Lesson 8.16.1

8.16.1 The operations strategy Quiz: OCR Business, Unit 8

20 questions

Written by Revision Ninja · Last reviewed 11 October 2026

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Lesson 8.16.1, The operations strategy: 20 multiple choice questions for the OCR Business (H431), Unit 8: Operations, written with Revision Ninja.

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The 20 questions

  1. Which operational objective measures actual output as a percentage of maximum potential output?

    • Labour productivity
    • Profit margin
    • Unit cost
    • Capacity utilisation

  2. What is the main operational benefit of achieving purchasing economies of scale?

    • Higher lead times
    • Lower unit costs
    • Increased waste
    • Greater flexibility

  3. Which operational strategy focuses on continuous improvement and eliminating all forms of waste?

    • Buffer stock management
    • Mass customisation
    • Offshoring
    • Lean production

  4. What key performance indicator measures the time elapsed between placing an order and receiving delivery?

    • Lead time
    • Takt time
    • Cycle speed
    • Downtime

  5. Which operational objective measures the proportion of output that meets quality standards without rework?

    • First-time yield
    • Labour turnover
    • Capacity utilisation
    • Return on capital

  6. What is the process of subcontracting business operations to a third-party specialist provider?

    • Benchmarking
    • Outsourcing
    • Insourcing
    • Offshoring

  7. Which operational objective focuses on a business adapting quickly to changes in customer demand?

    • Economies of scale
    • Operational flexibility
    • Quality assurance
    • Cost leadership

  8. Which strategic decision determines the geographic placement of production facilities and distribution hubs?

    • Capacity planning
    • Lean layout
    • Supply chain mapping
    • Location strategy

  9. A factory produces 8,000 units daily with a maximum capacity of 10,000 units. What is capacity utilisation?

    • 20%
    • 8%
    • 125%
    • 80%

  10. Total production cost is £60,000 for producing 12,000 units. What is the unit cost?

    • £0.20
    • £2
    • £50
    • £5

  11. A furniture manufacturer changes operations to produce unique custom chairs per customer order. Which strategy is this?

    • Mass customisation
    • Cellular manufacturing
    • Flow production
    • Batch processing

  12. A car maker reduces stock levels by ordering raw materials only when needed for production. What is this?

    • Kaizen
    • Total Quality Management
    • Just-in-Time
    • Buffer stock

  13. Fixed costs are £30,000 and variable costs are £20,000 for 5,000 units. What is total cost per unit?

    • £6
    • £4
    • £15
    • £10

  14. A baker produces 400 loaves per day. If capacity utilisation is 50%, what is maximum daily capacity?

    • 800 loaves
    • 200 loaves
    • 1,000 loaves
    • 600 loaves

  15. An online retailer offers guaranteed same-day dispatch. Which operational target does this primarily support?

    • Cost minimisation
    • Speed of response
    • Product customisation
    • Environmental footprint

  16. A technology firm audits suppliers to ensure zero component defects. Which target is prioritised?

    • Capital intensity
    • Volume flexibility
    • Resource depletion
    • Quality assurance

  17. Operating consistently at 100% capacity utilisation over long periods increases which major operational risk?

    • Underutilised labour
    • Excessive stock holding
    • Lower unit costs
    • Equipment breakdown

  18. Which operational trade-off typically occurs when a firm drastically increases product customisation options?

    • Lower quality standards
    • Higher unit costs
    • Lower lead times
    • Higher output volume

  19. Which concept describes designing products specifically to make their production simpler and cheaper?

    • Critical path analysis
    • Benchmarking
    • Design for manufacture
    • Quality circle

  20. What operational constraint limits a firm's ability to quickly accept sudden custom orders?

    • Low spare capacity
    • Low asset turnover
    • High unit costs
    • High labour turnover

All OCR Business quizzes