DP Business Management Questionbank
Unit 5: Operations management
Description
[N/A]Directly related questions
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18M.1.SL.TZ0.2b:
Refer to Afghan Sun case study SL/HL P1 May and Nov 2018
Su is considering two possible locations for the production facility (lines 51–52). Explain the factors (reasons) that Su may consider when deciding between the two locations.
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18M.1.SL.TZ0.4b.i:
Refer to Afghan Sun case study SL/HL P1 May and Nov 2018.
Using the information in Table 3, calculate the break-even output for portable biomass sources of electricity (show all your working).
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18M.1.SL.TZ0.4b.ii:
Refer to Afghan Sun case study SL/HL P1 May and Nov 2018.
Comment on the usefulness to AS of break-even analysis.
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18M.1.HL.TZ0.4c:
Refer to Afghan Sun case study SL/HL P1 May and Nov 2018.
Explain how total quality management (TQM) could help AS improve the quality of its products.
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18M.2.SL.TZ0.4d:
Discuss the two options that Tom is considering for HS in response to the intense competition.
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18M.2.HL.TZ0.2a:
Define the term supply chain.
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18M.2.HL.TZ0.2b.i:
Calculate:
the total contribution of existing meals sold per month (show all your working).
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18M.2.HL.TZ0.2b.ii:
Calculate:
the total profit or loss on existing meals for May 2018 (show all your working).
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18M.2.HL.TZ0.2b.iii:
Calculate:
the forecast profit or loss if Jill decides to make and sell gluten-free meals (show all your working).
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18M.2.HL.TZ0.2c:
Using your answer from (b) (iii) and (iv), explain whether Jill should buy-in or make the gluten-free meals herself.
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18M.2.HL.TZ0.3b:
Explain one advantage and one disadvantage for SD of working at almost full capacity utilization.
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18N.1.HL.TZ0.4d:
Refer to the As Fair As case study (SL/HL paper 1 Nov 2018).
Discuss the value to AFA of lean production methods.
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18N.2.SL.TZ0.2a:
Define the term batch production.
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18N.2.SL.TZ0.2b.i:
Calculate the break-even level of output for PF for 2019 (show all your working).
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18N.2.SL.TZ0.2b.ii:
Construct a fully labelled break-even chart, to scale, for PF for 2019.
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18N.2.SL.TZ0.2b.iii:
Calculate the forecasted profit if PF sells 2400 chairs in 2019 (show all your working).
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18N.2.SL.TZ0.5a:
Define the term innovation.
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18N.2.HL.TZ0.1a:
Describe one limitation of a break-even analysis.
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18N.2.HL.TZ0.1b.i:
Calculate the number of dolls that DD needs to sell to achieve a profit of $4000 (show all your working).
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18N.2.HL.TZ0.1b.ii:
Calculate the capacity utilization rate at the break-even quantity for DD for the first year of operation (show all your working).
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18N.2.HL.TZ0.1b.iii:
Calculate the profit or loss in the first year if DD sells 400 dolls (show all your working).
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18N.2.HL.TZ0.1c:
Assuming that the quantity of dolls to be sold in the second year is 550 and costs remain unchanged, calculate the price per doll that DD would need to charge to make a $6500 profit.
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18N.2.HL.TZ0.3b:
With reference to QS, explain two features of cradle to cradle manufacturing.
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18N.2.HL.TZ0.3d:
Evaluate the two options that KA is considering.
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18N.2.HL.TZ0.4a:
Define the term brand loyalty.
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19M.1.SL.TZ0.1b:
Explain how RDM’s transformation of its manufacturing process from traditional mass production to highly automated production affected the interests of internal stakeholders.
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19M.1.HL.TZ0.4b.i:
Using the resource, calculate the current capacity utilization rate at RDM’s factory.
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19M.1.HL.TZ0.4b.ii:
Calculate the increase in capacity at RDM if the company builds a new production facility (show all your working).
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19M.1.SL.TZ0.4a:
State two reasons for selecting a specific location for production.
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19M.1.SL.TZ0.4d:
Recommend whether RDM should choose Option 1 or Option 2.
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19M.2.SL.TZ0.2b.i:
Using the financial data for DuffJD for 2018, calculate the contribution per unit per item laundered (no working required).
