Operations Management Techniques: Master Business Operations

Question 1

Which technique is used to analyze the expected waiting time in a queuing system?

Accepted Answer

Queuing theory

Answer

Linear programming

Answer

Simulation

Answer

Forecasting

Question 2

Which type of simulation model generates future scenarios using historical data?

Accepted Answer

Monte Carlo

Answer

Deterministic

Answer

Stochastic

Answer

System dynamics

Question 3

Complete the forecasting equation: F = T + S + ?

Accepted Answer

R

Answer

T

Answer

S

Answer

TSR

Question 4

Where is the optimal solution to a linear programming problem typically found?

Accepted Answer

A corner point of the feasible region

Answer

Any feasible solution

Answer

The midpoint of the feasible region

Answer

The boundary of the feasible region

Question 5

In a queuing system, the arrival rate refers to:

Accepted Answer

The average number of customers arriving per unit of time

Answer

The average waiting time for a customer

Answer

The average service time for a customer

Answer

The maximum number of customers allowed in the system

Question 6

Which of the following is NOT a forecasting technique?

Accepted Answer

Linear programming

Answer

Time series analysis

Answer

Regression analysis

Answer

Exponential smoothing

Question 7

The primary purpose of capacity planning is:

Accepted Answer

Aligning production capacity with customer demand

Answer

Minimizing inventory levels

Answer

Improving product quality

Answer

Reducing costs

Question 8

Which queuing model is most appropriate when customer arrivals follow a Poisson distribution and service times follow an exponential distribution?

Accepted Answer

M/M/1

Answer

M/M/s

Answer

M/D/1

Answer

D/M/1

Question 9

Which forecasting method is most appropriate for data that exhibits a seasonal pattern?

Accepted Answer

Time series analysis

Answer

Exponential smoothing

Answer

Moving average

Answer

Regression analysis

Question 10

What is the primary objective of capacity planning in operations management?

Accepted Answer

Matching production capacity to forecasted demand to avoid shortages or excess capacity

Answer

Minimizing production costs

Answer

Improving customer satisfaction

Answer

Reducing inventory levels to zero

Question 11

Which of the following is NOT a key performance indicator (KPI) for operations management?

Accepted Answer

Return on assets (net income divided by total assets)

Answer

Throughput (output per unit time)

Answer

Inventory turnover (inventory value divided by cost of goods sold)

Answer

Customer satisfaction (percentage of satisfied customers)

Question 12

What is the key difference between a service-oriented and a product-oriented operations system?

Accepted Answer

Service-oriented systems produce intangible services, while product-oriented systems produce tangible goods

Answer

Product-oriented systems produce intangible services, while service-oriented systems produce tangible goods

Answer

There is no fundamental difference between the two types of systems

Answer

Service-oriented systems are always more complex than product-oriented systems

Question 13

Which of the following is a defining characteristic of operations management?

Accepted Answer

Its focus on optimizing the effectiveness and efficiency of production and service processes.

Answer

Its exclusive concern with large-scale manufacturing operations.

Answer

Its static nature, not requiring continuous improvement.

Answer

Its emphasis on intuition and guesswork in decision-making.

Question 14

Linear programming is primarily used to optimize:

Accepted Answer

The allocation of resources to maximize a specific objective.

Answer

The sequence of tasks in a production process.

Answer

The probability of customers waiting in a queue.

Answer

The demand for a product over time.

Question 15

Which metric measures the average time a customer spends waiting in a queue?

Accepted Answer

Waiting time

Answer

Service time

Answer

Inter-arrival time

Answer

Queue length

Question 16

Simulation in operations management involves:

Accepted Answer

Creating a model of a system to test various scenarios.

Answer

Collecting real-time data to analyze operations.

Answer

Using statistical methods to predict future events.

Answer

Employing optimization algorithms to find optimal solutions.

Question 17

A commonly used forecasting method in operations management is:

Accepted Answer

Moving average

Answer

Benchmarking

Answer

Expert judgement

Answer

Simulation

Question 18

The term for breaking down a complex task into smaller, manageable units is:

Accepted Answer

Job design

Answer

Job enlargement

Answer

Job enrichment

Answer

Job rotation

Question 19

Which of the following are key concepts in linear programming?

Accepted Answer

Feasibility, optimization, and sensitivity analysis

Answer

Feasibility and optimization

Answer

Optimization and sensitivity analysis

Answer

Sensitivity analysis and optimization

Question 20

Which of the following is a common metric used to measure production efficiency?

Accepted Answer

Overall equipment effectiveness (OEE)

Answer

Return on investment (ROI)

Answer

Gross profit margin

Answer

Net present value (NPV)

Question 21

Which of the following is NOT an advantage of using linear programming in operations management?

