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Operation management part 1

Which of the following is not a feature of a Just in Time (JIT) inventory control system?

� No inventories are held by the business

� Inventories are held by the business just in case there is a delay in deliveries or a surge in demand

� Inventories are only delivered when needed

� Finished goods are delivered to the customer as soon as they leave the production process

Which of the following best describes lean production?

� Producing items in batches

� Producing one item at a time

� The production of goods and services focussing on reducing waste, whilst ensuring quality

� Producing items on an assembly line

Which of the following best describes batch production?

Mass production of identical goods on an assembly line

The production of goods in separate groups

He production of goods one at a time

Standardised products are produced on a large scale

The cost of making one unit of output is calculated by using which of the following:

Fixed costs divided by output

Revenue divided by output

Total variable costs divided by output

Total costs divided by output

Revenue is calculated as:

Fixed costs + total variable costs

Price x total variable costs

Price x quantity sold

Price x total costs

What does the Japanese term ‘Kaizen’ mean?

Continuous improvement

Meeting customer needs

Improving productivity

Producing quality goods and services

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