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19M.2.SL.TZ0.2b.ii:
Using the financial data for DuffJD for 2018, calculate the margin of safety (no working required).
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19M.2.SL.TZ0.2c:
Draw a fully labelled break-even chart for DuffJD for 2018 using the data provided.
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19M.2.SL.TZ0.2d:
Explain how an increase in competition may affect DuffJD’s margin of safety.
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19M.2.SL.TZ0.3a:
Outline two features of batch production.
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19M.2.HL.TZ0.3c:
Explain two benefits to JP of using quality circles.
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19N.1.SL.TZ0.1a:
Outline two advantages for Accord of using job/customized production.
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19N.1.SL.TZ0.4a:
Define the term batch production.
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19N.1.HL.TZ0.4c:
With reference to Accord, explain one advantage and one disadvantage of using total quality management (TQM).
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19N.2.SL.TZ0.1a:
Define the term margin of safety.
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19N.2.SL.TZ0.1b.i:
Using the financial data in Table 1, calculate the break-even level of output (show all your working).
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19N.2.SL.TZ0.1b.ii:
Using the financial data in Table 1, calculate the percentage of total costs that were fixed costs for last year (show all your working).
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19N.2.SL.TZ0.1b.iii:
Using the financial data in Table 1, calculate the level of profit for SSH at 2018’s level of production (show all your working).
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19N.2.SL.TZ0.1c:
Explain how the introduction of new production methods will affect the total cost line in SSH’s break-even chart.
- 19N.2.SL.TZ0.5d: Evaluate the option of building a factory in, and relocating, to Germany.
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19N.2.HL.TZ0.1a:
Describe one disadvantage for an organization of operating at high capacity utilization.
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19N.2.HL.TZ0.2b.i:
Calculate, for MWF, the break-even level of output for 2020.
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19N.2.HL.TZ0.2b.ii:
Construct a fully labelled, to scale, break-even chart for MWF for 2020.
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19N.2.HL.TZ0.2b.iii:
Calculate the profit if MWF sells 3600 window fans in 2020.
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19N.2.HL.TZ0.3c:
Explain one advantage and one disadvantage for CM of changing its stock control method from just-in-case (JIC) to just-in-time (JIT).
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20N.1.SL.TZ0.1b:
Explain the factors that DA would need to consider before deciding to outsource some of its production (line 110).
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20N.1.HL.TZ0.4c.i:
Calculate the difference between the cost for DA to make the rechargeable batteries and the cost to buy them from XL.
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20N.1.HL.TZ0.4c.ii:
Suggest one other factor that DA should consider before deciding whether to make the rechargeable batteries or buy them from XL.
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20N.2.SL.TZ0.5c:
Explain one advantage and one disadvantage of using a break-even analysis for PP.
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21M.1.SL.TZ0.1a:
Outline two benefits for MM of outsourcing human resource management (HRM) (lines 51–54).
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21M.1.SL.TZ0.3a:
Outline two reasons why MM may relocate all of its operations to Bengaluru (lines 124–142).
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21M.2.SL.TZ0.1b.ii:
Using Figure 1 calculate forecasted profit if sales are 25 000 units in 2021 (show all your working).
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21M.2.SL.TZ0.1b.iii:
Using Figure 1 calculate the total contribution in 2021 if Hafs only sells 20 000 units (show all your working).
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21M.2.SL.TZ0.1c:
Explain whether an increase in total fixed costs has an impact on unit contribution.
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21M.2.SL.TZ0.4d:
Recommend whether RV ’s directors should choose Option 1 or Option 2.
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21M.2.HL.TZ0.2b:
Using total contribution, calculate the forecasted total profit for SSL before the introduction of the new promotional strategy (show all your working).
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21M.2.HL.TZ0.2c:
Construct a fully labelled break-even chart for SSL for before the new promotional strategy is introduced (show all your working).
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21M.2.HL.TZ0.3a:
State two features of product innovation.
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21N.1.HL.TZ0.4a:
Define the term just-in-time (JIT) production.
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21N.1.HL.TZ0.4c:
With reference to MM, explain the difference between crisis management and contingency planning.
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21N.2.SL.TZ0.1b:
Construct a fully labelled break-even chart, to scale, for JG for 2022.
