C720 Operations and Supply Chain Management Practice Questions - Set 3 - 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 firm needs a precise inventory balance at all times, especially for high-value items. Which inventory system is most suitable?

a) Periodic inventory system

b) Perpetual inventory system

c) Vendor Managed Inventory (VMI)

d) Just-in-time (JIT)

Question 22: Which inventory strategy involves ordering above a specified quantity to receive a discount on purchase costs?

a) Economic Order Quantity (EOQ)

b) Quantity discount model

c) Just-in-time (JIT)

d) ABC analysis

Question 23: A production line stops to identify root causes of defects using a visual tool that shows potential sources of issues across categories like materials and environment. This tool is:

a) Pareto chart

b) Scatter diagram

c) Fishbone diagram

d) Run chart

Question 24: Which term describes a process bottleneck where a specific point in the production line limits overall system throughput?

a) Inventory turnover

b) Capacity constraint

c) Cycle time

d) Efficiency rate

Question 25: When customer needs are translated into specific production requirements to ensure the end product meets expectations, this process is known as:

a) Just-in-time (JIT)

b) Quality function deployment (QFD)

c) Theory of Constraints (TOC)

d) Statistical Process Control (SPC)

Question 26: A company using the Delphi Technique in forecasting is most likely attempting to:

a) Gather historical sales data

b) Reach a consensus from experts

c) Calculate the moving average

d) Conduct a survey with customers

Question 27: Which inventory model provides a system for companies to continuously replenish products in response to actual demand, helping to prevent stockouts?

a) Perpetual inventory system

b) Periodic review system

c) Vendor Managed Inventory (VMI)

d) ABC analysis

Question 28: A manager analyzing the distribution of delays in a production process notices that a few specific steps contribute to most of the downtime. Which tool would best illustrate this?

a) Pareto chart

b) Control chart

c) Scatter plot

d) Fishbone diagram

Question 29: The primary objective of using a kanban system within a production process is to:

a) Increase workforce flexibility

b) Improve customer service

c) Control work-in-process inventory

d) Maximize production speed

Question 30: Which concept focuses on minimizing errors by designing processes to prevent mistakes from occurring?

a) Kaizen

b) Total Quality Management (TQM)

c) Poka-yoke

d) Control charting

Question 31: Which quality improvement process follows the five steps of Define, Measure, Analyze, Improve, and Control?

a) Lean manufacturing

b) Six Sigma (DMAIC)

c) Theory of Constraints

d) Kaizen

Question 32: In which situation would a fixed-position layout be most effective?

a) High-volume production with minimal variation

b) Low-volume, high-variety production in one location

c) Sequential production of standardized products

d) Continuous production of liquids or gases

Question 33: A company uses a process that allows them to reduce setup times by organizing equipment and materials in a structured flow. This aligns with which lean concept?

a) Poka-yoke

b) Kaizen

c) Kanban

d) Group technology

Question 34: The management at a toy manufacturing plant wants to categorize its inventory items based on the dollar usage of each item, focusing efforts on the most valuable items. Which technique should they use?

a) Lean inventory management

b) ABC analysis

c) Economic Order Quantity (EOQ)

d) Value stream mapping

Question 35: A team is working to identify and address all non-value-adding activities in their supply chain to improve efficiency and reduce waste. This aligns with which approach?

a) Kanban

b) Value stream mapping

c) Statistical Process Control (SPC)

d) Quality function deployment (QFD)

Question 36: Which production approach is characterized by each product moving through the manufacturing process as soon as it is needed, minimizing holding costs?

a) Push system

b) Pull system

c) Fixed-position layout

d) Continuous flow

Question 37: A retailer wants to identify and address the most frequent causes of customer complaints. Which quality tool would be most effective?

a) Fishbone diagram

b) Scatter plot

c) Pareto chart

d) Control chart

Question 38: A company is developing a forecast for a product with no historical sales data. Which forecasting method should they consider?

a) Exponential smoothing

b) Test market analysis

c) Simple moving average

d) Trend analysis

Question 39: In a lean production system, which of the following is a key goal of a Kaizen event?

a) Implement large-scale production changes

b) Develop product prototypes

c) Achieve incremental process improvements

d) Increase production output by any means

Question 40: A company that emphasizes preventative maintenance to keep equipment in good working condition is following which methodology?

a) Kanban

b) Total Productive Maintenance (TPM)

c) Statistical Process Control (SPC)

d) Theory of Constraints (TOC)

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