PRODUCTION AND OPERATIONS MANAGEMENT page 1 of 3

Name: E#: Date:

1. Insert the missing words in the following state- a) true demand scheduling
ment. b) true capacity scheduling
The capacity of the organization may be defined as c) true operations scheduling
its ____________ to undertake the ___________
demanded by its ___________ 10. All of the following make queuing a more positive
experience except:
a) capacity, demand, users
a) Entertaining the queue
b) ability, work, users
c) capacity, orders, dealers b) Informing the queue of the duration of the waiting
time
2. Where one process supplies another process this c) Allowing queue jumping
is situation of independent demand. True or
false? d) Avoiding solo waiting
a) True
11. Which of the following is not an objective of
b) False scheduling:

3. The general direction of the demand pattern is a) Providing excess capacity

called its trend. b) Ensuring on-time delivery
a) True c) Providing optimum efficiencies
b) False d) Balancing cash flow

4. Seasonality may only occur at quarterly periods. 12. Which are the followings is not true.

a) True a) Forecasting can be assumed by causal system,

i.e., past ==> future
b) False
b) Forecasts rarely perfect because of randomness
5. Which mean absolute deviation shows the most
c) Forecasts more accurate for individuals compared
accurate forecast:
to groups
a) The lowest mean absolute deviation
d) Forecast accuracy decreases as time horizon or
b) The highest mean absolute deviation
planning horizon increases
6. Organizations should always plan to:
13. A forecasting techniques uses subjective inputs
a) Exceed expected demand is known as:
b) Keep capacity below demand a) Judgmental
c) Match capacity to demand exactly b) Time-series
d) Adopt the level of capacity which seems to best fit c) Associative forecasts
the situation
14. Qualitative forecasting methods uses an underly-
7. Level capacity means: ing mathematical model to arrive at a forecast.
a) Adjusting capacity to follow demand a) True
b) Keeping capacity fixed b) False
c) Always having too much capacity
15. Moving average forecasting assumes that the
8. Modifying the output has little to offer as a way of time series has only a level component plus a
managing capacity better. random component.

a) True a) True
b) False
b) False
16. Effectiveness means:
9. Insert the missing words in the following state-
ment. a) meeting market requirements
b) producing to specification
The task of allocating people to processes in order
to get the work done is known as c) producing as cheaply as
________________________________________.
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Name: E#: Date:

17. Efficiency means: 24. Which of the following can have the most impact
on a companys productivity:
a) keeping the operation going at all costs
a) innovation
b) maximizing utilization
b) industrial dispute
c) satisfy customers immediately
c) investment
d) minimizing cost
d) interest rate
18. A flexible manufacturing system is best for: e) inflation rate

a) high variety output 25. Organizational productivity can be improved by

b) low variety output the following except:
c) medium variety output a) employee involvement and empowerment
b) customer orientation
19. Which of the following will not result in improving
operations productivity: c) effective leadership and change management
d) continuous developments of product and services
a) increasing working speed.
e) economic contraction
b) improving working method.
c) reducing cost. 26. Which of the following may not be an order win-
d) reducing wastage. ning criteria:

e) reducing participation. a) meeting customer quality expectation

b) lowering costs
20. Which of the following ratios does not express
c) on-time delivery
productivity:
d) design ability
a) results achieved to resources consumed
b) output produced to numbers of hours used 27. Continuous improvement is a system to improve
total quality
c) output achieved to number of people employed
d) input used divided by output produced a) True
e) output produced to number of machines used b) False

21. Employee productivity can be improved by which 28. The Kaizen approach requires operational man-
of the following: agers to be process-oriented.
a) structure of the organization a) True
b) goals of the organization b) False
c) unionization of the company
29. The 5S system is an initial stage of TQM imple-
d) all of the above mentation
22. Which of the following factors have lesser affect a) True
on the productivity of an organization b) False
a) government regulations
30. Japanese companies are not famous for group-
b) process automation based activities.
c) diversification
a) True
d) process layout
b) False
e) inventory management
31. The capacity planning is determined by, except:
23. Which of the following is not the primary activity
c) the size of the physical facilities
in an organization
d) the numbers of the employees in the operations
a) operations
e) the location of the operations
b) marketing and sales
c) human resources development 32. Capacity planning is deciding on the optimum
d) inbound logistics output rate of a facility.
e) after sales services a) True
b) False
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Name: E#: Date:

33. Break-even analysis can be used for location
analysis especially when the costs of each loca-
tion are known. 40. Capacity requirement planning is concerned with
determining the following requirement for a
a) True ______________________
b) False
a) Master Production Schedule
34. __________ costs are the costs that continues b) Material Requisition Planning
even if no units are produced and ___________
costs are those that vary with the volume of units c) Material Production Planning
produced. d) Material Production Schedule
a) Variable, fixed
41. Where the cost per unit of output drops as vol-
b) Fixed, variable ume of output increases is known as

35. The center of gravity method is used to find a a) Economies of Scale

location that: b) Diseconomies of Scale
a) minimizes the sum of transportation cost in be- c) Economies of Capacity
tween new facility and old facilities d) Diseconomies of Capacity
b) maximizes the sum of transportation cost in be-
tween new facility and old facilities 42. Efficiency capacity is defined as

c) minimizes the sum of unit cost manufactured be- a) a measure of actual input over effective capacity.
tween new facility and old facilities
b) a measure of actual output over effective capacity.
d) maximizes the sum of unit cost manufactured
between new facility and old facilities c) a measure of actual output over design capacity.
d) a measure of actual input over design capacity.
36. Organizations should always plan to:
a) Exceed expected demand 43. Design capacity is defined as
b) Keep capacity below demand a) Minimum output rate under ideal conditions
c) Match capacity to demand exactly b) Maximum output rate under ideal conditions
d) Adopt the level of capacity which seems to best fit c) Minimum output rate under normal conditions
the situation
d) Maximum output rate under normal conditions
37. _________________ is the process of identifying
44. Effective capacity is defined as
the best geographic location for a service or pro-
duction facility a) Minimum output rate under ideal conditions
a) Facility distance analysis b) Maximum output rate under ideal conditions
c) Minimum output rate under normal conditions
b) Facility location analysis
d) Maximum output rate under normal conditions
c) Facility set-up analysis
45. Capacity planning and location decisions are of-
38. Decision tree analysis utilizes expected value ten made at the same time because they are
analysis (EVA). inter-related.
a) True a) True
b) False b) False

39. The followings are the strategies to meet non-

uniform demand, except
a) Absorbing demand fluctuations by varying inven-
tory levels or allowing backlogs
b) Change production according to demand
c) Lay-off when demand increases
d) Hire additional personnel when demand increases