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“OPERATIONS MANAGEMENT EXAM “ NEWEST UPDATED EXAM 2025 – 2026
SOLVED QUESTIONS & ANSWERS VERIFIED 100% GRADED A+ (LATEST VERSION)
WELL REVISED AND HIGHLY RECOMMENDALE| ALREADY PASSED!!
A car wash services 200 customers in an hour on a lovely Saturday afternoon.
The car wash
employs 5 washers at $6 per hour and uses $50 of water and $5 of electricity
per hour. An
appropriate measure of productivity is:
A. 80%
B. 2.35 cars/$
C. 8 cars/$
D. 0.425 $/car
B. 2.35 cars/$
Productivity = Output / Input = 200 cars / ((5 washer's x $6) +$50 + $5) = 2.35 cars/$
Larry's Auto Body Repair Shop had revenues that averaged $60,000 in April
and $50,000 in May.
During both months, the shop employed six full-time (40 hours/week) workers.
In April the firm
also had four part-time workers working 25 hours per week, but in May there
were only two part-time workers and they only worked 10 hours per week.
What is the percentage change in labor?
productivity from April to May for Larry's Auto Body Repair? (Assume that
each month has 4
weeks.)
A. -20.00%
B. -15.82%
C. 8.95%
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D. 2.3%
E. -25.00%
C. 8.95%
Maquiladoras:
A. are Mexican factories frequently located along the U.S.-Mexico border.
B. are subject to increased duties and tariffs under NAFTA.
C. is the name of the free trade agreement between USA, Canada and Mexico.
D. is the name of special manufacturing units located in Spain.
E. is an operational hedging strategy for building extra production capacity.
A. are Mexican factories frequently located along the U.S.-Mexico border.
Cost reduction in international operations can take place because of:
A. lower taxes and tariffs.
B. lower wage scales.
C. lower indirect costs.
D. less stringent regulations.
E. all of the above.
E. all of the above.
The fundamental purpose for the existence of any organization is described by
its:
A. policies
B. procedures
C. corporate charter
D. mission statement
E. bylaws
D. mission statement
A strategy is a(n):
A. set of opportunities in the marketplace.
B. broad statement of purpose.
C. simulation used to test various product line options.
D. plan for cost reduction.
E. action plan to achieve the mission.
E. action plan to achieve the mission.
Which of the following statements is TRUE?
A. Corporate mission is shaped by functional strategies.
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B. Corporate strategy is shaped by functional strategies.
C. Functional strategies are shaped by corporate strategy.
D. External conditions are shaped by corporate mission.
E. Functional area missions are merged to become the organizational mission.
C. Functional strategies are shaped by corporate strategy.
A firm can effectively use its operations function to yield competitive
advantage through all of
the following EXCEPT:
A. customization of the product.
B. setting equipment utilization goals below the industry average.
C. speed of delivery.
D. constant innovation of new products.
E. maintaining a variety of product options.
B. setting equipment utilization goals below the industry average.
Which of the following is an example of competing on the basis of
differentiation?
A. A firm manufactures its product with less raw material waste than its
competitors do.
B. A firm's products are introduced into the market faster than its competitors'
products are.
C. A firm's distribution network routinely delivers its product on time.
D. A firm offers a much broader product line than its competitors do.
E. A firm advertises more than its competitors do.
D. A firm offers a much broader product line than its competitors do.
Which of the following is NOT an example of competing on the basis of
differentiation?
A. A car manufacturer offers the best warranty in the automobile industry.
B. A firm designs its smart phone product with unique features.
C. A movie theater distinguishes itself by offering cinema suites and dine-in
options.
D. A firm offers a much broader product line than its competitors do.
E. A firm advertises more than its competitors do.
E. A firm advertises more than its competitors do.
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Which of the following is the best example of competing on low-cost
leadership?
A. A firm produces its product with less raw material waste than its
competitors do.
B. A firm offers more reliable products than its competitors do.
C. A firm's products are introduced into the market faster than its competitors'
products are.
D. A firm's research and development department generates many ideas for
new products.
E. A firm advertises more than its competitors do.
A. A firm produces its product with less raw material waste than its competitors do.
In the product life cycle, the best stage to increase market share is:
A. Introduction.
B. Maturity.
C. Stability.
D. Decline.
A. Introduction.
Consider a firm with an annual net income of $35 million, revenue of $150
million and cost of goods sold of $90 million. If the balance sheet amounts
show $6 million of inventory and
$1,000,000 of property, plant & equipment, what is the inventory turnover?
A. 12.50
B. 10.00
C. 15.00
D. 25.00
E. 30.00
C. 15.00
Inventory Turnover = (Cost of goods sold / Average Inventory Investment) = $90
million / $6 million = 15.00
Operations management is applicable:
A. mostly to the service sector.
B. to services exclusively.
C. mostly to the manufacturing sector.
D. to all firms, whether manufacturing or service.
“OPERATIONS MANAGEMENT EXAM “ NEWEST UPDATED EXAM 2025 – 2026
SOLVED QUESTIONS & ANSWERS VERIFIED 100% GRADED A+ (LATEST VERSION)
WELL REVISED AND HIGHLY RECOMMENDALE| ALREADY PASSED!!
