C720 Operations and Supply Chain Management Practice Questions - Set 1 - Part 3

Test your knowledge of Operations and Supply Chain Management concepts with these practice questions. Each question includes detailed explanations to help you understand the correct answers.

Question 41: When a manufacturer sends defective products back to the supplier for replacement, this process is referred to as:

a) Lean logistics

b) Reverse logistics

c) Just-in-time inventory

d) Supplier warranty

Question 42: Which quality tool would help a company visualize the relationship between two variables to identify possible correlations?

a) Scatter plot

b) Control chart

c) Pareto chart

d) Fishbone diagram

Question 43: In a continuous flow production process, which of the following is true about the product being made?

a) Each unit requires a different process

b) Products are discrete items

c) Products flow continuously in an unbroken stream

d) Production stops after each batch is complete

Question 44: A firm produces several parts that require similar processing steps. To improve efficiency, it groups these parts together. This is known as:

a) Lean production

b) Process layout

c) Group technology

d) Flow manufacturing

Question 45: A firm wishes to improve quality by ensuring that every part is made correctly the first time. This philosophy is most closely associated with:

a) Taguchi methods

b) Just-in-time production

c) Poka-yoke

d) Lean management

Question 46: Which of the following describes a continuous review system in inventory management?

a) Inventory is checked at regular intervals

b) Inventory levels are tracked in real-time

c) Orders are placed only during certain periods

d) Stock levels are managed by the supplier

Question 47: A car manufacturer producing the same model continuously without major changes or interruptions is most likely using which layout?

a) Process-oriented layout

b) Product-oriented layout

c) Fixed-position layout

d) Hybrid layout

Question 48: Which method of inventory management involves using a signal to move materials only when a part is needed, typically reducing waste and excess inventory?

a) Push system

b) Pull system

c) Periodic review system

d) Vendor Managed Inventory (VMI)

Question 49: A shop that creates custom-made furniture for individual clients would most likely use which type of process?

a) Continuous flow

b) Batch process

c) Assembly line

d) Job shop

Question 50: Which type of forecasting method relies heavily on the input of a group of industry experts to predict demand?

a) Test market analysis

b) Panel of experts (Delphi Technique)

c) Simple moving average

d) Exponential smoothing

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