BUS520 Operations Management (EU) Midterms Exam Review 2025 (Qns & Ans)

BUS520

Operations Management

Midterms Exam Review (Qns & Ans)

2025



1. What is the primary goal of operations management?
- A. Maximizing profits at all costs
- B. Enhancing customer satisfaction while optimizing resources
- C. Increasing the number of employees
- D. Reducing the cost of raw materials

ANS: B

Rationale: Operations management focuses on creating
value by efficiently utilizing resources to meet customer needs.


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,2. Which inventory management technique aims to minimize
holding costs by ensuring materials arrive just as they are needed?
- A. Economic Order Quantity (EOQ)
- B. Just-in-Time (JIT)
- C. Materials Requirement Planning (MRP)
- D. Vendor-Managed Inventory (VMI)

ANS: B

Rationale: JIT minimizes holding costs by aligning material
delivery with production schedules.


3. Which forecasting method relies on historical data and
statistical techniques to predict future demand?
- A. Qualitative forecasting
- B. Quantitative forecasting
- C. Delphi method
- D. Scenario planning

ANS: B

Rationale: Quantitative forecasting uses mathematical
models and data trends for demand prediction.




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, 4. Which of the following is NOT a component of Total Quality
Management (TQM)?
- A. Continuous improvement
- B. Employee involvement
- C. Flexible manufacturing systems
- D. Customer focus

ANS: C

Rationale: Flexible manufacturing is a production strategy
and not part of TQM principles.


5. In Lean Manufacturing, which term is used to describe
activities that do not add value to the customer?
- A. Kanban
- B. Waste
- C. Kaizen
- D. Bottleneck

ANS: B

Rationale: Lean principles focus on identifying and
eliminating waste to enhance efficiency.


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