OPERATIONS AND SUPPLY CHAIN
MANAGEMENT 2026 FULL PRACTICE EXAM
◉ Mathematical Model. Answer: A model that uses mathematical
expressions to represent a system, such as inventory optimization.
◉ Benefits of Models. Answer: Generally easier to use and less
expensive than dealing with the real system. Require users to
organize and sometimes quantify information. Increase
understanding of the problem. Enable managers to analyze what-if
questions. Serve as a consistent tool for evaluation and provide a
standardized format for analyzing a problem. Enable users to bring
the power of mathematics to bear on a problem.
◉ Model Limitations. Answer: Quantitative information may be
emphasized at the expense of qualitative information. Models may
be incorrectly applied and the results misinterpreted. This is a real
risk with the widespread availability of sophisticated, computerized
models placed in the hands of uninformed users. The use of models
does not guarantee good decisions.
◉ Quantitative Approaches. Answer: A decision-making approach
that frequently seeks to obtain a mathematically optimal solution:
Supported by computer calculations. Often work together with
qualitative approaches.
,◉ Performance Metrics. Answer: All managers use metrics to
manage and control operations. Profits, Costs, Quality, Productivity,
Flexibility, Inventories, Schedules, Forecast accuracy.
◉ Analysis of Trade-Offs. Answer: A trade-off is giving up one thing
in return for something else. Carrying more inventory (an expense)
in order to achieve a greater level of customer service.
◉ Systems Perspective. Answer: System - a set of interrelated parts
that must work together: The business organization is a system
composed of subsystems. The systems perspective emphasizes
interrelationships among subsystems. The main theme is that the
whole is greater than the sum of its parts. The output and objectives
of the organization take precedence over those of any one
subsystem.
◉ Establishing Priorities. Answer: In nearly all cases, certain issues
or items are more important than others. Recognizing this allows
managers to focus their attention to those efforts that will do the
most good. Pareto Phenomenon - a few factors account for a high
percentage of occurrence of some event(s). The critical few factors
should receive the highest priority.
◉ Historical Evolution of Operations Management. Answer: The
Industrial Revolution, Scientific Management, The Human Relations
, Movement, Decision Models and Management Science, The Influence
of Japanese Manufacturers.
◉ The Industrial Revolution. Answer: Pre-Industrial Revolution:
Craft production - System in which highly skilled workers use
simple, flexible tools to produce small quantities of customized
goods. Key elements began in England in the 1770's. Division of
labor - Adam Smith, 1776. Application of the 'rotative' steam engine,
1780's. Cotton gin and interchangeable parts - Eli Whitney, 1792.
◉ Scientific Management. Answer: Movement was led by efficiency
engineer, Frederick Winslow Taylor: Believed in a 'science of
management' based on observation, measurement, analysis and
improvement of work methods, and economic incentives.
◉ Human Relations Movement. Answer: Emphasized the
importance of the human element in job design.
◉ Lillian Gilbreth. Answer: Known for applications of psychology in
management.
◉ Elton Mayo. Answer: Conducted Hawthorne studies on worker
motivation in the 1930s.
MANAGEMENT 2026 FULL PRACTICE EXAM
◉ Mathematical Model. Answer: A model that uses mathematical
expressions to represent a system, such as inventory optimization.
◉ Benefits of Models. Answer: Generally easier to use and less
expensive than dealing with the real system. Require users to
organize and sometimes quantify information. Increase
understanding of the problem. Enable managers to analyze what-if
questions. Serve as a consistent tool for evaluation and provide a
standardized format for analyzing a problem. Enable users to bring
the power of mathematics to bear on a problem.
◉ Model Limitations. Answer: Quantitative information may be
emphasized at the expense of qualitative information. Models may
be incorrectly applied and the results misinterpreted. This is a real
risk with the widespread availability of sophisticated, computerized
models placed in the hands of uninformed users. The use of models
does not guarantee good decisions.
◉ Quantitative Approaches. Answer: A decision-making approach
that frequently seeks to obtain a mathematically optimal solution:
Supported by computer calculations. Often work together with
qualitative approaches.
,◉ Performance Metrics. Answer: All managers use metrics to
manage and control operations. Profits, Costs, Quality, Productivity,
Flexibility, Inventories, Schedules, Forecast accuracy.
◉ Analysis of Trade-Offs. Answer: A trade-off is giving up one thing
in return for something else. Carrying more inventory (an expense)
in order to achieve a greater level of customer service.
◉ Systems Perspective. Answer: System - a set of interrelated parts
that must work together: The business organization is a system
composed of subsystems. The systems perspective emphasizes
interrelationships among subsystems. The main theme is that the
whole is greater than the sum of its parts. The output and objectives
of the organization take precedence over those of any one
subsystem.
◉ Establishing Priorities. Answer: In nearly all cases, certain issues
or items are more important than others. Recognizing this allows
managers to focus their attention to those efforts that will do the
most good. Pareto Phenomenon - a few factors account for a high
percentage of occurrence of some event(s). The critical few factors
should receive the highest priority.
◉ Historical Evolution of Operations Management. Answer: The
Industrial Revolution, Scientific Management, The Human Relations
, Movement, Decision Models and Management Science, The Influence
of Japanese Manufacturers.
◉ The Industrial Revolution. Answer: Pre-Industrial Revolution:
Craft production - System in which highly skilled workers use
simple, flexible tools to produce small quantities of customized
goods. Key elements began in England in the 1770's. Division of
labor - Adam Smith, 1776. Application of the 'rotative' steam engine,
1780's. Cotton gin and interchangeable parts - Eli Whitney, 1792.
◉ Scientific Management. Answer: Movement was led by efficiency
engineer, Frederick Winslow Taylor: Believed in a 'science of
management' based on observation, measurement, analysis and
improvement of work methods, and economic incentives.
◉ Human Relations Movement. Answer: Emphasized the
importance of the human element in job design.
◉ Lillian Gilbreth. Answer: Known for applications of psychology in
management.
◉ Elton Mayo. Answer: Conducted Hawthorne studies on worker
motivation in the 1930s.
