Production and Operations Management MCQ Questions | Production and Operations Management MCQs

Questions
1 Inputs come from and outputs are transferred to the_________________ of a system.
A Environment
B Sub-system
C Comparator
D Effector

Answer:Environment
2 When evaluating alternative capacity decisions, qualitative concerns exclude:
A Cash flow.
B Uncertainties about demand.
C Competitive reaction.
D Technology change.

Answer: Cash flow.
3 When demand exceeds capacity, a firm should
A Lower prices.
B Add workers.
C Temporarily lay-off workers.
D Advertise.

Answer: Add workers.
4 The marketing concept should be central to business strategy because:
A Business strategy is aimed at customers.
B Companies have a moral responsibility to care for their customers.
C Marketing enables firms to persuade their customers to buy things they do not really need.
D Customers will only spend money with firms that look after their needs.

Answer:Customers will only spend money with firms that look after their needs.
5 One way to decouple the production system and the sales system is:
A To introduce a feedback loop
B To treat the systems as black boxes
C To decrease sales
D To introduce an inventory

Answer:To introduce an inventory
6 Long-term capacity planning deals with which of the following factors?
A Overtime budgets
B Workforce size
C Inventories
D Investment in new facilities

Answer:Investment in new facilities
7 Efficiency is given by
A Actual output divided by design capacity.
B Capacity divided by utilization.
C Effective capacity divided by actual output.
D Actual output divided by effective capacity.

Answer:Actual output divided by effective capacity.
8 The most aggressive and risky approach to capacity planning is
A Capacity lags with incremental expansion.
B Leading demand with one-step expansion.
C Leading demand with incremental expansion.
D Attempts to have an average capacity that straddles demand with incremental expansion.

Answer:Leading demand with one-step expansion.
9 Demand is created when:
A A need is identified.
B A significant group of people want to buy something.
C People who can afford something want to buy it.
D Marketers persuade people to want something.

Answer:People who can afford something want to buy it.
10 Input measures of capacity are preferred when there is/are:
A Service processes.
B High-volume processes.
C Flexible flow processes.
D Low customization.

Answer: Service processes.
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