Operations management

$1.$ What is the primary objective of operations management?

a$)$ Maximizing profits

b$)$ Minimizing operational inefficiencies

c$)$ Ensuring customer satisfaction

d$)$ Expanding market share

$2.$ Among the following, which is NOT one of the core principles in the $5$S methodology frequently utilized in operations management?

a$)$ Sort

b$)$ Streamline

c$)$ Standardize

d$)$ Sustain

$3.$ In the context of supply chain management, which inventory management strategy focuses on minimizing holding costs by ordering inventory only when it's required?

a$)$ Just$-$in$-$Time $($JIT$)$

b$)$ Economic Order Quantity $($EOQ$)$

c$)$ Safety Stock

d$)$ Inventory Classification

$4.$ What is the primary goal of Total Quality Management $($TQM$)$ in operations management?

a$)$ Maximizing production output

b$)$ Minimizing production downtime

c$)$ Ensuring the highest product quality and customer satisfaction

d$)$ Reducing production complexity

$5.$ Which forecasting method relies on historical demand patterns to predict future demand?

a$)$ Delphi method

b$)$ Time series analysis

c$)$ Regression analysis

d$)$ Market segmentation analysis

$1.$ In a manufacturing process, the cycle time is $2$ minutes, and the demand is $240$ units per hour. How many units can be produced in $8$ hours?

a$)960$ units

b$)1,440$ units

c$)1,920$ units

d$)2,880$ units

$2.$ A project has a net present value $($NPV$)$ of $$10,000$ and an initial investment of $$8,000.$ What is the NPV per dollar invested?

a$)$ $$0\mathrm{.}25$

b$)$ $$0\mathrm{.}50$

c$)$ $$1\mathrm{.}25$

d$)$ $$2\mathrm{.}50$

$3.$ A warehouse has $5,000$ units of inventory with an average cost of $$20$ per unit. If the holding cost rate is $10\%$ per year, what is the annual holding cost?

a$)$ $$1,000$

b$)$ $$5,000$

c$)$ $$10,000$

d$)$ $$25,000$

$4.$ A production line produces $500$ widgets per hour. If the line operates for $6$ hours a day, how many widgets are produced in a week?

a$)1,500$ widgets

b$)3,000$ widgets

c$)18,000$ widgets

d$)21,000$ widgets

$5.$ If a company's fixed costs are $$50,000,$ variable costs per unit are $$10,$ and the selling price per unit is $$30,$ how many units must be sold to break even?

a$)1,000$ units

b$)2,000$ units

c$)3,000$ units

d$)4,000$ units

$6.$ A project has an internal rate of return $($IRR$)$ of $12\%.$ If the initial investment is $$50,000,$ what is the net present value $($NPV$)$ of the project?

a$)$ $$5,000$

b$)$ $$10,000$

c$)$ $$15,000$

d$)$ $$20,000$

$7.$ A factory produces $1,000$ units of a product per day. If the defect rate is $5\%,$ how many defective units are produced each day?

a$)50$ units

b$)100$ units

c$)500$ units

d$)950$ units

$8.$ A company's inventory turnover ratio is $6$ times per year. What is the average number of days it takes to sell its inventory?

a$)60$ days

b$)90$ days

c$)120$ days

d$)180$ days

$9.$ A manufacturing process has a defect rate of $2\%$ for a particular product. If $5,000$ units are produced, how many defective units can be expected?

a$)50$ units

b$)100$ units

c$)200$ units

d$)500$ units

$10.$ A project has a payback period of $3$ years and is expected to generate annual cash flows of $$20,000.$ What is the total cash inflow expected from the project over its payback period?

a$)$ $$10,000$

b$)$ $$20,000$

c$)$ $$30,000$

d$)$ $$60,000$

$1.**$Inventory Turnover$**$:

What is the inventory turnover ratio if a company had $$500,000$ in sales and an average inventory of $$100,000?$

a$)2\mathrm{.}0$

b$)3\mathrm{.}0$

c$)4\mathrm{.}0$

d$)5\mathrm{.}0$

$2.**$Break$-$Even Analysis$**$:

If a company's fixed costs are $$50,000,$ the selling price per unit is $$20,$ and the variable cost per unit is $$10,$ how many units must be sold to break even?

a$)2,500$ units

b$)5,000$ units

c$)7,500$ units

d$)10,000$ units

$3.**$Net Present Value $($NPV$)**$:

If an investment generates cash flows of $$10,000$ in year $1,$ $$15,000$ in year $2,$ and $$20,000$ in year $3,$ with a discount rate of $8\%,$ what is the NPV$?$

a$)$ $$35,000$

b$)$ $$30,000$

c$)$ $$25,000$

d$)$ $$20,000$

$4.**$Capacity Utilization$**$:

A factory with a maximum production capacity of $10,000$ units is currently producing $8,000$ units. What is the capacity utilization rate?

a$)80\%$

b$)85\%$

c$)90\%$

d$)95\%$

$5.**$Production Efficiency$**$:

If a manufacturing process produces $800$ units in $4$ hours, what is the production rate in units per hour?

a$)100$ units$/$hour

b$)150$ units$/$hour

c$)200$ units$/$hour

d$)250$ units$/$hour

$6.**$Order Quantity$**$:

Using the Economic Order Quantity $($EOQ$)$ formula, if the annual demand is $5,000$ units, ordering cost is $$100$ per order, and holding cost per unit per year is $$2,$ what is the EOQ?

a$)500$ units

b$)750$ units

c$)1,000$ units

d$)1,250$ units

$7.**$Return on Investment $($ROI$)**$:

If an investment of $$50,000$ generates a profit of $$10,000,$ what is the ROI as a percentage?

a$)5\%$

b$)10\%$

c$)20\%$

d$)25\%$