A car wash services 200 customers in an hour on a lovely Saturday afternoon.
The car wash
employs 5 washers at $6 per hour and uses $50 of water and $5 of electricity
per hour. An
appropriate measure of productivity is:
A. 80%
B. 2.35 cars/$
C. 8 cars/$
D. 0.425 $/car
B. 2.35 cars/$
Productivity = Output / Input = 200 cars / ((5 washer's x $6) +$50 + $5) = 2.35 cars/$
Larry's Auto Body Repair Shop had revenues that averaged $60,000 in April
and $50,000 in May.
During both months, the shop employed six full-time (40 hours/week) workers.
In April the firm
also had four part-time workers working 25 hours per week, but in May there
were only two part-time workers and they only worked 10 hours per week.
What is the percentage change in labor?
productivity from April to May for Larry's Auto Body Repair? (Assume that
each month has 4
weeks.)
A. -20.00%
B. -15.82%
C. 8.95%
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D. 2.3%
E. -25.00%
C. 8.95%
Maquiladoras:
A. are Mexican factories frequently located along the U.S.-Mexico border.
B. are subject to increased duties and tariffs under NAFTA.
C. is the name of the free trade agreement between USA, Canada and Mexico.
D. is the name of special manufacturing units located in Spain.
E. is an operational hedging strategy for building extra production capacity.
A. are Mexican factories frequently located along the U.S.-Mexico border.
Cost reduction in international operations can take place because of:
A. lower taxes and tariffs.
B. lower wage scales.
C. lower indirect costs.
D. less stringent regulations.
E. all of the above.
E. all of the above.
The fundamental purpose for the existence of any organization is described by
its:
A. policies
B. procedures
C. corporate charter
D. mission statement
E. bylaws
D. mission statement
A strategy is a(n):
A. set of opportunities in the marketplace.
B. broad statement of purpose.
C. simulation used to test various product line options.
D. plan for cost reduction.
E. action plan to achieve the mission.
E. action plan to achieve the mission.
Which of the following statements is TRUE?
A. Corporate mission is shaped by functional strategies.
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B. Corporate strategy is shaped by functional strategies.
C. Functional strategies are shaped by corporate strategy.
D. External conditions are shaped by corporate mission.
E. Functional area missions are merged to become the organizational mission.
C. Functional strategies are shaped by corporate strategy.
A firm can effectively use its operations function to yield competitive
advantage through all of
the following EXCEPT:
A. customization of the product.
B. setting equipment utilization goals below the industry average.
C. speed of delivery.
D. constant innovation of new products.
E. maintaining a variety of product options.
B. setting equipment utilization goals below the industry average.
Which of the following is an example of competing on the basis of
differentiation?
A. A firm manufactures its product with less raw material waste than its
competitors do.
B. A firm's products are introduced into the market faster than its competitors'
products are.
C. A firm's distribution network routinely delivers its product on time.
D. A firm offers a much broader product line than its competitors do.
E. A firm advertises more than its competitors do.
D. A firm offers a much broader product line than its competitors do.
Which of the following is NOT an example of competing on the basis of
differentiation?
A. A car manufacturer offers the best warranty in the automobile industry.
B. A firm designs its smart phone product with unique features.
C. A movie theater distinguishes itself by offering cinema suites and dine-in
options.
D. A firm offers a much broader product line than its competitors do.
E. A firm advertises more than its competitors do.
E. A firm advertises more than its competitors do.
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Which of the following is the best example of competing on low-cost
leadership?
A. A firm produces its product with less raw material waste than its
competitors do.
B. A firm offers more reliable products than its competitors do.
C. A firm's products are introduced into the market faster than its competitors'
products are.
D. A firm's research and development department generates many ideas for
new products.
E. A firm advertises more than its competitors do.
A. A firm produces its product with less raw material waste than its competitors do.
In the product life cycle, the best stage to increase market share is:
A. Introduction.
B. Maturity.
C. Stability.
D. Decline.
A. Introduction.
Consider a firm with an annual net income of $35 million, revenue of $150
million and cost of goods sold of $90 million. If the balance sheet amounts
show $6 million of inventory and
$1,000,000 of property, plant & equipment, what is the inventory turnover?
A. 12.50
B. 10.00
C. 15.00
D. 25.00
E. 30.00
C. 15.00
Inventory Turnover = (Cost of goods sold / Average Inventory Investment) = $90
million / $6 million = 15.00
Operations management is applicable:
A. mostly to the service sector.
B. to services exclusively.
C. mostly to the manufacturing sector.
D. to all firms, whether manufacturing or service.
