You, Students Mine.

In due course, I have had you these collections. About eight multiple choice questions per chapter
from the course Operations Management [MGMT4152]. I hope the questions and answers will
assist you in your exam preparation! Good to have you.
M.H., Tadesse
Wollo University

Contents
Chapter 1: Operations Function ..................................................................................................... 2
Answer Keys: ..................................................................................................................................... 2
Chapter 2: Operations Strategy for Competitive Advantage .................................................... 3
Answer Keys: ..................................................................................................................................... 4
Chapter 3: Product and Service Design......................................................................................... 4
Answer Keys: ..................................................................................................................................... 5
Chapter 4: Process Selection and Capacity Planning ................................................................. 5
Answer Keys: ..................................................................................................................................... 6
Chapter 5: Facility Location ............................................................................................................. 6
Answer Keys: ..................................................................................................................................... 8
Chapter 6: Facility Layout ................................................................................................................ 8
Answer Keys: ..................................................................................................................................... 9
Chapter 7: Quality Management and Control ............................................................................. 9
Answer Keys: ................................................................................................................................... 11
Chapter 8: Aggregate Planning ..................................................................................................... 11
Answer Keys: ................................................................................................................................... 12
Chapter 9: Scheduling Operations ............................................................................................... 12
Answer Keys: ................................................................................................................................... 14

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 Chapter 1: Operations Function
1. Operations management is concerned with:
A. Marketing strategies C. Human resource management
B. Financial analysis D. Transforming inputs into outputs
2. The scope of production and operations management includes:
A. Supply chain management C. Sales forecasting
B. Accounting principles D. Branding and advertising
3. Operations management is primarily focused on:
A. Maximizing profits C. Meeting customer demands
B. Minimizing costs D. Managing employee relations
4. Which of the following is an objective of operations management?
A. Increasing shareholder value C. Maximizing employee satisfaction
B. Expanding market share D. Improving product quality
5. Operations management involves:
A. Allocating financial resources C. Designing production processes
B. Developing marketing campaigns D. Conducting market research
6. Operations can be defined as:
A. Creating financial statements C. Transforming inputs into outputs
B. Managing human resources D. Developing strategic plans
7. The study of operations management is important because:
A. It helps in reducing operational C. It enhances employee morale.
costs.
B. It improves customer satisfaction. D. All
8. Efficiency in operations management refers to:
A. Producing goods at the lowest cost C. Minimizing waste and errors
B. Utilizing resources effectively D. All

Answer Keys:

1. D 2. A 3. C 4. D 5. C 6. C 7. D 8. D

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 Chapter 2: Operations Strategy for Competitive Advantage
1. Which of the following best defines operations strategy?
A. The plan for achieving long-term C. The decisions and actions that
profitability. determine the organization's
operations capabilities.
B. The process of identifying D. The analysis of market trends and
customers' needs competitors' strategies
2. What is the purpose of identifying missions and strategies in operations management?
A. To determine the optimal C. To develop marketing campaigns
production levels D. To assess customer satisfaction
B. To allocate resources effectively
3. Strategy formulation involves:
A. Identifying market trends C. Defining the organization's overall
goals and objectives
B. Analyzing competitors' strategies D. Implementing tactical plans
4. How can operations contribute to achieving competitive advantage?
A. By minimizing production costs C. By improving product quality and
customer service
B. By adopting the latest technology D. By increasing advertising and
promotion budgets
5. Focused operations refer to:
A. Concentrating on a single product C. Outsourcing production activities
line
B. Expanding into new markets D. Reducing the number of employees
6. Which of the following is a key factor in achieving competitive advantage through
operations?
A. Flexibility in production processes C. Low investment in technology
B. High employee turnover D. Limited product variety
7. A company that differentiates its products by offering customization and variety is likely to
focus on:
A. Cost leadership C. Economies of scale
B. Product innovation D. Operational efficiency

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8. Which of the following is an example of a competitive priority in operations management?
A. Reducing time to market C. Minimizing environmental impact
B. Maximizing employee satisfaction D. Expanding the product portfolio

Answer Keys:

C B C C A A 7. B 8. A

Chapter 3: Product and Service Design

1. Which of the following is NOT a reason for product or service development?
A. Meeting customer needs and C. Increasing production costs
preferences
B. Gaining a competitive advantage D. Expanding market share
2. Strategies for new product introduction involve:
A. Designing efficient manufacturing C. Developing a pricing strategy
processes
B. Conducting market research D. Identifying potential suppliers
3. The designing process in operations management involves:
A. Defining the organization's mission C. Developing a marketing plan
and objectives D. Creating a blueprint for the product
B. Conducting a cost analysis or service
4. What is the purpose of the new product development process?
A. To identify potential suppliers C. To ensure efficient manufacturing
processes
B. To determine the pricing strategy D. To bring new products or services to
the market
5. Value analysis in product and service design aims to:
A. Increase production costs. C. Identify cost-saving opportunities.
B. Reduce customer satisfaction. D. Expand market share.

