D464 BUS 2740
Managing Operations
Comprehensive FA Review (Qns & Ans)
2025
1. Which of the following best describes the primary goal of
operations management?
- A) To reduce healthcare costs
- B) To optimize the production and delivery of goods and
services
- C) To manage hospital resources
- D) To perform diagnostic tests
- ANS: B) To optimize the production and delivery of goods
and services
©2024/2025
, - Rationale: The primary goal of operations management is to
optimize the production and delivery of goods and services to
meet customer demands efficiently.
2. What is the primary purpose of capacity planning in
operations management?
- A) To develop marketing campaigns
- B) To determine the production capacity needed to meet
demand
- C) To manage financial resources
- D) To oversee employee performance
- ANS: B) To determine the production capacity needed to
meet demand
- Rationale: Capacity planning involves determining the
production capacity needed to meet demand and ensure that
resources are used efficiently.
3. Which of the following is NOT a component of the supply
chain?
- A) Suppliers
- B) Manufacturers
- C) Customers
- D) Competitors
©2024/2025
, - ANS: D) Competitors
- Rationale: The supply chain includes suppliers,
manufacturers, and customers. Competitors are not a component
of the supply chain.
Fill-in-the-Blank Questions
4. The __________ function in operations management involves
coordinating and allocating resources to achieve organizational
goals.
- ANS: Organizing
- Rationale: The organizing function in operations
management involves coordinating and allocating resources to
achieve organizational goals.
5. In operations management, the __________ effect refers to
the amplification of demand variability as orders move up the
supply chain.
- ANS: Bullwhip
- Rationale: The bullwhip effect refers to the amplification of
demand variability as orders move up the supply chain, leading to
inefficiencies and increased costs.
6. The __________ ratio is a financial metric used to assess a
company's ability to meet its short-term obligations.
©2024/2025
Managing Operations
Comprehensive FA Review (Qns & Ans)
2025
1. Which of the following best describes the primary goal of
operations management?
- A) To reduce healthcare costs
- B) To optimize the production and delivery of goods and
services
- C) To manage hospital resources
- D) To perform diagnostic tests
- ANS: B) To optimize the production and delivery of goods
and services
©2024/2025
, - Rationale: The primary goal of operations management is to
optimize the production and delivery of goods and services to
meet customer demands efficiently.
2. What is the primary purpose of capacity planning in
operations management?
- A) To develop marketing campaigns
- B) To determine the production capacity needed to meet
demand
- C) To manage financial resources
- D) To oversee employee performance
- ANS: B) To determine the production capacity needed to
meet demand
- Rationale: Capacity planning involves determining the
production capacity needed to meet demand and ensure that
resources are used efficiently.
3. Which of the following is NOT a component of the supply
chain?
- A) Suppliers
- B) Manufacturers
- C) Customers
- D) Competitors
©2024/2025
, - ANS: D) Competitors
- Rationale: The supply chain includes suppliers,
manufacturers, and customers. Competitors are not a component
of the supply chain.
Fill-in-the-Blank Questions
4. The __________ function in operations management involves
coordinating and allocating resources to achieve organizational
goals.
- ANS: Organizing
- Rationale: The organizing function in operations
management involves coordinating and allocating resources to
achieve organizational goals.
5. In operations management, the __________ effect refers to
the amplification of demand variability as orders move up the
supply chain.
- ANS: Bullwhip
- Rationale: The bullwhip effect refers to the amplification of
demand variability as orders move up the supply chain, leading to
inefficiencies and increased costs.
6. The __________ ratio is a financial metric used to assess a
company's ability to meet its short-term obligations.
©2024/2025
