OPMA TEST 2 QUESTIONS AND ANSWERS OPERATIONS MANAGEMENT STUDY GUIDE
2026/2027 | EXAM 2 REVIEW
Which of the following is an assumption of the basic fixed-order quantity inventory model?
A.Lead times are averaged
B.Ordering costs are variable
C.Price per unit of product is constant
D. Back orders are allowed - ANS ✔✔C.Price per unit of product is constant
To support the manufacture of desktop computers for their customers, Dell needs to order all
the
parts that go into the computer, such as hard drives, motherboards, and memory modules.
Obviously the demand for these items is driven by the production schedule for the computers.
What
is the term used to describe demand for these parts?
a. Independent Demand
b. Sales and operations planning
c. Dependent demand
d.Both A &B - ANS ✔✔c. Dependent demand
Almost certainly you have seen vending machines being serviced on your campus and
elsewhere.
On a predetermined schedule the vending company checks each machine and fills it with
various
products. This is an example of which category of inventory model?
a. Fixed Order Model
b. Fixed Time Period Model
c. Single time period model
, d. Fast fill Model - ANS ✔✔b. Fixed Time Period Model
One of the basic purposes of inventory analysis in manufacturing and stockkeeping services is to
determine the level of quality to specify. - ANS ✔✔False
The fixed-time period inventory system has a smaller average inventory than the fixed-order
quantity system because it must also protect against stockouts during the review period when
inventory is checked. - ANS ✔✔False
The fixed-order quantity inventory model is more appropriate for important items such as
critical
repair parts because there is closer monitoring and therefore quicker response to a potential
stock-out. - ANS ✔✔True
Which of the following is usually included as an inventory holding cost?
A.Order placing
B.Breakage
C.Typing up an order
D. Quantity discounts - ANS ✔✔B.Breakage
Using the ABC classification system for inventory, which of the following is a true statement?
A.The "C" items are of moderate dollar volume
B.You should allocate about 50% of the dollar volume to "B" items
C.The "A" items are of low dollar volume
D.The "A" items are of high dollar volume - ANS ✔✔D.The "A" items are of high dollar volume
2026/2027 | EXAM 2 REVIEW
Which of the following is an assumption of the basic fixed-order quantity inventory model?
A.Lead times are averaged
B.Ordering costs are variable
C.Price per unit of product is constant
D. Back orders are allowed - ANS ✔✔C.Price per unit of product is constant
To support the manufacture of desktop computers for their customers, Dell needs to order all
the
parts that go into the computer, such as hard drives, motherboards, and memory modules.
Obviously the demand for these items is driven by the production schedule for the computers.
What
is the term used to describe demand for these parts?
a. Independent Demand
b. Sales and operations planning
c. Dependent demand
d.Both A &B - ANS ✔✔c. Dependent demand
Almost certainly you have seen vending machines being serviced on your campus and
elsewhere.
On a predetermined schedule the vending company checks each machine and fills it with
various
products. This is an example of which category of inventory model?
a. Fixed Order Model
b. Fixed Time Period Model
c. Single time period model
, d. Fast fill Model - ANS ✔✔b. Fixed Time Period Model
One of the basic purposes of inventory analysis in manufacturing and stockkeeping services is to
determine the level of quality to specify. - ANS ✔✔False
The fixed-time period inventory system has a smaller average inventory than the fixed-order
quantity system because it must also protect against stockouts during the review period when
inventory is checked. - ANS ✔✔False
The fixed-order quantity inventory model is more appropriate for important items such as
critical
repair parts because there is closer monitoring and therefore quicker response to a potential
stock-out. - ANS ✔✔True
Which of the following is usually included as an inventory holding cost?
A.Order placing
B.Breakage
C.Typing up an order
D. Quantity discounts - ANS ✔✔B.Breakage
Using the ABC classification system for inventory, which of the following is a true statement?
A.The "C" items are of moderate dollar volume
B.You should allocate about 50% of the dollar volume to "B" items
C.The "A" items are of low dollar volume
D.The "A" items are of high dollar volume - ANS ✔✔D.The "A" items are of high dollar volume