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21N.2.SL.TZ0.1c:
Calculate JG’s level of profit if sales are 20 000 units in 2022 (show all your working).
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21N.2.SL.TZ0.1d:
Explain how the changes that Jill expects in fixed and variable costs in 2023 would affect the total costs line of the break-even chart from your answer to (b).
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21N.2.HL.TZ0.2b.i:
Using the selected financial data in Table 2, calculate for SP for 2020:
the break-even level of output (show all your working).
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21N.2.HL.TZ0.2b.ii:
Using the selected financial data in Table 2, calculate for SP for 2020:
the margin of safety (show all your working).
-
21N.2.HL.TZ0.2b.iii:
Using the selected financial data in Table 2, calculate for SP for 2020:
the net profit (show all your working).
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21N.2.HL.TZ0.2c:
Explain how the impact of the increase in rent and the forecast increase in sales in 2021 could affect SP’s profitability.
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21N.2.HL.TZ0.4c:
Explain one benefit and one cost to SF of using a flow production method.
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22M.2.SL.TZ0.1b.ii:
Using Table 1, calculate the break-even level of output (no working required).
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22M.2.SL.TZ0.1b.i:
Using Table 1, calculate the contribution per unit (show all your working).
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22M.2.SL.TZ0.1c.i:
If AXL produces 75 million cans in 2023, using Table 1, calculate the margin of safety (no working required).
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22M.2.HL.TZ0.1b.ii:
Using the information provided above and in Table 1, calculate the monthly profit if Roscas sells sugar donuts and chocolate-filled donuts (show all your working).
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22M.2.SL.TZ0.1c.ii:
If AXL produces 75 million cans in 2023, using Table 1, calculate the profit (show all your working).
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22M.2.HL.TZ0.3b:
Explain one advantage and one disadvantage for CD of using a job/customized production method.
Sub sections and their related questions
5.1 Introduction to operations management
None5.2 Operations methods
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18M.2.SL.TZ0.4d:
Discuss the two options that Tom is considering for HS in response to the intense competition.
-
18N.2.SL.TZ0.2a:
Define the term batch production.
-
19M.1.SL.TZ0.1b:
Explain how RDM’s transformation of its manufacturing process from traditional mass production to highly automated production affected the interests of internal stakeholders.
-
19M.2.SL.TZ0.3a:
Outline two features of batch production.
-
19N.1.SL.TZ0.1a:
Outline two advantages for Accord of using job/customized production.
-
19N.1.SL.TZ0.4a:
Define the term batch production.
-
21M.2.SL.TZ0.4d:
Recommend whether RV ’s directors should choose Option 1 or Option 2.
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21N.2.HL.TZ0.4c:
Explain one benefit and one cost to SF of using a flow production method.
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22M.2.HL.TZ0.3b:
Explain one advantage and one disadvantage for CD of using a job/customized production method.
5.3 Lean production and quality management
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18M.1.HL.TZ0.4c:
Refer to Afghan Sun case study SL/HL P1 May and Nov 2018.
Explain how total quality management (TQM) could help AS improve the quality of its products.
-
18N.1.HL.TZ0.4d:
Refer to the As Fair As case study (SL/HL paper 1 Nov 2018).
Discuss the value to AFA of lean production methods.
-
18N.2.HL.TZ0.3b:
With reference to QS, explain two features of cradle to cradle manufacturing.
-
18N.2.HL.TZ0.3d:
Evaluate the two options that KA is considering.
-
19M.2.HL.TZ0.3c:
Explain two benefits to JP of using quality circles.
-
19N.1.HL.TZ0.4c:
With reference to Accord, explain one advantage and one disadvantage of using total quality management (TQM).
-
21N.1.HL.TZ0.4a:
Define the term just-in-time (JIT) production.
5.4 Location
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18M.1.SL.TZ0.2b:
Refer to Afghan Sun case study SL/HL P1 May and Nov 2018
Su is considering two possible locations for the production facility (lines 51–52). Explain the factors (reasons) that Su may consider when deciding between the two locations.
-
18N.2.HL.TZ0.3d:
Evaluate the two options that KA is considering.
-
18N.2.HL.TZ0.4a:
Define the term brand loyalty.
