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CIE AS Operations Management

Total questions: 50

Worksheet time: 31mins

Name
Class
Date
1.

Refers to the creation of goods and services

a)

Operations Management

b)

Production

c)

Productivity

d)

Operations

2.

Economic activities that typically produce an intangible product

a)

Products

b)

Services

c)

Operations Management

d)

Production

3.

Functions that an organization perform

a)

Planning

b)

Operations

c)

Accounting

d)

Leading

e)

Marketing

4.

Activities that relate to the creation of goods and services through the transformation of inputs to outputs

(a)  

5.

Productivity increases when:

a)

inputs increase while outputs remain the same

b)

inputs decrease while outputs remain the same

c)

outputs decrease while inputs remain the same

d)

inputs and output increase proportionately

e)

inputs increase as the same rate as outputs

6.

Labour or capital intensive

a)

Labour intensive

b)

Capital Intensive

7.

Labour or capital intensive

a)

Labour intensive

b)

Capital Intensive

8.

What does productivity mean?

a)

productivity is how products are made

b)

productivity is a measure of how many workers a business has

c)

productivity measures efficiency

d)

productivity measures effectiveness

9.

Which of these isn't a method of improving productivity?

a)

employing more staff

b)

providing pay incentives

c)

investing in up-to-date machinery

d)

training staff

10.

Which of the following statements is correct?

a)

the level of production is the total number of goods produced per worker

b)

productivity can be measured by output per worker in a given time period

c)

increasing production leads to increased productivity

d)

reducing productivity per worker will increase the number of workers

11.

One of the benefits of increasing productivity is:

a)

more workers will be employed

b)

total production will increase with the same number of workers

c)

average costs will stay the same

d)

fewer raw materials will be needed to produce the same level of output

12.

Which one of the following is NOT a factor of production?

a)

land

b)

table

c)

capital

d)

enterprise

13.

What does CAD stand for?

a)

Code and Design

b)

Computer Aided Design

c)

Create and Design

d)

Craft and Design

14.

What is CAD?

a)

An app that lets you analyze different design concepts

b)

A coding program to let you easily write in a computer language

c)

Computer software used to create 2D drawings/3D models of designs

d)

Creation and development for any robot

15.

What does CAM stand for?

a)

Carefully Added Material

b)

Computer Aided Manufacture

c)

Computer Aided Making

d)

Careful Addition Manufacture

16.

What are the advantages of using CAD?

a)

It is easy to learn and use

b)

Precise, accurate drawings/models

c)

You can easily send and edit designs

d)

The software is cheap to buy

e)

You can use CAM to bring your model to life

17.

What are the disadvantages of CAD?

a)

Staff need to be trained to get the full use of the software

b)

It is not precise enough

c)

It doesn't look professional

d)

The software is very expensive to buy

18.

What are the advantages of CAM?

a)

Human error is eliminated

b)

The machinery is cheap

c)

Products can be produced 24 hours a day without the need for lunch breaks

d)

Any product can be made, without assembly by a human

19.

What is the main disadvantage of CAM?

a)

Very expensive

b)

Unreliable accuracy

c)

Parts look unfinished

d)

Takes up too much space

20.
Skilled workers are required in flow production.
a)
True
b)
False
21.
Batch Production is where products are made in groups of similar products.
a)
True
b)
False
22.
Flow production would be used for:
a)
Cans of Coke
b)
Fitted Kitchen
c)
Walkers bags of crisps
23.
Job Production is where the products are:
a)
All the same
b)
Unique
c)
Similar but some groups vary
24.
There are 2 methods of production
a)
True
b)
False
25.
What is the main important factor for a retail business? 
a)
Labour Costs 
b)
Cost of raw materials 
c)
Footfall 
d)
Rent
26.
In a deprived area, what would attract a business? 
a)
Government Grants 
b)
Availability of labour 
c)
Advice and Support 
d)
Cost of stock 
27.
1.  Developing countries are attractive locations to place business because
a)
a.  They industrialize faster than developed countries \
b)
a.   Labor and resources are affordable 
c)
a.  There is a high population 
d)
a.  All of the above 
28.
1.  As long as you have a good business plan and an innovative product you can place your business anywhere it will make profit.
a)
true 
b)
false 
29.

