VR01 Managing Operations Version 1
Practice exam for Western Governors University WGU Exams under Western Governors University Exams (College Exams). 5 sample questions.
Sample Questions
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Question 1
What is an objective of inventory management in business operations?
Correct Answer: D
Rationale: The primary objective of inventory management is to ensure product availability to meet customer demand at the lowest possible cost while minimizing stockouts and overstock situations; in other words, to provide the best possible service levels (high fill rates, on-time delivery). Maximizing production is a manufacturing objective, improving quality belongs to quality management, and enhancing product functionality is a design/R&D responsibility; none of these directly define the core purpose of inventory management.
Rationale: The primary objective of inventory management is to ensure product availability to meet customer demand at the lowest possible cost while minimizing stockouts and overstock situations; in other words, to provide the best possible service levels (high fill rates, on-time delivery). Maximizing production is a manufacturing objective, improving quality belongs to quality management, and enhancing product functionality is a design/R&D responsibility; none of these directly define the core purpose of inventory management.
Question 2
An automobile maker procures gears for its motorcar engine directly from a supplier that manufactures them. What is the core value-added activity of the gear supplier for the automobile maker?
Correct Answer: A
Rationale: The gear supplier's primary value-added activity is the actual production (manufacturing) of the gears, which transforms raw materials into finished components ready for assembly into the engine. Maintenance, repairs, and audits are supporting or after-sales services that do not constitute the core value the supplier delivers in this procurement relationship.
Rationale: The gear supplier's primary value-added activity is the actual production (manufacturing) of the gears, which transforms raw materials into finished components ready for assembly into the engine. Maintenance, repairs, and audits are supporting or after-sales services that do not constitute the core value the supplier delivers in this procurement relationship.
Question 3
What is the definition of productivity?
Correct Answer: A
Rationale: Productivity is universally defined as the ratio of output (goods or services produced) to input (labor, materials, energy, etc.) used; higher output per unit of input indicates higher productivity. The inverse ratio measures inefficiency, while options focusing on wastage describe waste ratios rather than productivity itself.
Rationale: Productivity is universally defined as the ratio of output (goods or services produced) to input (labor, materials, energy, etc.) used; higher output per unit of input indicates higher productivity. The inverse ratio measures inefficiency, while options focusing on wastage describe waste ratios rather than productivity itself.
Question 4
Which metric quantifies the total revenue or profit each target market customer generates over the buyer's life cycle?
Correct Answer: B
Rationale: Value of a Loyal Customer (VLC), also known as Customer Lifetime Value (CLV), specifically measures the total net profit or revenue a customer contributes throughout their entire relationship with the company. TTM measures speed of product launch, CTS is an expense metric, and UFR measures order fulfillment accuracy; none capture lifetime value.
Rationale: Value of a Loyal Customer (VLC), also known as Customer Lifetime Value (CLV), specifically measures the total net profit or revenue a customer contributes throughout their entire relationship with the company. TTM measures speed of product launch, CTS is an expense metric, and UFR measures order fulfillment accuracy; none capture lifetime value.
Question 5
A confectionery company is following a project management principle for new product development and launch. Project management is in the Plan phase. What is the first key activity?
Correct Answer: A
Rationale: In the planning phase of new product development, the very first critical activity is to build a robust business case that justifies the investment by analyzing market potential, financial returns, risks, and strategic fit. Sales assessment, manufacturing, and distribution occur only after the project is approved and moves into execution or later phases.
Rationale: In the planning phase of new product development, the very first critical activity is to build a robust business case that justifies the investment by analyzing market potential, financial returns, risks, and strategic fit. Sales assessment, manufacturing, and distribution occur only after the project is approved and moves into execution or later phases.