Business Services Business Services Operations Management 2

Question 1

What is 'capacity planning' in operations management?

Accepted Answer

Determining the production or service output a business can handle

Answer

Designing the company's office floor plan

Answer

Setting annual marketing budgets

Answer

Scheduling employee vacations

Question 2

What does 'inventory turnover ratio' measure?

Accepted Answer

How many times inventory is sold and replaced in a period

Answer

How often a company hires new staff

Answer

The ratio of finished goods to raw materials

Answer

Customer return rates for products

Question 3

What is 'Total Quality Management' (TQM)?

Accepted Answer

An organization-wide approach to embedding quality in all processes and culture

Answer

A financial auditing standard

Answer

A government certification for manufacturers

Answer

A software system for tracking defects

Question 4

What is a 'bottleneck' in a business process?

Accepted Answer

A point in a process that limits overall throughput or speed

Answer

A pricing strategy for premium products

Answer

A type of supplier contract clause

Answer

A legal term for contract disputes

Question 5

What does 'just-in-time' (JIT) inventory management aim to achieve?

Accepted Answer

Receiving goods only as they are needed in production to reduce inventory costs

Answer

Delivering products ahead of schedule

Answer

Stocking large reserves to avoid supply disruptions

Answer

Pre-ordering a full year's supply at once

Question 6

What is 'business continuity planning'?

Accepted Answer

Preparing procedures to maintain operations during and after a disruption

Answer

A strategy for expanding into new markets

Answer

An HR process for succession planning

Answer

A method for launching new product lines