OPMA 317 - MIDTERM EXAM QUESTIONS ANSWERED CORRECTLY LATEST UPDATE 2026
ABC classification - Answers application of Pareto analysis that divides on-hand inventory into 3
classifications based on annual dollar volume or usage
Activity - Answers a task that consumes time and resources
Additional crashing exercise - Answers pg. 75 of management and scheduling ppt
Additional factors for project success - Answers long-term view would include corporate social
responsibility and environmental performance
Addressing variability in take time in line balancing - Answers add an inventory before an inconsistent
station for a buffer in variability
Adjusting demand with revenue/yield management - Answers adjusting demand patterns using price
structures to flatten demand curves while maintaining service level
Assemble-to-order - Answers half outsourcing to standardize production and half customer specific
production, includes "postponement"
Assembly line balancing steps - Answers 1. Draw a precedence diagram including task times 2.
determine required cycle time (C) to meet demand 3. determine total work time per unit (T) 4.
determine number of work stations needed (N) 5. Assign tasks to stations using trial and error
approach 6. Evaluate efficiency of process 7. redesign the line if not satisfactory
Assembly line balancing steps (3) - Answers draw the precedence diagram, determine the required
cycle time (to complete X in y time we have to finish one x in z minutes), assign tasks to stations
Assembly line example - Answers capacity management ppt, slide 27
Average on hand quantity - Answers average of the saw tooth pattern for inventory, ends up being
(Q/2)
Backflushing - Answers record that product was completed in software which then reduces all
required components for tracking purposes
Base SD % coverage - Answers 1SD 68.2%, 2SD 95.4%, 3SD 99.7%
Benefits for ABC classification (4) - Answers purchasing and supplier development, demand
forecasting, physical inventory control, and inventory counting (check A frequently and C's rarely)
Bottleneck - Answers the slowest part of the a process that constrains capacity
Bottleneck processing time - Answers is equal to the the cycle time for the entire process
Calculating path completion probabilities - Answers to determine if a path can be completed by a
certain date consult the z score
Calculating project duration for a confidence level - Answers solve for D in the z-score formula to
determine number of days to produce a certain duration with a certain confidence
Capacity - Answers the maximum production output possible in a time period
Capacity calculation with warm-up - Answers must delay the start time by the warm up period then
determine the capacity over the post warm up period
Capacity flexibility - Answers adjusting capacity to provide a wider range of products and volumes
with short lead times
Capacity formula - Answers = Total Time/Cycle Time
Capacity in product layouts - Answers capacity is represented in units/hour, not minutes/unit and
equals the lowest units per hour of a link in the process
Capacity management example for transportation costs - Answers slide 19 in capacity management
PPT
Categories of projects (2) - Answers conventional (low-tech): repetitive projects, tasks, sequences,
durations, and resources requirements are known, tested methods are preferred (home construction,
well drilling). innovative (high tech): unique projects, non-linear processes, iterations, flexible plans
(world's tallest tower, new product development)
Change in TAC w/ SS - Answers Average inventory = (Q/2) + SS
Class A - Answers Top 15% of items and represent 70 - 80% of total dollar amount
Class B - Answers Middle 35% of intermediate items that account for 15% - 25% of total dollar usage
Class C - Answers simple inventory controls for stock that collectively represents only 5% of annual
dollar volume
Combination capacity strategies - Answers trying to shape resources with demand to avoid too much
excess capacity, will to have some excess capacity and some customers leave if needed
Common Z-values (3) - Answers 90% = 1.28, 95% = 1.645, 99% = 2.33
, Competitive priorities (7) - Answers cost (low price on high efficiency/productivity), quality, delivery
(fast and reliable), flexibility (wide product/service offering, fast introductions), service (additional
value added service), environmentalism, and social responsibility
Consideration for increasing capacity (2) - Answers magnitude of demand and incremental cash flow,
increasing capacity also creates a new bottleneck
Considerations when assigning tasks to stations (3) - Answers task precedence requirements, desired
capacity (cycle time), and minimizing number of stations (employees)
Control analysis - Answers includes reasons for difference between budget and actual and
explanations for improvement
Cost factors in inventory management decisions - Answers setup (make)/order(buy) cost, stock out
cost, holding cost, and material cost
Cost to expedite formula in $/time - Answers (CC - NC)/(NT - CT)
CPM conclusion - Answers CPM should be applied for projects and tasks that are repetitive because
of estimate reliability from experience
CPM definition - Answers used to determine project durations for a given duration of each task,
assumes no uncertainty in durations and has no concern about different tasks competing for a limited
resource
CPM Process (4) - Answers 1. Describe the project - list of activities with their immediate predecessor
activities, should be based on the WBS
2. Develop a visual network model
3. Estimate activity durations
4. Determine critical path and slacks
Crashing - Answers refers to the expediting of tasks in order to reduce project completion and/or
overall project costs
Critical activities - Answers activities along the critical path, if any of these are delayed then the whole
project will be delayed, management should consider devoting resources from non-critical acitvites to
this
Critical path - Answers sequence of activities that requires longest total time from start to finish (may
have more than one CP in a project)
Critical path vs. critical chain - Answers critical path assumes unlimited resources vs. including
resource constraints
Cross functional integration - Answers financing the capital expenditures, budgeting, and accounting
for the related expenses, human resource considerations, information system requirements,
marketing and public relations, legal, etc.
