Certification of Specialization in
Operations Management Practice Exam
**Question 1. Which of the following best defines logistics within the supply chain?**
A) The process of converting raw materials into finished goods
B) Planning, implementing, and controlling the efficient flow and storage of goods, services, and
related information
C) The strategic alignment of marketing and sales functions
D) The design of product packaging
Answer: B
Explanation: Logistics focuses on the movement and storage of products and information,
encompassing both forward and reverse flows.
**Question 2. In total cost analysis, which trade‑off is most commonly evaluated?**
A) Marketing spend vs. product quality
B) Inventory holding cost vs. transportation cost
C) Employee salaries vs. office rent
D) Research & development vs. advertising
Answer: B
Explanation: Logistics managers often balance the cost of holding inventory against the cost of
moving goods, seeking an optimal point.
**Question 3. How does an increase in inventory levels typically affect a company’s Return on
Assets (ROA)?**
A) ROA increases because assets generate more revenue
B) ROA decreases because more assets are tied up without proportional revenue increase
C) ROA remains unchanged because inventory is not an asset
, Certification of Specialization in
Operations Management Practice Exam
D) ROA fluctuates randomly
Answer: B
Explanation: Higher inventory ties up capital, reducing the efficiency of asset utilization and thus
lowering ROA.
**Question 4. Which metric is most directly linked to customer service level in logistics?**
A) Order fill rate
B) Warehouse rent per square foot
C) Number of suppliers
D) Freight bill audit frequency
Answer: A
Explanation: Order fill rate measures the proportion of orders delivered complete and on time,
reflecting service level.
**Question 5. A company experiences a product return due to a defective item. Which recovery
strategy is most appropriate?**
A) Ignore the complaint to avoid extra cost
B) Offer a replacement and apologize promptly
C) Increase the price of the product
D) Reduce inventory of the product
Answer: B
Explanation: Prompt replacement and apology address the failure, help retain the customer,
and demonstrate service recovery.
, Certification of Specialization in
Operations Management Practice Exam
**Question 6. In customer segmentation for logistics, which segment would most likely require
the fastest delivery option?**
A) Bulk industrial buyers
B) High‑value e‑commerce customers
C) Government contracts with long lead times
D) Seasonal agricultural producers
Answer: B
Explanation: High‑value e‑commerce customers often expect rapid delivery to enhance
satisfaction.
**Question 7. Which forecasting method relies primarily on expert judgment rather than
historical data?**
A) Moving average
B] Exponential smoothing
C) Delphi technique
D) ARIMA model
Answer: C
Explanation: The Delphi technique gathers expert opinions to predict future demand, a
qualitative approach.
**Question 8. The Mean Absolute Percent Error (MAPE) is used to measure:**
A) The average absolute deviation in dollars
B) The percentage forecast error relative to actual demand
, Certification of Specialization in
Operations Management Practice Exam
C) The variance of forecast errors
D) The correlation between two variables
Answer: B
Explanation: MAPE expresses forecast accuracy as a percentage, facilitating comparison across
items.
**Question 9. Seasonal demand patterns are best captured by which time‑series component?**
A) Trend
B) Cyclical
C) Seasonal
D) Random
Answer: C
Explanation: Seasonal components repeat at regular intervals (e.g., holidays) and affect demand
predictably.
**Question 10. Which capacity‑planning tool helps determine the number of labor hours
needed for a given production schedule?**
A) Economic Order Quantity (EOQ)
B) Capacity Requirement Planning (CRP)
C) ABC analysis
D) Safety stock formula
Answer: B
Operations Management Practice Exam
**Question 1. Which of the following best defines logistics within the supply chain?**
A) The process of converting raw materials into finished goods
B) Planning, implementing, and controlling the efficient flow and storage of goods, services, and
related information
C) The strategic alignment of marketing and sales functions
D) The design of product packaging
Answer: B
Explanation: Logistics focuses on the movement and storage of products and information,
encompassing both forward and reverse flows.
**Question 2. In total cost analysis, which trade‑off is most commonly evaluated?**
A) Marketing spend vs. product quality
B) Inventory holding cost vs. transportation cost
C) Employee salaries vs. office rent
D) Research & development vs. advertising
Answer: B
Explanation: Logistics managers often balance the cost of holding inventory against the cost of
moving goods, seeking an optimal point.
**Question 3. How does an increase in inventory levels typically affect a company’s Return on
Assets (ROA)?**
A) ROA increases because assets generate more revenue
B) ROA decreases because more assets are tied up without proportional revenue increase
C) ROA remains unchanged because inventory is not an asset
, Certification of Specialization in
Operations Management Practice Exam
D) ROA fluctuates randomly
Answer: B
Explanation: Higher inventory ties up capital, reducing the efficiency of asset utilization and thus
lowering ROA.
**Question 4. Which metric is most directly linked to customer service level in logistics?**
A) Order fill rate
B) Warehouse rent per square foot
C) Number of suppliers
D) Freight bill audit frequency
Answer: A
Explanation: Order fill rate measures the proportion of orders delivered complete and on time,
reflecting service level.
**Question 5. A company experiences a product return due to a defective item. Which recovery
strategy is most appropriate?**
A) Ignore the complaint to avoid extra cost
B) Offer a replacement and apologize promptly
C) Increase the price of the product
D) Reduce inventory of the product
Answer: B
Explanation: Prompt replacement and apology address the failure, help retain the customer,
and demonstrate service recovery.
, Certification of Specialization in
Operations Management Practice Exam
**Question 6. In customer segmentation for logistics, which segment would most likely require
the fastest delivery option?**
A) Bulk industrial buyers
B) High‑value e‑commerce customers
C) Government contracts with long lead times
D) Seasonal agricultural producers
Answer: B
Explanation: High‑value e‑commerce customers often expect rapid delivery to enhance
satisfaction.
**Question 7. Which forecasting method relies primarily on expert judgment rather than
historical data?**
A) Moving average
B] Exponential smoothing
C) Delphi technique
D) ARIMA model
Answer: C
Explanation: The Delphi technique gathers expert opinions to predict future demand, a
qualitative approach.
**Question 8. The Mean Absolute Percent Error (MAPE) is used to measure:**
A) The average absolute deviation in dollars
B) The percentage forecast error relative to actual demand
, Certification of Specialization in
Operations Management Practice Exam
C) The variance of forecast errors
D) The correlation between two variables
Answer: B
Explanation: MAPE expresses forecast accuracy as a percentage, facilitating comparison across
items.
**Question 9. Seasonal demand patterns are best captured by which time‑series component?**
A) Trend
B) Cyclical
C) Seasonal
D) Random
Answer: C
Explanation: Seasonal components repeat at regular intervals (e.g., holidays) and affect demand
predictably.
**Question 10. Which capacity‑planning tool helps determine the number of labor hours
needed for a given production schedule?**
A) Economic Order Quantity (EOQ)
B) Capacity Requirement Planning (CRP)
C) ABC analysis
D) Safety stock formula
Answer: B
