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5.1 Introduction to operations management

Practice exam-style IB Business and Management questions for Introduction to operations management, aligned with the syllabus and grouped by topic.

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Paper
Difficulty
Status
Level
Question 1
SL • Paper 1
Easy
Calculator Permitted
SL • Paper 1
Easy
Calculator Permitted

GreenWrap is a small business that produces reusable food wraps from cotton, beeswax and packaging materials. The owner is reviewing how the business plans production, controls quality and delivers finished wraps to local retailers.

A

Define the term operations management with reference to GreenWrap.

[2]
Question 2
SL • Paper 1
Easy
Calculator Permitted
SL • Paper 1
Easy
Calculator Permitted

Urban Paws is a dog-grooming salon. It uses trained groomers, shampoos, clippers, appointment information and rented premises to provide grooming services to pet owners.

A

State two inputs and two outputs in Urban Paws' operations.

[4]
Question 3
SL • Paper 1
Easy
Calculator Permitted
SL • Paper 1
Easy
Calculator Permitted

Luna Laundry promises same-day cleaning for office uniforms. Recently, poor scheduling and machine breakdowns have caused late returns to customers.

A

Explain one way effective operations management could improve customer satisfaction at Luna Laundry.

[3]
Question 4
SL • Paper 1
Medium
Calculator Permitted
SL • Paper 1
Medium
Calculator Permitted

Cafe Miro reduced costs by buying pre-prepared sandwiches instead of making them fresh. Although the change has lowered labour time and food waste, customer reviews have fallen and lunchtime sales are decreasing.

A

Explain the difference between efficiency and effectiveness with reference to Cafe Miro.

[4]

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Question 5
SL • Paper 1
Medium
Calculator Permitted
SL • Paper 1
Medium
Calculator Permitted

Northline Cycles sells physical bicycles from a small showroom and also repairs customers' bicycles in its workshop. The owner has noticed that managing bicycle sales is different from managing repair appointments.

A

Describe two differences between managing operations for goods and managing operations for services at Northline Cycles.

[4]
Question 6
SL • Paper 2
Medium
Calculator Permitted
SL • Paper 2
Medium
Calculator Permitted

UrbanSprout (US) produces small indoor planter kits for apartments. US has redesigned its workstations to reduce wasted movement in production. The following data are for one working day. Show all your working for calculations.

Item

Value

Selling price per planter kit / $

$24.00

Bamboo tray cost per kit / $

$7.20

Seeds and soil cost per kit / $

$3.80

Recycled packaging cost per kit / $

$1.00

Employees in production

4

Output before workstation redesign / kits per day

80

Output after workstation redesign / kits per day

92

A

Calculate the added value per planter kit.

[2]
B

Calculate the labour productivity, in kits per employee per day, before and after the workstation redesign.

[2]
C

Comment on one possible effect of the workstation redesign on US's marketing.

[2]
Question 7
SL • Paper 2
Medium
Calculator Permitted
SL • Paper 2
Medium
Calculator Permitted

Noura Bakery (NB) sells bread to cafés. To make its operations more sustainable, NB replaced single-use plastic trays with reusable crates. The following monthly data are available. Show all your working for calculations.

Item

Before change

After change

Number of single-use trays bought

900

150

Cost per single-use tray

$0.40

$0.40

Monthly cleaning cost for reusable crates

$0

$95

Packaging waste sent to landfill

54 kg

12 kg

A

Calculate NB's monthly packaging cost saving after the change.

[2]
B

Calculate the percentage reduction in packaging waste sent to landfill.

[2]
C

Explain one sustainability benefit of this operational change for NB.

[2]
Question 8
SL • Paper 2
Medium
Calculator Permitted
SL • Paper 2
Medium
Calculator Permitted

FixFast (FF) repairs smartphones in shopping centres. FF changed its booking system and staff schedule to improve the transformation of labour and equipment into completed repairs. The following data compare operations before and after the change. Show all your working for calculations.

