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

Capacity planning ensures a business has sufficient resources (staff, equipment, space) to meet current and future demand efficiently.

Question 2

What does 'inventory turnover ratio' measure?

Accepted Answer

How many times inventory is sold and replaced in a period

Answer

Inventory turnover ratio shows how many times a company sells and replaces its inventory during a given period, indicating sales efficiency.

Question 3

What is 'Total Quality Management' (TQM)?

Accepted Answer

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

Answer

TQM is a management philosophy that focuses on long-term success through customer satisfaction by involving all employees in continuous process improvement.

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 bottleneck is any step in a business process where the flow is constrained, slowing down the entire operation and reducing overall output.

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

JIT inventory management minimizes inventory holding costs by receiving materials precisely when needed for production or sale.

Business Services Practice Test

Business Services Practice Test

Business Services Business Services Operations Management 2