C720 Operations and Supply Chain Management Practice Questions - Set 4 - 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: In a capacity strategy, adding capacity only after the company has reached full utilization is known as:

a) Lead strategy

b) Adjustment strategy

c) Lag strategy

d) Match strategy

Question 22: When a production line operates with little or no inventory between stages, relying on demand to trigger each step, this approach is referred to as:

a) Push system

b) Perpetual inventory system

c) Pull system

d) Batch process

Question 23: Which inventory classification includes items such as lubricants, tools, and other supplies used in production but not part of the final product?

a) Finished goods

b) Work-in-process (WIP)

c) Replacement parts

d) Supplies

Question 24: Which quality philosophy emphasizes reducing defects to a level of 3.4 defects per million opportunities through systematic improvements?

a) Total Quality Management (TQM)

b) Kaizen

c) Six Sigma

d) Statistical Process Control (SPC)

Question 25: In the production process, which term describes the maximum rate of output given the current resources?

a) Throughput

b) Efficiency rate

c) Capacity utilization

d) Production rate

Question 26: A manufacturer schedules production to produce small batches of different products. This layout, where equipment is arranged by process type, is known as:

a) Product-oriented layout

b) Job shop layout

c) Fixed-position layout

d) Process-oriented layout

Question 27: An electronics manufacturer continuously monitors inventory levels, updating in real time as products are added or removed. This is an example of:

a) Periodic review system

b) Perpetual inventory system

c) Economic Order Quantity (EOQ)

d) Safety stock system

Question 28: A manufacturer of heavy machinery keeps replacement parts in stock for equipment maintenance. This type of inventory is known as:

a) Finished goods

b) Raw materials

c) Work-in-process (WIP)

d) Replacement parts inventory

Question 29: Which of the following best describes the 5S methodology used in lean production?

a) Sort, straighten, shine, standardize, sustain

b) Supply, store, select, secure, sell

c) Safety, sort, streamline, sustain, service

d) Standardize, store, service, select, support

Question 30: In a continuous improvement process, what is the primary goal of the “Control” phase in DMAIC?

a) Identify the problem

b) Measure current performance

c) Implement solutions

d) Maintain and standardize improvements

Question 31: In inventory management, which type of inventory is specifically kept to replace components that wear out in machinery and equipment?

a) Finished goods inventory

b) Safety stock

c) Replacement parts inventory

d) Transportation inventory

Question 32: Which production strategy aligns with scheduling production to match demand exactly, avoiding excess inventory by adjusting output as needed?

a) Lead strategy

b) Chase strategy

c) Lag strategy

d) Match strategy

Question 33: A construction firm that builds large, immovable projects like bridges would use which type of layout to organize its resources?

a) Fixed-position layout

b) Continuous flow layout

c) Product-oriented layout

d) Process-oriented layout

Question 34: A company decides to begin a continuous improvement process by establishing small, achievable changes in its production system. This approach is known as:

a) Statistical Process Control (SPC)

b) Total Quality Management (TQM)

c) Kaizen

d) Theory of Constraints (TOC)

Question 35: In the DMAIC process, which phase focuses on identifying the main sources of variation that cause process inefficiencies or defects?

a) Define

b) Measure

c) Analyze

d) Improve

Question 36: In which inventory system is a physical count conducted at set intervals to determine inventory levels?

a) Perpetual inventory system

b) Economic Order Quantity (EOQ)

c) Vendor Managed Inventory (VMI)

d) Periodic inventory system

Question 37: Which lean tool helps workers identify waste by sorting materials, organizing workspace, and ensuring cleanliness and order?

a) Kanban

b) 5S methodology

c) Value stream mapping

d) Fishbone diagram

Question 38: A company uses a supply chain strategy where goods are pushed through production and distribution based on a forecasted schedule. This is an example of a:

a) Pull system

b) Perpetual inventory system

c) Push system

d) Vendor Managed Inventory (VMI)

Question 39: A supply chain that emphasizes responsiveness and adaptability to rapidly changing customer demands is considered:

a) Lean

b) Agile

c) Product-oriented

d) Inventory-driven

Question 40: The primary function of Vendor Managed Inventory (VMI) is to:

a) Allow the retailer to control stock levels

b) Minimize lead times

c) Enable suppliers to manage retailer inventory

d) Increase production speed

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