Item

Before change

After change

Number of technicians

5

5

Technician hours per day (hours)

8

8

Completed repairs per day (repairs)

30

38

Daily technician wage cost (dollars)

640

760

Average customer waiting time (days)

3.2

1.8

A

Calculate labour productivity before and after the change, in repairs per technician hour.

[2]
B

Calculate the daily technician wage cost per completed repair after the change.

[2]
C

Comment on whether FF's operations have become more effective after the change.

[2]

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Question 9
SL • Paper 2
Medium
Calculator Permitted
SL • Paper 2
Medium
Calculator Permitted

Harbour Stay (HS) is a 24-room hotel. Operations managers are reviewing whether the hotel can meet a higher occupancy objective without reducing service quality. Data for April are shown below. Show all your working for calculations.

Item

Data

Rooms available

24

Days in April

30

Occupied room-nights in April

576

Target occupancy rate

85%

Housekeeping hours needed per occupied room-night

0.6 hours

Housekeeping hours currently available per month

400 hours

A

Calculate HS's occupancy rate for April.

[2]
B

Calculate the additional occupied room-nights needed to reach the target occupancy rate.

[2]
C

Comment on one operational issue HS may face if it reaches the target occupancy rate.

[2]
Question 10
SL • Paper 2
Medium
Calculator Permitted
SL • Paper 2
Medium
Calculator Permitted

FreshBox Online (FBO) delivers groceries ordered through its app. Operations managers track whether the service is accurate and delivered on time. The following data are for one week. Assume that all 1 200 orders received were picked. FBO's service requirements are that at least 95%95\% of orders are delivered on time and no more than 2%2\% of orders contain at least one picking error. Show all your working for calculations.

Item

Week 12 data

Customer orders received

1,200

Orders delivered on time

1,080

Orders containing at least one picking error

54

Picking staff employed

12

Hours worked by each picking staff member

35

Orders picked per staff hour target

3.0

A

Calculate the percentage of orders delivered on time.

[2]
B

Calculate FBO's orders picked per staff hour.

[2]
C

Comment on whether FBO's operations are meeting its service requirements.

[2]
Question 11
HL • Paper 1
Medium
Calculator Permitted
HL • Paper 1
Medium
Calculator Permitted

BrightPath Tutoring is replacing its reception desk with an online booking system. Students will book lessons through an app, tutors will receive automatic timetables and fewer reception staff will be needed.

A

Analyse the impact of this operational change on two other business functions at BrightPath Tutoring.

[6]
Question 12
HL • Paper 1
Medium
Calculator Permitted
HL • Paper 1
Medium
Calculator Permitted

ReForm Furniture makes tables for restaurants. It is considering replacing imported virgin wood with reclaimed local wood. The change would reduce waste and transport distances, but reclaimed wood is harder to source consistently and needs more preparation time.

A

Analyse one benefit and one limitation of making ReForm Furniture's operations more sustainable.

[6]

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Question 13
HL • Paper 1
Medium
Calculator Permitted
HL • Paper 1
Medium
Calculator Permitted

SwiftCart is an online grocery delivery business. To reduce delivery costs, it is considering using freelance drivers paid per delivery rather than employed drivers paid by the hour. Managers believe this will increase efficiency, but there have already been complaints about late deliveries, damaged food and drivers feeling pressured to accept unsafe schedules.

A

Examine two ethical issues that could arise from this operations decision at SwiftCart.

[6]
Question 14
HL • Paper 2
Medium
Calculator Permitted
HL • Paper 2
Medium
Calculator Permitted

PedalPoint (PP), a bicycle retailer, is adding an in-store repair service. The operations manager has planned the operational change using the following activities. All durations are in weeks. Assume activity A starts at week 0 and each activity starts as soon as all its immediate predecessors are completed, with no intentional delays or resource constraints. Show all your working where relevant.

Activity

Description

Duration / weeks

Immediate predecessor(s)

A

Specify repair service requirements

2

None

B

Purchase specialist tools

3

A

C

Train mechanics

4

A

D

Set up booking software

3

A

E

Test repair service

2

B, C, D

F

Launch local marketing campaign

1

E

A

Construct a Gantt chart for PP's repair service launch.

