Operations Management MCQs

What is the primary purpose of production in a business?

• To maximize profits

• To satisfy consumer wants and needs

• To minimize costs

• To increase inventory

Which of the following is NOT a factor of production?

• Land

• Capital

• Enterprise

• Inventory

How does a business achieve competitiveness in production?

• By using low-quality inputs

• By combining resources efficiently

• By reducing employee wages

• By overproducing goods

Which production method is used to produce unique, customized items?

• Job production

• Batch production

• Flow production

• Lean production

What is the main disadvantage of flow production?

• High employee motivation

• High capital costs

• Flexibility in product variety

• Slow production speed

Which production method is characterized by producing a set of similar products in groups or sets?

• Batch production

• Job production

• Flow production

• Custom production

What does the term "productivity" measure?

• Total inputs used by a business

• Output per unit of input

• Revenue generated from sales

• The number of employees in a business

How can a business improve productivity?

• Reduce wages

• Increase inventory levels

• Automate repetitive tasks

• Limit training opportunities

Labour productivity is calculated as:

• Total input ÷ Total output

• Total output ÷ Number of employees

• Number of employees ÷ Total input

• Total input ÷ Number of employees

Which of the following is a principle of lean production?

• Overproduction to meet demand fluctuations

• Minimizing waste in the production process

• Holding large inventories

• Relying solely on manual labour