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.
Define the term operations management with reference to GreenWrap.
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.
State two inputs and two outputs in Urban Paws' operations.
Luna Laundry promises same-day cleaning for office uniforms. Recently, poor scheduling and machine breakdowns have caused late returns to customers.
Explain one way effective operations management could improve customer satisfaction at Luna Laundry.
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.
Explain the difference between efficiency and effectiveness with reference to Cafe Miro.
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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.
Describe two differences between managing operations for goods and managing operations for services at Northline Cycles.
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 |
Calculate the added value per planter kit.
Calculate the labour productivity, in kits per employee per day, before and after the workstation redesign.
Comment on one possible effect of the workstation redesign on US's marketing.
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 |
Calculate NB's monthly packaging cost saving after the change.
Calculate the percentage reduction in packaging waste sent to landfill.
Explain one sustainability benefit of this operational change for NB.
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 |
Calculate labour productivity before and after the change, in repairs per technician hour.
Calculate the daily technician wage cost per completed repair after the change.
Comment on whether FF's operations have become more effective after the change.
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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 |
Calculate HS's occupancy rate for April.
Calculate the additional occupied room-nights needed to reach the target occupancy rate.
Comment on one operational issue HS may face if it reaches the target occupancy rate.
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 of orders are delivered on time and no more than 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 |
Calculate the percentage of orders delivered on time.
Calculate FBO's orders picked per staff hour.
Comment on whether FBO's operations are meeting its service requirements.
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.
Analyse the impact of this operational change on two other business functions at BrightPath Tutoring.
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.
Analyse one benefit and one limitation of making ReForm Furniture's operations more sustainable.
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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.
Examine two ethical issues that could arise from this operations decision at SwiftCart.
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 |
Construct a Gantt chart for PP's repair service launch.
Comment on one benefit to PP of using a Gantt chart for this operational change.
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 |
Calculate the contribution per bottle.
Calculate CS's expected monthly profit at expected monthly sales.
Comment on one operational implication if monthly demand increases by .
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.
Evaluate the importance of operations management to ATK’s future success.
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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.
Discuss whether MB should prioritize efficiency over effectiveness in its operations.
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 = 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 |
Using the regression equation, calculate the predicted weekly orders when online enquiries are 100.
Calculate the residual for week 4, where residual = actual weekly orders - predicted weekly orders.
Comment on one limitation of using this forecast for MM's operations management.
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 |
Evaluate whether SS should introduce the proposed collection and delivery operations system.
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 |
Evaluate whether TBK should switch to reusable containers in its operations.
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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.
To what extent would making operations more sustainable help RIW achieve long-term success?
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.
| Activity | Description | Duration / weeks | Immediate predecessor(s) |
|---|---|---|---|
| A | Select supplier and agree specifications | 2 | None |
| B | Install automated sorting equipment | 5 | A |
| C | Integrate laboratory software | 4 | A |
| D | Train laboratory technicians | 3 | A |
| E | Trial accuracy and safety procedures | 2 | B, C, D |
| F | Promote new capacity to hospitals | 2 | E |
Selected operational and financial data are shown below. Show all your working if calculations are used in your answer.
| Item | Manual sorting | Automated sorting forecast |
|---|---|---|
| Samples processed / month | 18 000 | 24 000 |
| Average revenue per sample / $ | 18 dollars | 18 dollars |
| Variable cost per sample / $ | 9 dollars | 7 dollars |
| Additional monthly fixed operating costs / $/month | 0 dollars | 42 000 dollars |
| Initial investment in equipment and software / $ | 0 dollars | 180 000 dollars |
| Sorting error rate / % | 2.4% | 0.8% |
| Technicians needing retraining or redeployment / number | 0 | 6 |
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 |
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.
Read the resources and answer the questions that follow.
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.
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.
“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.”
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 |
Describe one way in which BB's operations management adds value in its transformation process.
Explain one operational challenge and one marketing challenge facing BB as demand increases.
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.
Read the resources and answer the questions that follow.
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.
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.
“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.”
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 |
Describe the difference between efficiency and effectiveness with reference to NL's operations.
Explain one human resource challenge and one finance challenge that NL may face if it accepts the local government contract.
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.
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Read the resources and answer the questions that follow.
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.
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.
“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.”
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 |
Describe one difference between managing TCC's operations for goods and managing TCC's operations for services.
Explain two possible effects on TCC's ethical or sustainability position if it accepts the national charity order.
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.