IB 5.6-5.8

What is the primary purpose of the supply chain process?

• To increase production costs
• To manage logistics from manufacturing to delivery
• To reduce employee wages
• To eliminate customer feedback

Which of the following is a key difference between local and global supply chains?

• Local supply chains are more complex
• Global supply chains involve fewer regulations
• Local supply chains involve closer geographical suppliers
• Global supply chains have no impact on international trade

What is the main advantage of Just-in-Time (JIT) inventory management?

• It requires large buffer stocks
• It reduces storage and wastage costs
• It increases lead times
• It relies on unreliable suppliers

Which of the following is a disadvantage of Just-in-Case (JIC) inventory management?

• It reduces storage costs
• It increases flexibility to meet demand
• It involves higher storage and maintenance costs
• It eliminates the need for buffer stocks

What does a stock control chart primarily help a business to monitor?

• Employee productivity
• Inventory levels
• Marketing strategies
• Financial statements

What is the purpose of buffer stock in inventory management?

• To reduce lead times
• To meet unexpected demand or supply issues
• To eliminate reorder quantities
• To increase production costs

What is the formula for calculating capacity utilization rate?

• Actual output / Maximum output x 100
• Maximum output / Actual output x 100
• Total output / Total input x 100
• Total input / Total output x 100

A business operating at 100% capacity utilization is likely to experience:

• Lower unit costs
• Higher employee stress
• Both A and B
• Neither A nor B

What is the formula for calculating defect rate?

• Defective items / Total items produced x 100
• Total items produced / Defective items x 100
• Defective items / Total items sold x 100
• Total items sold / Defective items x 100

Which of the following is a measure of labour productivity?

• Output per worker
• Capital input / Total output
• Total output / Total input x 100
• Fixed costs / Variable costs