operations strategies HSC questions Flashcards
Multiple-choice question
Which of the following is the best method for managing the stock of fresh milk in a supermarket? (1 mark)
(A) Just‑in‑time
(B) First‑in‑last‑out
(C) Last‑in‑first‑out
(D) First‑in‑first‑out
Source: Q8, 2015 HSC paper
Answer: D
Multiple-choice question
A business wants to minimise the volume of its waste.
Which performance objective is the business trying to achieve? (1 mark)
(A) Cost
(B) Customisation
(C) Flexibility
(D) Speed
Source: Q9, 2015 HSC paper
Answer: A
Essay question
Evaluate the importance of operations strategies in achieving competitive advantage. (20 marks)
Source: Q27, 2015 HSC paper
Answers could include:
Operations strategies
• performance objectives – quality, speed, dependability, flexibility, customisation, cost
• new product or service design and development
• supply chain management – logistics, e-commerce, global sourcing
• outsourcing – advantages and disadvantages
• technology – leading edge, established
• inventory management – advantages and disadvantages of holding stock, LIFO (last-in-first-out), FIFO (first-in-first-out), JIT (just-in-time)
• quality management
– control
– assurance
– improvement
• overcoming resistance to change – financial costs, purchasing new equipment, redundancy payments, retraining, reorganising plant layout, inertia
• global factors – global sourcing, economies of scale, scanning and learning, research and development
Multiple-choice question
Which of the following are all examples of operations performance objectives? (1 mark)
(A) Choice, flexibility, profit, speed
(B) Cost, dependability, quality, speed
(C) Customisation, flexibility, profit, quality
(D) Choice, customisation, dependability, profit
Source: Q5, 2014 HSC paper
Answer: B
Multiple-choice question
A car assembly plant had to shut down operations for a day because tyres had not been delivered.
What inventory management strategy at the car assembly plant may have caused this situation? (1 mark)
(A) Just-in-case
(B) Just-in-time
(C) First-in-first-out
(D) Last-in-first-out
Source: Q7, 2014 HSC paper
Answer: B
Multiple-choice question
What is the most likely result of a business achieving economies of scale? (1 mark)
(A) Greater flexibility
(B) Higher sales price per unit
(C) Greater efficiencies in production
(D) Higher average costs of production
Source: Q15, 2014 HSC paper
Answer: C
Multiple-choice question
A company’s policy is to purchase from lowest cost suppliers regardless of their location.
What is this policy an example of? (1 mark)
(A) Global sourcing
(B) Global branding
(C) Economies of scale
(D) Research and development
Source: Q5, 2013 HSC paper
Answer: A
Multiple-choice question
A business is experiencing increasing costs for its stock over time. It is seeking to maximise its profit for the current financial period.
Which strategy should it adopt to value its inventory? (1 mark)
(A) First-in-first-out
(B) Just-in-case
(C) Just-in-time
(D) Last-in-first-out
Source: Q18, 2013 HSC paper
Answer: A
Short-answer question
Casey owns and operates an independent discount fuel and convenience store.
Outline ONE way that ecommerce could assist Casey with supply chain management. (2 marks)
Source: Q23a, 2013 HSC paper
Sample answer: Electronic ordering is one way that e-commerce can assist Casey. By ordering electronically instead of manually, Casey can reduce lead times and get stock faster.
Short-answer question
Casey owns and operates an independent discount fuel and convenience store.
Explain ONE performance objective that is relevant to the operations function of the business. (3 marks)
Source: Q23b, 2013 HSC paper
Sample answer: Being dependable is important for Casey, as he needs to make sure that he always has stock on hand for his customers to buy. He also needs to be open regular hours, so that his customers know that they will be able to buy the products when they need them. If he is not dependable, he will lose sales and customer loyalty.
Answers could include:
• Having the highest quality goods and services
• Speed and productivity
• Being dependable and more flexible than competitors
• Efficiency and low cost
Short-answer question
Casey owns and operates an independent discount fuel and convenience store.
Is supply chain management important to Casey’s business? Justify your answer. (4 marks)
Source: Q23c, 2013 HSC paper
Sample answer: Supply chain management is important for Casey because it will affect his profits and sales. If Casey does not manage his supply chain well, he may run out of stock and his customers will go elsewhere for their fuel, thus reducing his sales.
He needs to try to minimise cost of his supplies by using cheaper suppliers and trying to reduce the number of suppliers he needs to deal with. This will increase his profits.
[Students may take an alternative approach that, if correct, should be rewarded.]
Essay question
Assess strategies that management may use to respond to influences on operations. (20 marks)
Source: Q27, 2013 HSC paper
Answers could include:
Operations strategies:
• Performance objectives – quality, speed, dependability, flexibility, customisation, cost
• New product or service design and development
• Supply chain management – logistics, e-commerce, global sourcing
• Outsourcing – advantages and disadvantages
• Technology – leading edge, established
• Inventory management – advantages and disadvantages of holding stock, LIFO, FIFO, JIT
• Quality management – control, assurance, improvement
• Overcoming resistance to change – financial costs, purchasing new equipment, redundancy
payments, retraining, reorganising plant layout, inertia
• Global factors – global sourcing, economies of scale. scanning and learning, research and development
Influences:
• Globalisation, technology, quality expectations, cost-based competition, government
policies, legal regulation, environmental sustainability
• Corporate social responsibility
[Students may take an alternative approach, which, if correct, should be rewarded.]
Multiple-choice question
Which of the following is an essential aspect of logistics?
(A) Undertaking a skills audit
(B) Checking the quality of all output
(C) Materials handling and packaging
(D) The creation of a budget for new machinery
Source: Q11, 2012 HSC paper
Answer: C
Business report question
Sunshine Fruit Juices employs 100 people in its Queensland factory and supplies juice to large supermarket chains in Asia and North America. Customers have recently complained that the product has been damaged and bottles have been wrongly labelled.
An increase in industrial disputes has also occurred due to a number of recent workplace accidents and demands from employees for higher wages.
You have been employed by Sunshine Fruit Juices to prepare a report for management on the issues outlined above.
In your report, recommend strategies for human resources and operations that the firm could implement to improve its business performance. (20 marks)
Source: Q25, 2012 HSC paper
Answer:
Multiple-choice question
A business is experiencing increasing costs for its stock over time. It is seeking to maximise its profit for the current financial period.
Which strategy should it adopt to value its inventory?
(A) First-in-first-out (B) Just-in-case (C) Just-in-time (D) Last-in-first-out
Source: Q18, 2013 HSC paper
Answer: A