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6. Product design involves:
A. Determining the organization's C. Creating a blueprint for the product
financial performance targets
B. Conducting market research D. Developing a pricing strategy
7. Service operations design focuses on:
A. Creating a pricing strategy C. Maximizing customer satisfaction
B. Identifying potential suppliers D. Reducing production costs
8. Which of the following is a key consideration in service operations design?
A. Efficient manufacturing processes C. Customer experience and
satisfaction
B. Cost analysis D. New product development

Answer Keys:

C B D D C C 7. C 8. C

Chapter 4: Process Selection and Capacity Planning

1. Process selection involves:
A. Identifying customer needs C. Evaluating employee performance
B. Determining the layout of the
facility D. Analyzing financial statements
2. Capacity planning refers to:
A. Selecting the most suitable process C. Identifying customer demands and
for the operation setting production levels
B. Determining the number of D. Developing marketing strategies for
employees needed for a process. a product
3. What is the purpose of developing capacity alternatives?
A. To increase operational costs C. To meet fluctuating demand levels
B. To reduce customer satisfaction D. To minimize employee turnover

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4. Which of the following is NOT a process selection criterion?
A. Flexibility C. Quality
B. Cost D. Employee satisfaction
5. Capacity planning involves considering:
A. Only current demand levels C. Both current and future demand
levels
B. Only future demand levels D. Neither current nor future demand
levels
6. Which of the following is a capacity expansion alternative?
A. Outsourcing C. Automation
B. Downsizing D. Offshoring
7. The layout of a facility is determined by:
A. Customer demands C. Production processes
B. Employee preferences D. Marketing strategies
8. Which of the following is NOT a capacity adjustment alternative?
A. Increasing or decreasing workforce C. Outsourcing production activities
D. Implementing quality control
B. Modifying production processes measures

Answer Keys:

1. B 2. C 3. C 4. D 5. C 6. C 7. C 8. D

Chapter 5: Facility Location

1. Why are location decisions important in operations management?
A. To reduce employee turnover rates C. To optimize supply chain
management
B. To minimize production costs D. To determine the best marketing
strategies

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2. The nature of location decisions involves considering:
A. Financial statements of the C. Customer preferences and market
organization trends
B. Employee performance evaluations D. Competitive pricing strategies

3. Factors that affect location decisions include:

A. Quality control procedures C. Environmental sustainability
initiatives
B. Employee compensation levels D. Political affiliations of the
management team
4. What is the primary consideration when selecting a location for a manufacturing facility?
A. Proximity to suppliers and C. Access to transportation
customers infrastructure
B. Availability of skilled labor D. Availability of recreational facilities
5. Which factor is important when selecting a location for a retail store?
A. Proximity to suppliers and C. Access to transportation
customers infrastructure
B. Availability of skilled labor D. Availability of recreational facilities
6. The "weight-loss" principle in location decisions refers to:
A. Minimizing the weight of products C. Decreasing the weight of finished
during transportation products
B. Reducing the weight of raw D. Reducing the weight of employees
materials used in production. in the organization
7. The "factor rating" method is used in location decisions to:
A. Determine the availability of C. Assess the impact of environmental
financial resources. factors.
B. Evaluate the performance of D. Compare and rank potential
employees. locations based on various factors.

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8. In location decisions, the term "cluster" refers to:
A. A group of employees working C. A concentration of similar
together businesses in a specific area
B. A group of products manufactured D. A cluster of customers in a
together. particular market segment

Answer Keys:

1. C 2. C 3. C 4. A 5. A 6. C 7. D 8. C

Chapter 6: Facility Layout

1. Facility layout refers to:
A. The arrangement of equipment and C. The marketing strategies employed
workstations within a facility by a facility.
B. The financial analysis of a facility's D. The employee compensation
operations structure in a facility
2. What are the different types of facility layouts?
A. Process, product, and marketing C. Product, service, and financial
B. Process, cellular, and service D. Cellular, financial, and marketing
3. Service layouts are primarily concerned with:
A. Balancing workloads across C. Creating a visually appealing
different stations environment for customers
B. Maximizing employee satisfaction D. Minimizing production costs
levels
4. Line balancing involves:
A. Determining the optimal selling C. Assigning tasks and work elements
price for a product to stations in a production line
B. Forecasting customer demand for a D. Evaluating employee performance in
specific period the production process

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5. Which of the following is NOT a benefit of a product layout?
A. High production efficiency C. Flexibility in product variety
B. Low labor costs D. Shorter production cycle times
6. Cellular layout is characterized by:
A. Arranging workstations in a linear C. Utilizing a single continuous
sequence production line
B. Grouping similar processes or D. Employing a functional layout
products together in cells structure
7. The goal of line balancing is to:
A. Maximize employee satisfaction C. Achieve an equal workload
levels. distribution among workstations.
B. Minimize customer waiting time. D. Reduce production cycle times.
8. Which of the following factors should be considered in facility layout design?
A. Employee personal preferences and C. Environmental sustainability
hobbies initiatives
B. Availability of public transportation D. Customer flow and movement
near the facility within the facility

Answer Keys:

