FINAL EXAMINATION

OPERATIONS MANAGEMENT (TQM)

NAME: _____________________________________________________ SCORE: __________

SCHEDULE: _______________COURSE/YEAR/BLOCK:__________ DATE: ___________

I. MULTIPLE CHOICE. Choose the letter of the correct answer.

1. Is a core operations management activity.

A. production
B. process
C. forecasting
D. inventory
ANSWER: D

2. Are used to satisfy demand requirements, so it is essential to have reliable estimates of the amount
and timing of demand.
A. inventory
B. lead time information
C. forecast demand
D. all of the above
ANSWER: A

3. Among are the function of inventory except one.

A. determining the appropriate level of outsourcing
B. to take advantage of order cycle
C. to hedge against price increase
D. to meet anticipated customer demand
ANSWER: A

4. Requirements for effective inventory management.

A. a classification system for inventory items
B. knowledge of lead times and lead time variability
C. a system to keep track of the inventory on hand and on order
D. all of the above
ANSWER: D

5. A physical count of items in inventory is made at fixed intervals.

A. perpetual inventory system
B. two-bin system
C. periodic inventory system
D. none of the above
ANSWER: C

6. Also known as a continuous review system.

A. perpetual inventory system
B. two-bin system
C. periodic inventory system
D. none of the above
ANSWER: A

7. A very elementary system that uses two containers for inventory.

A. perpetual inventory system
B. two-bin system
C. periodic inventory system
D. none of the above
ANSWER: B

8. Electronically record actual sales.

A. economic order quantity model
B. point of sale system
C. universal product code
D. two-bin system
ANSWER: B
9. The time between submitting an order and receiving it.
A. production time
B. forecast time
C. lead-time
D. all of the above
ANSWER: C

10. Is the amount paid to a vendor or supplier to buy the inventory.

A. ordering cost
B. shortage cost
C. carrying cost
D. purchasing cost
ANSWER: D

11. Result when demand exceeds the supply of inventory on hand.

A. ordering cost
B. shortage cost
C. carrying cost
D. purchasing cost
ANSWER: B

12. Are the costs of ordering and receiving inventory.

A. ordering cost
B. shortage cost
C. carrying cost
D. purchasing cost
ANSWER: A

13. Relate to physically having items in storage.

A. ordering cost
B. shortage cost
C. carrying cost
D. purchasing cost
ANSWER: C

14. Is used to identify a fixed order size that will minimize the sum of the annual costs of holding inventory
and ordering inventory.
A. economic order quantity model
B. economic production quantity model
C. quantity discount model
D. all of the above
ANSWER: A

15. Portions of the work are done in batches.

A. economic order quantity model
B. economic production quantity model
C. quantity discount model
D. all of the above
ANSWER: B

16. Are price reductions for larger orders offered to customers to induce them to buy in large quantities.
A. economic order quantity model
B. economic production quantity model
C. quantity discount model
D. all of the above
ANSWER: C

17. Answer the question of how much to order, but not the question of when to order.
A. economic order quantity model
B. economic production quantity model
C. quantity discount model
D. all of the above
ANSWER: A

18. These are determinants of the reorder point quantity except one.
A. the lead time
B. the rate of demand
C. the production rate
D. the degree of stock-out risk acceptable to management
 ANSWER: C

19. These are assumptions of the basic EOQ model.

A. the lead time is known and constant
B. each order is received in single delivery
C. there are no quantity discounts
D. all of the above
ANSWER: D

20. These are assumptions of the EPQ model.

A. the lead-time is known and constant
B. each order is received in single delivery
C. there are no quantity discounts
D. none of the above
ANSWER: D

21. Is the sequence of organizations—their facilities, functions, and activities that are involved in
producing and delivering a product or service.
A. supply chain
B. supply chain management
C. logistics
D. inventory management
ANSWER: A

22. Is the strategic coordination of business functions within a business organization and throughout its
supply chain.
A. supply chain
B. supply chain management
C. logistics
D. inventory management
ANSWER: B

23. Are sometimes, referred to as value chains.

A. supply chain
B. supply chain management
C. logistics
D. inventory management
ANSWER: A

24. Are people at various levels of the organization who are responsible for managing supply and
demand both within and across business organizations.
A. quality assurance manager
B. operations manager
C. production managers
D. supply chain managers
ANSWER: D

25. Is the part of a supply chain involved with the forward and reverse flow of goods, services, cash, and
information.
A. customers
B. suppliers
C. logistics
D. production
ANSWER: C

26. Management of inbound and outbound transportation, material handling, warehousing, inventory,
order fulfillment and distribution.
A. inventory management
B. supply chain management
C. logistics management
D. none of the above
ANSWER: C

27. Key aspects related to supply chain management.

A. managing procurement
B. managing suppliers
C. managing customer relationships
 D. all of the above
ANSWER: D

28. The ability to focus on core strengths, converting fixed costs to variable costs.
A. measuring supply chain ROI
B. greening the supply chain
C. reevaluating outsourcing
D. Integrating IT
ANSWER: C

