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SOM901 STRATEGIES IN OPERATIONS MANAGEMENT — FORMATIVE
ASSESSMENT EXAM QUESTIONS AND CORRECT ANSWERS LATEST
EDITION 2026
SOM901 Strategies in Operations Management — Formative Assessment Practice Questions
SECTION 1: INTRODUCTION TO OPERATIONS MANAGEMENT (Questions 1–15)
1. Which of the following best defines operations management?
A) The management of financial resources to maximize shareholder value
B) The design, operation, and improvement of the systems that create and deliver the firm's
primary products and services
C) The process of marketing and selling products to customers
D) The management of human resources to improve employee satisfaction
Answer: B
Rationale: Operations management focuses on transforming inputs into outputs (goods and
services) efficiently and effectively. It encompasses design, planning, control, and improvement
of production systems .
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2. Operations management is one of the three major functions of any organization. Which of
the following is NOT one of the three?
A) Operations
B) Marketing
C) Finance/Accounting
D) Human Resources
Answer: D
Rationale: The three major functions of any organization are operations, marketing, and
finance/accounting. Human Resources is a support function, not a primary organizational
function .
3. Which of the following is a primary function of operations management?
A) Financial auditing
B) Supply chain management
C) Employee recruitment
D) Advertising campaigns
Answer: B
Rationale: Supply chain management is a core component of operations management, involving
the coordination of materials, information, and finances from suppliers to customers .
4. The transformation process model in operations management describes:
A) Inputs, transformation, outputs
B) Planning, organizing, controlling
C) Strategy, tactics, operations
D) Design, produce, deliver
Answer: A
Rationale: The transformation process model describes how operations transform inputs
(materials, labor, technology, information) into outputs (goods and services) .
5. Which of the following is a strategic decision in operations management?
A) Scheduling weekly shifts
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B) Ordering office supplies
C) Selecting a facility location
D) Inspecting a finished product
Answer: C
Rationale: Strategic decisions are long-term and have broad organizational impact. Facility
location commits significant resources for years and affects cost structure and customer access .
6. A company that uses minimal inventory and produces only what is needed when it is
needed is practicing which philosophy?
A) Just-in-Time (JIT)
B) Mass production
C) Batch processing
D) Six Sigma
Answer: A
Rationale: JIT is a lean production philosophy that aims to reduce inventory and eliminate waste
by producing only what is required, when it is required, in the exact quantity needed .
7. Which of the following is an example of a service operation?
A) Automobile assembly line
B) Oil refinery
C) Hospital emergency room
D) Steel mill
Answer: C
Rationale: A hospital emergency room provides a service (healthcare) rather than
manufacturing a tangible product. The other options are manufacturing operations .
8. Which of the following is a key performance indicator (KPI) in operations?
A) Return on investment (ROI)
B) On-time delivery
C) Earnings per share
D) Customer satisfaction score
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SOM901 STRATEGIES IN OPERATIONS MANAGEMENT — FORMATIVE
ASSESSMENT EXAM QUESTIONS AND CORRECT ANSWERS LATEST
EDITION 2026
SOM901 Strategies in Operations Management — Formative Assessment Practice Questions
SECTION 1: INTRODUCTION TO OPERATIONS MANAGEMENT (Questions 1–15)
1. Which of the following best defines operations management?
A) The management of financial resources to maximize shareholder value
B) The design, operation, and improvement of the systems that create and deliver the firm's
primary products and services
C) The process of marketing and selling products to customers
D) The management of human resources to improve employee satisfaction
Answer: B
Rationale: Operations management focuses on transforming inputs into outputs (goods and
services) efficiently and effectively. It encompasses design, planning, control, and improvement
of production systems .
1|Page
,Page 2 of 30
2. Operations management is one of the three major functions of any organization. Which of
the following is NOT one of the three?
A) Operations
B) Marketing
C) Finance/Accounting
D) Human Resources
Answer: D
Rationale: The three major functions of any organization are operations, marketing, and
finance/accounting. Human Resources is a support function, not a primary organizational
function .
3. Which of the following is a primary function of operations management?
A) Financial auditing
B) Supply chain management
C) Employee recruitment
D) Advertising campaigns
Answer: B
Rationale: Supply chain management is a core component of operations management, involving
the coordination of materials, information, and finances from suppliers to customers .
4. The transformation process model in operations management describes:
A) Inputs, transformation, outputs
B) Planning, organizing, controlling
C) Strategy, tactics, operations
D) Design, produce, deliver
Answer: A
Rationale: The transformation process model describes how operations transform inputs
(materials, labor, technology, information) into outputs (goods and services) .
5. Which of the following is a strategic decision in operations management?
A) Scheduling weekly shifts
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B) Ordering office supplies
C) Selecting a facility location
D) Inspecting a finished product
Answer: C
Rationale: Strategic decisions are long-term and have broad organizational impact. Facility
location commits significant resources for years and affects cost structure and customer access .
6. A company that uses minimal inventory and produces only what is needed when it is
needed is practicing which philosophy?
A) Just-in-Time (JIT)
B) Mass production
C) Batch processing
D) Six Sigma
Answer: A
Rationale: JIT is a lean production philosophy that aims to reduce inventory and eliminate waste
by producing only what is required, when it is required, in the exact quantity needed .
7. Which of the following is an example of a service operation?
A) Automobile assembly line
B) Oil refinery
C) Hospital emergency room
D) Steel mill
Answer: C
Rationale: A hospital emergency room provides a service (healthcare) rather than
manufacturing a tangible product. The other options are manufacturing operations .
8. Which of the following is a key performance indicator (KPI) in operations?
A) Return on investment (ROI)
B) On-time delivery
C) Earnings per share
D) Customer satisfaction score
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