Operations Management: Master Production, Inventory, Quality, and Supply Chain

Question 1

Which of the following is NOT a crucial element of production processes?

Accepted Answer

Predicting future demand

Answer

Converting inputs into outputs

Answer

Scheduling production activities

Answer

Ensuring product quality

Question 2

What is the primary objective of inventory management?

Accepted Answer

Ensuring a continuous supply of resources

Answer

Minimizing production overheads

Answer

Enhancing customer satisfaction

Answer

Eliminating waste and redundancies

Question 3

Which of the following is NOT a relevant performance indicator (KPI) for measuring operations effectiveness?

Accepted Answer

Gross profit margin

Answer

Throughput time (time taken to complete a process)

Answer

Customer satisfaction ratings

Answer

Inventory turnover ratio

Question 4

What is the primary goal of inventory management?

Accepted Answer

To optimize stock levels to meet demand

Answer

To minimize production costs

Answer

To control the quality of raw materials

Answer

To manage the flow of goods and materials

Question 5

Which of the following is a key metric used to measure production efficiency?

Accepted Answer

Throughput time

Answer

Customer satisfaction

Answer

Profit margin

Answer

Market share

Question 6

Which of the following is NOT a type of inventory cost?

Accepted Answer

Production cost

Answer

Ordering cost

Answer

Carrying cost

Answer

Procurement cost

Question 7

Which of the following is a limitation of technology in operations management?

Accepted Answer

Complete elimination of human error

Answer

Increased efficiency

Answer

Reduced costs

Answer

Enhanced decision-making

Question 8

Which of the following is **NOT** an aspect of operations management?

Accepted Answer

Marketing strategies

Answer

Production processes

Answer

Inventory management

Answer

Supply chain management

Question 9

The conversion of raw materials into finished goods or products is known as:

Accepted Answer

Production

Answer

Distribution

Answer

Procurement

Answer

Inventory control

Question 10

Which inventory management technique aims to achieve a balance between inventory holding costs and the risk of stockouts?

Accepted Answer

Economic order quantity (EOQ)

Answer

Just-in-time (JIT)

Answer

Materials requirement planning (MRP)

Answer

First-in, first-out (FIFO)

Question 11

The measure of how efficiently production operates in a given period is called:

Accepted Answer

Capacity utilization

Answer

Inventory turnover

Answer

Lead time

Answer

Throughput time

Question 12

A production system that produces goods or services in small batches, only when needed, is called:

Accepted Answer

Just-in-time (JIT) production

Answer

Mass production

Answer

Batch production

Answer

Continuous production

Question 13

Which of the following is **NOT** a key element of a supply chain?

Accepted Answer

Competitors

Answer

Suppliers

Answer

Customers

Answer

Distributors

Question 14

Which of the following is not a fundamental aspect of operations management?

Accepted Answer

Human resource management

Answer

Production processes

Answer

Inventory management

Answer

Quality control

Question 15

What is the primary purpose of quality control in operations management?

Accepted Answer

To ensure customer satisfaction and meet industry standards

Answer

To reduce production costs

Answer

To increase employee morale

Answer

To comply with regulations

Question 16

What is the overarching objective of operations management?

Accepted Answer

To enhance operational efficiency and effectiveness

Answer

To maximize profits

Answer

To foster customer loyalty

Answer

To ensure compliance with regulations

Question 17

In operations management, what is the main purpose of implementing quality control?

Accepted Answer

Boosting customer satisfaction

Answer

Lowering production expenses

Answer

Accelerating production

Question 18

In operations management, which ethical consideration holds the highest priority?

Accepted Answer

Ensuring a safe workplace for employees

Answer

Prioritizing profit over the well-being of stakeholders

Answer

Maintaining close supplier relationships, regardless of the cost

Question 19

Which of the following is not considered a core element of operations management?

Accepted Answer

Marketing

Answer

Production

Answer

Inventory management

Answer

Quality control

Question 20

What is the overarching goal of inventory management?

Accepted Answer

Balancing inventory levels to meet customer demand while minimizing costs

Answer

Selecting suppliers

Answer

Forecasting future inventory needs

Question 21

Which of the following is a key benefit of implementing effective quality control measures?

Accepted Answer

Enhanced customer satisfaction

Answer

Lower production costs

Answer

Reduced production lead times

Answer

Improved employee motivation

Question 22

What is the primary function of the supply chain within operations management?

Accepted Answer

Coordinating the flow of goods and services between different parties

Answer

Managing customer relationships

Answer

Developing and launching new products

Answer

Controlling production processes

Question 23

Which of the following is a commonly used tool for production planning?

Accepted Answer

Gantt chart

Answer

Sales report

Answer

Market research survey

Answer

Financial statement

Question 24

Explain the distinction between efficiency and effectiveness in the context of operations management.

Accepted Answer

Efficiency measures how well resources are utilized, while effectiveness measures the attainment of desired outcomes.

Answer

Efficiency is more crucial than effectiveness.

Answer

They are interchangeable concepts.

Question 25

Which of the following is a common challenge faced in operations management?

Accepted Answer

Managing uncertainty and disruptions

Answer

Developing innovative products

Answer

Recruiting qualified personnel

Answer

Obtaining sufficient funding

Question 26

What is the primary objective of a quality management system?

