business
beginner
10 sample questions
Production Planning MCQ Practice Test
Manufacturing organization methods
Q1. A company producing high-end bicycles is planning to launch a new model with a unique frame design. The production process involves multiple stages, including cutting, welding, and painting. The production planner wants to minimize the time spent in the paint shop, which is the bottleneck in the production line. The planner has two options:
-
A. Implement a just-in-time (JIT) inventory system to reduce the lead time of raw materials and components, allowing for a smoother flow of work-in-progress (WIP) through the paint shop.
-
B. Implement a Total Productive Maintenance (TPM) program to reduce downtime and increase the overall equipment effectiveness (OEE) of the paint shop, enabling it to handle a higher volume of products.
-
C. Implement a Kanban system to visualize the production flow and limit work-in-progress (WIP) in the paint shop, preventing overproduction and minimizing the time spent in the paint shop. ✓
-
D. Implement a Six Sigma quality control program to reduce defects and rework in the paint shop, minimizing the time spent on correcting errors and improving the overall efficiency of the production process.
Explanation: Implementing a Kanban system will help the production planner to visualize the production flow, limit work-in-progress (WIP) in the paint shop, and prevent overproduction. This will minimize the time spent in the paint shop and improve the overall efficiency of the production process.
Q2. A company that produces custom bicycles has a production planning system that uses a "push" strategy, where components are produced in advance of actual demand. However, the company wants to implement a "pull" strategy to reduce inventory levels and improve responsiveness to changing demand. Which of the following production planning techniques would be most appropriate for implementing a "pull" strategy in this scenario?
-
A. Just-In-Time (JIT) production ✓
-
B. Material Requirements Planning (MRP) with a focus on safety stock reduction
-
C. Economic Order Quantity (EOQ) with a low reorder point
-
D. Total Productive Maintenance (TPM) with a focus on equipment efficiency
Explanation: Just-In-Time (JIT) production is a pull-based strategy that aims to produce and deliver products just in time to meet customer demand, reducing inventory levels and improving responsiveness to changing demand. This approach is well-suited for companies that want to implement a pull strategy and reduce their inventory levels.
Q3. A company produces two products, A and B, on two different machines, M1 and M2. The production planning team has determined that the optimal production sequence is to produce 100 units of product A on M1, followed by 150 units of product B on M2, and then 200 units of product A on M2. However, due to the high demand for product B, the company wants to increase the production of product B to 250 units on M2. What is the most appropriate action for the production planning team to take to minimize production disruptions?
-
A. Re-sequence the production to produce product B first on M2, followed by product A on M2, and then product A on M1. ✓
-
B. Hold production on M1 and M2 until the re-sequencing of production is complete.
-
C. Continue production as planned, but implement a new scheduling algorithm to optimize production on M2.
-
D. Implement a just-in-time (JIT) production system to reduce inventory levels and minimize production disruptions.
Explanation: The production planning team should re-sequence the production to prioritize the increased production of product B on M2, followed by product A on M2, and then product A on M1. This will minimize production disruptions and ensure that the increased demand for product B is met.
Q4. A company produces three products: A, B, and C. Product A requires 2 hours of labor and 1 hour of machine time, product B requires 3 hours of labor and 2 hours of machine time, and product C requires 1 hour of labor and 3 hours of machine time. The labor and machine capacities are 240 hours and 180 hours per week, respectively. The profit on product A is $120, product B is $180, and product C is $100. If the company wants to maximize its profit, which of the following production plans would be optimal?
-
A. Produce 120 units of product A, 60 units of product B, and 90 units of product C
-
B. Produce 90 units of product A, 80 units of product B, and 60 units of product C ✓
-
C. Produce 60 units of product A, 120 units of product B, and 90 units of product C
-
D. Produce 45 units of product A, 100 units of product B, and 75 units of product C
Explanation: To determine the optimal production plan, we need to calculate the profit per unit for each product. The profit per unit for product A is $120/2 = $60, for product B is $180/3 = $60, and for product C is $100/1 = $100. Since product A and product B have the same profit per unit, we need to compare their labor and machine requirements. Product A requires 2 hours of labor and 1 hour of machine time, while product B requires 3 hours of labor and 2 hours of machine time. Since the labor capacity is 240 hours, we can produce 120 units of product A and 80 units of product B without exceeding the labor capacity. For the machine capacity, we can produce 90 units of product A and 60 units of product C without exceeding the machine capacity. Therefore, the optimal production plan is to produce 90 units of product A, 80 units of product B, and 60 units of product C.