The rise of the internet has meant that many businesses costs are:

a)

Lower as there is more need for expensive retail premises

b)

Higher as there is more need for expensive retail premises

c)

Higher as there is less need for expensive retail premises

d)

Lower as there is less need for expensive retail premises

30.

Why do businesses need to be close to customers?

a)

increase the transportation cost

b)

to increase sales

c)

because all services are sold directly to customers

d)

for convenience

31.

What is the most important factor for business in agriculture?

a)

wage of workers.

b)

raw materials.

c)

type of land.

d)

rent of property.

32.

Diseconomies of Scale result in a lower per unit production cost over the long run

a)

True

b)

False

33.
Machinery is likely to be efficient. what economies it indicate?
a)
Financial Economies
b)
Buying Economies
c)
Technical Economies
d)
Managerial Economies
34.

A _____ is anywhere buyers and sellers meet to buy and sell goods and services.

a)

Store

b)

Workplace

c)

Restaurant

d)

Market

35.

A company wishes to increase labour productivity. All other things being equal, this is most likely to be achieved if the company

a)

employs more workers.

b)

reduces the wages it pays its employees.

c)

reduces current output.

d)

invests in more capital equipment.

36.

Diseconomies of scale might arise because

a)

firms spend money on new technology which leads to lower average costs.

b)

decision-making by management becomes more difficult in larger firms.

c)

workers are more likely to be productively efficient in larger firms.

d)

larger firms can buy in bulk.

37.
The purchase-order lead time is the ________.
a)
time between placing an order and its delivery
b)
time between receiving a customer order and producing the products 
c)
) time between receiving a customer order and delivering the items 
d)
time required to correct errors in the defective products 
38.
Which of the following statements  is true of just-in-time (JIT) purchasing?
a)
In JIT purchasing, the optimal safety-stock level is the quantity of safety stock that minimizes the sum of annual relevant stockout and carrying costs.
b)
) JIT purchasing is guided solely by the EOQ model because that model emphasizes the tradeoff between relevant carrying and ordering costs.
c)
In JIT purchasing, raw materials (or goods) are purchased so that products are delivered just as needed for production or sales.
d)
Only disadvantage of JIT purchasing is the higher level carrying and inspection costs.
39.

Stock losses will result in ...

a)

An increase in Revenue

b)

An increase in Expenses

c)

An increase in Assets

d)

An decrease in Liabilities

40.

Work in progress inventory is the goods the customers are awaiting delivery of.

a)

True

b)

False

41.

This type of inventory is classed as goods that have entered the transformation process but have not yet emerged from it.

a)

Buffer Stock

b)

Pipeline inventory

c)

Finished goods inventory

d)

Work in progress inventory

e)

Anticipation inventory

42.

Inventory is another word for:

a)

Stock

b)

Finance

c)

Staff

d)

Managers

43.

Select the costs and risks of UNDERstocking:

a)

Reputation may suffer if order are not met

b)

Customer may be lost to competition

c)

Advertisement costs will increase

d)

Money will be tied up in stock

44.

Identify the costs and risks of OVERstocking:

a)

Customers will not be able to buy what they want

b)

Staff will be made redundant

c)

Higher storage costs

d)

Items could deteriorate with age

45.

The maximum order level is:

a)

The amount of inventory that the business should not fall below

b)

The amount of inventory that the business should not rise above

c)

The time that it will take for the stock to be delivered to the business

d)

The maximum amount of stock that the customer is allowed to order

46.

The minimum stock level is:

a)

600

b)

300

c)

200

d)

100

47.

The re-order level is:

a)

300

b)

500

c)

400

d)

100

48.

The order quantity is:

a)

600

b)

200

c)

500

d)

100

49.

The buffer stock level is:

a)

300

b)

200

c)

500

d)

100

50.

Just-in-time inventory management is when:

a)

Customers have a short period of time to order their stock

b)

Stock is ordered just in time for when it is required

c)

Stock is delivered quickly

d)

The business does not have to order any stock