C720 Operations and Supply Chain Management Practice Questions - Set 2 - 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: To optimize production flow and maintain efficiency, a manufacturing company uses Kanban cards. What is the primary function of these cards?

a) To schedule maintenance tasks

b) To authorize movement or production of parts

c) To assess production quality

d) To track delivery schedules

Question 42: What inventory classification method organizes items based on their relative dollar usage to prioritize control efforts on the highest-value items?

a) Safety stock analysis

b) ABC analysis

c) Inventory turnover analysis

d) Pareto analysis

Question 43: Which production process is most appropriate for a facility that produces high-volume items with minimal variation, like soft drinks or canned goods?

a) Job shop

b) Continuous flow

c) Batch process

d) Fixed-position layout

Question 44: A manager chooses a forecasting method that averages data over a period of time, applying higher weights to recent data. This method is known as:

a) Exponential smoothing

b) Simple moving average

c) Weighted moving average

d) Time series analysis

Question 45: In which stage of the DMAIC process is data collected to determine the current state and performance of the existing process?

a) Define

b) Measure

c) Analyze

d) Improve

Question 46: Which layout is best suited for an organization that produces a range of products in smaller batches, where each batch requires specific machine setups?

a) Product-oriented layout

b) Continuous flow layout

c) Process-oriented layout

d) Fixed-position layout

Question 47: A retail company’s success in the market depends heavily on its ability to meet high customer expectations for fast delivery. This reliance is most closely related to which competitive advantage?

a) High product variety

b) Cost leadership

c) Short delivery lead-time

d) Product diversification

Question 48: Which method is used in continuous improvement to evaluate and control process changes by emphasizing small, incremental improvements?

a) Statistical Process Control (SPC)

b) Theory of Constraints (TOC)

c) Kaizen

d) Aggregate planning

Question 49: When a manager calculates how much effective capacity is being used, they are evaluating the:

a) Inventory turnover rate

b) Efficiency rate

c) Cycle time

d) Productivity ratio

Question 50: Which production strategy adjusts workforce and production rates to directly match current customer demand, reducing excess inventory?

a) Push strategy

b) Chase strategy

c) Level strategy

d) Lead strategy

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