Practice Test GeeksMEM - Master of Engineering Management Practice Test
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Operations Management Flashcards

7 cards from real MEM practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.

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  1. A firm's COGS is $2M, and average inventory is $400K. What is the inventory turnover ratio, and approximately how many days of supply does it represent?

    Answer: 5 turns; ~73 days

    Turnover = $2M/$400K = 5; days of supply = 365/5 ≈ 73 days.

  2. Which quality tool is used to separate the 'vital few' causes from the 'trivial many' by ranking defects by frequency?

    Answer: Pareto chart

    A Pareto chart ranks defect causes by frequency or impact, visually identifying the 20% of causes driving 80% of problems.

  3. In make-or-buy analysis, the break-even volume Q is determined by which equation?

    Answer: Q = (F_make − F_buy) / (V_buy − V_make)

    Break-even occurs where total make cost equals total buy cost: F_make + V_make×Q = F_buy + V_buy×Q, solving to Q = (F_make − F_buy)/(V_buy − V_make).

  4. A process produces outputs with a mean of 50mm and standard deviation of 1mm. Specifications are 50 ± 3mm. What is the process capability index Cp?

    Answer: 1.0

    Cp = (USL − LSL) / (6σ) = (53 − 47) / (6×1) = 6/6 = 1.0.

  5. Which supply chain concept describes the phenomenon where small demand fluctuations at retail amplify into large order swings at the manufacturer level?

    Answer: Bullwhip effect

    The bullwhip effect describes how demand signal distortion increases upstream in the supply chain, causing unnecessary inventory and capacity swings.

  6. An MRP system shows a net requirement of 200 units in week 6, with a lead time of 2 weeks and lot size of 100. When should the planned order release be issued?

    Answer: Week 4

    Planned order release = requirement week − lead time = week 6 − 2 = week 4, for 200 units (2 lots of 100).

  7. In project management, 'crashing' a project activity means which of the following?

    Answer: Adding resources to reduce activity duration at extra cost

    Crashing accelerates an activity by adding resources (e.g., overtime, extra crew), accepting a higher direct cost to shorten project duration.