-
19M.1.SL.TZ0.4a:
State two reasons for selecting a specific location for production.
-
19M.1.SL.TZ0.4d:
Recommend whether RDM should choose Option 1 or Option 2.
- 19N.2.SL.TZ0.5d: Evaluate the option of building a factory in, and relocating, to Germany.
-
20N.1.SL.TZ0.1b:
Explain the factors that DA would need to consider before deciding to outsource some of its production (line 110).
-
21M.1.SL.TZ0.1a:
Outline two benefits for MM of outsourcing human resource management (HRM) (lines 51–54).
-
21M.1.SL.TZ0.3a:
Outline two reasons why MM may relocate all of its operations to Bengaluru (lines 124–142).
-
21M.2.SL.TZ0.4d:
Recommend whether RV ’s directors should choose Option 1 or Option 2.
5.5 Break-even analysis
-
18M.1.SL.TZ0.4b.i:
Refer to Afghan Sun case study SL/HL P1 May and Nov 2018.
Using the information in Table 3, calculate the break-even output for portable biomass sources of electricity (show all your working).
-
18M.1.SL.TZ0.4b.ii:
Refer to Afghan Sun case study SL/HL P1 May and Nov 2018.
Comment on the usefulness to AS of break-even analysis.
-
18M.2.HL.TZ0.2b.i:
Calculate:
the total contribution of existing meals sold per month (show all your working).
-
18M.2.HL.TZ0.2b.ii:
Calculate:
the total profit or loss on existing meals for May 2018 (show all your working).
-
18M.2.HL.TZ0.2b.iii:
Calculate:
the forecast profit or loss if Jill decides to make and sell gluten-free meals (show all your working).
-
18N.2.SL.TZ0.2b.i:
Calculate the break-even level of output for PF for 2019 (show all your working).
-
18N.2.SL.TZ0.2b.ii:
Construct a fully labelled break-even chart, to scale, for PF for 2019.
-
18N.2.SL.TZ0.2b.iii:
Calculate the forecasted profit if PF sells 2400 chairs in 2019 (show all your working).
-
18N.2.HL.TZ0.1a:
Describe one limitation of a break-even analysis.
-
18N.2.HL.TZ0.1b.i:
Calculate the number of dolls that DD needs to sell to achieve a profit of $4000 (show all your working).
-
18N.2.HL.TZ0.1b.iii:
Calculate the profit or loss in the first year if DD sells 400 dolls (show all your working).
-
18N.2.HL.TZ0.1c:
Assuming that the quantity of dolls to be sold in the second year is 550 and costs remain unchanged, calculate the price per doll that DD would need to charge to make a $6500 profit.
-
19M.2.SL.TZ0.2b.i:
Using the financial data for DuffJD for 2018, calculate the contribution per unit per item laundered (no working required).
-
19M.2.SL.TZ0.2b.ii:
Using the financial data for DuffJD for 2018, calculate the margin of safety (no working required).
-
19M.2.SL.TZ0.2c:
Draw a fully labelled break-even chart for DuffJD for 2018 using the data provided.
-
19M.2.SL.TZ0.2d:
Explain how an increase in competition may affect DuffJD’s margin of safety.
-
19N.2.SL.TZ0.1a:
Define the term margin of safety.
-
19N.2.SL.TZ0.1b.i:
Using the financial data in Table 1, calculate the break-even level of output (show all your working).
-
19N.2.SL.TZ0.1b.ii:
Using the financial data in Table 1, calculate the percentage of total costs that were fixed costs for last year (show all your working).
-
19N.2.SL.TZ0.1b.iii:
Using the financial data in Table 1, calculate the level of profit for SSH at 2018’s level of production (show all your working).
-
19N.2.SL.TZ0.1c:
Explain how the introduction of new production methods will affect the total cost line in SSH’s break-even chart.
-
19N.2.HL.TZ0.2b.i:
Calculate, for MWF, the break-even level of output for 2020.
-
19N.2.HL.TZ0.2b.ii:
Construct a fully labelled, to scale, break-even chart for MWF for 2020.
-
19N.2.HL.TZ0.2b.iii:
Calculate the profit if MWF sells 3600 window fans in 2020.
-
20N.2.SL.TZ0.5c:
Explain one advantage and one disadvantage of using a break-even analysis for PP.
