1.

Decisions relating to production scheduling involve:

a) short-term forecasting.
b) long-term forecasting.
c) both short-term as well as medium-term forecasting
d) both short-term, medium-term and long-term forecasting
2. Decisions relating to the sales and operations planning (aggregate planning) involve:
a) Short-term forecasting.
b) Medium-term forecasting.
c) Long-term forecasting.
d) Both short-term and medium-term forecasting
e) Both short-term, medium-term and long-term forecasting
3. Which one of the following does not fall under qualitative forecasting method?
a) Market research
b) Life cycle analogy
c) Delphi method
d) Judgmental methods
e) Moving average methods
4. For which of the following situation(s) is the market research method of forecasting suitable?
a) When a firm is working with stable technology
b) When a firm is planning moderate changes on product innovations
c) When a firm is market testing one of its new offerings
d) When a firm is working with stable technology, planning moderate changes on product
innovations or market testing one of its new offerings.
e) when a firm is planning moderate changes on product innovations and market testing
one of its new offerings
5. Which of the following forecasting method is suitable for launching new products?
a) Moving average methods
b) Causal models
c) Market research
d) Judgmental methods
e) Exponential smoothing
6. Which of the following method(s) is(are) suitable for forecasting the demand of a product?
a) Delphi method
b) Market research
c) Judgmental methods
d) Delphi method and judgmental method
e) Market research and judgmental method
7. What is the measure of forecast error which calculates the average forecast error over n time
periods known as?
a) Mean error
b) Mean absolute percentage error
c) Mean-square error
 d) Mean absolute deviation
8. The measure of forecast error which calculates the average of absolute differences between the
actual and the forecast demand over n time periods is known as:
a) mean error
b) mean absolute percentage error
c) mean-square error
d) mean absolute deviation
9. The measure of forecast error which calculates the average of square of the forecast errors is
known as:
a) mean error
b) mean-square error
c) mean absolute percentage error
d) mean absolute deviation
10. The measure of forecast error which calculates the average of absolute forecast errors as a
percentage of the actual demand is known as:
a) mean absolute percentage error
b) mean error
c) mean absolute deviation
d) mean-square error

Multiple Choice Questions (MCQ) on Production Planning and Control

1. Which of the following is not a part of Five M’s?
a) Material
b) Machine
c) Motion
d) Method
2. The correct sequence of operations in production planning and control is
a) Routing-Scheduling-Dispatching-Follow up
b) Scheduling-Routing- Dispatching-Follow up
c) Dispatching-Routing-Scheduling- Follow up
d) Routing-Scheduling-Follow up-Dispatching
3. Which of the following is true for ‘Routing’?
a) It is flow of work in the plant
b) Route sheets include list of machine tools that are to be followed
c) It depends upon material handling facilities
d) All of the above
4. Loading may be defined as
a) Sending the raw material to the machine
b) Sending the finished material to the store
c) Assign the work to the facilities
d) Uploading a software in machine control panel
5. Dispatching authorizes the start of production operations by
a) Release of material and components from stores to first process
b) Release of material from process to process
c) Issue of drawings instruction sheets
d) Which of the following is (are) true?
I. Only i
II. Only ii
III. i & ii
IV. i , ii & iii
6. The bill of material does not consists of
a) Part number
b) Specifications of part
c) Name of the part
d) Price of the part
7. Procurement cycle time is time consumed for
a) Receiving of raw material
b) Inspection of various raw materials
c) Inspection of purchased components parts
d) All of the above
8. The transit time consist of
a) Time taken by raw material from machine to machine
b) Time consumed in moving the work between various departments
c) Time taken by a worker to machine a component
d) None of the above
9. Master schedule is prepared for
a) Single product continuous production
b) Multi product batch production
c) Assembly product continuous production
d) Single product batch production
10. Which of the following chart is drawn Machine vs time?
a) Man machine chart
b) The load chart
c) The progress chart
d) Curve chart
11. Gantt chart is mostly used for
a) Routing
b) Scheduling
c) Follow up
d) Inspection and quality control
12. Key to chart is provided in
a) Man machine chart
b) The load chart
 c) The progress chart
d) Gantt chart
13. Centralized and decentralized are the types of
a) Routing
b) Dispatching
c) Scheduling
d) Follow up

1. A number of manufacturing systems have been developed to improve the planning and control
of operational capacity. Operations management systems is classified into:
a) Material requirements planning (MRP) and manufacturing resource planning II (MRPII)
b) Enterprise resource planning (ERP)
c) Optimized production technology (OPT)
d) All of the above
2. Materials requirements planning or MRP I is a computer system for scheduling production in a
complex manufacturing environment where:
a) Many raw materials and components are purchased from external suppliers
b) The raw materials and components are used to manufacture subassemblies
c) The sub-assemblies are assembled, possibly with other components and sub-assemblies
purchased from external suppliers, into a finished product.
d) All of the above