Accepted Answer

To ensure consistent quality standards for products or services

Answer

To reduce production costs

Answer

To increase employee productivity

Question 27

Which of the following is an advantage of utilizing technology in operations management?

Accepted Answer

Automation of processes leading to improved efficiency

Answer

Increased employee resistance

Answer

Reduced customer satisfaction

Answer

Higher operating expenses

Question 28

How does operations management contribute to achieving an organization's strategic goals?

Accepted Answer

By optimizing the use of resources to deliver value to customers and meet objectives

Answer

By generating revenue for the organization

Answer

By developing marketing strategies

Question 29

The primary objective of operations management is to:

Accepted Answer

Ensure efficient and effective production of goods and services

Answer

Maintain employee satisfaction

Answer

Maximize profits

Question 30

In a production process, inventory management is responsible for:

Accepted Answer

Controlling the flow of raw materials, work-in-progress, and finished goods

Answer

Ensuring product quality

Answer

Scheduling production activities

Question 31

Which quality control technique involves testing every individual product?

Accepted Answer

100% inspection

Answer

Statistical sampling

Answer

Visual inspection

Answer

Process control

Question 32

Supplier selection in supply chain management involves:

Accepted Answer

Identifying and evaluating potential suppliers against predefined criteria

Answer

Managing inventory levels

Answer

Negotiating contracts with suppliers

Question 33

The focus of a just-in-time (JIT) production system is on:

Accepted Answer

Eliminating waste and minimizing inventory levels

Answer

Maximizing production capacity

Answer

Ensuring product quality

Question 34

The purpose of a bill of materials (BOM) in operations management is to:

Accepted Answer

Document the materials and components required to manufacture a product

Answer

Estimate production costs

Answer

Schedule production activities

Question 35

A key consideration in capacity planning is:

Accepted Answer

Matching available resources to forecasted demand

Answer

Reducing production costs

Answer

Ensuring maximum production capacity at all times

Question 36

The advantage of using enterprise resource planning (ERP) systems in operations management includes:

Accepted Answer

Integrating and automating business processes across the organization

Answer

Improving employee morale

Answer

Reducing hardware costs

Question 37

Which of the following is NOT a core element of Supply Chain Management (SCM)?

Accepted Answer

Customer Relationship Management (CRM)

Answer

Inventory Optimization

Answer

Transportation and Logistics

Answer

Quality Assurance

Question 38

Which primary objective aims to maximize productivity and effectiveness within operations management?

Accepted Answer

Efficiency and effectiveness optimization

Answer

Minimized environmental impact

Answer

Heightened employee satisfaction

Question 39

Which production system is characterized by mass output of standardized products on a continuous assembly line?

Accepted Answer

Mass production

Answer

Cellular production

Answer

Batch production

Answer

Job production

Question 40

What is the primary purpose of managing inventory?

Accepted Answer

Balancing supply and demand

Answer

Enhancing customer service

Answer

Minimizing production costs

Question 41

Which quality control method involves sampling products to assess their quality?

Accepted Answer

Statistical process control

Answer

Total quality management

Answer

Six Sigma

Answer

ISO 9000 certification

Question 42

What is the main objective of supply chain management?

Accepted Answer

Coordinating the flow of products and services

Answer

Enhancing customer relationships

Answer

Minimizing transportation expenses

Answer

Optimizing inventory levels

Question 43

Which element is not included in the balanced scorecard?

Accepted Answer

Market share

Answer

Internal processes

Answer

Customer satisfaction

Answer

Financial performance

Question 44

Which facility layout is most suitable for organizations producing a diverse range of low-volume products?

Accepted Answer

Job shop layout

Answer

Product layout

Answer

Process layout

Answer

Cellular layout

Question 45

What is the main purpose of a Gantt chart?

Accepted Answer

Project planning and scheduling

Answer

Assessing employee productivity

Answer

Managing customer relationships

Answer

Tracking financial performance

Question 46

Which of the following is not a primary function of operations management?

Accepted Answer

Marketing

Answer

Production planning

Answer

Inventory management

Question 47

What is the role of quality control in operations management?

Accepted Answer

To ensure that products or services meet established standards

Answer

To manage inventory levels

Answer

To plan and schedule production activities

Question 48

Which of the following is not a key component of supply chain management?

Accepted Answer

Human resources management

Answer

Customer service

Answer

Procurement

Answer

Logistics

Question 49

What is the purpose of using a Gantt chart in operations management?

Accepted Answer

To visualize and track the progress of tasks over time

Answer

To identify potential bottlenecks

Answer

To optimize resource allocation

Answer

To calculate production costs

Question 50

Which of the following is not a benefit of effective operations management?

Accepted Answer

Lower customer satisfaction

Answer

Improved efficiency

Answer

Reduced production costs

Answer

Enhanced quality

Question 51

What is the key difference between direct and indirect costs in operations management?

Accepted Answer

Direct costs are directly related to production, while indirect costs are not

Answer

Direct costs are incurred before production, while indirect costs are incurred after production

Answer

Direct costs are fixed costs, while indirect costs are variable costs

Question 52

What is the role of technology in modern operations management?

Accepted Answer

To automate tasks, improve communication, and increase efficiency

Answer

To increase production costs

Answer

To replace human workers