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BADM 7120 OPERATIONS MANAGEMENT –
FINAL EXAM 2025 BRAND NEW ACTUAL EXAM
WITH ANSWERS.
1. Which of the following statements is not true about six sigma
quality? - correct answer -Six sigma corresponds to 3 standard
deviations on either side of the mean
2. The difference between actual demand and the forecast is: -
correct answer -Forecast error
3. Which of the following is NOT a measure of forecast accuracy?
- correct answer -Cumulative absolute deviation of forecast
error
4. Which phrase most closely describes the Delphi technique? -
correct answer -Rounds of anonymous data collection
5. Using exponential smoothing, if we want forecasts to be very
responsive to recent demand, the value of alpha should be: -
correct answer -Large
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6. If one time-series model is used for forecasting a low demand
item and another time-series model is used for forecasting a
high demand item, which measure of forecast accuracy
provides a valid comparison of the errors from these two time-
series? - correct answer -MAPE
7. Which of the following is NOT true about Collaborative
Planning, Forecasting and Replenishment (CPFR)? - correct
answer -It requires advanced forecasting tools such as Box-
Jenkins to improve the forecasting accuracy
8. Facilities Decisions: - correct answer -Constrain all other
capacity decisions
9. Why is it dangerous to justify capacity expansion using
economies of scale? - correct answer -Because the common
notion that unit costs decline for larger facilities due to size is
not always accurate
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10. Which of the following statements regarding capacity is NOT
true? - correct answer -The 'maximum output' of a process is
not a meaningful measure
11. In aggregate planning: - correct answer -"Aggregate" implies
that planning is done for a single overall measure of output or
at most a few products
12. Which of the following accurately describes a chase
strategy? - correct answer -The firm produces exactly what is
needed each month
13. A large capacity cushion is appropriate when: - correct
answer -A firm is attempting to capture market share in a
growing industry
14. The carrying cost for inventory consists of which cost
components? - correct answer -obsolescence cost, storage
cost, and capital cost
BADM 7120 OPERATIONS MANAGEMENT –
FINAL EXAM 2025 BRAND NEW ACTUAL EXAM
WITH ANSWERS.
1. Which of the following statements is not true about six sigma
quality? - correct answer -Six sigma corresponds to 3 standard
deviations on either side of the mean
2. The difference between actual demand and the forecast is: -
correct answer -Forecast error
3. Which of the following is NOT a measure of forecast accuracy?
- correct answer -Cumulative absolute deviation of forecast
error
4. Which phrase most closely describes the Delphi technique? -
correct answer -Rounds of anonymous data collection
5. Using exponential smoothing, if we want forecasts to be very
responsive to recent demand, the value of alpha should be: -
correct answer -Large
, Page | 2
6. If one time-series model is used for forecasting a low demand
item and another time-series model is used for forecasting a
high demand item, which measure of forecast accuracy
provides a valid comparison of the errors from these two time-
series? - correct answer -MAPE
7. Which of the following is NOT true about Collaborative
Planning, Forecasting and Replenishment (CPFR)? - correct
answer -It requires advanced forecasting tools such as Box-
Jenkins to improve the forecasting accuracy
8. Facilities Decisions: - correct answer -Constrain all other
capacity decisions
9. Why is it dangerous to justify capacity expansion using
economies of scale? - correct answer -Because the common
notion that unit costs decline for larger facilities due to size is
not always accurate
, Page | 3
10. Which of the following statements regarding capacity is NOT
true? - correct answer -The 'maximum output' of a process is
not a meaningful measure
11. In aggregate planning: - correct answer -"Aggregate" implies
that planning is done for a single overall measure of output or
at most a few products
12. Which of the following accurately describes a chase
strategy? - correct answer -The firm produces exactly what is
needed each month
13. A large capacity cushion is appropriate when: - correct
answer -A firm is attempting to capture market share in a
growing industry
14. The carrying cost for inventory consists of which cost
components? - correct answer -obsolescence cost, storage
cost, and capital cost