Cycle time - Answers the time between the completion of two consecutive final steps in a process
Delivery quality - Answers process quality (Toyota, McDonalds), defect freee
Demand uncertainty example - Answers inventory management ppt slide 28
Dependent demand - Answers demand for an item depends on demand for another item
Design quality - Answers product quality (Mercedes, 5 star restaurant), adding features of the
product/service
Determinants of order winners/qualifiers - Answers determined by relevant and most important
competitive priorities
Direct costs - Answers reducing duration will increase costs (over time, expedited materials)
Economic Order Quantity (EOQ) - Answers how much to order under stable conditions, balances
setup/replenishment costs - incentives to make large purchases and holding costs - incentives to
make small purchases
Effects of roles in a project - Answers have to reallocate project to determine critical path length, may
introduce slack and lengthen the time, might have to crash certain project roles to meet target and/or
improve probability
EOQ formula - Answers = SQRT(2DS/H) *note that H is in $/unit/year and demand is yearly too
EOQ limitations (3) - Answers demand is constant and known. replenishment time is known, no
shortages are allowed
ET formula - Answers = (a + 4m + b+/(6)
Event - Answers a point in time that represents the start or completion of one or more activities
Examples of constraints that will increase duration (3) - Answers skilled resources (certifications),
specialized equipment (cranes), and physical space
External factors affecting capacity (2) - Answers government regulations, supplier capabilities
ABC classification - Answers application of Pareto analysis that divides on-hand inventory into 3
classifications based on annual dollar volume or usage
Activity - Answers a task that consumes time and resources
Additional crashing exercise - Answers pg. 75 of management and scheduling ppt
Additional factors for project success - Answers long-term view would include corporate social
responsibility and environmental performance
Addressing variability in take time in line balancing - Answers add an inventory before an inconsistent
station for a buffer in variability
Adjusting demand with revenue/yield management - Answers adjusting demand patterns using price
structures to flatten demand curves while maintaining service level
Assemble-to-order - Answers half outsourcing to standardize production and half customer specific
production, includes "postponement"
Assembly line balancing steps - Answers 1. Draw a precedence diagram including task times 2.
determine required cycle time (C) to meet demand 3. determine total work time per unit (T) 4.
determine number of work stations needed (N) 5. Assign tasks to stations using trial and error
approach 6. Evaluate efficiency of process 7. redesign the line if not satisfactory
Assembly line balancing steps (3) - Answers draw the precedence diagram, determine the required
cycle time (to complete X in y time we have to finish one x in z minutes), assign tasks to stations
Assembly line example - Answers capacity management ppt, slide 27
Average on hand quantity - Answers average of the saw tooth pattern for inventory, ends up being
(Q/2)
Backflushing - Answers record that product was completed in software which then reduces all
required components for tracking purposes
Base SD % coverage - Answers 1SD 68.2%, 2SD 95.4%, 3SD 99.7%
Benefits for ABC classification (4) - Answers purchasing and supplier development, demand
forecasting, physical inventory control, and inventory counting (check A frequently and C's rarely)
Bottleneck - Answers the slowest part of the a process that constrains capacity
Bottleneck processing time - Answers is equal to the the cycle time for the entire process
Calculating path completion probabilities - Answers to determine if a path can be completed by a
certain date consult the z score
Calculating project duration for a confidence level - Answers solve for D in the z-score formula to
determine number of days to produce a certain duration with a certain confidence
Capacity - Answers the maximum production output possible in a time period
Capacity calculation with warm-up - Answers must delay the start time by the warm up period then
determine the capacity over the post warm up period
Capacity flexibility - Answers adjusting capacity to provide a wider range of products and volumes
with short lead times
Capacity formula - Answers = Total Time/Cycle Time
Capacity in product layouts - Answers capacity is represented in units/hour, not minutes/unit and
equals the lowest units per hour of a link in the process
Capacity management example for transportation costs - Answers slide 19 in capacity management
PPT
Categories of projects (2) - Answers conventional (low-tech): repetitive projects, tasks, sequences,
