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Operations Management (AS Level)

Total questions: 25

Worksheet time: 9mins

Name
Class
Date
1.
What is capacity utilization?
a)
Maximum output level
b)
Proportion of maximum output achieved
c)
Minimum output level
d)
Resources available
2.
Which method manages inventory with minimal stock levels?
a)
Just-in-Case (JIC)
b)
Just-in-Time (JIT)
c)
Economic Order Quantity (EOQ)
d)
Maximum Inventory Control
3.

What is a key benefit of adopting sustainable practices for a business?

a)

Higher short-term profits

b)

Improved brand reputation and customer loyalty

c)

Increased waste and resource costs

d)

Reduced employee satisfaction

4.
What is the Economic Order Quantity (EOQ)?
a)
Maximum inventory
b)
Optimal inventory level
c)
Reorder quantity
d)
Total inventory costs
5.
What does "added value" mean in business?
a)
Total revenue
b)
Difference between input costs and price
c)
Total profit
d)
Resources saved
6.
What happens when a business operates at maximum capacity?
a)
Fixed costs increase
b)
Fixed costs are spread across more units
c)
Employee stress decreases
d)
Machine maintenance improves
7.
Which inventory system minimizes the risk of obsolescence?
a)
Just-in-Time (JIT)
b)
Just-in-Case (JIC)
c)
Maximum Inventory
d)
Buffer Inventory
8.

How is labor productivity calculated?

a)

Total output divided by total workers employed

b)
Total input divided by total output
c)
Output per worker
d)
Input per hour
9.
What does operating with excess capacity mean?
a)
Maximum utilization
b)
Producing below capacity
c)
Using only fixed assets
d)
Exceeding production demand
10.
What is a finished good in inventory terms?
a)
Raw materials awaiting processing
b)
Goods ready for sale
c)
Work-in-progress items
d)
Surplus inventory
11.
Which of the following is an advantage of outsourcing?
a)
Full control over quality
b)
Increased fixed costs
c)
Greater flexibility
d)
Limited supplier options
12.
What is one characteristic of the tertiary sector?
a)
Produces raw materials
b)
Provides finished goods
c)
Offers services to consumers
d)
Focuses on research
13.
What is the main drawback of operating at maximum capacity?
a)
Higher average fixed costs
b)
Reduced employee stress
c)
Increased risk of errors and delays
d)
Lower unit production costs
14.
What is the primary goal of inventory management?
a)
Maximize holding costs
b)
Balance stock costs and availability
c)
Minimize inventory orders
d)
Eliminate finished goods stock
15.
What is a key disadvantage of outsourcing?
a)
Increased flexibility
b)
Full control over output quality
c)
Risk of reduced quality or delays
d)
Reduced variable costs
16.
What does "rationalisation" mean in a business context?
a)
Increasing production capacity
b)

Reducing capacity by closing sites/production units

c)
Implementing new marketing strategies
d)
Expanding product ranges
17.

A factory operates at a current output of 80,000 units with a maximum capacity of 175,000 units. What is its capacity utilization rate?

a)

40.3%

b)

47.5%

c)

45.7%

d)

37.8%

18.
Why is supply chain management critical for business operations?
a)
Increases product obsolescence
b)
Minimises costs and improves customer satisfaction
c)
Creates higher inventory levels
d)
Reduces delivery times by 100%
19.
In an inventory control chart, what does the buffer inventory level indicate?
a)
Maximum inventory allowed
b)
Minimum inventory for emergencies
c)
Average inventory held
d)
Ideal reorder point
20.
What is a defining characteristic of job production?
a)
Produces large batches
b)
Produces unique, custom products
c)
Uses automated production lines
d)
Requires minimal labour
21.
Which best describes batch production?
a)
Each product is made individually
b)
Continuous production without interruption
c)
Products are made in groups or batches
d)
Fully automated production processes
22.
What is the key feature of flow production?
a)
Produces in small batches
b)
Involves continuous production
c)
Focuses on unique, one-off products
d)
Requires only manual labour
23.
What is "mass customization"?
a)
Producing a single standard product
b)
Offering unique products at mass-production efficiency
c)
Producing goods solely by hand
d)
Fully automated production without variation
24.

What is an advantage of Just-in-Case (JIC) inventory management?

a)

Minimizes storage costs

b)

Reduces risk of stockouts

c)

Completely eliminates inventory holding

d)

Ensures zero wastage

25.

Which of the following strategies DOES NOT help a business raise productivity?

a)

Investing in employee training and motivation

b)

Increasing investment in automation & technology

c)

Increasing employee motivation

d)

Increasing management oversight and bureacracy

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