[4]
B

Comment on one benefit to PP of using a Gantt chart for this operational change.

[2]
Question 15
HL • Paper 2
Medium
Calculator Permitted
HL • Paper 2
Medium
Calculator Permitted

ClearSip (CS) manufactures reusable water bottles. CS is considering whether its operations have enough capacity to accept a supermarket order. The finance manager uses contribution data to support operations decisions. Show all your working for calculations.

Item

Value

Selling price per bottle

18.00 dollars

Direct materials per bottle

5.20 dollars

Direct labour per bottle

3.10 dollars

Variable delivery cost per bottle

1.20 dollars

Monthly fixed operating costs

36 000 dollars

Expected monthly sales

6 000 bottles

Maximum monthly production capacity

6 300 bottles

A

Calculate the contribution per bottle.

[2]
B

Calculate CS's expected monthly profit at expected monthly sales.

[2]
C

Comment on one operational implication if monthly demand increases by 10%10\%.

[2]
Question 16
SL • Paper 1
Hard
Calculator Permitted
SL • Paper 1
Hard
Calculator Permitted

AquaTrail Kayaks (ATK) is a small family-owned business that hires kayaks to tourists, sells branded waterproof bags and provides guided river tours. During the peak season, customers have complained that kayaks are not ready at the booked time, some equipment is poorly maintained and online bookings sometimes overlap. ATK’s marketing manager wants to spend more on social media promotion to attract visitors. The finance manager argues that ATK should first appoint an operations manager to redesign the booking system, maintenance schedule, staff rota and stock control for accessories. The owner is unsure whether operations management is important enough to justify the extra salary cost.

A

Evaluate the importance of operations management to ATK’s future success.

[10]

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Question 17
SL • Paper 1
Hard
Calculator Permitted
SL • Paper 1
Hard
Calculator Permitted

Mosaic Bites (MB) prepares vegan lunch bowls in a rented city kitchen and delivers them to office workers. MB’s brand is based on fresh ingredients, personalized toppings and ethical local suppliers. Demand has increased, but delivery times are inconsistent and food waste is high. The operations supervisor proposes reducing the menu from 18 bowls to 6, preparing ingredients in larger quantities early each morning and using cheaper non-local suppliers. This should reduce labour time, waste and ingredient costs. The marketing manager is worried that MB may lose customers who value choice, freshness and its ethical image.

A

Discuss whether MB should prioritize efficiency over effectiveness in its operations.

[10]
Question 18
HL • Paper 2
Hard
Calculator Permitted
HL • Paper 2
Hard
Calculator Permitted

MealMile (MM), a meal-kit delivery business, uses simple linear regression to forecast weekly orders so that operations managers can schedule kitchen staff and delivery vans. The regression equation from previous data is:

Predicted weekly orders = 120+3.5×120 + 3.5 \times number of online enquiries

Recent data are shown below. Show all your working for calculations.

Week

Online enquiries

Actual weekly orders

1

60

318

2

70

364

3

75

390

4

80

410

5

90

438

A

Using the regression equation, calculate the predicted weekly orders when online enquiries are 100.

[2]
B

Calculate the residual for week 4, where residual = actual weekly orders - predicted weekly orders.

[2]
C

Comment on one limitation of using this forecast for MM's operations management.

[2]
Question 19
SL • Paper 2
Hard
Calculator Permitted
SL • Paper 2
Hard
Calculator Permitted

SparkStitch (SS) is a small service business that alters school uniforms for parents. SS currently accepts walk-in customers at one shop. The operations manager is considering a new operations system: customers would book online, uniforms would be collected from three schools twice per week, and completed work would be returned by van. SS would need to train staff and change its scheduling system.

Selected weekly data are shown below. Show all your working if calculations are used in your answer.

