Lesson 3.4.3

3.4.3 Making operational decisions: increasing efficiency and productivity Quiz: AQA Business, Unit 4

20 questions

Written by Revision Ninja · Last reviewed 11 October 2026

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Lesson 3.4.3, Making operational decisions: increasing efficiency and productivity: 20 multiple choice questions for the AQA Business (7132), Unit 4: Operational management, written with Revision Ninja.

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The 20 questions

  1. Which operations strategy keeps inventory levels minimal by receiving stock only as needed?

    • Just in Case
    • Just in Time
    • Batch production
    • Mass customisation

  2. What is the primary objective of using Just in Case (JIC) inventory management?

    • Eliminating storage costs
    • Minimising capital tied
    • Maximising cash flow
    • Preventing stock shortages

  3. What is the main objective of a lean production strategy in operations?

    • Maximising buffer stock
    • Maximising unit costs
    • Eliminating waste
    • Increasing factory space

  4. Which term describes a production process relying primarily on human effort rather than machinery?

    • Labour-intensive
    • Fully automated
    • Capital-intensive
    • Lean production

  5. Which type of production relies mainly on machinery rather than labour?

    • Just in Time
    • Lean production
    • Capital-intensive
    • Labour-intensive

  6. Which method directly increases labour productivity in a manufacturing plant?

    • Price increases
    • Higher dividends
    • Increased buffer stock
    • Staff training

  7. What is a common difficulty faced when attempting to increase labour productivity?

    • Falling market demand
    • Supplier insolvency
    • Employee resistance
    • High interest rates

  8. What is a major operational risk associated with Just in Time production?

    • Product obsolescence
    • Excess buffer stock
    • High storage costs
    • Supply chain disruption

  9. Which inventory approach involves holding buffer stock to protect against supply delays?

    • Just in Case
    • Kaizen
    • Lean production
    • Just in Time

  10. Replacing manual workers with automated machinery makes a production process more what?

    • Flexible
    • Capital-intensive
    • Bespoke
    • Labour-intensive

  11. Which operational condition makes a capital-intensive approach most suitable for a business?

    • Low demand volume
    • High output volume
    • High product variety
    • Bespoke product design

  12. A factory's output per hour rises from 50 to 60 units with the same workforce. What is the percentage increase in efficiency?

    • 10%
    • 16.7%
    • 20%
    • 120%

  13. Which technological application directly improves operational efficiency in a warehouse?

    • Automated stock tracking
    • Social media ads
    • Email newsletters
    • Customer feedback forms

  14. What is a main difficulty of adopting a lean production system?

    • Excessive storage costs
    • Increased waste generation
    • High inventory levels
    • Vulnerability to delays

  15. How is production described when it relies mainly on employees rather than machinery?

    • Lean production
    • Labour-intensive
    • Capital-intensive
    • Just-in-time

  16. Why is implementing Just in Time production risky for firms with unreliable suppliers?

    • Excess warehouse space
    • Higher holding costs
    • Increased stockout risk
    • Decreased unit costs

  17. A firm's output per worker rises from 40 to 52 units after training. What is the percentage gain?

    • 23%
    • 130%
    • 30%
    • 12%

  18. Why might heavy investment in capital-intensive machinery reduce operational flexibility?

    • Lower fixed costs
    • High retooling costs
    • Higher variable costs
    • Flexible worker shifts

  19. A firm adopts JIT and cuts its average inventory from 120,000 to 30,000. What is the percentage reduction?

    • 120%
    • 25%
    • 90%
    • 75%

  20. Which action directly increases labour productivity by improving workforce skills?

    • Reducing capacity
    • Buying machinery
    • Employee training
    • Increasing inventory

All AQA Business quizzes