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Questions and Answers on Production and Operations Management | Production and Operations Management MCQs

(1) A strategy which aims to produce a perfect product which will suit everybody is called:
[A] Marketing orientation.
[B] Production orientation.
[C] Product orientation.
[D] Perfection orientation.
Answer: Product orientation.
(2) Someone who is responsible for finding out what individual customers need, and explaining how the firm's products meet those needs, is a ______________.
[A] Brand manager
[B] Salesperson
[C] Sales manager
[D] Market research manager
Answer: Salesperson
(3) Which of the following best describes strategic planning?
[A]
Time horizon: Long-term
Level of detail: Summarised
Source: Mainly internal
[B]
Level of detail: Summarised
Source: Mainly external
Degree of certainty: Certain
[C]
Time horizon: Long-term
Level of detail: Summarised
Degree of certainty: Uncertain
[D]
Time horizon: Long-term
Level of detail: Highly detailed
Source: Mainly external
Answer:
Time horizon: Long-term
Level of detail: Summarised
Degree of certainty: Uncertain
    
(4) Psychologists use the term_________________ to describe the way that individuals absorb information.
[A] Cognitive style
[B] Intelligence Quotient
[C] Human Computer Interaction
[D] Data Processing
Answer: Cognitive style
(5) In a business continuity plan which of the following notification directories is the MOST important?
[A] Equipment and supply vendors
[B] Insurance company agents
[C] Contract personnel services
[D] A prioritized contact list
Answer: A prioritized contact list
(6) An expansionist capacity strategy is NOT indicated when:
[A] A preemptive marketing strategy is used.
[B] Expansion will lead to economies of scale.
[C] Expansion is made in large increments.
[D] Capacity expansion is consistently ahead of demand.
Answer: Expansion will lead to economies of scale.
(7) Costs that continue even if no units are produced are called
[A] Variable costs.
[B] Mixed costs.
[C] Marginal costs.
[D] Fixed costs.
Answer: Fixed costs.
(8) Which of the following actions would be best if a firm faced highly seasonal demand for a perishable product?
[A] Hire and fire employees as demand fluctuates.
[B] Build up inventory when demand is low.
[C] Add warehouse and production building space to accommodate the highest period of demand.
[D] Offer a product with a complementary demand pattern.
Answer: Offer a product with a complementary demand pattern.
(9) Which of the following is not a measure of utilisation?
[A] Uptime in a factory
[B] Number of hours available for production
[C] Room occupancy level in hotels
[D] Load factor for aircraft
Answer: Number of hours available for production
(10) A strategy which aims to produce the maximum amount of goods at the lowest possible price is called:
[A] Production orientation.
[B] Selling orientation.
[C] Societal marketing.
[D] Cost orientation.
Answer: Production orientation.