29. Include corporate responsibility, regulations, and public pressure.

A. measuring supply chain ROI
B. greening the supply chain
C. reevaluating outsourcing
D. Integrating IT
ANSWER: B

30. Produces real-time data that can enhance strategic planning and help businesses to control costs,
measure quality and productivity.
A. measuring supply chain ROI
B. greening the supply chain
C. reevaluating outsourcing
D. Integrating IT
ANSWER: D

31. Enable managers to incorporate economics into outsourcing and other decisions, giving them a
rational basis for managing their supply chains.
A. measuring supply chain ROI
B. greening the supply chain
C. reevaluating outsourcing
D. Integrating IT
ANSWER: A

32. Improve the performance of the supply chains.

A. adopting lean principles
B. integrating IT
C. managing risk
D. reevaluating outsourcing
ANSWER: A

33. The ability of a supply chain to respond fairly and quickly to unpredictable changes or circumstances.
A. flexibility
B. agility
C. resiliency
D. mobility
ANSWER: B

34. Identifying risks, assessing their likelihood of occurring and their potential impact, and then
developing strategies for addressing those risks.
A. supply chain management
B. inventory management
C. operations management
D. risk management
ANSWER: D

35. Is the ability of a business to recover from an event that negatively affect the supply chain.
A. flexibility
B. agility
C. resiliency
D. mobility
ANSWER: C

36. Is a function of the severity of the impact and the plans that are in place to cope with the event.
A. managing risk
B. resiliency
C. recovery
 D. agility
ANSWER: C

37. These are key elements of a successful risk management except one.
A. provide supply chain visibility
B. shortening the supply chain
C. develop event response capability
D. know your suppliers
ANSWER: B

38. Means that one special department handles purchasing.

A. purchasing cycle
B. centralized purchasing
C. purchasing interfaces
D. decentralized purchasing
ANSWER: B

39. Responsible for obtaining the materials, parts, supplies, and services needed to produce a product or
provide a service.
A. material control department
B. purchasing department
C. project controls department
D. engineering department
ANSWER: B

40. Refers to the use of electronic technology to facilitate business transactions.

A. e-mail
B. e-commerce
C. e-book
D. e-business
ANSWER: D

41. Refers to the ability of a product or service to consistently meet or exceed customer requirements or
expectations.
A. capacity
B. quantity
C. consistency
D. quality
ANSWER: D

42. How well a product corresponds to design specifications.

A. reliability
B. durability
C. conformance
D. performance
ANSWER: C

43. Quality does not vary.

A. serviceability
B. durability
C. consistency
D. perceived quality
ANSWER: C

44. The ability to perform a service dependably, consistently, and accurately.

A. reliability
B. assurance
C. responsiveness
D. expectations
ANSWER: A

45. The willingness of service providers to help customers in unusual situations and to deal with
problems.
A. reliability
B. assurance
C. responsiveness
 D. expectations
ANSWER: C

46. The knowledge exhibited by personnel who encounter a customer and their ability to convey trust and
confidence.
A. reliability
B. assurance
C. responsiveness
D. expectations
ANSWER: B

47. A widely used tool for assessing service quality.

A. gantt chart
B. pert diagram
C. servqual
D. none of the above
ANSWER: C

48. Refers to the intention of designers to include or exclude certain features in a product or service.
A. quality of design
B. quality of service
C. quality of conformance
D. quality of product
ANSWER: A

49. Refers to the degree to which goods and services achieve the intent of the designers.
A. quality of design
B. quality of service
C. quality of conformance
D. quality of product
ANSWER: C

50. Has the ultimate responsibility for quality.

A. quality assurance
B. production/operation
C. design
D. top management
ANSWER: D

51. Has responsibility to ensure that processes yield products and services that conform to design
specifications.
A. quality assurance
B. production/operation
C. design
D. top management
ANSWER: B

52. Relate to inspection, testing, and other activities intended to uncover defective products or services.
A. prevention costs
B. failure costs
C. appraisal costs
D. all of the above
ANSWER: C

53. Are incurred by defective parts or products or by faulty services.

A. prevention costs
B. failure costs
C. appraisal costs
D. all of the above
ANSWER: B

54. Relate to attempts that prevent defects from occurring.

A. prevention costs
B. failure costs
C. appraisal costs
 D. all of the above
ANSWER: A

55. Pertains to quality management.

A. ISO 14000
B. ISO 9000
C. ISO 24700
D. none of the above
ANSWER: B

56. Concerns what an organization does to minimize harmful effects to the environment caused by its
operations.
A. ISO 14000
B. ISO 9000
C. ISO 24700
D. none of the above
ANSWER: A

57. Pertains to the quality and performance of office equipment that contains reused components.
A. ISO 14000
B. ISO 9000
C. ISO 24700
D. none of the above
ANSWER: C

58. The philosophy that seeks to improve all factors related to the process of converting inputs into
outputs on an ongoing basis.
A. competitive benchmarking
B. employee empowerment
C. quality at source
D. continuous improvement
ANSWER: D

59. This involves identifying other organizations that are the best at something and studying how they do
it to learn how to improve the operation.
A. competitive benchmarking
B. employee empowerment
C. quality at source
D. continuous improvement
ANSWER: A

60. Refers to a quest for quality in an organization.

A. operations management
B. supply chains management
C. inventory management
D. total quality management
ANSWER: D

61. By understanding your resources upfront and planning how to use them, you can troubleshoot gaps
or problems before they happen.
A. Avoids unforeseen hiccups
B. Prevents burnout
C. Provides a safety net
D. Builds transparency
ANSWER: A

62. Effective resource management allows you to avoid “overallocation” or “dependency” of resources by
gaining insight into your team’s workload.