Accepted Answer

Can accurately predict future demand

Answer

Can optimize resource allocation

Answer

Can minimize production costs

Answer

Can improve production efficiency

Question 22

Which of the following methods is commonly used to simulate a complex business process?

Accepted Answer

Monte Carlo simulation

Answer

Flowcharting

Answer

Statistical analysis

Answer

Regression analysis

Question 23

A graphical tool widely used for planning and scheduling production processes is a:

Accepted Answer

Gantt chart

Answer

PERT chart

Answer

Scatter diagram

Answer

Histogram

Question 24

The process of determining the optimal allocation of resources within an organization is known as:

Accepted Answer

Operations research

Answer

Operations strategy

Answer

Operations planning

Answer

Operations control

Question 25

What is a potential challenge associated with adopting emerging technologies in operations management?

Accepted Answer

Increased complexity

Answer

Improved efficiency

Answer

Reduced costs

Answer

Increased customer satisfaction

Question 26

Which of the following is a disadvantage of implementing lean manufacturing principles in a production process?

Accepted Answer

Increased operating costs

Answer

Eliminated waste

Answer

Enhanced productivity

Answer

Improved product quality

Question 27

Which operations management technique is ideal for simulating intricate business processes and assessing various scenarios?

Accepted Answer

Simulation

Answer

Linear programming

Answer

Forecasting

Question 28

Which of the following is NOT a technique commonly applied in operations management?

Accepted Answer

Regression analysis

Answer

Linear programming

Answer

Queuing theory

Answer

Simulation

Question 29

The primary objective of operations management is to:

Accepted Answer

Optimize business processes to enhance product/service delivery.

Answer

Enhance the company's image.

Answer

Maximize profits only.

Answer

Reduce solely production costs.

Question 30

Queuing theory in operations management aids in:

Accepted Answer

Determining the optimal number of service providers to minimize customer wait times.

Answer

Optimizing inventory levels.

Answer

Predicting future demand for goods and services accurately

Answer

Analyzing the sources of process inefficiencies

Question 31

The primary purpose of conducting a breakeven analysis is to:

Accepted Answer

Determine the sales volume necessary to cover total costs.

Answer

Estimate future profits.

Answer

Identify potential cost-cutting opportunities.

Answer

Analyze market demand.

Question 32

A key aspect of a just-in-time (JIT) inventory system is:

Accepted Answer

Maintaining minimal inventory levels.

Answer

Accurately forecasting demand.

Answer

Storing excess safety stock.

Answer

Utilizing large batch production.

Question 33

The purpose of employing a quality control chart in operations management is to:

Accepted Answer

Continuously monitor and maintain the quality of products or services.

Answer

Optimize production schedules.

Answer

Identify the root causes of production defects.

Answer

Forecast future demand for products or services.

Question 34

The primary distinction between process layout and product layout in operations management is that:

Accepted Answer

Process layout groups similar processes, while product layout groups similar products.

Answer

Process layout utilizes fixed workstations, while product layout employs mobile workstations.

Answer

Process layout is more cost-effective for mass production, whereas product layout is more efficient for custom production.

Answer

Process layout is typically used for service-based businesses, while product layout is used for manufacturing.

Question 35

Which linear programming technique focuses on determining the optimal distribution of resources to minimize transportation costs?

Accepted Answer

Transportation method

Answer

Simplex method

Answer

Graphical method

Question 36

In a single-channel, single-phase queueing system, customers arrive randomly and are served on a:

Accepted Answer

First-come, first-served basis

Answer

Priority-based basis

Answer

Randomized basis

Answer

Last-in, first-out basis

Question 37

Which of the following is NOT a potential benefit of implementing operations management techniques?

Accepted Answer

Reduced employee morale

Answer

Improved efficiency

Answer

Increased revenue

Answer

Enhanced decision-making

Question 38

The primary objective of a Gantt chart is to:

Accepted Answer

Visually represent project tasks and their timelines

Answer

Manage project risks

Answer

Communicate project deliverables to stakeholders

Answer

Track project expenses

Question 39

Which technique helps prioritize tasks based on their potential impact and the effort required to complete them?

Accepted Answer

Eisenhower matrix

Answer

PERT chart

Answer

SWOT analysis

Question 40

What is the fundamental purpose of inventory management in operations management?

Accepted Answer

Ensuring the availability of necessary materials and products

Answer

Maximizing customer satisfaction

Answer

Reducing production costs

Question 41

Which of the following is a key performance indicator (KPI) commonly used to measure operational efficiency?

Accepted Answer

Throughput time

Answer

Market share

Answer

Employee turnover rate

Answer

Customer satisfaction

Question 42

The purpose of a value stream map is to:

Accepted Answer

Identify and eliminate non-value-adding activities in a process

Answer

Design new products or services

Answer

Improve employee motivation

Answer

Manage project schedules