Item

Current walk-in system

Proposed collection and delivery system

Completed alterations per week

320

410

Labour hours per week

240

260

Weekly operations costs ($)

4,800

6,200

Weekly marketing and booking-system costs ($)

300

500

Weekly revenue ($)

8,000

10,660

Average turnaround time (days)

5

3

Customer complaints per week

22

30

Missed collection or delivery slots per week

5

18

A

Evaluate whether SS should introduce the proposed collection and delivery operations system.

[10]
Question 20
SL • Paper 2
Hard
Calculator Permitted
SL • Paper 2
Hard
Calculator Permitted

TerraBite Kitchens (TBK) prepares packaged salads for office workers. TBK currently uses disposable plastic bowls. To make its operations more sustainable, TBK is considering buying reusable containers and installing a small washing line. The marketing manager believes customers will pay slightly more for a more sustainable product. Some employees are concerned that washing containers will add pressure during busy periods.

Selected weekly data are shown below. Show all your working if calculations are used in your answer.

The figures provided allow evaluation of weekly operating performance only. Purchase and installation costs for the reusable containers and washing line, washing-line capacity, maintenance, water use and busy-period staffing requirements are not provided. In your conclusion, identify how these missing data limit the decision.

Item

Current disposable bowls

Proposed reusable containers

Salad packs sold per week

4,500

5,000

Average selling price per pack / US dollars

5.50

5.80

Total weekly operations costs / US dollars

21,700

24,400

Packaging and washing cost per pack / US dollars

0.42

0.65

Food and packaging waste sent to landfill per week / kg

260

180

Energy use per week / kWh

1,800

2,300

On-time deliveries / percent

97%

93%

Staff training time needed in first month / hours

0

60

A

Evaluate whether TBK should switch to reusable containers in its operations.

[10]

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Question 21
HL • Paper 1
Hard
Calculator Permitted
HL • Paper 1
Hard
Calculator Permitted

RenewIT Works (RIW) collects used laptop computers from large businesses, refurbishes them and sells them at reduced prices to schools. RIW also provides maintenance support for the schools after purchase. Its mission is to reduce electronic waste and improve students’ access to technology. Demand is rising, but RIW’s operations are under pressure: some donated laptops arrive damaged, spare parts are difficult to source and school customers complain about slow repairs. RIW’s operations director proposes investing in more sustainable operations, including reusable transport crates, improved testing of donated laptops, harvesting spare parts from unusable devices, more staff training and a supplier code of conduct. These changes would increase short-term costs and may slow deliveries during implementation.

A

To what extent would making operations more sustainable help RIW achieve long-term success?

[10]
Question 22
HL • Paper 2
Hard
Calculator Permitted
HL • Paper 2
Hard
Calculator Permitted

RapidLab Diagnostics (RLD) is a private medical testing laboratory. RLD's operations managers are considering introducing an automated sample-sorting system. The system would scan, sort and route blood samples to the correct testing stations. RLD currently sorts samples manually. A large hospital has offered RLD a contract if the new system can be operating within 12 weeks. The project manager has prepared activity data for a Gantt chart.

Selected project data are shown below.

ActivityDescriptionDuration / weeksImmediate predecessor(s)
ASelect supplier and agree specifications2None
BInstall automated sorting equipment5A
CIntegrate laboratory software4A
DTrain laboratory technicians3A
ETrial accuracy and safety procedures2B, C, D
FPromote new capacity to hospitals2E

Selected operational and financial data are shown below. Show all your working if calculations are used in your answer.

ItemManual sortingAutomated sorting forecast
Samples processed / month18 00024 000
Average revenue per sample / $18 dollars18 dollars
Variable cost per sample / $9 dollars7 dollars
Additional monthly fixed operating costs / $/month0 dollars42 000 dollars
Initial investment in equipment and software / $0 dollars180 000 dollars
Sorting error rate / %2.4%0.8%
Technicians needing retraining or redeployment / number06

Data section

Item

Details

Project activity

A

Select supplier and agree specifications; duration: 2 weeks; immediate predecessor(s): None

Project activity

B

Install automated sorting equipment; duration: 5 weeks; immediate predecessor(s): A

