MBA 703 Operations Management – Practice Final Exam
SOLUTIONS
Exam Rules:
1) It is an open book open notes exam. Allowed materials are as follows: (i) Any material we
posted on Canvas and/or notes you have taken in the class. (ii) The optional textbook written
in our syllabus.
2) You can use a calculator or Excel during the final exam.
3) In case some of you might need extra time to submit your answers on Canvas, I will give you
1 extra hour in addition to the regular final exam duration. Thus, you will have 4 hours to
complete the exam. Exams must be turned in promptly at the end of the designated time.
4) Given the online nature of the exam, I would like to give you some flexibility in the exam
timing. You can take your final exam in any consecutive 4 hours within the following 26-
hours time window: 8 pm EST Dec 21st – 10 pm EST Dec 22nd.
5) The final exam must be completed by 10 pm EST Dec 22nd. So, please choose the
beginning time of your exam accordingly.
Pledge: I have abided by the Honor Code and the exam rules while taking this final
exam:
First Name (in CAPITAL letters): _________________________________
Last Name (in CAPITAL letters):__________________________________
Section (please circle one):
Mon 8:00 am Mon 9:30 am Mon 11:00 am
Tue 8:00 am Tue 9:30 am Tue 11:00 am
Section I Section II Section III Section IV Section V Total
(24 points) (40 points) (30 points) (20 points) (20 points)
Points
FOR GRADER’S USE:
Best of luck!
, SECTION I. True/False Questions [24 points]
For each True/False question, please circle only one of the choices. No credit if both or none of
the choices are circled.
1. A coffee shop can serve 120 customers per day at maximum. Then, the capacity of that coffee
shop is 120 customers per day.
True False
2. Consider a supply chain with the following four members: a factory, a wholesaler, a distributor
and a retailer. According to the bullwhip effect, among all supply chain members, the factory
has the smallest demand variability, and the retailer has the largest demand variability.
True False
3. Consider a muffin baking process. Suppose that regardless of the number of filled muffin cups
in a pan, it takes 30 mins to bake all muffins in the oven. Then, the total variable processing
time per muffin batch is 30 mins.
True False
4. According to the periodic-review base-stock policy, if a company would like to achieve a
larger service level, the company should have a larger target inventory level.
True False
5. On average, a patient spends 2 hours in a clinic. Then, the throughput rate of the clinic is 2
hours.
True False
6. According to the process analysis, one way to increase the system capacity is to add resources
to the bottleneck step(s).
True False
SECTION II. PROCESS ANALYSIS [40 points]
2
SOLUTIONS
Exam Rules:
1) It is an open book open notes exam. Allowed materials are as follows: (i) Any material we
posted on Canvas and/or notes you have taken in the class. (ii) The optional textbook written
in our syllabus.
2) You can use a calculator or Excel during the final exam.
3) In case some of you might need extra time to submit your answers on Canvas, I will give you
1 extra hour in addition to the regular final exam duration. Thus, you will have 4 hours to
complete the exam. Exams must be turned in promptly at the end of the designated time.
4) Given the online nature of the exam, I would like to give you some flexibility in the exam
timing. You can take your final exam in any consecutive 4 hours within the following 26-
hours time window: 8 pm EST Dec 21st – 10 pm EST Dec 22nd.
5) The final exam must be completed by 10 pm EST Dec 22nd. So, please choose the
beginning time of your exam accordingly.
Pledge: I have abided by the Honor Code and the exam rules while taking this final
exam:
First Name (in CAPITAL letters): _________________________________
Last Name (in CAPITAL letters):__________________________________
Section (please circle one):
Mon 8:00 am Mon 9:30 am Mon 11:00 am
Tue 8:00 am Tue 9:30 am Tue 11:00 am
Section I Section II Section III Section IV Section V Total
(24 points) (40 points) (30 points) (20 points) (20 points)
Points
FOR GRADER’S USE:
Best of luck!
, SECTION I. True/False Questions [24 points]
For each True/False question, please circle only one of the choices. No credit if both or none of
the choices are circled.
1. A coffee shop can serve 120 customers per day at maximum. Then, the capacity of that coffee
shop is 120 customers per day.
True False
2. Consider a supply chain with the following four members: a factory, a wholesaler, a distributor
and a retailer. According to the bullwhip effect, among all supply chain members, the factory
has the smallest demand variability, and the retailer has the largest demand variability.
True False
3. Consider a muffin baking process. Suppose that regardless of the number of filled muffin cups
in a pan, it takes 30 mins to bake all muffins in the oven. Then, the total variable processing
time per muffin batch is 30 mins.
True False
4. According to the periodic-review base-stock policy, if a company would like to achieve a
larger service level, the company should have a larger target inventory level.
True False
5. On average, a patient spends 2 hours in a clinic. Then, the throughput rate of the clinic is 2
hours.
True False
6. According to the process analysis, one way to increase the system capacity is to add resources
to the bottleneck step(s).
True False
SECTION II. PROCESS ANALYSIS [40 points]
2
