MBA Operations Management 1

Question 1

What is the primary objective of supply chain management?

Accepted Answer

Coordinating the flow of goods, information, and finances to deliver value to the end customer efficiently

Answer

Supply chain management coordinates all activities from raw material sourcing through production and delivery to optimize cost, speed, and customer satisfaction.

Question 2

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

Accepted Answer

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

Answer

JIT minimizes inventory carrying costs by scheduling deliveries to arrive precisely when needed in the production process, reducing waste and storage requirements.

Question 3

What is 'Six Sigma' in operations management?

Accepted Answer

A data-driven methodology to reduce defects and process variation to near-perfect quality

Answer

Six Sigma uses statistical tools and the DMAIC process (Define, Measure, Analyze, Improve, Control) to reduce defects to fewer than 3.4 per million opportunities.

Question 4

What is 'capacity planning' in operations management?

Accepted Answer

Determining the production capacity needed to meet future demand

Answer

Capacity planning ensures a business has sufficient production capacity to meet anticipated demand while avoiding costly overcapacity or lost sales from undercapacity.

Question 5

What is the 'bullwhip effect' in supply chains?

Accepted Answer

Increasing variability in orders as you move upstream in the supply chain, amplifying demand fluctuations

Answer

The bullwhip effect occurs when small fluctuations in end-consumer demand get amplified at each upstream level of the supply chain, causing erratic ordering patterns.

MBA - Degree Master of Business Administration Practice Test

MBA - Degree Master of Business Administration Practice Test

MBA Operations Management 1