C215 Operations Management
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Free C215 Operations Management Questions
Which of the following is NOT part of the new-product development process?
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Concept development
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Product design
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Development of the marketing strategy
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Pilot production/testing
Explanation
Explanation:
The new-product development process generally includes stages such as idea generation, concept development, product design, prototype creation, and pilot production/testing. While marketing strategy is critical to launching and selling a product, the formal development process focuses on creating and refining the product itself rather than devising marketing plans.
Correct Answer:
Development of the marketing strategy
Why Other Options Are Wrong:
Concept development
This is a key early stage where the idea is fleshed out and evaluated for feasibility and customer appeal.
Product design
Designing the product’s specifications and features is central to turning concepts into tangible offerings.
Pilot production/testing
This step validates the manufacturing process and ensures the product meets quality and performance standards before full-scale launch.
Quality Function Deployment:
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Links customer requirements to technical specifications
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Eliminates customer attributes
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Depends only on engineering characteristics
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Assumes that interactions between engineering characteristics are unimportant
Explanation
Explanation:
Quality Function Deployment (QFD) is a structured method for translating customer requirements into detailed engineering and technical specifications. Often visualized through the “House of Quality,” QFD ensures that the voice of the customer directly informs design decisions. It does not ignore customer attributes or engineering interactions; rather, it integrates them to produce products that truly meet customer needs.
Correct Answer:
Links customer requirements to technical specifications
Why Other Options Are Wrong:
Eliminates customer attributes
QFD is specifically designed to capture and prioritize customer attributes, so eliminating them contradicts its purpose.
Depends only on engineering characteristics
While engineering factors are important, QFD balances them with customer requirements; it is not solely engineering-driven.
Assumes that interactions between engineering characteristics are unimportant
QFD explicitly analyzes and manages these interactions to ensure the final design meets all functional needs, so this statement is false.
Evaluating the increased level of customer service and the additional cost associated with stocking higher levels of inventory is an example of what approach to decision making?
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Analysis of trade-offs
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A systems approach
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Schematic modeling
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Ethical considerations
Explanation
Explanation:
This situation compares the benefits of improved customer service against the costs of carrying more inventory. Weighing benefits against costs to determine the best balance reflects an analysis of trade-offs, a fundamental principle in operations and decision-making.
Correct Answer:
Analysis of trade-offs
Why Other Options Are Wrong:
A systems approach
A systems approach considers the organization as a whole and how components interact but does not specifically focus on comparing costs and benefits.
Schematic modeling
Schematic modeling uses visual or mathematical representations to study processes, not necessarily to weigh competing costs and benefits.
Ethical considerations
Ethical considerations involve moral principles rather than evaluating financial or service-level trade-offs.
A company makes necklaces with attached letters. Department A manufactures the necklace chains and letters ahead of demand. Department B assembles the necklaces for specific names when orders are received. Departments A and B are, respectively:
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Make-to-stock, make-to-stock
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Make-to-stock, assemble-to-order
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Make-to-order, make-to-stock
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Make-to-order, assemble-to-order
Explanation
Explanation:
Department A produces standard components—the chains and letters—before actual customer orders arrive, which fits a make-to-stock approach. Department B waits until an order specifies the name before assembling the necklace, which is characteristic of an assemble-to-order process. This combination allows the company to balance efficiency in component production with customization in final assembly.
Correct Answer:
Make-to-stock, assemble-to-order
Why Other Options Are Wrong:
Make-to-stock, make-to-stock
This would mean both departments produce only to forecast with no customization at assembly, which contradicts the fact that B waits for specific orders.
Make-to-order, make-to-stock
Department A is clearly making chains and letters in advance, not to individual orders, so it is not make-to-order.
Make-to-order, assemble-to-order
Department A is not make-to-order because it does not wait for customer orders before manufacturing the basic components.
Operating budgets are prepared to
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determine workers' schedules for the upcoming period
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help owners anticipate profits
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prepare employees for cutbacks
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help managers plan for the financial activities taking place in their facility
Explanation
Explanation:
An operating budget details the expected revenues and expenses for a specific period, usually a fiscal year, and serves as a plan for day-to-day financial activities. It provides a framework for allocating resources, controlling costs, and guiding financial decisions throughout the operating cycle. The main goal is to help managers plan and control financial operations effectively, ensuring the organization can meet its objectives within available resources.
Correct Answer:
help managers plan for the financial activities taking place in their facility
Why Other Options Are Wrong:
determine workers' schedules for the upcoming period
While labor costs may be part of the budget, scheduling employees is a staffing activity and not the primary purpose of an operating budget.
help owners anticipate profits
Budgets provide financial insight, but their key function is planning and control, not merely forecasting profits for owners.
prepare employees for cutbacks
Budgets are proactive planning tools and are not designed specifically to warn employees of reductions.
