Drexel University OPM 200 First Midterm
Exam 2026/2027 Drexel University
LeBow College of Business –
Comprehensive Practice Examination
Question 1: Which statement best describes the operations function in a
business organization?
• A. It focuses only on recording financial transactions after goods are
sold.
• B. It designs, manages, and improves the processes that transform
inputs into goods and services.
• C. It is limited to advertising finished products to target customers.
• D. It is responsible only for hiring and payroll administration.
Rationale: Operations management is the discipline that converts resources
such as labor, materials, information, and capital into valuable outputs. Drexel
OPM 200 and Heizer, Render, and Munson emphasize this transformation role
as the foundation for productivity, quality, and competitive advantage.
Question 2: Which of the following is one of the ten strategic decisions of
operations management?
• A. Marketing strategy
• B. Quality management
• C. Financial accounting
• D. Human resource recruitment
Rationale: The ten strategic decisions of OM include: design of goods and
services, quality management, process and capacity strategy, location
,strategy, layout strategy, human resources and job design, supply chain
management, inventory management, scheduling, and maintenance.
Question 3: Which of the following would NOT be considered an input in an
operations transformation system?
• A. Labor
• B. Materials
• C. Information
• D. Customer satisfaction
Rationale: Customer satisfaction is an output, not an input. Inputs include
labor, materials, information, capital, and energy.
Question 4: What is productivity?
• A. The total amount of output produced
• B. The ratio of outputs to inputs
• C. The total amount of input consumed
• D. The ratio of inputs to outputs
Rationale: Productivity is the ratio of outputs (goods and services produced)
to inputs (resources used). Higher productivity indicates more efficient use of
resources.
Question 5: If a company produces 500 units of output using 100 labor hours,
what is the labor productivity?
• A. 0.2 units per labor hour
• B. 5 units per labor hour
• C. 500 units per labor hour
• D. 100 units per labor hour
,Rationale: Labor productivity = Output ÷ Labor hours = 500 ÷ 100 = 5 units
per labor hour.
Question 6: Which of the following is NOT one of the three primary
operations management strategies?
• A. Differentiation
• B. Globalization
• C. Cost leadership
• D. Response
Rationale: The three primary OM strategies are differentiation (offering
unique products), cost leadership (offering products at lowest cost), and
response (rapid delivery and flexibility).
Question 7: A company that competes on cost leadership would most likely
focus on:
• A. Product innovation
• B. Reducing production costs
• C. Customizing products
• D. Rapid delivery
Rationale: Cost leadership strategy focuses on reducing costs throughout the
value chain to offer products at lower prices than competitors.
Question 8: A company that competes on differentiation would most likely
focus on:
• A. Product innovation and unique features
• B. Reducing production costs
• C. Standardization
, • D. High production volumes
Rationale: Differentiation strategy involves creating unique products or
services that customers value and are willing to pay a premium for.
Question 9: A company that competes on response would most likely focus
on:
• A. Product innovation
• B. Reducing production costs
• C. Rapid delivery and flexibility
• D. High product quality
Rationale: Response strategy involves quick delivery, rapid product
development, and flexibility to adapt to changing customer needs.
Question 10: Which of the following is an example of an output in a service
operation?
• A. Raw materials
• B. Machinery
• C. A completed tax return
• D. Employee labor
Rationale: In a service operation, the output is an intangible service, such as a
completed tax return, a medical diagnosis, or a haircut.
Question 11: What is the purpose of the operations management
transformation process?
• A. To produce financial statements
• B. To market products to customers
• C. To convert inputs into goods and services
Exam 2026/2027 Drexel University
LeBow College of Business –
Comprehensive Practice Examination
Question 1: Which statement best describes the operations function in a
business organization?
• A. It focuses only on recording financial transactions after goods are
sold.
• B. It designs, manages, and improves the processes that transform
inputs into goods and services.
• C. It is limited to advertising finished products to target customers.
• D. It is responsible only for hiring and payroll administration.
Rationale: Operations management is the discipline that converts resources
such as labor, materials, information, and capital into valuable outputs. Drexel
OPM 200 and Heizer, Render, and Munson emphasize this transformation role
as the foundation for productivity, quality, and competitive advantage.
Question 2: Which of the following is one of the ten strategic decisions of
operations management?
• A. Marketing strategy
• B. Quality management
• C. Financial accounting
• D. Human resource recruitment
Rationale: The ten strategic decisions of OM include: design of goods and
services, quality management, process and capacity strategy, location
,strategy, layout strategy, human resources and job design, supply chain
management, inventory management, scheduling, and maintenance.
Question 3: Which of the following would NOT be considered an input in an
operations transformation system?
• A. Labor
• B. Materials
• C. Information
• D. Customer satisfaction
Rationale: Customer satisfaction is an output, not an input. Inputs include
labor, materials, information, capital, and energy.
Question 4: What is productivity?
• A. The total amount of output produced
• B. The ratio of outputs to inputs
• C. The total amount of input consumed
• D. The ratio of inputs to outputs
Rationale: Productivity is the ratio of outputs (goods and services produced)
to inputs (resources used). Higher productivity indicates more efficient use of
resources.
Question 5: If a company produces 500 units of output using 100 labor hours,
what is the labor productivity?
• A. 0.2 units per labor hour
• B. 5 units per labor hour
• C. 500 units per labor hour
• D. 100 units per labor hour
,Rationale: Labor productivity = Output ÷ Labor hours = 500 ÷ 100 = 5 units
per labor hour.
Question 6: Which of the following is NOT one of the three primary
operations management strategies?
• A. Differentiation
• B. Globalization
• C. Cost leadership
• D. Response
Rationale: The three primary OM strategies are differentiation (offering
unique products), cost leadership (offering products at lowest cost), and
response (rapid delivery and flexibility).
Question 7: A company that competes on cost leadership would most likely
focus on:
• A. Product innovation
• B. Reducing production costs
• C. Customizing products
• D. Rapid delivery
Rationale: Cost leadership strategy focuses on reducing costs throughout the
value chain to offer products at lower prices than competitors.
Question 8: A company that competes on differentiation would most likely
focus on:
• A. Product innovation and unique features
• B. Reducing production costs
• C. Standardization
, • D. High production volumes
Rationale: Differentiation strategy involves creating unique products or
services that customers value and are willing to pay a premium for.
Question 9: A company that competes on response would most likely focus
on:
• A. Product innovation
• B. Reducing production costs
• C. Rapid delivery and flexibility
• D. High product quality
Rationale: Response strategy involves quick delivery, rapid product
development, and flexibility to adapt to changing customer needs.
Question 10: Which of the following is an example of an output in a service
operation?
• A. Raw materials
• B. Machinery
• C. A completed tax return
• D. Employee labor
Rationale: In a service operation, the output is an intangible service, such as a
completed tax return, a medical diagnosis, or a haircut.
Question 11: What is the purpose of the operations management
transformation process?
• A. To produce financial statements
• B. To market products to customers
• C. To convert inputs into goods and services
