Question 1

LTL Ltd is a manufacturing organisation that produces made to order equipment for the construction industry such as bespoke windows and doors. The Head of Operations has received four large orders of windows and doors and is considering the sequencing of when the orders should be made. Which of the following should the company do?

Options :

A : Use a First Come First Serve system to prioritise the orders that were made first. This will ensure customer satisfaction

B : Sequence the orders in the way that will be the cheapest to produce so as to create the highest profit margin

C : Create the orders in the most logical, economic and fastest pattern. This may mean that the first order received is the last to be produced

D : Start manufacturing the order that has the longest time to complete first so all orders are ready at the same time.

Answer: C

Question 2

Which area of operations strategy is concerned with information management systems, automation and productivity?

Options :

A : capacity

B : supply network design

C : process technology

D :

development and organisational design

Answer: C

Question 3

A cupcake manufacturing organisation use a 'management by exception' technique when it comes to planning and control. What does this mean?

Options :

A : audits and other control activities are completed by an outsourced company to ensure there is no bias in the investigations

B : reporting only takes place when non-compliance occurs

C : plans and control activities are created based on historical performance

D : exceptional performance is rewarded, for example through staff bonus schemes

Answer: B

Question 4

When designing a supply network, which of the following stages should be completed first?

Options :

A :

analyse potential risks

B : confirm the network scope

C : determine the approach for managing material flow

D : track information flow

Answer: B

Question 5

Risks are always present within organisational strategies and it is important that they are assessed. Which of the following are strategies for dealing with risk?

Options :

A : avoid, eliminate, reduce, transfer

B : terminate, escape, eliminate, destroy

C : escape, eliminate, evade, end

D : track, control, mitigate, reduce

Answer: A

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