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BUAD 331 EXAM 2 Actual Exam 2026/2027:
Questions with Multiple Choices | Verified &
Answers | Newest Update for Business Success –
Pass Guaranteed - A+ Graded
SECTION 1: PROCESS STRATEGY & ANALYSIS (12 Questions)
Q1: A custom furniture manufacturer produces unique pieces based on individual customer
specifications with high variety and low volume. According to the product-process matrix, which
process type best describes this operation?
A. Repetitive process
B. Continuous flow process
C. Job shop process [CORRECT]
D. Batch process
Correct Answer: C
Rationale: Job shop processes are characterized by high variety, low volume, and customized
products using general-purpose equipment and skilled workers. The product-process matrix
shows that job shops handle jumbled flows with unique, made-to-order products. Distractor A
(repetitive) involves standardized products in higher volumes; B (continuous flow) is for
commodity products like chemicals; D (batch) handles moderate variety but not the extreme
customization described.
Q2: A process has a cycle time of 4 minutes per unit and operates 8 hours per day. What is the
daily capacity of this process in units?
A. 100 units
B. 120 units [CORRECT]
C. 160 units
D. 200 units
Correct Answer: B
Rationale: Daily capacity = Operating time / Cycle time = (8 hours × 60 minutes) / 4 minutes =
= 120 units. Distractor A results from using 400 minutes (incorrect time conversion); C
uses 2.5 minutes cycle time; D uses 10 hours instead of 8 hours.
,2
Q3: Little's Law states that average inventory equals:
A. Average throughput rate divided by average flow time
B. Average throughput rate multiplied by average flow time [CORRECT]
C. Average flow time divided by average throughput rate
D. Average throughput rate minus average flow time
Correct Answer: B
Rationale: Little's Law formula is L = λW, where L = average inventory, λ (lambda) = average
throughput rate, and W = average flow time. This fundamental relationship applies to any stable
system. Distractor A inverts the relationship; C incorrectly divides flow time by rate; D subtracts
incompatible units (rate vs. time).
Q4: In a process flowchart, a diamond shape represents:
A. An operation or task
B. A delay or wait time
C. A decision point [CORRECT]
D. Movement or transportation
Correct Answer: C
Rationale: Standard flowchart symbols use diamonds for decision points requiring yes/no or
multiple path choices. Rectangles represent operations (A), inverted triangles or D-shaped
symbols represent delays (B), and arrows represent movement (D). Understanding these symbols
is essential for process mapping and analysis.
Q5: A manufacturing cell processes 500 units daily with an average of 250 units in work-in-
process inventory. Using Little's Law, what is the average flow time (throughput time) per unit?
A. 0.5 days [CORRECT]
B. 2 days
C. 5 days
D. 12.5 days
Correct Answer: A
Rationale: Rearranging Little's Law: W = L/λ = 250 units / 500 units per day = 0.5 days (12
hours). Distractor B inverts the calculation (500/250); C uses incorrect units; D multiplies instead
of dividing.
, 3
Q6: Which of the following is NOT one of the four main process strategy types in the product-
process matrix?
A. Job shop
B. Batch
C. Mass customization [CORRECT]
D. Continuous flow
Correct Answer: C
Rationale: The traditional product-process matrix includes four types: job shop, batch, repetitive
(assembly line), and continuous flow. Mass customization is a hybrid strategy combining high
volume with high variety, not one of the four classical types. This represents a modern extension
beyond the traditional matrix framework.
Q7: A process has three sequential steps with processing times of 5 min, 3 min, and 4 min
respectively. Where is the bottleneck?
A. Step 1 [CORRECT]
B. Step 2
C. Step 3
D. There is no bottleneck
Correct Answer: A
Rationale: The bottleneck is the slowest step limiting system capacity. Step 1 at 5 minutes has
the longest processing time, determining maximum throughput of 12 units/hour. Step 2 can
handle 20 units/hour; Step 3 can handle 15 units/hour. Distractor B is the fastest step; C is
intermediate; D is incorrect as every process has a bottleneck.
Q8: In Theory of Constraints (TOC), the "drum" refers to:
A. The bottleneck resource that sets the pace for the entire system [CORRECT]
B. The inventory buffer placed before the bottleneck
C. The scheduling system used to control material release
D. The quality control checkpoint
Correct Answer: A
Rationale: TOC uses drum-buffer-rope: the drum is the bottleneck's schedule setting the system
rhythm; the buffer protects the bottleneck from starvation; the rope pulls material through the
BUAD 331 EXAM 2 Actual Exam 2026/2027:
Questions with Multiple Choices | Verified &
Answers | Newest Update for Business Success –
Pass Guaranteed - A+ Graded
SECTION 1: PROCESS STRATEGY & ANALYSIS (12 Questions)
Q1: A custom furniture manufacturer produces unique pieces based on individual customer
specifications with high variety and low volume. According to the product-process matrix, which
process type best describes this operation?