Inventory decisions involve:
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Determining what to order, how much to order, and when to order
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Tracking the flow of materials
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Managing the finished goods inventories
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All of these
Explanation
Explanation:
Inventory decisions encompass all aspects of managing materials and goods within an organization. This includes determining the appropriate quantity and timing for ordering raw materials, tracking the movement of materials throughout the supply chain, and overseeing finished goods inventories to meet customer demand while minimizing costs. Effective inventory management integrates all these elements to maintain a balance between supply availability and cost efficiency.
Correct Answer:
All of these
Why Other Options Are Wrong:
Determining what to order, how much to order, and when to order
While this is a critical part of inventory management, it represents only one aspect. Limiting inventory decisions to this function overlooks the equally important tasks of tracking materials and managing finished goods.
Tracking the flow of materials
This activity is part of inventory management but does not cover the full scope. Inventory decisions require more than just monitoring material movement; they also include ordering and controlling finished goods.
Managing the finished goods inventories
Managing finished goods is indeed necessary, but focusing solely on this ignores raw material ordering and materials tracking, both essential to comprehensive inventory decision-making.
Modular design involves:
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Dividing the production process into separate work units
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Dividing the products into product lines
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Dividing the products into their similar components
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Dividing the products into different cost categories
Explanation
Explanation:
Modular design is a product architecture approach in which a product is broken down into distinct, interchangeable modules or components. Each module can be independently created, modified, or replaced, which simplifies production, maintenance, and customization. This strategy increases flexibility and reduces manufacturing complexity.
Correct Answer:
Dividing the products into their similar components
Why Other Options Are Wrong:
Dividing the production process into separate work units
This refers to organizing the workflow or tasks, which relates to process layout or job design, not to modular product design.
Dividing the products into product lines
This describes market segmentation or product line management, not the structural design of a single product.
Dividing the products into different cost categories
Classifying products by cost is a budgeting or accounting activity, not a design methodology.
Which of the following are the three forms of mass customization:
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Modular production, postponement, and efficient customer response
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Fast changeover, modular production, and make-to-stock
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Modular production, postponement, and fast changeover
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Assemble-to-order, modular production, and value analysis
Explanation
Explanation:
Mass customization combines the efficiency of mass production with the flexibility to meet individual customer needs. The three recognized forms are modular production (building blocks for variety), postponement (delaying final assembly or customization until customer specifications are known), and fast changeover (quickly switching production to different configurations).
Correct Answer:
Modular production, postponement, and fast changeover
Why Other Options Are Wrong:
Modular production, postponement, and efficient customer response
Efficient customer response is more related to supply chain practices in retail rather than a core form of mass customization.
Fast changeover, modular production, and make-to-stock
Make-to-stock is the opposite of mass customization because it focuses on forecasting and holding inventory of finished goods.
Assemble-to-order, modular production, and value analysis
Assemble-to-order is a strategy for fulfilling orders, and value analysis is a cost/utility improvement tool, not a fundamental form of mass customization.
Supply chain management includes all of the following except:
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Purchasing
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Inventory control
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Advertising
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Customer service
Explanation
Explanation:
Supply chain management focuses on planning and controlling the flow of goods, services, and information from suppliers to customers. Key activities include purchasing raw materials, managing inventory levels, and providing customer service to ensure satisfaction and feedback. Advertising, however, is a marketing function aimed at promoting products and generating demand rather than managing the physical or informational flow within the supply chain.
Correct Answer:
Advertising
Why Other Options Are Wrong:
Purchasing
Purchasing is a fundamental supply chain activity that secures the raw materials and components needed for production, directly affecting cost and efficiency.
Inventory control
Inventory control ensures the right amount of stock is available to meet demand without incurring excessive holding costs, making it central to supply chain management.
Customer service
Customer service is integral to supply chain operations, as it addresses delivery issues, returns, and feedback to maintain customer satisfaction and improve future processes.
Which of the following best describes the role of Operations Management in a business?
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It focuses solely on marketing strategies to increase sales.
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It oversees the production and delivery of goods and services efficiently
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It is primarily concerned with financial reporting and accounting
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It manages human resources and employee relations exclusively
Explanation
Explanation:
Operations Management is the discipline responsible for planning, organizing, and controlling the processes that transform inputs such as materials, labor, and information into finished goods and services. Its focus is on efficiency, quality, and cost control in production and service delivery to meet customer requirements and organizational goals.
Correct Answer:
It oversees the production and delivery of goods and services efficiently.
Why Other Options Are Wrong:
It focuses solely on marketing strategies to increase sales
Marketing is a separate business function concerned with promoting and selling products, not managing the production or service processes.
It is primarily concerned with financial reporting and accounting
Financial reporting falls under the accounting and finance departments, not operations management.
It manages human resources and employee relations exclusively
While operations managers work with employees, human resources management is a distinct function focusing on recruitment, training, and employee relations.
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