A. Avoids unforeseen hiccups

B. Prevents burnout
C. Provides a safety net
D. Builds transparency
ANSWER: B

63. Let’s say the project was not successful due to lack of resources (it happens). Resource planning and
management establishes that you did everything you could with what you had.

A. Avoids unforeseen hiccups

B. Prevents burnout
 C. Provides a safety net
D. Builds transparency
ANSWER: C

64. Other teams can gain visibility into your team’s bandwidth, and plan accordingly if your team is at
maximum capacity or available to take on new projects. 

A. Avoids unforeseen hiccups

B. Prevents burnout
C. Provides a safety net
D. Builds transparency
ANSWER: D

65. the process of tackling projects using the resources you have at your disposal in the most efficient
manner possible.
A. resource allocation
B. resource leveling
C. resource forecasting
D. resource utilization
ANSWER: A

66. These can give anywhere from a high-level view to a detailed run down of resource
availability — helping you avoid schedule delays and going over budget. The better the reporting
capabilities at your disposal, the more transparency and efficiency you will have over your projects.

A. resource allocation
B. resource leveling
C. resource forecasting
D. resource utilization
ANSWER: A

67.This technique aims to discover underused or inefficiently used resources within the organization and work
them to your advantage.
A. resource allocation
B. resource leveling
C. resource forecasting
D. resource utilization
ANSWER: B

67. allows you to predict your future resource requirements before a project begins. During the planning
stages of a project, you could consider resource management software that forecasts the
project’s scope, possible constraints, unforeseen costs, and potential risks.

A. resource allocation
B. resource leveling
C. resource forecasting
D. resource utilization
ANSWER: C

68. Below are THE ways in which you benefit once you implement resource management. It can help with:
Maximizing resource efficiency: ________________
A. Resource Utilization
B. An overview
C. Transparency
D. Foreseeing and avoiding problems

69. Below are THE ways in which you benefit once you implement resource management. It can help with: Getting
a bird's eye view of your project: ______________________

A. Resource Utilization
B. An overview
C. Transparency
D. Foreseeing and avoiding problems

70. This entails feeling what your customer is feeling, thinking of what the customer is
dreaming of and what he/she is aspiring to achieve or become.
A. customer focus
B. resource management
C. workforce focus
D. none of the above
71. You can train and practice your customer focus skills in reverse: when being in a situation
where you are the customer, work on your senses and reflection.

A. Customer-oriented mindset
B. Customer-oriented behavior
C. Combining mindset and behavior
D. None of the above

72. Analyze what they could do better, how they could improve their performance? Consider
what you would do in their situation that could increase the level of satisfaction,
appreciation, and happiness that you are experiencing. Train yourself in customer focus
skills by making the most of service encounters in daily situations, no matter how small or
big they might be.

A. Customer-oriented mindset
B. Customer-oriented behavior
C. Combining mindset and behavior
D. None of the above

73. ____________________ is an integrated set of processes that a company uses to optimize

the productivity of its employees.

A. customer focus
B. resource management
C. workforce management
D. none of the above

74. knowing how many and the type of staff resources are needed for a particular project
during a certain time of the year, such as increased seasonal or holiday demand.

A. Forecasting
B. Budgeting
C. Staff scheduling
D. Compliance

75. A significant aspect of WFM as it allows companies to automate staffing based on all
business variables, such as vacations, availability, workload and absences. In the past, staff
scheduling was done manually.
A. Forecasting
B. Budgeting
C. Staff scheduling
D. Compliance

76. One of the most complicated and potentially costly areas of WFM. Non-compliance with
state, federal and local employment laws can result in fines and employee lawsuits.

A. Forecasting
B. Budgeting
C. Staff scheduling
D. Compliance
77. Helps companies better predict changes in demand and manage planned and unplanned
staff absences and/or leaves.
A. Forecasting
B. Budgeting
C. Staff scheduling
D. Time and Attendance

78. The availability of audit-ready custom reports makes payroll processes and queries quicker
and easier. Workforce management also allows for instant payment options, such as end of
shift payments, and syncing of timesheets to payroll.

A. Forecasting
B. Budgeting
C. Payroll and benefits administration
D. Compliance

79. WFM tools and processes allow companies to track staffing levels and digitally handle time-
off requests and approvals. Through the use of automation and data analysis, companies
can use WFM for management and tracking of leave balances, paid time off (PTO),
absences, time-off calendars, schedule conflicts and banked time.

A. Vacation and leave planning

B. Budgeting
C. Staff scheduling
D. Compliance