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Operations Management Practice Questions (Que) Final

The document contains practice questions for Operations Management, divided into multiple choice and calculation sections. It covers topics such as bottlenecks in production systems, Master Production Schedule (MPS), Material Requirements Planning (MRP), inventory management, and Economic Order Quantity (EOQ). The questions require identification, calculations, and explanations related to production processes and inventory management strategies.

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5 views3 pages

Operations Management Practice Questions (Que) Final

The document contains practice questions for Operations Management, divided into multiple choice and calculation sections. It covers topics such as bottlenecks in production systems, Master Production Schedule (MPS), Material Requirements Planning (MRP), inventory management, and Economic Order Quantity (EOQ). The questions require identification, calculations, and explanations related to production processes and inventory management strategies.

Uploaded by

t110570063
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Operations Management Practice Questions

Part I: Multiple Choice Questions


1. Which of the following statements is true regarding the bottleneck in a production system?
A. It is the workstation with the highest throughput.
B. It determines the total production time for one unit.
C. It has the lowest capacity and limits the process output.
D. It always appears at the first step of the process.

2. Which of the following statements best describes the Master Production Schedule (MPS)?
A. It is a long-term strategic sales plan that forecasts future demand.
B. It defines what products to produce, when to produce them, and in what quantity.
C. It replaces the need for Material Requirements Planning (MRP).
D. It focuses solely on marketing and customer engagement.

3. Which of the following is NOT an input of an MRP system?


A. Bill of Materials (BOM)
B. Inventory Records
C. Master Production Schedule (MPS)
D. Production Lead Time Variability Report

4. Which of the following is not a reason for holding inventory?


A. To avoid stockouts due to uncertain demand
B. To reduce lead time to zero
C. To take advantage of bulk purchasing
D. To cover supply disruptions

Part II: Calculation Questions


1. An assembly line consists of four workstations in sequence (A→B→C→D), with the
following processing times

Workstation Processing Time (minutes)


A 4
B 6
C 5
D 3

The line operates for 7 hours per day.


Questions:

a. Identify the bottleneck and determine the cycle time.


b. Calculate the process capacity in units per day.
c. Compute the line balancing efficiency using the formula:

2. A company uses a batch production strategy.

• The initial inventory is 25 units.


• The batch size is 40 units.
• The safety stock is 10 units.
• The company receives weekly customer orders and maintains a weekly forecast.
• Each week, the company compares forecasted demand and actual orders. The
greater of the two is considered the demand.

Week 1 2 3 4 5
Orders 15 8 12 18 9
Forecast 10 12 10 20 15

Questions:

a. Complete the following table by filling in the MPS (Master Production Schedule) and
PAB (Projected Available Balance) for each week.

b. How many production batches were scheduled in this 5-week period?

c. Explain why a batch was scheduled or not scheduled in each week, referring to the
safety stock condition.

Item Week 1 Week 2 Week 3 Week 4 Week 5


Orders 15 8 12 18 9
Forecast 10 12 10 20 15
PAB
MPS
3. A company assembles conference tables. The product structure is as follows and This
structure tree includes the quantity of each material required.

The related information is as follows:

• Customer Orders:
• 50 conference tables due in Week 2
• 100 conference tables due in Week 5
• Scheduled Receipts (SR):
• Tops: 60 units arriving in Week 1 and Week 3
• Legs: 100 units arriving in Week 1
• Lead Times (LT):
• Table Assembly: 1 weeks
• Top Panel: 1 week
• Table Legs: 1 week
• Initial Inventory:
• Tables: 10 units
• Tops: 20 units
• Legs: 100 units

Please finish the MRP tables for all items (Conference Table, Top Panel, Table Legs) under lot
for lot policy.

4. A beverage company purchases 3,600 bottles of syrup annually for production.


Each bottle costs $120. The ordering cost is $400 per order, and the annual holding
cost rate is 15% of the unit cost. Assume all orders are delivered on time, and
shortage cost is not considered. Please calculate:

(a). The Economic Order Quantity (EOQ)


(b). The average inventory level.
(c). Annual ordering cost and annual holding cost
(d). The total annual inventory cost, excluding item cost

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