MEM Operations Management 5

Question 1

A service firm measures productivity as output per labor hour. If 5 employees each work 8 hours and produce 200 service completions, what is labor productivity?

Accepted Answer

5 completions/hour

Answer

Total labor hours = 5 × 8 = 40; productivity = 200 / 40 = 5 completions per labor hour.

Question 2

Which inventory model assumes demand is probabilistic and places a new order when on-hand inventory falls to a predetermined reorder point?

Accepted Answer

Continuous review (Q) system

Answer

The continuous review (Q) system monitors inventory levels constantly and triggers an order of fixed size Q when stock reaches the reorder point.

Question 3

In total productive maintenance (TPM), overall equipment effectiveness (OEE) is calculated as the product of which three factors?

Accepted Answer

Availability × Performance × Quality

Answer

OEE = Availability (planned vs. actual uptime) × Performance (actual vs. ideal speed) × Quality (good units vs. total units produced).

Question 4

A company applies learning curve theory and observes that cumulative average time decreases by 20% each time output doubles. What type of learning curve is this?

Accepted Answer

Both A and C

Answer

An 80% learning curve means cumulative average time is 80% of the previous level each time output doubles, which is equivalent to a 20% improvement.

Question 5

Which aggregate planning strategy maintains a constant workforce and uses inventory buildup and backorders to absorb demand variation?

Accepted Answer

Level strategy

Answer

The level strategy keeps the workforce and production rate constant, using inventory accumulation and backorders to buffer demand swings.

MEM - Master of Engineering Management Practice Test

MEM - Master of Engineering Management Practice Test

MEM Operations Management 5