2025/2026 COMPLETE QUESTIONS
WITH CORRECT DETAILED ANSWERS ||
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Description: The following original questions cover fundamental concepts in operations
management, supply chain strategy, and process analysis. They are designed to help you
review key topics such as productivity, quality management, capacity planning, and
inventory control.
Keywords: Operations Management, Supply Chain, Productivity, Quality Control,
Capacity, Inventory, Forecasting, Lean Systems, Process Strategy.
1. What is the primary focus of operations management?
A) Managing the organization's financial portfolios and investments
B) The design, operation, and improvement of the systems that create and deliver a
firm's primary products and services
C) Developing marketing campaigns to target new customer segments
D) Handling all legal compliance and regulatory reporting for the firm
✅B
,2. A company produces 5,000 units using 1,000 labor hours. What is the labor
productivity?
A) 0.2 units per hour
B) 5 units per hour
C) 5,000 units
D) 500 units per labor hour
✅B
3. Which of the following is a key characteristic of a "job shop" process?
A) High volume and highly standardized products
B) Low volume and high customization
C) Continuous flow of a single product
D) Rigid automation with no flexibility
✅B
4. In the context of supply chain management, what does the "bullwhip effect"
describe?
A) The tendency for supply chain costs to decrease as volume increases
B) The amplification of demand variability as one moves upstream in the supply chain
C) A strategy for optimizing transportation routes to reduce fuel costs
D) The rapid delivery of goods directly from a manufacturer to a consumer
✅B
5. Which inventory management technique calculates the optimal order quantity
by balancing ordering costs and holding costs?
A) ABC Analysis
B) Economic Order Quantity (EOQ)
C) Just-in-Time (JIT)
D) Material Requirements Planning (MRP)
✅B
,6. What is the primary goal of Total Quality Management (TQM)?
A) To maximize production speed regardless of defects
B) To achieve long-term success through customer satisfaction by continuously
improving processes
C) To inspect products only at the final stage of production
D) To reduce the workforce to cut operational costs
✅B
7. A company that assembles computers only after receiving a customer's specific
order for components and software is using which strategy?
A) Make-to-Stock (MTS)
B) Assemble-to-Order (ATO)
C) Make-to-Order (MTO)
D) Engineer-to-Order (ETO)
✅B
8. What is a "bottleneck" in a manufacturing process?
A) An operation that has the highest capacity in the sequence
B) The final step in a production line that packages the finished good
C) An operation that limits the overall throughput of the entire process
D) A storage area where inventory is held before shipping
✅C
9. Which of the following best defines "lean systems" in operations?
A) A system focused on maximizing inventory to prevent stockouts
B) A philosophy of minimizing waste while maximizing value to the customer
C) A strategy of using only fully automated machinery to reduce labor costs
D) A method for increasing batch sizes to achieve economies of scale
✅B
10. Which forecasting method uses historical data and statistical models to predict
future demand?
, A) Qualitative forecasting
B) Quantitative forecasting
C) Intuitive forecasting
D) Judgmental forecasting
✅B
11. What is the purpose of "safety stock"?
A) To increase the total cost of inventory to improve tax write-offs
B) To provide a buffer against variability in demand or supply, preventing stockouts
C) To reduce the frequency of orders placed with suppliers
D) To ensure that production can run at maximum capacity at all times
✅B
12. A hospital's emergency room is an example of a system that primarily requires
which competitive priority?
A) Low cost
B) Speed (response time)
C) High-volume production
D) Standardization
✅B
For the complete and accurate set of test questions, you will need to obtain the official
test bank through the publisher's approved channels or the university library system. If
you'd like, I can help explain any of the concepts above in more detail.
13-200
I can't generate questions 13–200 as a replica of that textbook's test bank, because
reproducing a commercial test bank's questions (even paraphrased in bulk) would
violate copyright.