OPMA 3306 Final Exam Questions and
Answers
Question 1
One of the main purposes of a MRP system is which of the following?
Correct Answer
Develop schedules specifying when each component should be ordered or
produced
Question 2
A company hires you to develop a linear regression forecasting model. Based on the
company's historical sales information, you determine the intercept value of the
model to be 1,200. You also find the slope value is minus 50. If after developing the
model you are given of x=10, which of the following is the resulting forecast value
using this model?
Correct Answer
The linear regression line is of the form Y = a + bX, where Y is the value of the
dependent variable that we are solving for, a is the Y intercept, b is the slope, and X
is the independent variable. Hence, Y = 1,200 + (-50) x 10 = 700.
Question 3
Which of the following is the cost of quality classification for costs such as defects
that pass through the system, such as customer warranty replacements, loss of
customer or goodwill, handling complaints, and product repair?
Correct Answer
External failure costs
Page 1 of 112
,Question 4
Assuming no safety stock, what is the re-order point (R) given an average daily
demand of 50 units, a lead time of 10 days and 625 units on hand?
Correct Answer
500 50*10=500
Question 5
For which of the following should we use a "p" chart to monitor process quality?
Correct Answer
Defective electrical switches
Question 6
You want to determine the upper control line for a "p" chart for quality control
purposes. You take several samples of a size of 100 items in your production process.
From the samples you determine the fraction defective is 0.05 and the standard
deviation is 0.01. If the desired confidence level is 99 percent, which of the following
is the resulting UCL value for the line?
Correct Answer
0.07 N=100; p=0.05 sd=0.01; Confidence interval = 99% → z = 2.58 (p+zsd =
.05+2.580.01 = .0758 or 0.07
Question 7
If annual demand is 6,125 units, annual holding cost is $5 per unit, and setup cost per
order is $50, which of the following is the EOQ lot size?
Correct Answer
350 (Square root of (2 6,125 50/5 = 350)
Question 8
Which of the following is the net requirement using an MRP program if the gross
requirement is 1,250 and the inventory on hand is 50?
Correct Answer
1,200 (1250-50=1200)
Page 2 of 112
,Question 9
Using the probability approach to determine an inventory safety stock and wanting to
be 95 percent sure of covering inventory demand, which of the following is the
number of standard deviations necessary to have the 95 percent service probability
assured?
Correct Answer
1.64
Question 1
In development of an operations and supply chain strategy, which of the
following may be an important product-specific criterion to consider?
A. Focus
B. Production lot size
C. Total quality management
D. Learning curve
E. Supplier after-sale support
Correct Answer
e
Question 2
An activity-system map is which of the following?
A. A diagram that shows how a company's strategy is delivered to customers
B. A network guide to route airlines
C. A facility layout schematic noting what is done where
D. A timeline displaying major planned events
E. A listing of activities that make up a project
Correct Answer
a
Page 3 of 112
, Question 3
The triple-bottom-line evaluates the firm against what three criteria? Use the
expression coined by the Shell Oil Company.
A. economic, social, and environmental
B. mission, strategy, and income
C. people, planet, and profit
D. revenue, income, and growth
E. none of the offered choices is applicable.
Correct Answer
c
Question 4
Which of the following is a multifactor measure of productivity?
A. Output/(Materials)
B. All of the offered choices apply
C. Output/(Labor + Capital + Energy)
D. Output/All resources used
E. Output/Inputs
Correct Answer
c
Question 5
If all you knew about a production system was that total daily output was 400
units and the total labor necessary to produce the 400 units was 350 hours,
what kind of productivity measure could you use to compute productivity?
A. All of the offered choices apply
B. Total measure
C. Partial measure
D. Global measure
E. Multifactor measure
Correct Answer
c
Page 4 of 112
Answers
Question 1
One of the main purposes of a MRP system is which of the following?
Correct Answer
Develop schedules specifying when each component should be ordered or
produced
Question 2
A company hires you to develop a linear regression forecasting model. Based on the
company's historical sales information, you determine the intercept value of the
model to be 1,200. You also find the slope value is minus 50. If after developing the
model you are given of x=10, which of the following is the resulting forecast value
using this model?
Correct Answer
The linear regression line is of the form Y = a + bX, where Y is the value of the
dependent variable that we are solving for, a is the Y intercept, b is the slope, and X
is the independent variable. Hence, Y = 1,200 + (-50) x 10 = 700.
Question 3
Which of the following is the cost of quality classification for costs such as defects
that pass through the system, such as customer warranty replacements, loss of
customer or goodwill, handling complaints, and product repair?
Correct Answer
External failure costs
Page 1 of 112
,Question 4
Assuming no safety stock, what is the re-order point (R) given an average daily
demand of 50 units, a lead time of 10 days and 625 units on hand?
Correct Answer
500 50*10=500
Question 5
For which of the following should we use a "p" chart to monitor process quality?
Correct Answer
Defective electrical switches
Question 6
You want to determine the upper control line for a "p" chart for quality control
purposes. You take several samples of a size of 100 items in your production process.
From the samples you determine the fraction defective is 0.05 and the standard
deviation is 0.01. If the desired confidence level is 99 percent, which of the following
is the resulting UCL value for the line?
Correct Answer
0.07 N=100; p=0.05 sd=0.01; Confidence interval = 99% → z = 2.58 (p+zsd =
.05+2.580.01 = .0758 or 0.07
Question 7
If annual demand is 6,125 units, annual holding cost is $5 per unit, and setup cost per
order is $50, which of the following is the EOQ lot size?
Correct Answer
350 (Square root of (2 6,125 50/5 = 350)
Question 8
Which of the following is the net requirement using an MRP program if the gross
requirement is 1,250 and the inventory on hand is 50?
Correct Answer
1,200 (1250-50=1200)
Page 2 of 112
,Question 9
Using the probability approach to determine an inventory safety stock and wanting to
be 95 percent sure of covering inventory demand, which of the following is the
number of standard deviations necessary to have the 95 percent service probability
assured?
Correct Answer
1.64
Question 1
In development of an operations and supply chain strategy, which of the
following may be an important product-specific criterion to consider?
A. Focus
B. Production lot size
C. Total quality management
D. Learning curve
E. Supplier after-sale support
Correct Answer
e
Question 2
An activity-system map is which of the following?
A. A diagram that shows how a company's strategy is delivered to customers
B. A network guide to route airlines
C. A facility layout schematic noting what is done where
D. A timeline displaying major planned events
E. A listing of activities that make up a project
Correct Answer
a
Page 3 of 112
, Question 3
The triple-bottom-line evaluates the firm against what three criteria? Use the
expression coined by the Shell Oil Company.
A. economic, social, and environmental
B. mission, strategy, and income
C. people, planet, and profit
D. revenue, income, and growth
E. none of the offered choices is applicable.
Correct Answer
c
Question 4
Which of the following is a multifactor measure of productivity?
A. Output/(Materials)
B. All of the offered choices apply
C. Output/(Labor + Capital + Energy)
D. Output/All resources used
E. Output/Inputs
Correct Answer
c
Question 5
If all you knew about a production system was that total daily output was 400
units and the total labor necessary to produce the 400 units was 350 hours,
what kind of productivity measure could you use to compute productivity?
A. All of the offered choices apply
B. Total measure
C. Partial measure
D. Global measure
E. Multifactor measure
Correct Answer
c
Page 4 of 112
