FINAL STUDY GUIDE 2026 OBJECTIVE
ASSESSMENT OA PRACTICE QUESTIONS
AND CORRECT ANSWERS WITH DETAILED
RATIONALES COMPREHENSIVE EXAM
REVIEW
Simplicity - CORRECT ANSWER -The simpler a solution the better it is.
Single source suppliers - CORRECT ANSWER -Suppliers that supply an
entire family of parts to a manufacturer.
Small lot production - CORRECT ANSWER -The ability to produce small
quantities of products
Types of waste - CORRECT ANSWER -Material, energy, time and space
Uniform plant loading - CORRECT ANSWER -A constant production plan for
a facility with a given planning horizon.
Visible - CORRECT ANSWER -Problems must be visible to be identified and
solved.
Waste - CORRECT ANSWER -Anything that does not add value
,Withdrawal Cards - CORRECT ANSWER -A Kanban card that authorizes
withdrawal of material
Automated order entry system - CORRECT ANSWER -A method using
telephone models to send digital orders to suppliers
Backward integration - CORRECT ANSWER -Owning or controlling the
source of raw materials and components
subcontracting - CORRECT ANSWER -sending production work outside to
another manufacturer or service provider
Forecasting Capacity - CORRECT ANSWER -Used in Capacity Planning.
It is the forecasts of future demand.
Long-term investment demand needs
Short-term demand needs.
Strategic Implications of Capacity Planning - CORRECT ANSWER -strategic
partnerships where the terms of the partnerships (either joint projects,
supplier relationships, subcontracting relationships, etc.) require supply
chain information sharing.
a statement of long-range strategy and revenue, cost, and profit objectives.
,Capacity Planning Alternatives. Do Nothing. - CORRECT ANSWER --
Subcontracting during times of excess demand requirements.
- Overtime requirements.
Capacity Planning Alternatives. Expand Small Now. - CORRECT ANSWER -
Risk/benefit analysis indicating that high future demand forecasts having
large std deviations.
Indicators that competitors expanding capacity in excess of what future
demand forecasts indicate.
Capacity Planning Alternatives. Expand Large Now. - CORRECT ANSWER -
Indications that competitor capacity investments not sufficient to meet
foretasted future demand.
Decision Tree Chance events - CORRECT ANSWER -These are the
probabilistic chances that different environments materialize after a
decision has been made.
A chance node is a branch in the tree which represents a family of possible
outcomes which are not under the control (or are only partly under the
control) of the decision maker. Probabilities: Probabilities are assigned for
each possible outcome of a chance node.
Decision Tree - Decision Points - Outcomes - CORRECT ANSWER -Costs
associated from the decisions that are made from a sequence of decision
, alternatives, and the resulting outcomes that happen as a result of the
decision tree.
Location Analysis Quality of Life - CORRECT ANSWER -From the
perspective of the employees, will the area being considered going to have
adequate or good quality of life in terms of like, entertainment prospects,
climate, good schools, crime rates, etc
Location Analysis - Making Location Decisions - CORRECT ANSWER -Step 1
- Identify Dominant Location Factors.
Step 2 - Develop Location Alternatives.
Step 3 - Evaluate alternative locations per location factor weighting.
Center of Gravity Approach - Location Analysis - CORRECT ANSWER -
Minimizing the distance of the heaviest loads in order to reduce
transportation costs of the heaviest loads.
Transportation Method - Location Analysis - CORRECT ANSWER -Software
designed to find optimal locations based off of many factors at once.
Intermittent Operations - Process Selection - CORRECT ANSWER -Specialty
products or services that require a lot of time and effort to produce, think a
custom home.
Project Process - Think Custom Homes.
Batch Processes - Think College Classes.