3. Material requirements planning (MRP) is a computerized system for planning the requirements
for:
a) Raw materials
b) Work in progress
c) Finished goods
d) All of the above
4. Functions of Material requirements planning (MRP) include:
a) Identifying firm orders and forecasting future orders with confidence.
b) Using orders to determine quantities of material required.
c) Determining the timing of material requirement and calculating purchase orders based
on stock levels and Automatically placing purchase orders
d) Scheduling materials for future production
e) All of the above
5. Benefits of Material requirements planning (MRP) include:
a) Improved ability to meet orders
b) Reducing stock holding
c) The MRP schedule can be amended quickly if demand estimates change since the
system is computerized.
 d) System can warn of purchasing or production problems due to bottlenecks or delays in
the supply chain.
e) All of the above
6. The purpose of an MRP I system is to plan purchasing and production scheduling exactly, so
that:
a) all the raw materials and components are purchased and available in time to
manufacture the sub-assemblies or finished products
b) The finished products are manufactured on time to a planned production schedule.
c) Both A&B
d) None
7. A bill of materials file is a database containing details of all the ________________ required for
the manufacture of each type of sub-assembly and finished product.
a) Components,
b) Parts and materials
c) Both A&B
d) None
8. OPERATIONS MANAGEMENT is concerned with the transformation of ‘inputs’ into ‘outputs’ that
meet the needs of the customer.
a) False
b) True
9. Operations management refers to the activities required to produce and deliver a product or a
service.
a) True
b) False
10. Operation management includes:
a) Purchasing
b) Warehousing
c) Transportation
d) All of the above
11. At its simplest, operations management tries to ensure that organizations are run as efficiently
as possible.
a) Correct
b) Incorrect
12. An organization can achieve significant competitive advantage over its rivals through superior
operating capabilities of its resources, examples include:
a) Assets
b) Work force skills
c) Supplier relationships
d) All of the above

.
1. When customers want a low-priced product.

a) The performance objectives in operational strategy should focus mainly on reducing

costs and producing a low-cost output
b) The performance objectives in operational strategy should focus on achieving the
required quality standards
c) The operational objective should be to set targets for reliability
d) All of the above
2. When customers want a product or service with certain quality characteristics and
willing to pay more for better quality.
a) The operational objective should be to set targets for reliability
b) The performance objectives in operational strategy should focus on achieving the
required quality standards, with costs in certain limits
c) The operational objective should be to achieve sufficient flexibility to handle the
variations in customer requirements.
d) None
3. When customers want fast delivery of a product or service.
a) The operational performance objective will concentrate on speed of operations.
b) The performance objective will be making the product or service more readily
available.
c) Either A or B
d) None
4. When customers want reliability.
a) The performance objective should be to set targets for reliability and ensure that
these are met.
b) The performance objectives in operational strategy should focus on achieving the
required quality standards
c) The performance objectives in operational strategy should focus mainly on reducing
costs and producing a low-cost output
d) None
5. When customers want products or services to be designed to their own specification.
a) The performance objectives in operational strategy should focus mainly on reducing
costs and producing a low-cost output.
b) The performance objectives must be to achieve sufficient flexibility to handle the
variations in customer requirements, and provide differing products/service
accordingly.
c) Either A or B
d) None
6. When customers want to alter the timing or delivery of services they receive
a) The performance objectives in operational strategy should focus on achieving the
required quality standards
 b) The performance objectives in operational strategy should focus mainly on reducing
costs and producing a low-cost output
c) The main operational objective will be flexibility.
d) None
7. Identify the parts, as suggested by Mintzberg, that an organization is made of.
a) Operational core and Strategic apex
b) Techno structure, middle line, Support staff
c) Neither of above
d) All of the above
8. Operations generated forecasts often not to do with
a) Inventory requirements
b) Resource needs
c) Time requirements
d) Sales
9. Which of the following is not true for forecasting?
a) Forecasts are rarely perfect
b) The underlying casual system will remain same in the future
c) Forecast for group of items is accurate than individual item
d) Short range forecasts are less accurate than long range forecasts
10. Which of the following is not a forecasting technique?
a) Judgemental
b) Time series
c) Time horizon
d) Associative
11. In which of the following forecasting technique, subjective inputs obtained from various
sources are analyzed?
a) Judgemental forecast
b) Time series forecast
c) Associative model
d) All of the above
12. In which of the following forecasting technique, data obtained from past experience is
analyzed?
a) Judgemental forecast
b) Time series forecast
c) Associative model
d) All of the above
13. Delphi method is used for
a) Judgemental forecast
b) Time series forecast
c) Associative model
d) All of the above
14. Short term regular variations related to the calendar or time of day is known as
 a) Trend
b) Seasonality
c) Cycles
d) Random variations
15. The demand for period t-2 and t-1 is 10 and 12 cases respectively. As per naïve method,
the demand for next period ‘t’ is
a) 10
b) 11
c) 12
d) 14

