OPERATIONS AND SUPPLY CHAIN
MANAGEMENT C720 EXAMINATION TEST
QUESTIONS WITH VERIFIED ANSWERS 2026
◉ The CEO of a service company wants to change the strategy of the
company from volume sales to high-quality products. Which
philosophy should the CEO implement to emphasize quality over
volume? Answer: Deming's 14 points
◉ Which quality tool examines patterns, flow, and causes of
variation of data points over time? Answer: Statistical process
control
◉ A company tries to reduce variation in the quality of products it
offers.
C Answer: A company tries to reduce variation in the quality of
products it offers.
A company emphasizes the quality of suppliers because the quality
of outputs are determined by the quality of inputs.
◉ Which Six Sigma methodology improves workplace efficiency and
eliminates waste? Answer: DMAIC
,◉ A clothing retailer sends out evaluations to customers to rate
quality as "outstanding," "good," "average," and "bad."If the retailer
wants to know the annual frequency of each evaluation category,
which tool should the retailer use? Answer: Histogram
◉ A vice president of a major retailer is trying to reduce the wait
time for customers in the checkout line by appropriately opening
checkout lines. To do this, the VP needs to know the relationship and
degree of correlation between monthly customer visits and area
population.Which tool should be used in this situation? Answer:
Scatter plot
◉ A rental company has a fleet of 50 cars that can be rented daily if
all vehicles have been washed and inspected and are free of
mechanical and electrical defects. Due to maintenance requirements
and late returns by customers, the rental company is, in general, able
to prepare 45 cars per day for rental. On average, 30 cars are rented
daily. What is the efficiency rate for this company Answer: 67%
capacity utilization (CU) and efficiency (E) are:
CU = actual output / design capacity
E = actual output / effective capacity.
◉ The original capacity in each process for a computer
manufacturer's operations is as follows:Parts inventory: 500 units
available per dayAssembly: 300 units assembled per dayDelivery:
, 450 units processed per day After the computer manufacturer
upgrades the assembly system, it can assemble 550 units per day.
According to this information, what is the throughput for this
computer manufacturer? Answer: 450 units/day
◉ A manager is planning staffing needs for a seasonal ice cream
stand. The manager expects to have the following number of
customers per day each month:
January: 20
February: 23
March: 30
April: 60
May: 90
Jun: 120
July: 130
August: 150
September: 100
October: 80
November: 60
December: 30
Which capacity planning strategy should the manager use to achieve
this customer demand? Answer: Lead
MANAGEMENT C720 EXAMINATION TEST
QUESTIONS WITH VERIFIED ANSWERS 2026
◉ The CEO of a service company wants to change the strategy of the
company from volume sales to high-quality products. Which
philosophy should the CEO implement to emphasize quality over
volume? Answer: Deming's 14 points
◉ Which quality tool examines patterns, flow, and causes of
variation of data points over time? Answer: Statistical process
control
◉ A company tries to reduce variation in the quality of products it
offers.
C Answer: A company tries to reduce variation in the quality of
products it offers.
A company emphasizes the quality of suppliers because the quality
of outputs are determined by the quality of inputs.
◉ Which Six Sigma methodology improves workplace efficiency and
eliminates waste? Answer: DMAIC
,◉ A clothing retailer sends out evaluations to customers to rate
quality as "outstanding," "good," "average," and "bad."If the retailer
wants to know the annual frequency of each evaluation category,
which tool should the retailer use? Answer: Histogram
◉ A vice president of a major retailer is trying to reduce the wait
time for customers in the checkout line by appropriately opening
checkout lines. To do this, the VP needs to know the relationship and
degree of correlation between monthly customer visits and area
population.Which tool should be used in this situation? Answer:
Scatter plot
◉ A rental company has a fleet of 50 cars that can be rented daily if
all vehicles have been washed and inspected and are free of
mechanical and electrical defects. Due to maintenance requirements
and late returns by customers, the rental company is, in general, able
to prepare 45 cars per day for rental. On average, 30 cars are rented
daily. What is the efficiency rate for this company Answer: 67%
capacity utilization (CU) and efficiency (E) are:
CU = actual output / design capacity
E = actual output / effective capacity.
◉ The original capacity in each process for a computer
manufacturer's operations is as follows:Parts inventory: 500 units
available per dayAssembly: 300 units assembled per dayDelivery:
, 450 units processed per day After the computer manufacturer
upgrades the assembly system, it can assemble 550 units per day.
According to this information, what is the throughput for this
computer manufacturer? Answer: 450 units/day
◉ A manager is planning staffing needs for a seasonal ice cream
stand. The manager expects to have the following number of
customers per day each month:
January: 20
February: 23
March: 30
April: 60
May: 90
Jun: 120
July: 130
August: 150
September: 100
October: 80
November: 60
December: 30
Which capacity planning strategy should the manager use to achieve
this customer demand? Answer: Lead
