Question 1
,A manufacturing firm notices that small fluctuations in retail customer demand cause
increasingly massive swings in inventory levels and production schedules for its raw
material suppliers upstream. What supply chain phenomenon is occurring?
• A. The Pareto Effect
• B. The Bullwhip Effect
• C. Kanban Desynchronization
• D. Diseconomies of Scale
Correct Answer: B. The Bullwhip Effect
Rationale: The Bullwhip Effect describes how minor variations in retail demand ripple
upstream, causing amplified demand distortion across supply chain tiers.
Question 2
An operation manager wants to evaluate a process using discrete attribute data by
counting the total number of physical scratches on individual refrigerator doors. Which
Statistical Process Control (SPC) chart is most appropriate?
• A. 𝑋̅-chart
• B. 𝑅-chart
• C. 𝑐-chart
• D. 𝑝-chart
Correct Answer: C. 𝑐-chart
Rationale: A 𝑐-chart measures the number of defects per unit (discrete count data). A
𝑝-chart measures the proportion/percentage of defective units.
Question 3
An annual product demand (𝐷) is 10,000 units, ordering cost (𝑆) is $50 per order, and
annual holding cost (𝐻) is $4 per unit per year. What is the Economic Order Quantity
(𝑄 ∗ )?
• A. 354 units
• B. 500 units
• C. 250 units
• D. 1,000 units
Correct Answer: B. 500 units
Rationale:
, 2 × 10,000 × 50 1,000,000
𝑄∗ = √ =√ = √250,000 = 500 units
4 4
Question 4
A medical clinic trains its triage staff to double-check patient ID bands using barcode
scanners to ensure medications are never misadministered. Which Lean concept is
being applied?
• A. Poka-Yoke
• B. Heijunka
• C. Kanban
• D. Kaizen
Correct Answer: A. Poka-Yoke
Rationale: Poka-yoke refers to error-proofing techniques that prevent mistakes or make
them immediately obvious.
Question 5
A facility has a design capacity of 200 units per hour and an effective capacity of 160
units per hour. If actual output is 120 units per hour, what is the facility's efficiency?
• A. 60%
• B. 75%
• C. 80%
• D. 125%
Correct Answer: B. 75%
Rationale:
Actual Output 120
Efficiency = = = 0.75 = 75%
Effective Capacity 160
(Note: Utilization would be 120/200 = 60%).
Question 6
During project network scheduling, Activity G has an Early Start Time (𝐸𝑆𝑇) of Day 6, an
Early Finish Time (𝐸𝐹𝑇) of Day 10, a Late Start Time (𝐿𝑆𝑇) of Day 9, and a Late Finish
Time (𝐿𝐹𝑇) of Day 13. What is the total slack time for Activity G?
• A. 0 days
• B. 3 days
, • C. 4 days
• D. 7 days
Correct Answer: B. 3 days
Rationale: Slack = 𝐿𝑆𝑇 − 𝐸𝑆𝑇 = 9 − 6 = 3 days (or 𝐿𝐹𝑇 − 𝐸𝐹𝑇 = 13 − 10 = 3 days).
Question 7
Which quality cost category includes conducting supplier evaluations, preventive
maintenance on production machinery, and staff quality training?
• A. Internal Failure Costs
• B. External Failure Costs
• C. Appraisal Costs
• D. Prevention Costs
Correct Answer: D. Prevention Costs
Rationale: Prevention costs are proactively invested in product design and operational
processes to stop defects before they occur.
Question 8
In a project network diagram, what defines the Critical Path?
• A. The sequence of tasks with the highest total financial cost
• B. The shortest path through the network diagram
• C. The longest path through the network diagram, which dictates minimum
project completion time
• D. The series of non-dependent tasks that can be performed simultaneously
Correct Answer: C. The longest path through the network diagram, which dictates
minimum project completion time
Rationale: The critical path is the longest sequence of dependent activities, having zero
slack time and determining the overall project duration.
Question 9
A company produces high-volume, highly standardized electronic components on a
continuous assembly sequence. Which manufacturing layout strategy is most
appropriate?
