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Production and Operations Management Multiple Choice Questions and Answers | Production and Operations Management MCQs

(1) In general, a less capital-intensive industry such as a hotel chain would do well with a utilization rate of:
[A] Approximately 18%.
[B] 30-40%.
[C] 60-70%.
[D] 100%.
Answer: 60-70%.
(2) A facility with a design capacity of 1,000 units, an actual average of 800 units, and effective capacity of 850 units has an efficiency of ______________.
[A] 80%
[B] 50%
[C] 85%
[D] 94%
Answer: 94%
(3) The first steps of capacity planning and control do not include:
[A] Identifying the alternative capacity plans?
[B] Measuring aggregate demand and capacity?
[C] Studying the effect of queueing theory
[D] Choosing the most appropriate capacity plan?
Answer: Studying the effect of queueing theory
(4) Someone who controls media purchases and deals with advertising agencies is ____________________.
[A] An advertising manager
[B] A brand manager
[C] A public relations manager
[D] A sales manager
Answer: An advertising manager
(5) A measure of the reserve capacity a process has to handle in unexpected increases in demand is the:
[A] Capacity utilization rate.
[B] Capacity cushion.
[C] Capacity bottleneck.
[D] Capacity constraint limit.
Answer: Capacity cushion.
(6) The maximum output of a system in a given period is called the
[A] Efficiency.
[B] Effective capacity.
[C] Design capacity.
[D] Break-even point.
Answer: Design capacity.
(7) The multiple product case of determining breakeven in dollars
[A] Weights the variable cost of each product.
[B] Weights the selling price of each product.
[C] Weights the fixed cost attributable to each product.
[D] Weights the contribution of each product.
Answer: Weights the contribution of each product.
(8) The basic break-even model
[A] Demonstrates that the break-even point increases as output volume increases.
[B] Demonstrates that fixed costs remain constant as output volume increases.
[C] Demonstrates that total revenue is fixed as output volume increases.
[D] Demonstrates that per unit variable costs vary as output volume increases.
Answer: Demonstrates that fixed costs remain constant as output volume increases.
(9) Which of the following provides the best definition of 'information'?
[A] Computer hardware
[B] Data processed for a purpose
[C] Computer software
[D] Transaction Data
Answer: Data processed for a purpose
(10) Which of the following decision is least likely to be supported by a management information system?
[A] Company reorganisation
[B] Analysis of performance
[C] Allocating budgets
[D] Dealing with customer enquiries
Answer: Company reorganisation