Project activity

C

Integrate laboratory software; duration: 4 weeks; immediate predecessor(s): A

Project activity

D

Train laboratory technicians; duration: 3 weeks; immediate predecessor(s): A

Project activity

E

Trial accuracy and safety procedures; duration: 2 weeks; immediate predecessor(s): B, C, D

Project activity

F

Promote new capacity to hospitals; duration: 2 weeks; immediate predecessor(s): E

Operational and financial

Samples processed / month

Manual sorting: 18 000; Automated sorting forecast: 24 000

Operational and financial

Average revenue per sample / dollars

Manual sorting: 18 dollars; Automated sorting forecast: 18 dollars

Operational and financial

Variable cost per sample / dollars

Manual sorting: 9 dollars; Automated sorting forecast: 7 dollars

Operational and financial

Additional monthly fixed operating costs / dollars per month

Manual sorting: 0 dollars; Automated sorting forecast: 42 000 dollars

Operational and financial

Initial investment in equipment and software / dollars

Manual sorting: 0 dollars; Automated sorting forecast: 180 000 dollars

Operational and financial

Sorting error rate / percent

Manual sorting: 2.4%; Automated sorting forecast: 0.8%

Operational and financial

Technicians needing retraining or redeployment / number

Manual sorting: 0; Automated sorting forecast: 6

A

Recommend whether RLD should introduce the automated sample-sorting system. For this question, treat the 12-week contract deadline as applying to completion of all listed activities, including F, promotion of the new capacity.

[10]
Question 23
HL • Paper 3
Hard
Calculator Permitted
HL • Paper 3
Hard
Calculator Permitted

BridgeByte (BB)

Read the resources and answer the questions that follow.

Resource 1 — Background of the social enterprise

BridgeByte (BB) is a social enterprise that collects donated laptops from large businesses, refurbishes them and sells them at very low prices to schools serving low-income families. BB also provides online support sessions for students using the devices. BB's mission is “to turn unused technology into access to learning”.

BB's operations transform donated laptops, replacement parts, volunteer labour, technical knowledge and information from schools into reliable devices and support services. Demand has increased rapidly after several education charities recommended BB. However, the operations manager is concerned that BB's current central workshop is no longer suitable. Some laptops wait several weeks before inspection, and recent quality problems have increased the number of returned devices.

Resource 2 — Table 1: Selected operational and financial information

Resource 3 — Social-media statistic

A short video showing students receiving BB laptops was viewed 1.8 million times in one week. BB received many offers of donated laptops, but also many public comments asking why some schools were still waiting.

Resource 4 — Quotation from BB's operations manager

“Marketing promises that every child can be connected within a month, but our operations cannot inspect batteries and install software quickly enough. We need to decide whether to expand the central workshop, train community repair partners, or reduce the range of laptop models we accept.”

Resource 5 — Possible operational changes being considered

BB is considering investing in automated diagnostic equipment, introducing stricter rules about the condition of donated laptops, and training local community organizations to complete simple refurbishment tasks.

Indicator

2023

2024

Donated laptops received

3 200

5 100

Laptops usable after initial inspection

70%

58%

Average refurbishment time per laptop

9 days

15 days

Devices returned because of faults

4%

11%

Schools on waiting list

18

44

Annual surplus / deficit

18 000 dollars surplus

9 000 dollars deficit

1

Describe one way in which BB's operations management adds value in its transformation process.

[2]
2

Explain one operational challenge and one marketing challenge facing BB as demand increases.

[6]
3

Using all the resources provided and your knowledge of business management tools and theories, recommend a possible plan of action for BB over the next three years.

[17]
Question 24
HL • Paper 3
Hard
Calculator Permitted
HL • Paper 3
Hard
Calculator Permitted

NourishLoop (NL)

Read the resources and answer the questions that follow.

Resource 1 — Background of the social enterprise

NourishLoop (NL) collects surplus ingredients from supermarkets and restaurants and transforms them into low-cost frozen meals for older people and families experiencing food insecurity. NL operates as a social enterprise: it aims to reduce food waste while improving access to nutritious meals. Its outputs include physical frozen meals, home delivery and nutrition advice delivered by volunteers.

