Production Planning (HL only) Quiz by Shubhrata Shrestha | Sep 15, 2025 | 0 comments Production Planning (HL only) Quiz 1. Which of the following is a drawback of global supply chains? A) Reduced transportation costs B) Limited product availability C) Time zone and cultural differences D) Easier supplier coordination None 2. Just-in-Time stock control requires: A) Large buffer stocks B) Stocks delivered only when needed C) Maintaining perishable goods in large quantities D) Stockpiling for economies of scale None 3. Buffer stock in inventory management refers to: A) The average amount of stock sold in a week B) The minimum safety stock kept to prevent shortages C) The maximum stock that can be stored D) The time between placing and receiving an order None 4. Capacity utilization of a firm is 75%. This means: A) 25% of its resources are idle B) 75% of its costs are fixed C) 25% of products are defective D) 75% of workers are employed None 5. A high defect rate usually leads to: A) Lower waste and better efficiency B) Increased waste and customer dissatisfaction C) Stronger brand reputation D) Reduced production costs None 6. Which is a disadvantage of Just-in-Case (JIC) stock control? A) Increased flexibility to meet demand B) Higher storage and insurance costs C) Ability to use bulk buying discounts D) Improved customer satisfaction None 7. The formula for Cost to Make (CTM) is: A) Price × Quantity B) Fixed Costs + (Variable Costs × Quantity) C) (Actual Output ÷ Potential Output) × 100 D) Total Revenue ÷ Total Costs None 8. Which of the following is NOT a determinant of productivity? A) Technology B) Rivalry C) Innovation D) Luxury demand None 9. A firm with high operating leverage is most vulnerable when: A) Sales volume decreases B) Demand increases sharply C) Fixed costs are low D) Suppliers are reliable None 10. One key qualitative factor in make-or-buy decisions is: A) The formula for average cost B) Reliability of suppliers C) The profit margin ratio D) Currency exchange rates None Time's up Submit a Comment Cancel replyYour email address will not be published. Required fields are marked *Comment * Name * Email * Website Save my name, email, and website in this browser for the next time I comment. Δ