-
21M.2.SL.TZ0.1b.ii:
Using Figure 1 calculate forecasted profit if sales are 25 000 units in 2021 (show all your working).
-
21M.2.SL.TZ0.1b.iii:
Using Figure 1 calculate the total contribution in 2021 if Hafs only sells 20 000 units (show all your working).
-
21M.2.SL.TZ0.1c:
Explain whether an increase in total fixed costs has an impact on unit contribution.
-
21M.2.HL.TZ0.2b:
Using total contribution, calculate the forecasted total profit for SSL before the introduction of the new promotional strategy (show all your working).
-
21M.2.HL.TZ0.2c:
Construct a fully labelled break-even chart for SSL for before the new promotional strategy is introduced (show all your working).
-
21N.2.SL.TZ0.1b:
Construct a fully labelled break-even chart, to scale, for JG for 2022.
-
21N.2.SL.TZ0.1c:
Calculate JG’s level of profit if sales are 20 000 units in 2022 (show all your working).
-
21N.2.SL.TZ0.1d:
Explain how the changes that Jill expects in fixed and variable costs in 2023 would affect the total costs line of the break-even chart from your answer to (b).
-
21N.2.HL.TZ0.2b.i:
Using the selected financial data in Table 2, calculate for SP for 2020:
the break-even level of output (show all your working).
-
21N.2.HL.TZ0.2b.ii:
Using the selected financial data in Table 2, calculate for SP for 2020:
the margin of safety (show all your working).
-
21N.2.HL.TZ0.2b.iii:
Using the selected financial data in Table 2, calculate for SP for 2020:
the net profit (show all your working).
-
21N.2.HL.TZ0.2c:
Explain how the impact of the increase in rent and the forecast increase in sales in 2021 could affect SP’s profitability.
-
22M.2.SL.TZ0.1b.i:
Using Table 1, calculate the contribution per unit (show all your working).
-
22M.2.SL.TZ0.1b.ii:
Using Table 1, calculate the break-even level of output (no working required).
-
22M.2.SL.TZ0.1c.i:
If AXL produces 75 million cans in 2023, using Table 1, calculate the margin of safety (no working required).
-
22M.2.SL.TZ0.1c.ii:
If AXL produces 75 million cans in 2023, using Table 1, calculate the profit (show all your working).
-
22M.2.HL.TZ0.1b.ii:
Using the information provided above and in Table 1, calculate the monthly profit if Roscas sells sugar donuts and chocolate-filled donuts (show all your working).
5.6 Production planning
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18M.2.HL.TZ0.2a:
Define the term supply chain.
-
18M.2.HL.TZ0.2c:
Using your answer from (b) (iii) and (iv), explain whether Jill should buy-in or make the gluten-free meals herself.
-
18M.2.HL.TZ0.3b:
Explain one advantage and one disadvantage for SD of working at almost full capacity utilization.
-
18N.2.HL.TZ0.1b.ii:
Calculate the capacity utilization rate at the break-even quantity for DD for the first year of operation (show all your working).
-
19M.1.HL.TZ0.4b.i:
Using the resource, calculate the current capacity utilization rate at RDM’s factory.
-
19M.1.HL.TZ0.4b.ii:
Calculate the increase in capacity at RDM if the company builds a new production facility (show all your working).
-
19N.2.HL.TZ0.1a:
Describe one disadvantage for an organization of operating at high capacity utilization.
-
19N.2.HL.TZ0.3c:
Explain one advantage and one disadvantage for CM of changing its stock control method from just-in-case (JIC) to just-in-time (JIT).
-
20N.1.HL.TZ0.4c.i:
Calculate the difference between the cost for DA to make the rechargeable batteries and the cost to buy them from XL.
-
20N.1.HL.TZ0.4c.ii:
Suggest one other factor that DA should consider before deciding whether to make the rechargeable batteries or buy them from XL.
5.7 Crisis management and contingency planning
-
21N.1.HL.TZ0.4c:
With reference to MM, explain the difference between crisis management and contingency planning.
5.8 Research and development
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18N.2.SL.TZ0.5a:
Define the term innovation.
-
21M.2.HL.TZ0.3a:
State two features of product innovation.