 and holding cost is 14 percent of
purchase cost what range the optimal order qty fall
if order qtys are 400 how much money would be saved by switching to an optimal order qty? -
✔✔begin to fall at 204 units
not more than 300
