OPMT Final Practice Questions(All Accurately solved)
Modern firms increasingly rely on other firms to supply goods and services instead of doing these tasks
themselves. This increased level of _____________ is leading to increased emphasis on ____________
management. correct answers outsourcing; supply chain
Operations and sales are the two ________ functions in businesses. correct answers line
Operations Management: correct answers focuses on decisions about the production and delivery of a
firm's products and services
The fact that a few improvements in a few key areas of operations will have more impact than many
improvements in many other areas is consistent with the: correct answers Pareto phenomenon
Which of the following is a recent trend in business? correct answers supply chain management
A firm pursuing a strategy based on customization and variety will tend to structure and manage its
supply chain to accommodate more _____________ than a firm pursuing a strategy based on low-cost
and high-volume. correct answers Variation
For an organization to grow its market share, it must: correct answers exceed minimum standards of
acceptability for its products or services
Gourmet Pretzels bakes soft pretzels on an assembly line. It currently bakes 800 pretzels each 8-hour
shift. If the production is increased to 1,200 pretzels each shift, then productivity will have increased by:
correct answers 50%
Product design and choice of location are examples of _______ decisions. correct answers strategic
Business organizations compete through some combination of: correct answers price, quality, delivery
time, and product or service design.
A basic question in capacity planning is:
A. what kind is needed
,B. how much is needed
C. when is it needed
D. all of the above
E. none of the above correct answers all of the above
A reason for the importance of capacity decisions is that capacity:
-limits the rate of output possible
-affects operating costs
-is a major determinant of initial costs
-is a long-term commitment of resources
-all of the above correct answers all of the above
An alternative will have fixed costs of $10,000 per month, variable costs of $50 per unit, and revenue of
$70 per unit. The break-even point volume is: correct answers 500
Given the following information, what would efficiency be?
Effective capacity = 50 units per day
Design capacity = 100 units per day
Actual output = 30 units per day correct answers 60%
If the output rate is increased but the average unit costs also increase we are experiencing: correct answers
diseconomies of scale
A common goal in designing process layouts is:
a) minimizing the number of workers
b) minimizing idle time
c) minimizing transportation costs
d) maximizing work-station productive time
e) maximizing transportation distances correct answers minimizing transportation costs
, Laser technology used in surgical procedures is an example of technological advances in:
a. Product
b. Service
c. Process
d. Information
e. Reverse Engineering correct answers process
In which type of processing system would gasoline be produced from crude oil?
a. Job Shop
b. Batch
c. Assembly
d. Continuous
e. Project correct answers continuous
If a line is balanced with 80 percent efficiency, the "balance delay" would be:
a. 20 percent
b. 80 percent
c. 100 percent
d. unknown, since balance delay isn't related to efficiency
depends on the next operation correct answers 20 percent
Which type of processing system tends to produce the most product variety?
a. Assembly
b. Job-Shop
c. Batch
d. Continuous
e. Project correct answers job-shop
Assembly lines have a number of characteristics. Which of the following is typically NOT a characteristic
of assembly lines?
Modern firms increasingly rely on other firms to supply goods and services instead of doing these tasks
themselves. This increased level of _____________ is leading to increased emphasis on ____________
management. correct answers outsourcing; supply chain
Operations and sales are the two ________ functions in businesses. correct answers line
Operations Management: correct answers focuses on decisions about the production and delivery of a
firm's products and services
The fact that a few improvements in a few key areas of operations will have more impact than many
improvements in many other areas is consistent with the: correct answers Pareto phenomenon
Which of the following is a recent trend in business? correct answers supply chain management
A firm pursuing a strategy based on customization and variety will tend to structure and manage its
supply chain to accommodate more _____________ than a firm pursuing a strategy based on low-cost
and high-volume. correct answers Variation
For an organization to grow its market share, it must: correct answers exceed minimum standards of
acceptability for its products or services
Gourmet Pretzels bakes soft pretzels on an assembly line. It currently bakes 800 pretzels each 8-hour
shift. If the production is increased to 1,200 pretzels each shift, then productivity will have increased by:
correct answers 50%
Product design and choice of location are examples of _______ decisions. correct answers strategic
Business organizations compete through some combination of: correct answers price, quality, delivery
time, and product or service design.
A basic question in capacity planning is:
A. what kind is needed
,B. how much is needed
C. when is it needed
D. all of the above
E. none of the above correct answers all of the above
A reason for the importance of capacity decisions is that capacity:
-limits the rate of output possible
-affects operating costs
-is a major determinant of initial costs
-is a long-term commitment of resources
-all of the above correct answers all of the above
An alternative will have fixed costs of $10,000 per month, variable costs of $50 per unit, and revenue of
$70 per unit. The break-even point volume is: correct answers 500
Given the following information, what would efficiency be?
Effective capacity = 50 units per day
Design capacity = 100 units per day
Actual output = 30 units per day correct answers 60%
If the output rate is increased but the average unit costs also increase we are experiencing: correct answers
diseconomies of scale
A common goal in designing process layouts is:
a) minimizing the number of workers
b) minimizing idle time
c) minimizing transportation costs
d) maximizing work-station productive time
e) maximizing transportation distances correct answers minimizing transportation costs
, Laser technology used in surgical procedures is an example of technological advances in:
a. Product
b. Service
c. Process
d. Information
e. Reverse Engineering correct answers process
In which type of processing system would gasoline be produced from crude oil?
a. Job Shop
b. Batch
c. Assembly
d. Continuous
e. Project correct answers continuous
If a line is balanced with 80 percent efficiency, the "balance delay" would be:
a. 20 percent
b. 80 percent
c. 100 percent
d. unknown, since balance delay isn't related to efficiency
depends on the next operation correct answers 20 percent
Which type of processing system tends to produce the most product variety?
a. Assembly
b. Job-Shop
c. Batch
d. Continuous
e. Project correct answers job-shop
Assembly lines have a number of characteristics. Which of the following is typically NOT a characteristic
of assembly lines?