Q5. A company produces two products, A and B, on two different machines, X and Y. Machine X can process 4 units of product A per hour, while machine Y can process 6 units of product B per hour. The production time for product A is 2 hours, and for product B, it is 3 hours. What is the optimal production plan to meet a demand of 240 units of product A and 180 units of product B in the shortest time possible?
-
A. Produce product A on machine X for 60 hours and product B on machine Y for 30 hours. ✓
-
B. Produce product A on machine X for 60 hours and product B on machine Y for 30 hours. ✓
-
C. Produce product A on machine X for 120 hours and product B on machine Y for 30 hours.
-
D. Produce product A on machine X for 60 hours and product B on machine Y for 30 hours. ✓
Explanation: To meet the demand of 240 units of product A, machine X needs to run for 60 hours (240 units / 4 units per hour = 60 hours). To meet the demand of 180 units of product B, machine Y needs to run for 30 hours (180 units / 6 units per hour = 30 hours). This plan ensures that both demands are met in the shortest possible time.
Q6. A company produces two products, A and B, on two different production lines. Product A requires 2 hours of setup time and 1 hour of production time per unit. Product B requires 1 hour of setup time and 2 hours of production time per unit. The production lines are available for 8 hours a day. Assuming negligible setup time between units of the same product, and that the company can produce fractional units, which of the following production schedules would maximize the total number of units produced?
-
A. Produce only product A.
-
B. Produce only product B.
-
C. Produce 2 units of A and 2 units of B.
-
D. Produce 1.6 units of A and 2.4 units of B. ✓
Explanation: To maximize output, the company needs to consider both setup and production time constraints. Let x be the number of units of A and y be the number of units of B. The constraints are: 2 + x + 1 + y <= 8 (setup time) and x + 2y <= 8 (production time). The objective function is to maximize x + y. Solving this linear programming problem (or by testing the options), the optimal solution is to produce approximately 1.6 units of A and 2.4 units of B.
Q7. Monthly demand exceeds a plant's single-line capacity, so not all products can be fully produced. Which approach maximizes total contribution margin?
-
A. Rank products by contribution margin per unit of the binding constraint and produce in that order until capacity is exhausted. ✓
-
B. Produce equal quantities of every product so no customer is fully disappointed.
-
C. Prioritize the product with the lowest variable cost per unit regardless of margin.
-
D. Produce the product with the highest selling price per unit regardless of capacity use.
Explanation: When capacity is the binding constraint, profit is maximized by earning the highest contribution margin per unit of that constrained resource — the standard theory-of-constraints result.
Q8. A company runs an EOQ-based system but suppliers' delivery lead times have become long and unpredictable under a new just-in-time arrangement. Which measure most directly addresses the resulting stockout risk?
-
A. Calculate safety stock that covers lead-time demand variability. ✓
-
B. Switch to a periodic review system with fixed-order intervals.
-
C. Increase the economic order quantity itself.
-
D. Stop tracking inventory between orders.
Explanation: Safety stock is the standard buffer against demand and lead-time variability; the other choices do not directly mitigate unpredictable lead times under JIT.
Q9. A company produces three products: A, B, and C. Product A requires 2 hours of setup, 1 hour of processing, and 1 hour of teardown. Product B requires 3 hours of setup, 2 hours of processing, and 1 hour of teardown. Product C requires 1 hour of setup, 3 hours of processing, and 2 hours of teardown. The production schedule is as follows: 8 hours of production time in the morning and 8 hours of production time in the afternoon. The objective is to maximize the total value of products produced, given that the values of products A, B, and C are $10, $20, and $30, respectively. Which production plan would maximize the total value of products produced?
-
A. Produce Product A in the morning and Product B in the afternoon.
-
B. Produce Product C in the morning and Product A in the afternoon.
-
C. Produce Product B in the morning and Product C in the afternoon. ✓
-
D. Produce Product A in the morning and Product C in the afternoon.
Explanation: Product A needs 4 h total ($10), B needs 6 h ($20), C needs 6 h ($30). Producing B in the morning (6 h ≤ 8 h) and C in the afternoon (6 h ≤ 8 h) fits the 16-hour day and yields $50 — the highest value of any option pair (A+C = $40, A+B = $30).
Q10. Each unit of product A needs 3 total machine-hours and each unit of B needs 3 total machine-hours on a line that runs 8 hours a day. What is the maximum number of units producible in a day?
-
A. 2 units ✓
-
B. 4 units
-
C. 6 units
-
D. 8 units
Explanation: Any unit costs 3 hours; 8/3 = 2.67, so at most 2 complete units fit in the day.
That was just a sample. Sign up to unlock the full question bank with timed tests and certificates.
Sign Up Free