MBA Operations Management 3

Question 1

What is 'make-or-buy' analysis in operations?

Accepted Answer

A decision framework for determining whether to produce something internally or purchase it externally

Answer

A pricing model comparing online vs. in-store sales

Answer

A cost-benefit analysis for new product development

Answer

A method for evaluating supplier contract terms

Question 2

What is 'demand forecasting' and why is it critical in operations?

Accepted Answer

Estimating future customer demand to plan production, inventory, and resource allocation effectively

Answer

Predicting competitor pricing moves

Answer

Calculating how long current inventory will last

Answer

Measuring actual sales against targets

Question 3

What is the 'economic order quantity' (EOQ) model used to determine?

Accepted Answer

The optimal order quantity that minimizes total inventory holding and ordering costs

Answer

The optimal price at which to sell inventory

Answer

The maximum inventory level a warehouse can hold

Answer

The reorder point when safety stock is reached

Question 4

What does 'continuous improvement' (Kaizen) emphasize in Japanese management philosophy?

Accepted Answer

Making small, incremental, ongoing improvements involving all employees at every level

Answer

Implementing large-scale revolutionary changes infrequently

Answer

Focusing improvement efforts exclusively on senior management decisions

Answer

Automating all processes to eliminate human error

Question 5

What is 'aggregate planning' in operations management?

Accepted Answer

Medium-term planning to match production capacity with anticipated demand across product families

Answer

Planning individual product specifications

Answer

Scheduling daily machine maintenance tasks

Answer

Designing the layout of a warehouse or factory

Question 6

What is a 'service level agreement' (SLA) in operations?

Accepted Answer

A formal contract defining the expected level of service, performance metrics, and remedies between a provider and customer

Answer

A document outlining employee benefits packages

Answer

A quality certification standard for manufacturers

Answer

A government regulation on workplace safety standards