C720 Operations and Supply Chain Management Practice Questions - Set 2 - Part 2

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 21: A production process where tasks are organized sequentially and the same product is manufactured continuously is known as:

a) Batch process

b) Continuous flow

c) Job shop

d) Assembly line

Question 22: A manufacturer receives real-time data on sales transactions from a retailer to determine production levels. This is an example of:

a) Vendor Managed Inventory (VMI)

b) Periodic review system

c) Economic Order Quantity (EOQ)

d) Reverse logistics

Question 23: The technique that visually identifies the frequency of issues to prioritize problem-solving efforts is:

a) Scatter plot

b) Fishbone diagram

c) Pareto chart

d) Run chart

Question 24: A company schedules its production activities to continuously match daily orders. This approach aligns with which type of demand?

a) Peak demand

b) Seasonal demand

c) Unexpected demand

d) Chase demand

Question 25: A business looking to avoid quality issues and maintain high standards should emphasize:

a) Prevention costs

b) Failure costs

c) Holding costs

d) Procurement costs

Question 26: A construction project requires moving heavy equipment between multiple sites. Which layout best suits this situation?

a) Fixed-position layout

b) Product-oriented layout

c) Process-oriented layout

d) Continuous flow

Question 27: When evaluating potential production facilities, which factor considers proximity to customers and suppliers?

a) Quantitative factor

b) Economic factor

c) Environmental factor

d) Qualitative factor

Question 28: Which of the following types of inventory includes items that are ready to be shipped to customers?

a) Raw materials

b) Work-in-process (WIP)

c) Finished goods

d) Safety stock

Question 29: A company wants to avoid keeping high inventory levels and instead orders only what it needs for immediate use. Which inventory system aligns with this approach?

a) Just-in-time (JIT)

b) Safety stock

c) Perpetual inventory

d) Vendor Managed Inventory (VMI)

Question 30: Which layout groups similar types of processes together and is often used in low-volume, high-variety production environments?

a) Product-oriented layout

b) Process-oriented layout

c) Continuous flow

d) Fixed-position layout

Question 31: A hospital relies on suppliers to manage its inventory levels for medical supplies based on usage data. This strategy is an example of:

a) Vendor Managed Inventory (VMI)

b) Lean supply chain

c) Reverse logistics

d) Continuous review system

Question 32: Which type of inventory includes products that are partially completed and are still in the production process?

a) Finished goods

b) Raw materials

c) Work-in-process (WIP)

d) Supplies

Question 33: A company aiming to improve quality by investing in inspections and measurements to assess customer satisfaction is incurring which type of cost?

a) Failure cost

b) Prevention cost

c) Appraisal cost

d) Holding cost

Question 34: What term is used for an organization’s ability to continuously provide customers with demanded goods or services at the required quality and quantity?

a) Capacity

b) Flexibility

c) Agility

d) Demand forecasting

Question 35: In project management, which approach requires a team to move through each step without returning to previous steps, making it difficult to address earlier issues?

a) Lean production

b) Waterfall model

c) Agile model

d) Theory of Constraints

Question 36: Which inventory management model determines the optimal quantity to order to minimize total costs associated with ordering and holding inventory?

a) Economic Order Quantity (EOQ)

b) Just-in-Time (JIT)

c) Vendor Managed Inventory (VMI)

d) Lead time analysis

Question 37: When identifying bottlenecks in a production process, the main constraint is typically:

a) The point with the highest output

b) The step with limited capacity relative to demand

c) The phase with the highest quality standards

d) The area with the least variation in production time

Question 38: Which forecasting method would be most appropriate when a company wants to predict demand by collecting information from a target customer segment through surveys?

a) Test markets

b) Delphi Technique

c) Survey method

d) Weighted moving average

Question 39: A bakery requires a certain number of raw ingredients each week based on customer orders. This type of demand, generated from its production process, is known as:

a) Independent demand

b) Derived demand

c) Dependent demand

d) Aggregate demand

Question 40: When demand changes due to a company’s seasonal promotions and events, this type of demand is known as:

a) Unexpected demand

b) Seasonal demand

c) Chase demand

d) Peak demand

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