16. Calculate four periods moving average forecast from the last six periods

Period Demand

1 38

2 40

3 42

4 40

5 44

6 38

a) 40
b) 41
c) 42
d) 43
17. Calculate a weighted average forecast using a weight of .50 to the most recent period, .
40 for the next recent period and .30 for the next period

Period Demand

1 38

2 40
 3 42

4 40

5 44

6 38

a) 46.6
b) 47.6
c) 48.6
d) 49.6
18. A linear trend equation has the form
a) F=a-bt
b) F=a+bt
c) F=2a-bt
d) F=2a+bt
19. If the actual demand for a period is 100 units but forecast demand was 90 units. The
forecast error is
a) -10
b) +10
c) -5
d) +5
Multiple Choice Questions - Operations Management N.Rajan
Answer All the Questions: Part A

1. The strategic decisions are long – term in nature and are concerned with_____________ 

Ans:a.Process design b. I n v e n t o r y
c. Reordering level
d. Production scheduling
2.  The tactical decision is taken by an operation manager is followed by______________ 
a. strategic decision
b. operational decision
c.evaluation decision
d. action decision
3. The evaluation of operations management started after industrial revolution
by theidentification of division of labor in manufacturing, which was proposed by___________ 
a. F.W.Taylor 
b. Elton Mayo
c. Adam Smith
d.Henry Fayol
4. The computerization of operations began when the first computer was installed
in________________________ organizationa .  
a.General Motors
b. General Electric
c.Ford Motors
d. Western House
5. The banks in India went for the computerization in their process is mainly to
increase___________________
 i .   D a t a   P r o c e s s i n g
ii. efficiency
iii. Number of customers
a. i
b. i&ii
 c.i&iii
d. ii&iii
6. __________________________ always starts with the idea generation and have it sources
from employee, customers, vendors etc.,
a. New process development
b. New methodology development
c. New Product development
1. Decisions relating to production scheduling involve:
a) Short-term forecasting.
b) Medium-term forecasting.
c) Long-term forecasting.
d) both short-term as well as medium-term forecasting
e) both short-term, medium-term and long-term forecasting

2.Decisions relating to the sales and operations planning (aggregate planning)

involve:
a) short-term forecasting
b) medium-term forecasting.
c) long-term forecasting.
d) both short-term and medium-term forecasting
e) both short-term, medium-term and long-term forecasting

3.Which one of the following does not fall under qualitative forecasting
method?
a) Moving average methods
b) Life cycle analogy
c) Judgmental methods
d) Delphi method
e) Market research

4. For which of the following situation(s) is the market research method of

forecasting suitable?
a) When a firm is working with stable technology
b) When a firm is planning moderate changes on product innovations
c) When a firm is market testing one of its new offerings
d) when a firm is working with stable technology, planning moderate changes on
product innovations or market testing one of its new offerings.
e) when a firm is planning moderate changes on product innovations and market
testing one of its new offerings
5. Which of the following forecasting method is suitable for launching new products?
a) Judgmental methods
b) Market research
c) Exponential smoothing
d) Causal models
e) Moving average methods

6. Which of the following method(s) is(are) suitable for forecasting the demand
of a product?
a) Delphi method
b) Market research
c) Judgmental methods
d) Delphi method and judgmental method
e) Market research and judgmental method

7.What is the measure of forecast error which calculates the average forecast
error over n time periods known as?
a) Mean absolute percentage error
b) Mean-square error
c) Mean error
d) Mean absolute deviation

8.The measure of forecast error which calculates the average of absolute

differences between the actual and the forecast demand over n time periods is
known as:
a) mean error
b) mean-square error
c) mean absolute deviation
d) mean absolute percentage error

9. The measure of forecast error which calculates the average of square of the
forecast errors is known as:
a) mean error
b) mean absolute percentage error
c) mean absolute deviation
d) mean-square error

10. The measure of forecast error which calculates the average of absolute
forecast errors as a percentage of the actual demand is known as:
a) mean absolute percentage error
b) mean absolute deviation
c) mean error
d) mean-square error