GMS 401 - Midterm #1 Study Guide
Exam and All Correct Answers 2026-
2027 Updated.
Operations Management - Answer the management of activities and resources that create
goods and or provide services
Activities in Operations - Answer Forecasting
Capacity Planning
Scheduling
Managing Inventories
Assuring Quality
Employee Motivation and Training
Location of Facilities
Buying Materials
Efficiency - Answer Operating at minimum cost and time
Effectiveness - Answer Achieving quality and timeliness
Functions within Organizations - Answer Finance ->Operations->Marketing
Operations - Answer manages all the activities directly related to producing goods or
providing services
Value Added - Answer the difference between the cost of input and the value or price of
outputs
Non Profit Organizations - Answer the value of outputs is their value to society, the greater
the value added, the greater the efficiency of these operations
For-profit Organizations - Answer the value of outputs is measured by the prices that
customers are willing to pay for those goods or services
Finance - Answer performs activities related to securing funds at favourable prices and
allocating those funds throughout the organization.
,Finance and operations Management exchange information such as: - Answer 1. Provision of
funds
2. Economic analysis of capital investment proposals
Provision of Funds - Answer the necessary funding of operations and the amount and timing
of funding can be important
Economic Analysis of Capital Investment Proposals - Answer evaluation of alternative
investments in plant and equipment requires inputs from both operations and finance people
Marketing - Answer is responsible for assessing customer wants and needs and for
communicating those needs and feedback to operations and to product design.
Lead Time - Answer the time between ordering a good or service and receiving it
Other Functions that interface with operations - Answer -Accounting
-Management Information Systems
-Purchasing
-Personnel or Human Resources
-Manufacturing Engineering
-Maintenance
-Product Design
-Logistics
The Scope of Operations Management - Answer Designing
Planning
Scheduling
Executing
Controlling Activities/ Operations
Design - Answer involves product design, production capacity, the location of facilities,
arrangement of departments and placement of equipment within physical structures,
acquisition of equipment, and work/job design
Planning/ Controlling Activities - Answer includes quality planning and control, inventory
planning and control, production planning, scheduling and project management.
, Operations management - Answer is more involved in day-to-day operating decisions and
planning than design
Production of goods - Answer results in tangible outputs
Services - Answer implies an act
Similarities between Production of Goods and Services - Answer involves design and
planning/ control decisions, and decide what size facility is needed and make decisions on
location, scheduling and control of operations, and allocation of scarce resources
Differences between Production of Goods and Services - Answer 1. Customer contact, use of
inventories, and demand variability
2. Uniformity of input
3. Labour content of jobs
4. Uniformity of output
5. Measurement of productivity
6. Quality assurance
The performance of services - Answer occur at the point of consumption
Production of Goods - Answer allows a separation between production and consumption so
that it may occur away from the consumer
Operations manager - Answer has the responsibility for the creation of goods or performance
of services. exerts considerable influence over the degree to which the goals and objectives of
the organization are realized.
Model - Answer an abstraction of reality; a simplified representation of something
Mathematical models - Answer represent important characteristics of the object by
mathematical symbols and their relationship by mathematical equations and inequalities
Schematic models - Answer are graphs, charts, and drawings
Common Statistical Models - Answer include Normal distribution and regression equations
Exam and All Correct Answers 2026-
2027 Updated.
Operations Management - Answer the management of activities and resources that create
goods and or provide services
Activities in Operations - Answer Forecasting
Capacity Planning
Scheduling
Managing Inventories
Assuring Quality
Employee Motivation and Training
Location of Facilities
Buying Materials
Efficiency - Answer Operating at minimum cost and time
Effectiveness - Answer Achieving quality and timeliness
Functions within Organizations - Answer Finance ->Operations->Marketing
Operations - Answer manages all the activities directly related to producing goods or
providing services
Value Added - Answer the difference between the cost of input and the value or price of
outputs
Non Profit Organizations - Answer the value of outputs is their value to society, the greater
the value added, the greater the efficiency of these operations
For-profit Organizations - Answer the value of outputs is measured by the prices that
customers are willing to pay for those goods or services
Finance - Answer performs activities related to securing funds at favourable prices and
allocating those funds throughout the organization.
,Finance and operations Management exchange information such as: - Answer 1. Provision of
funds
2. Economic analysis of capital investment proposals
Provision of Funds - Answer the necessary funding of operations and the amount and timing
of funding can be important
Economic Analysis of Capital Investment Proposals - Answer evaluation of alternative
investments in plant and equipment requires inputs from both operations and finance people
Marketing - Answer is responsible for assessing customer wants and needs and for
communicating those needs and feedback to operations and to product design.
Lead Time - Answer the time between ordering a good or service and receiving it
Other Functions that interface with operations - Answer -Accounting
-Management Information Systems
-Purchasing
-Personnel or Human Resources
-Manufacturing Engineering
-Maintenance
-Product Design
-Logistics
The Scope of Operations Management - Answer Designing
Planning
Scheduling
Executing
Controlling Activities/ Operations
Design - Answer involves product design, production capacity, the location of facilities,
arrangement of departments and placement of equipment within physical structures,
acquisition of equipment, and work/job design
Planning/ Controlling Activities - Answer includes quality planning and control, inventory
planning and control, production planning, scheduling and project management.
, Operations management - Answer is more involved in day-to-day operating decisions and
planning than design
Production of goods - Answer results in tangible outputs
Services - Answer implies an act
Similarities between Production of Goods and Services - Answer involves design and
planning/ control decisions, and decide what size facility is needed and make decisions on
location, scheduling and control of operations, and allocation of scarce resources
Differences between Production of Goods and Services - Answer 1. Customer contact, use of
inventories, and demand variability
2. Uniformity of input
3. Labour content of jobs
4. Uniformity of output
5. Measurement of productivity
6. Quality assurance
The performance of services - Answer occur at the point of consumption
Production of Goods - Answer allows a separation between production and consumption so
that it may occur away from the consumer
Operations manager - Answer has the responsibility for the creation of goods or performance
of services. exerts considerable influence over the degree to which the goals and objectives of
the organization are realized.
Model - Answer an abstraction of reality; a simplified representation of something
Mathematical models - Answer represent important characteristics of the object by
mathematical symbols and their relationship by mathematical equations and inequalities
Schematic models - Answer are graphs, charts, and drawings
Common Statistical Models - Answer include Normal distribution and regression equations
