OPMA 3306 EXAM 2 | STUDY GUIDE, MCQS, PRACTICE QUESTIONS AND EXAM
REVIEW | 2026/2027
Production Process - correct answer ✔✔Used to make any manufactured item
Step 1- Source the parts needed
Step 2- Make the product
Step 3- Deliver the product
Lead Time - correct answer ✔✔The time needed to respond to a customer order
Customer Order Decoupling Point - correct answer ✔✔Where inventory is positioned to allow
entities in the supply chain to operate independently
Lean Manufacturing - correct answer ✔✔A means of achieving high levels of customer service
with minimal inventory investment
Types of Firms - correct answer ✔✔1. Make-to-Stock
2. Assemble-to-Order
3. Make-to-Order
4. Engineer-to-Order
Make-to-Stock - correct answer ✔✔Serve customers from finished goods inventory
Televisions, clothing, packaged food products
,Essential issue in satisfying customers is to balance the level of inventory against the level of
customer service (easy with unlimited inventory but inventory costs money; trade-off between
the cost of inventory and level of customer service must be made)
Use lean manufacturing to achieve higher service levels for a given inventory investment
Assemble-to-Order - correct answer ✔✔Combine a number of preassembled modules to meet
a customer's specifications
A primary task is to define a customer's order in terms of alternative components since these
are carried in inventory
One capability required is a design that enables as much flexibility as possible in combining
components
Make-to-Order - correct answer ✔✔Make the customer's product from raw materials, parts,
and components
Customer order decoupling point could be in either raw materials at the manufacturing site or
the supplier inventory
Depending on how similar the products are, it might not even be possible to pre-order parts
Engineer-to-Order - correct answer ✔✔Work with the customer to design and then make the
product
Boeing's process for making commercial aircraft
, Customer order decoupling point could be in either raw materials at the manufacturing site or
the supplier inventory
Depending on how similar the products are, it might not even be possible to pre-order parts
Production Process Mapping - correct answer ✔✔Develop a high-level map of a supply chain
process
Useful to understand how material flows and where inventory is held
First step in analyzing the flow of material through a production process
Little's Law - correct answer ✔✔The flow of items through a production process can be
described through this
Inventory = (Throughput Rate)(Flow Time)
Throughput- Long term average rate of flow through the process
Flow Time- Time for a single unit to traverse the entire process
Inventory- Materials held by the firm for future use
Total Average Value of Inventory - correct answer ✔✔The sum of the value (at cost) of the raw
material, work-in process, and finished goods inventory
Commonly tracked in accounting systems and reported in financial statements
REVIEW | 2026/2027
Production Process - correct answer ✔✔Used to make any manufactured item
Step 1- Source the parts needed
Step 2- Make the product
Step 3- Deliver the product
Lead Time - correct answer ✔✔The time needed to respond to a customer order
Customer Order Decoupling Point - correct answer ✔✔Where inventory is positioned to allow
entities in the supply chain to operate independently
Lean Manufacturing - correct answer ✔✔A means of achieving high levels of customer service
with minimal inventory investment
Types of Firms - correct answer ✔✔1. Make-to-Stock
2. Assemble-to-Order
3. Make-to-Order
4. Engineer-to-Order
Make-to-Stock - correct answer ✔✔Serve customers from finished goods inventory
Televisions, clothing, packaged food products
,Essential issue in satisfying customers is to balance the level of inventory against the level of
customer service (easy with unlimited inventory but inventory costs money; trade-off between
the cost of inventory and level of customer service must be made)
Use lean manufacturing to achieve higher service levels for a given inventory investment
Assemble-to-Order - correct answer ✔✔Combine a number of preassembled modules to meet
a customer's specifications
A primary task is to define a customer's order in terms of alternative components since these
are carried in inventory
One capability required is a design that enables as much flexibility as possible in combining
components
Make-to-Order - correct answer ✔✔Make the customer's product from raw materials, parts,
and components
Customer order decoupling point could be in either raw materials at the manufacturing site or
the supplier inventory
Depending on how similar the products are, it might not even be possible to pre-order parts
Engineer-to-Order - correct answer ✔✔Work with the customer to design and then make the
product
Boeing's process for making commercial aircraft
, Customer order decoupling point could be in either raw materials at the manufacturing site or
the supplier inventory
Depending on how similar the products are, it might not even be possible to pre-order parts
Production Process Mapping - correct answer ✔✔Develop a high-level map of a supply chain
process
Useful to understand how material flows and where inventory is held
First step in analyzing the flow of material through a production process
Little's Law - correct answer ✔✔The flow of items through a production process can be
described through this
Inventory = (Throughput Rate)(Flow Time)
Throughput- Long term average rate of flow through the process
Flow Time- Time for a single unit to traverse the entire process
Inventory- Materials held by the firm for future use
Total Average Value of Inventory - correct answer ✔✔The sum of the value (at cost) of the raw
material, work-in process, and finished goods inventory
Commonly tracked in accounting systems and reported in financial statements