A. Repetitive process
B. Continuous flow process
C. Job shop process [CORRECT]
D. Batch process
Correct Answer: C
Rationale: Job shop processes are characterized by high variety, low volume, and customized
products using general-purpose equipment and skilled workers. The product-process matrix
shows that job shops handle jumbled flows with unique, made-to-order products. Distractor A
(repetitive) involves standardized products in higher volumes; B (continuous flow) is for
commodity products like chemicals; D (batch) handles moderate variety but not the extreme
customization described.
Q2: A process has a cycle time of 4 minutes per unit and operates 8 hours per day. What is the
daily capacity of this process in units?
A. 100 units
B. 120 units [CORRECT]
C. 160 units
D. 200 units
Correct Answer: B
Rationale: Daily capacity = Operating time / Cycle time = (8 hours × 60 minutes) / 4 minutes =
= 120 units. Distractor A results from using 400 minutes (incorrect time conversion); C
uses 2.5 minutes cycle time; D uses 10 hours instead of 8 hours.
,2
Q3: Little's Law states that average inventory equals:
A. Average throughput rate divided by average flow time
B. Average throughput rate multiplied by average flow time [CORRECT]
C. Average flow time divided by average throughput rate
D. Average throughput rate minus average flow time
Correct Answer: B
Rationale: Little's Law formula is L = λW, where L = average inventory, λ (lambda) = average
throughput rate, and W = average flow time. This fundamental relationship applies to any stable
system. Distractor A inverts the relationship; C incorrectly divides flow time by rate; D subtracts
incompatible units (rate vs. time).
Q4: In a process flowchart, a diamond shape represents:
A. An operation or task
B. A delay or wait time
C. A decision point [CORRECT]
D. Movement or transportation
Correct Answer: C
Rationale: Standard flowchart symbols use diamonds for decision points requiring yes/no or
multiple path choices. Rectangles represent operations (A), inverted triangles or D-shaped
symbols represent delays (B), and arrows represent movement (D). Understanding these symbols
is essential for process mapping and analysis.
Q5: A manufacturing cell processes 500 units daily with an average of 250 units in work-in-
process inventory. Using Little's Law, what is the average flow time (throughput time) per unit?
A. 0.5 days [CORRECT]
B. 2 days
C. 5 days
D. 12.5 days
Correct Answer: A
Rationale: Rearranging Little's Law: W = L/λ = 250 units / 500 units per day = 0.5 days (12
hours). Distractor B inverts the calculation (500/250); C uses incorrect units; D multiplies instead
of dividing.
, 3
Q6: Which of the following is NOT one of the four main process strategy types in the product-
process matrix?
A. Job shop
B. Batch
C. Mass customization [CORRECT]
D. Continuous flow
Correct Answer: C
Rationale: The traditional product-process matrix includes four types: job shop, batch, repetitive
(assembly line), and continuous flow. Mass customization is a hybrid strategy combining high
volume with high variety, not one of the four classical types. This represents a modern extension
beyond the traditional matrix framework.
Q7: A process has three sequential steps with processing times of 5 min, 3 min, and 4 min
respectively. Where is the bottleneck?
A. Step 1 [CORRECT]
B. Step 2
C. Step 3
D. There is no bottleneck
Correct Answer: A
Rationale: The bottleneck is the slowest step limiting system capacity. Step 1 at 5 minutes has
the longest processing time, determining maximum throughput of 12 units/hour. Step 2 can
handle 20 units/hour; Step 3 can handle 15 units/hour. Distractor B is the fastest step; C is
intermediate; D is incorrect as every process has a bottleneck.
Q8: In Theory of Constraints (TOC), the "drum" refers to:
A. The bottleneck resource that sets the pace for the entire system [CORRECT]
B. The inventory buffer placed before the bottleneck
C. The scheduling system used to control material release
D. The quality control checkpoint
Correct Answer: A
Rationale: TOC uses drum-buffer-rope: the drum is the bottleneck's schedule setting the system
rhythm; the buffer protects the bottleneck from starvation; the rope pulls material through the