durations, and resources requirements are known, tested methods are preferred (home construction,
well drilling). innovative (high tech): unique projects, non-linear processes, iterations, flexible plans
(world's tallest tower, new product development)
Change in TAC w/ SS - Answers Average inventory = (Q/2) + SS
Class A - Answers Top 15% of items and represent 70 - 80% of total dollar amount
Class B - Answers Middle 35% of intermediate items that account for 15% - 25% of total dollar usage
Class C - Answers simple inventory controls for stock that collectively represents only 5% of annual
dollar volume
Combination capacity strategies - Answers trying to shape resources with demand to avoid too much
excess capacity, will to have some excess capacity and some customers leave if needed
Common Z-values (3) - Answers 90% = 1.28, 95% = 1.645, 99% = 2.33
, Competitive priorities (7) - Answers cost (low price on high efficiency/productivity), quality, delivery
(fast and reliable), flexibility (wide product/service offering, fast introductions), service (additional
value added service), environmentalism, and social responsibility
Consideration for increasing capacity (2) - Answers magnitude of demand and incremental cash flow,
increasing capacity also creates a new bottleneck
Considerations when assigning tasks to stations (3) - Answers task precedence requirements, desired
capacity (cycle time), and minimizing number of stations (employees)
Control analysis - Answers includes reasons for difference between budget and actual and
explanations for improvement
Cost factors in inventory management decisions - Answers setup (make)/order(buy) cost, stock out
cost, holding cost, and material cost
Cost to expedite formula in $/time - Answers (CC - NC)/(NT - CT)
CPM conclusion - Answers CPM should be applied for projects and tasks that are repetitive because
of estimate reliability from experience
CPM definition - Answers used to determine project durations for a given duration of each task,
assumes no uncertainty in durations and has no concern about different tasks competing for a limited
resource
CPM Process (4) - Answers 1. Describe the project - list of activities with their immediate predecessor
activities, should be based on the WBS
2. Develop a visual network model
3. Estimate activity durations
4. Determine critical path and slacks
Crashing - Answers refers to the expediting of tasks in order to reduce project completion and/or
overall project costs
Critical activities - Answers activities along the critical path, if any of these are delayed then the whole
project will be delayed, management should consider devoting resources from non-critical acitvites to
this
Critical path - Answers sequence of activities that requires longest total time from start to finish (may
have more than one CP in a project)
Critical path vs. critical chain - Answers critical path assumes unlimited resources vs. including
resource constraints
Cross functional integration - Answers financing the capital expenditures, budgeting, and accounting
for the related expenses, human resource considerations, information system requirements,
marketing and public relations, legal, etc.
Cycle time - Answers the time between the completion of two consecutive final steps in a process
Delivery quality - Answers process quality (Toyota, McDonalds), defect freee
Demand uncertainty example - Answers inventory management ppt slide 28
Dependent demand - Answers demand for an item depends on demand for another item
Design quality - Answers product quality (Mercedes, 5 star restaurant), adding features of the
product/service
Determinants of order winners/qualifiers - Answers determined by relevant and most important
competitive priorities
Direct costs - Answers reducing duration will increase costs (over time, expedited materials)
Economic Order Quantity (EOQ) - Answers how much to order under stable conditions, balances
setup/replenishment costs - incentives to make large purchases and holding costs - incentives to
make small purchases
Effects of roles in a project - Answers have to reallocate project to determine critical path length, may
introduce slack and lengthen the time, might have to crash certain project roles to meet target and/or
improve probability
EOQ formula - Answers = SQRT(2DS/H) *note that H is in $/unit/year and demand is yearly too
EOQ limitations (3) - Answers demand is constant and known. replenishment time is known, no
shortages are allowed
ET formula - Answers = (a + 4m + b+/(6)
Event - Answers a point in time that represents the start or completion of one or more activities
Examples of constraints that will increase duration (3) - Answers skilled resources (certifications),
specialized equipment (cranes), and physical space
External factors affecting capacity (2) - Answers government regulations, supplier capabilities