1. A 2. B 3. C 4. C 5. C 6. B 7. C 8. D

Chapter 7: Quality Management and Control

1. In operations management, quality refers to:
A. The price of the product or service C. The ability of the product or service
to meet customer needs.
B. The appearance of the product or D. The availability of the product or
service service in the market

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2. Determinants of quality include:
A. Employee compensation levels C. Marketing and advertising
strategies
B. Availability of raw materials D. Social media presence of the
organization
3. The costs of quality include:
A. Employee personal preferences and C. Competitive advantages of the
hobbies organization
B. Financial performance of the D. Costs associated with preventing
organization and fixing quality issues.
4. Quality circles and quality improvement teams are designed to:
A. Minimize employee satisfaction. C. Optimize production efficiency.
D. Enhance employee involvement in
B. Maximize employee turnover. quality improvement efforts.
5. International quality documentation standards refer to:
A. Financial reporting standards for C. Standards for ensuring product and
organizations service quality across borders.
B. Environmental sustainability D. Employee performance evaluation
initiatives criteria
6. Total Quality Management (TQM) is a management approach that emphasizes:
A. Maximizing shareholder wealth C. Continuous improvement and
customer satisfaction
B. Minimizing employee turnover D. Decreasing product variety

7. Quality control in operations management involves:

A. Developing marketing campaigns C. Implementing processes and
techniques to monitor and ensure
B. Evaluating employee personal quality.
preferences and hobbies D. Assessing the financial performance
of the organization

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8. Quality improvement focuses on:
A. Reducing customer satisfaction C. Minimizing employee productivity
D. Enhancing product and service
B. Increasing product complexity quality over time

Answer Keys:

1. C 2. B 3. D 4. D 5. C 6. C 7. C 8. D

Chapter 8: Aggregate Planning

1. Aggregate planning in operations management refers to:
A. Planning the financial budget of the C. Planning the overall level of output
organization for a specific period
B. Planning the production capacity of D. Planning employee schedules and
the facility shifts
2. What are the decision options in aggregate planning?
A. Pricing strategies and promotional C. Determining the target market
campaigns segment
B. Hiring and firing employees D. Selecting the optimal facility
location
3. Basic strategies used in aggregate planning include:
A. Inventory management and control C. Reducing customer satisfaction
B. Maximizing employee personal levels
preferences D. Minimizing product variety
4. Aggregate planning costs include:
A. Employee compensation levels C. Manufacturing equipment and raw
material costs
B. Financial statements and budgetary D. Market competition and market
considerations share

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5. What is the purpose of inventory management in aggregate planning?
A. To optimize production capacity C. To balance supply and demand
fluctuations
B. To minimize employee turnover D. To maximize product complexity

6. Which of the following is a basic strategy for aggregate planning?

A. Just-in-time (JIT) production C. Reducing employee personal
preferences
B. Maximizing customer wait times. D. Minimizing quality control
measures
7. Aggregate planning helps in:
A. Balancing the financial performance C. Optimizing employee performance
of the organization D. Matching production capacity with
B. Reducing customer demand and customer demand
preferences
8. Which cost is associated with hiring and training new employees in aggregate planning?
A. Prevention costs C. External setup costs
B. Appraisal costs D. Hiring and training costs

Answer Keys:

1. C 2. B 3. A 4. B 5. C 6. A 7. D 8. D

Chapter 9: Scheduling Operations

1. Scheduling in operations management refers to:
A. Planning the facility layout C. Assigning start and end times to
tasks or activities.
B. Determining employee D. Selecting suppliers for raw materials
compensation levels

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2. Loading in operations scheduling involves:
A. Maximizing employee turnover C. Assigning jobs to workstations or
machines
B. Minimizing production costs D. Balancing the financial performance
of the organization
3. Job sequencing in operations scheduling refers to:
A. Identifying potential suppliers for C. Planning the marketing and
raw materials advertising strategies
B. Determining the order in which jobs D. Designing the building structure of
should be processed. the facility
4. Priority rules and techniques are used in operations scheduling to:
A. Minimize employee personal C. Maximize product variety.
preferences!
B. Optimize employee performance and D. Reduce market competition.
efficiency.
5. Personnel scheduling in service operations involves:
A. Determining the optimal selling C. Allocating shifts and assigning
price for a service employees to specific tasks
B. Forecasting customer demand for a D. Analyzing financial statements and
specific period budgets
6. When scheduling operations, which of the following factors should be considered?
A. Political affiliations of the C. Market demand and customer
management team preferences
B. Availability of public transportation D. Cultural diversity in the
near the facility surrounding area
7. Which of the following is NOT a priority rule or technique used in job sequencing?
A. First-Come, First-Served (FCFS) C. Last-In, First-Out (LIFO)
B. Shortest Processing Time (SPT) D. Earliest Due Date (EDD)

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8. What is the purpose of personnel scheduling in service operations?
A. To minimize customer satisfaction C. To match staffing levels with
customer demand
B. To optimize employee personal D. To reduce employee turnover and
preferences recruitment expenses

Answer Keys:

1. C 2. C 3. B 4. B 5. C 6. C 7. C 8. C


June 22, 2023

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