Examination Questions And Correct
Answers (Verified Answers) Plus
Rationales 2026 Q&A | Instant
Download Pdf
1. What is the primary objective of operations management?
A. Maximizing advertising reach
B. Minimizing employee count
C. Transforming inputs into goods and services efficiently
D. Increasing government compliance
Answer: C
Rationale: Operations management focuses on the systematic design, direction,
and control of processes that convert inputs such as labor, materials, and capital
into finished goods or services. Efficiency and effectiveness are central goals,
ensuring value creation while minimizing waste and cost.
2. Which of the following is considered a transformation process input?
A. Customer feedback
B. Raw materials
C. Finished goods
D. Distribution channels
Answer: B
Rationale: Inputs in operations include resources such as raw materials, labor,
information, and capital. Raw materials are directly transformed into finished
products during production processes.
, 3. What does capacity planning primarily determine?
A. Employee salaries
B. Maximum output level a system can handle
C. Marketing budget allocation
D. Supplier selection criteria
Answer: B
Rationale: Capacity planning determines the maximum sustainable output that
an organization can produce under normal conditions. It ensures demand can be
met without overloading resources or underutilizing assets.
4. Which forecasting method relies on expert judgment?
A. Time series analysis
B. Regression analysis
C. Qualitative forecasting
D. Moving averages
Answer: C
Rationale: Qualitative forecasting uses expert opinion, intuition, and market
research rather than historical numerical data. It is useful when data is limited
or when predicting new product demand.
5. What is the main goal of inventory management?
A. Increase storage costs
B. Ensure product availability at minimum cost
C. Eliminate all stock
D. Increase supplier dependency
Answer: B
,Rationale: Inventory management balances ordering and holding costs while
ensuring that sufficient stock is available to meet customer demand without
overstocking.
6. Economic Order Quantity (EOQ) is used to:
A. Maximize profit margins
B. Determine optimal order size
C. Increase production speed
D. Eliminate suppliers
Answer: B
Rationale: EOQ identifies the ideal order quantity that minimizes total inventory
costs, including ordering and holding costs, ensuring operational efficiency.
7. Just-In-Time (JIT) inventory aims to:
A. Increase storage levels
B. Receive goods only when needed
C. Increase batch production
D. Reduce supplier interaction
Answer: B
Rationale: JIT reduces inventory costs by receiving materials only when required
in production, minimizing waste and storage expenses while improving
efficiency.
8. Which tool is commonly used for process mapping?
A. Gantt chart
B. Flowchart
C. Histogram
D. Scatter plot
, Answer: B
Rationale: Flowcharts visually represent processes, showing steps, decisions, and
workflows, making it easier to analyze and improve operations.
9. What does Six Sigma primarily focus on?
A. Increasing advertising reach
B. Reducing process variation and defects
C. Hiring more staff
D. Expanding product lines
Answer: B
Rationale: Six Sigma is a quality improvement methodology aimed at reducing
defects and variability in processes to improve consistency and customer
satisfaction.
10.Which layout is best for customized products?
A. Product layout
B. Process layout
C. Fixed-position layout
D. Cellular layout
Answer: C
Rationale: Fixed-position layout is ideal for large, unique products such as ships
or aircraft, where the product remains stationary while resources move to it.
11.What is lead time?
A. Employee working hours
B. Time between order and delivery
C. Machine setup time
D. Production downtime