• A. Process-Oriented Layout
• B. Fixed-Position Layout
,A manufacturing firm notices that small fluctuations in retail customer demand cause
increasingly massive swings in inventory levels and production schedules for its raw
material suppliers upstream. What supply chain phenomenon is occurring?
• A. The Pareto Effect
• B. The Bullwhip Effect
• C. Kanban Desynchronization
• D. Diseconomies of Scale
Correct Answer: B. The Bullwhip Effect
Rationale: The Bullwhip Effect describes how minor variations in retail demand ripple
upstream, causing amplified demand distortion across supply chain tiers.
Question 2
An operation manager wants to evaluate a process using discrete attribute data by
counting the total number of physical scratches on individual refrigerator doors. Which
Statistical Process Control (SPC) chart is most appropriate?
• A. 𝑋̅-chart
• B. 𝑅-chart
• C. 𝑐-chart
• D. 𝑝-chart
Correct Answer: C. 𝑐-chart
Rationale: A 𝑐-chart measures the number of defects per unit (discrete count data). A
𝑝-chart measures the proportion/percentage of defective units.
Question 3
An annual product demand (𝐷) is 10,000 units, ordering cost (𝑆) is $50 per order, and
annual holding cost (𝐻) is $4 per unit per year. What is the Economic Order Quantity
(𝑄 ∗ )?
• A. 354 units
• B. 500 units
• C. 250 units
• D. 1,000 units
Correct Answer: B. 500 units
Rationale:
, 2 × 10,000 × 50 1,000,000
𝑄∗ = √ =√ = √250,000 = 500 units
4 4
Question 4
A medical clinic trains its triage staff to double-check patient ID bands using barcode
scanners to ensure medications are never misadministered. Which Lean concept is
being applied?
• A. Poka-Yoke
• B. Heijunka
• C. Kanban
• D. Kaizen
Correct Answer: A. Poka-Yoke
Rationale: Poka-yoke refers to error-proofing techniques that prevent mistakes or make
them immediately obvious.
Question 5
A facility has a design capacity of 200 units per hour and an effective capacity of 160
units per hour. If actual output is 120 units per hour, what is the facility's efficiency?
• A. 60%
• B. 75%
• C. 80%
• D. 125%
Correct Answer: B. 75%
Rationale:
Actual Output 120
Efficiency = = = 0.75 = 75%
Effective Capacity 160
(Note: Utilization would be 120/200 = 60%).
Question 6
During project network scheduling, Activity G has an Early Start Time (𝐸𝑆𝑇) of Day 6, an
Early Finish Time (𝐸𝐹𝑇) of Day 10, a Late Start Time (𝐿𝑆𝑇) of Day 9, and a Late Finish
Time (𝐿𝐹𝑇) of Day 13. What is the total slack time for Activity G?
• A. 0 days
• B. 3 days
, • C. 4 days
• D. 7 days
Correct Answer: B. 3 days
Rationale: Slack = 𝐿𝑆𝑇 − 𝐸𝑆𝑇 = 9 − 6 = 3 days (or 𝐿𝐹𝑇 − 𝐸𝐹𝑇 = 13 − 10 = 3 days).
Question 7
Which quality cost category includes conducting supplier evaluations, preventive
maintenance on production machinery, and staff quality training?
• A. Internal Failure Costs
• B. External Failure Costs
• C. Appraisal Costs
• D. Prevention Costs
Correct Answer: D. Prevention Costs
Rationale: Prevention costs are proactively invested in product design and operational
processes to stop defects before they occur.
Question 8
In a project network diagram, what defines the Critical Path?
• A. The sequence of tasks with the highest total financial cost
• B. The shortest path through the network diagram
• C. The longest path through the network diagram, which dictates minimum
project completion time
• D. The series of non-dependent tasks that can be performed simultaneously
Correct Answer: C. The longest path through the network diagram, which dictates
minimum project completion time
Rationale: The critical path is the longest sequence of dependent activities, having zero
slack time and determining the overall project duration.
Question 9
A company produces high-volume, highly standardized electronic components on a
continuous assembly sequence. Which manufacturing layout strategy is most
appropriate?
• A. Process-Oriented Layout
• B. Fixed-Position Layout
