OM 300 Exam 1 Questions and Answers
managing demand
Correct Answer
demand exceeds capacity, capacity exceeds demand, adjusting for seasonal
demands
Question 2
Time-series forecasting
Correct Answer
set of evenly spaced numerical data, based only on past values (no other variables
important)
Question 3
Attract and retain global talent
Correct Answer
Offer better employment opportunities, better growth and insulation against
unemployment
Question 4
Challenges facing operations managers
Correct Answer
Develop and produce safe, high-quality green products, Train, retrain, and motivate
employees in a safe workplace, Honor stakeholder commitments
Page 1 of 90
,Question 5
10 OM Decisions
Correct Answer
The base: people, product, process. The stuff: quality, inventory, supply chain
management. The place: location and layout. The face: scheduling and maintenance
Question 6
capacity and strategy
Correct Answer
capacity decisions impact all 10 decisions of OM and must be integrated into the
organization's mission and strategy
Question 7
Short-range forecast
Correct Answer
Up to one year, generally less than 3 months; purchasing, job scheduling, workforce
levels, job assignments, production levels. Small decisions, not hard
Question 8
Sales force composite
Correct Answer
Each salesperson projects their sales, combined at district and national levels, know
what customer wants, may be OVERLY OPTIMISTIC
Question 9
Random component
Correct Answer
Erratic, unsystematic, "residual" fluctuations, due to random variation or unforseen
events. short and nonrepeating
Page 2 of 90
,Question 10
Mean absolute deviation
Correct Answer
Find error first (actual-forecast), find absolute value, then find average of all errors
Question 11
Product life cycle
Correct Answer
The stages through which goods and services move from the time they are
introduced on the market until they are taken off the market. Intro, growth,
maturity, decline
Question 12
Market survey
Correct Answer
Ask customers about purchasing plans, useful for demand, product design, and
planning, what customers say and do are different, sometimes difficult to answer
Question 13
Response
Correct Answer
Flexibility- matching market changes in design innovation and volumes. Reliability-
meeting schedules. Timeliness- quickness in design, production, and delivery
Question 14
Selecting the forecasting process
Correct Answer
Want to get the most accurate forecast, select the model that gives the lowest
forecast error due to: MAD, MSE, MAPE
Page 3 of 90
, Question 15
Productivity variables
Correct Answer
Management contributes the most increase (52%), capital contributes 38% annual
increase, labor contributes only 10%
Question 16
Design capacity
Correct Answer
maximum theoretical output of a system, think perfect world (expressed as a rate)
Question 17
bottleneck management
Correct Answer
release work orders to the system at the pace set by bottlenecks capacity (drum,
butter, rope), lost time at bottleneck is lost time for whole system, increasing
nonbottleneck cap is a mirage, increasing bn capacity increases entire system
capacity
Question 18
Challenges of forecasting in service sector
Correct Answer
special need for short term records needs differ greatly as function of industry and
product, holidays and other calendar events, unusual events
Question 19
Strategies for competitive advantage
Correct Answer
differentiation, cost leadership, response...all 3? very competitive!
Page 4 of 90
managing demand
Correct Answer
demand exceeds capacity, capacity exceeds demand, adjusting for seasonal
demands
Question 2
Time-series forecasting
Correct Answer
set of evenly spaced numerical data, based only on past values (no other variables
important)
Question 3
Attract and retain global talent
Correct Answer
Offer better employment opportunities, better growth and insulation against
unemployment
Question 4
Challenges facing operations managers
Correct Answer
Develop and produce safe, high-quality green products, Train, retrain, and motivate
employees in a safe workplace, Honor stakeholder commitments
Page 1 of 90
,Question 5
10 OM Decisions
Correct Answer
The base: people, product, process. The stuff: quality, inventory, supply chain
management. The place: location and layout. The face: scheduling and maintenance
Question 6
capacity and strategy
Correct Answer
capacity decisions impact all 10 decisions of OM and must be integrated into the
organization's mission and strategy
Question 7
Short-range forecast
Correct Answer
Up to one year, generally less than 3 months; purchasing, job scheduling, workforce
levels, job assignments, production levels. Small decisions, not hard
Question 8
Sales force composite
Correct Answer
Each salesperson projects their sales, combined at district and national levels, know
what customer wants, may be OVERLY OPTIMISTIC
Question 9
Random component
Correct Answer
Erratic, unsystematic, "residual" fluctuations, due to random variation or unforseen
events. short and nonrepeating
Page 2 of 90
,Question 10
Mean absolute deviation
Correct Answer
Find error first (actual-forecast), find absolute value, then find average of all errors
Question 11
Product life cycle
Correct Answer
The stages through which goods and services move from the time they are
introduced on the market until they are taken off the market. Intro, growth,
maturity, decline
Question 12
Market survey
Correct Answer
Ask customers about purchasing plans, useful for demand, product design, and
planning, what customers say and do are different, sometimes difficult to answer
Question 13
Response
Correct Answer
Flexibility- matching market changes in design innovation and volumes. Reliability-
meeting schedules. Timeliness- quickness in design, production, and delivery
Question 14
Selecting the forecasting process
Correct Answer
Want to get the most accurate forecast, select the model that gives the lowest
forecast error due to: MAD, MSE, MAPE
Page 3 of 90
, Question 15
Productivity variables
Correct Answer
Management contributes the most increase (52%), capital contributes 38% annual
increase, labor contributes only 10%
Question 16
Design capacity
Correct Answer
maximum theoretical output of a system, think perfect world (expressed as a rate)
Question 17
bottleneck management
Correct Answer
release work orders to the system at the pace set by bottlenecks capacity (drum,
butter, rope), lost time at bottleneck is lost time for whole system, increasing
nonbottleneck cap is a mirage, increasing bn capacity increases entire system
capacity
Question 18
Challenges of forecasting in service sector
Correct Answer
special need for short term records needs differ greatly as function of industry and
product, holidays and other calendar events, unusual events
Question 19
Strategies for competitive advantage
Correct Answer
differentiation, cost leadership, response...all 3? very competitive!
Page 4 of 90
