AS Business - Operations Planning

Accurate sales forecasts will help operations managers to achieve all of the following except:

• keep stock levels to a minimum

• educe wastage of production

• maximise output

• match output closely to demand levels.

All of the following are examples of process innovation except:

• robots in manufacturing

• CAM

• computer tracking of stock

• product development.

Mass customisation is defined as:

• producing a one-off item specially designed for the customer

• producing items to meet individual customer requirements at mass-production levels

• producing a limited number of identical products

• producing items in a continually moving process.

Batch production is defined as:

• producing identical products in batches

• the use of fl exible computer-aided production systems

• producing items in a continually moving process

• producing items in batches in which every item in the batch passes through one stage of production before the batch moves on to the next stage.

The Coca-Cola factory in South Korea produces a range of products on its production lines. An individual production line may produce Diet Coke one day and then be switched to Fanta the next. Cans move along a conveyor belt producing items in a continually moving process. The production method used by Coca-Cola is:

• flow production

• batch production

• job production

• mass customisation.

Which of the following is an advantage of job production relative to batch production?

• Which of the following is an advantage of job production relative to batch production?

• It provides the opportunity to take advantage of economies of scale.

• There is greater division of labour.

• It allows a higher level of demand to be met.

Which of the following is not a problem associated with making a change from job to batch production?

• the increased working capital cost needed to finance stocks

• the increased capital cost of machinery

• staff demotivation

• increasing unit costs

A manufacturer of MP3 players wishes to increase its added value. Which of the following changes are likely to increase the added value?

(i) redesigning the product to make it more aesthetically pleasing

(ii) increasing promotion to build brand loyalty

(iii) paying administrative employees less

• (i) only

• (i) and (ii)

• (ii) and (iii)

• (i), (ii) and (iii)

A firm faces the following unit costs:

• purchases of raw materials $2.00

• direct labour costs $3.00

• indirect costs $1.50.

The selling price of the product is $10.00. Therefore, the added value made by the firm is:

• $3.50

• $8.00

• $5.00

• $5.50.

Which of the following is not likely to increase productivity levels?

• extra training given to employees

• improving worker motivation

• investing in capital equipment

• reducing pay of production workers