NL's operations are becoming more complex. It must collect unpredictable food donations, prepare safe meals, manage freezer capacity and deliver orders on time. A local government agency has offered NL a three-year contract to provide meals to community centres, but the contract would require more consistent output and stricter delivery times.

Resource 2 — Table 1: Selected weekly operations data

Resource 3 — Social-media statistic

NL has 86 000 followers on its main social-media account. Posts about reducing food waste receive high engagement, but posts about late deliveries receive negative comments from service users' relatives.

Resource 4 — Quotation from a volunteer driver

“The mission motivates us, but the schedule changes every day. Sometimes meals are not ready when drivers arrive, and sometimes we are asked to deliver more meals than can fit in one van route.”

Resource 5 — Operational options being considered

NL is considering an online scheduling system, a second rented kitchen, a refrigerated van, and clearer rules about which donated ingredients can be accepted for meal production.

Indicator

Current position

Contract requirement

Meals prepared (meals/week)

2 400

3 600

Average delivery time after order (days)

3.5

2

Meals rejected in quality checks (%)

7

Maximum 3

Kilograms of surplus food used (kg/week)

1 900

2 700

Paid kitchen staff

12

18 estimated

Freezer capacity used (%)

92

100 maximum

1

Describe the difference between efficiency and effectiveness with reference to NL's operations.

[2]
2

Explain one human resource challenge and one finance challenge that NL may face if it accepts the local government contract.

[6]
3

Using all the resources provided and your knowledge of business management tools and theories, recommend a possible plan of action for NL in response to the local government contract offer.

[17]

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Question 25
HL • Paper 3
Hard
Calculator Permitted
HL • Paper 3
Hard
Calculator Permitted

ThreadCycle Collective (TCC)

Read the resources and answer the questions that follow.

Resource 1 — Background of the social enterprise

ThreadCycle Collective (TCC) is a social enterprise that collects textile waste from fashion retailers, transforms usable textiles into school uniforms and tote bags, and runs repair workshops for low-income communities. Its purpose is to reduce landfill waste and provide affordable clothing while offering paid training to unemployed young adults.

TCC has developed a creative production process: volunteers sort donated textiles by fibre type and condition, trainees cut usable fabric panels, and skilled supervisors assemble products. TCC also runs weekend repair workshops, teaching customers how to extend the life of clothing. A national charity has asked TCC to supply uniforms for 60 community schools, which would greatly increase demand for the physical products and reduce the time available for repair workshops.

Resource 2 — Table 1: Selected information for TCC

Resource 3 — Social-media statistic

TCC's most shared social-media post was a video showing trainees turning discarded fabric into uniforms. It received 640 000 views and led to several retailers offering more textile waste than TCC can currently store.

Resource 4 — Quotation from TCC's founder

“We are not just making uniforms. We are changing how people think about waste, work and clothing. But if we become too focused on large orders, we may lose the community workshops that make us different.”

Resource 5 — Operational choices being considered

TCC is considering leasing a larger workshop, buying semi-automated sewing machines, limiting the types of donated textiles it accepts, and creating a separate team for repair workshops.

Indicator

Current operations

If national charity order is accepted

Uniforms produced / month

1 200

3 000 required

Repair workshops / month

16

6 estimated

Textile waste diverted from landfill / tonnes per month

4.8

7.5 estimated

Average trainee hours / week

24

32 estimated

Products returned for stitching faults / %

5%

9% estimated without new equipment

Monthly rent and equipment costs / dollars

14 000

24 000 estimated

1

Describe one difference between managing TCC's operations for goods and managing TCC's operations for services.

[2]
2

Explain two possible effects on TCC's ethical or sustainability position if it accepts the national charity order.

[6]
3

Using all the resources provided and your knowledge of business management tools and theories, recommend a possible plan of action for TCC over the next two years.

[17]

5.2 Operations methods