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OperationsManagementMCQ1

Total questions: 20

Worksheet time: 10mins

Name
Class
Date
1.

Which of the following process types is characterized by a high degree of equipment flexibility and a low volume of highly customized products?

a)

Assembly Line Process

b)

Continuous Flow Process

c)

Job Shop Process

d)

Batch Process

2.

In the context of Process Design in manufacturing, what is the primary structural characteristic of a Product Layout?

a)

Departments grouped by function or type of equipment, optimized for routing flexibility.

b)

Workstations and equipment are arranged sequentially according to the steps required to produce a specific product.

c)

All materials and workers are brought to a fixed location (the product).

d)

Work cells are created to process families of parts that have similar processing requirements.

3.

Which term describes the practice of adding more variety to a job by combining several tasks into one broader assignment at the same skill level?

a)

Job Specialization

b)

Job Enrichment

c)

Job Enlargement

d)

Job Rotation

4.

In the context of the Service Process Matrix, which category is characterized by low customer contact and low customization (e.g., airlines)?

a)

Service Factory

b)

Professional Service

c)

Mass Service

d)

Service Shop

5.

In a service process, an increase in customer contact generally leads to a greater need for:

a)

Standardization and automation.

b)

Separation of front-office and back-office operations.

c)

Process customization and more skillful, flexible personnel.

d)

Reduced resource capacity and centralized scheduling.

6.

Which type of manufacturing process is characterized by producing highly standardized products in very high volumes, often operating 24 hours a day with minimal changeovers?

a)

Job Shop Process

b)

Project Process

c)

Batch Process

d)

Continuous Flow Process

7.

In the context of the four primary process types (Project, Job Shop, Batch, Line/Repetitive), which one offers the highest degree of product customization?

a)

Batch Process

b)

Job Shop Process

c)

Repetitive (Assembly) Process

d)

Continuous Flow Process

8.

Which of the following process layout designs is most appropriate for a construction company building a bridge?

a)

Product Layout

b)

Process Layout (Job Shop)

c)

Cellular Layout

d)

Fixed-Position Layout

9.

A key trade-off when selecting a Product-Process Matrix position is the relationship between:

a)

Maximum profit and minimum labor cost.

b)

Flexibility and efficiency.

10.

In capacity planning, decisions regarding the size of a new facility or the acquisition of new long-lead-time equipment are typically classified as:

a)

Short-term capacity decisions (less than three months)

b)

Long-term capacity decisions (more than one year)

c)

Medium-term capacity decisions (three to twelve months)

d)

Capacity utilization decisions

11.

Which of the following is a primary approach for managing a temporary imbalance by shifting demand to match existing capacity?

a)

Hiring or laying off employees.

b)

Subcontracting production to a third party.

c)

Varying pricing (e.g., lower prices during off-peak hours) and promotional campaigns.

d)

Building or leasing a new facility.

12.

What is the primary reason an organization maintains a Capacity Cushion?

a)

To increase inventory levels and reduce storage costs.

b)

To ensure maximum resource utilization at all times.

c)

To cope with unforeseen demand surges, production schedule changes, or equipment breakdowns.

d)

To implement a capacity 'lagging' strategy.

13.

If a firm chooses a Capacity Leading Strategy, it means the firm is:

a)

Reducing prices to increase demand and catch up with current capacity.

b)

Adding capacity only when demand has already exceeded current capacity.

c)

Adding capacity in anticipation of future demand growth.

d)

Matching capacity exactly to forecasted demand in small increments.

14.

Which of the following is considered a Medium-term capacity decision (3 to 12 months)?

a)

Developing a long-range sales forecast (5 years).

b)

Using overtime or temporary labor to cover a holiday rush.

c)

Subcontracting work or adding a second shift.

d)

Designing a new production line with a different process flow.

15.

The Economic Order Quantity (EOQ) model aims to minimize the sum of which two costs?

a)

Product cost and material handling cost.

b)

Ordering cost and holding (carrying) cost.

c)

Safety stock cost and stockout cost.

d)

Setup cost and transportation cost.

16.

The primary role of Safety Stock in inventory management is to protect against:

a)

Excessively high ordering costs.

b)

Variability and uncertainty in demand and lead time.

c)

High annual holding costs.

17.

A firm has an annual demand (D) of 10,000 units, an ordering cost(S) of Rs.50 per order, and a holding cost (H) of Rs.5 per unit per year. The EOQ is calculated as: 2DS/H. What is the EOQ?

a)

100 units

b)

447 units

c)

200 units

d)

500 units

18.

The Reorder Point (ROP) calculation in a fixed-quantity inventory system includes the safety stock to ensure:

a)

The entire order quantity (EOQ) is always on hand.

b)

The inventory level does not drop below zero during the lead time, even if demand is higher than expected.

c)

The annual ordering cost is minimized.

d)

The total capacity of the warehouse is utilized efficiently.

19.

In the context of Inventory Management, what is the term for the inventory that results from the placement of a normal, economic order quantity (EOQ)?

a)

Safety Stock

b)

Anticipation Inventory

c)

Pipeline Inventory

d)

Cycle Inventory

20.

A characteristic of the Mass Service category in the Service-System Matrix (e.g., retail banking, education) is typically:

a)

Low labor intensity and high customization.

b)

High labor intensity and low customization.

c)

Low labor intensity and high capital investment.

d)

High customization and decentralized operations.