OCR A Level Business: Operational strategy (H431) – Practice Questions

These are original questions written for Marlbridge, for revision and practice on this content. They are not reproduced past-paper questions, and they do not replicate the exam’s exact structure, question count or mark tariffs – examination boards hold copyright in their own papers. Use these alongside the official past papers from your board or school.

These questions cover topic 4, Operational strategy, in the OCR A Level Business (H431) specification, Version 2.1 (January 2026), with final assessment in summer 2027. They draw on invented businesses. Revise first with the study guide and the revision notes. The course hub is OCR A Level Business and the printable list is the checklist.

Questions

1. Skerra Foods sells £96,000 of pies a year and buys in £61,500 of ingredients and packaging.

(a) Define added value. [2] (b) Calculate Skerra Foods’ added value. [2]

2. Kestlecombe Joinery makes 4,500 units a month with 15 workers. After training and a new machine it makes 5,400 units with 16 workers. Calculate labour productivity before and after, and the percentage change. [4]

3. A Kestlecombe workshop can make a maximum of 4,800 units a month and currently makes 3,600.

(a) Calculate capacity utilisation. [2] (b) Calculate it if output rises to 4,200. [1] (c) Analyse one risk of running at the higher level. [2]

4. Skerra Foods holds flour with a buffer stock of 150 bags, usage of 40 bags a day, a lead time of 3 days and a reorder quantity of 500 bags.

(a) Calculate the reorder level. [2] (b) Calculate the maximum stock level. [2] (c) Explain one drawback of moving to just in time (JIT). [2]

5. A project has activities P (2 days, no predecessor), Q (5, after P), R (3, after P), S (4, after Q) and T (2, after R and S).

(a) Identify the critical path and the project duration. [3] (b) Calculate the total float of R. [2] (c) Calculate the free float of R. [1]

6. An activity has an optimistic time of 2 days, a most likely time of 6 days and a pessimistic time of 16 days.

(a) Calculate the expected time. [2] (b) Explain one use and one limit of PERT. [2]

7. Kestlecombe Joinery scraps 90 of 1,800 units input. After introducing total quality management (TQM) it scraps 54 of 1,800.

(a) Distinguish between quality control and quality assurance. [2] (b) Calculate the wastage rate before and after. [2] (c) Explain how training can improve quality. [2]

8. Kestlecombe Joinery makes made-to-order kitchens by job production. It is considering batch production of standard cabinets. Evaluate whether it should change. [6]

9. Skerra Foods packs 500,000 pies a year at £1.10 a pack in the UK. An overseas supplier quotes £0.80.

(a) Define offshoring and re-shoring. [2] (b) Calculate the annual saving. [2] (c) Explain one non-financial risk of offshoring. [2]

10. Oxley Pike Cycles has high stock costs, frequent late orders and a skilled, stable workforce. Its suppliers are within 20 miles. Recommend and justify a lean production method. [6]

11. Skerra Foods is choosing a site for a distribution centre. Evaluate the importance of location to the business and its stakeholders. [6]

Answers

1. (a) Added value is selling price minus the cost of bought-in materials and services [1]; it is before overheads, so it is not profit [1]. [2] (b) 96,000 - 61,500 [1] = £34,500 [1]. [2] Examiner insight: Answers tend to gain credit for stating that overheads are still to be paid; equating added value with profit is a common slip.

2. Before: 4,500 / 15 = 300 units per worker [1]. After: 5,400 / 16 = 337.5 [1]. Change 37.5 [1]; 37.5 / 300 x 100 = 12.5% increase [1]. [4] Examiner insight: Show both productivity figures before the percentage; a bare percentage leaves nothing to reward if it is wrong.

3. (a) 3,600 / 4,800 [1] x 100 = 75% [1]. [2] (b) 4,200 / 4,800 x 100 = 87.5% [1]. [1] (c) At 87.5% there is little spare capacity [1], so a breakdown or demand surge could cause late orders and lost customers [1]. [2] Examiner insight: “Analyse” asks for a consequence, not just a statement that capacity is nearly full.

4. (a) 150 + (40 x 3) [1] = 270 bags [1]. [2] (b) 270 + 500 - 120 [1] = 650 bags [1]. [2] (c) JIT holds almost no stock [1], so one late delivery from a supplier halts production [1]. [2] Examiner insight: A drawback gains more credit when linked to the consequence for the business, not only named.

5. (a) Forward pass gives ESTs P 0, Q 2, R 2, S 7, T 11 [1]; critical path P, Q, S, T [1]; duration 11 + 2 = 13 days [1]. [3] (b) LFT of R = 13 - 2 = 11 [1]; total float = 11 - 2 - 3 = 6 days [1]. [2] (c) Free float = 11 - 2 - 3 = 6 days [1]. [1] Examiner insight: Show the forward and backward passes; a wrong final figure can still earn credit for correct working shown.

6. (a) (2 + 4 x 6 + 16) / 6 [1] = 7 days [1]. [2] (b) Use: it allows for uncertainty by weighting three estimates [1]. Limit: the estimates may be inaccurate or biased [1]. [2] Examiner insight: State one use and one limit separately; two uses would earn no credit for the limit.

7. (a) Quality control inspects output to find defects [1]; quality assurance prevents defects by managing the whole process [1]. [2] (b) Before 90 / 1,800 x 100 = 5% [1]; after 54 / 1,800 x 100 = 3% [1]. [2] (c) Trained staff understand the standards and make fewer errors [1], reducing waste and rework [1]. [2] Examiner insight: Link training to a result for the business, such as lower waste, to move beyond a simple assertion.

8. Job production gives flexibility and high prices but high unit cost [1]. Batch production for standard cabinets spreads set-up time and lowers unit cost [1], and customers may pay less and receive faster delivery [1]. But the firm needs stock and storage space, and risks unsold cabinets if demand is weak [1]; skilled workers may find repeated tasks less motivating [1]. Judgement: a mixed approach, batch for standard lines and job for bespoke kitchens, is likely best if enough standard demand exists, because it keeps the premium brand while cutting cost [1]. [6] Examiner insight: Strong evaluations weigh unit cost against flexibility for named stakeholders and then commit to a conditional judgement.

9. (a) Offshoring moves activities to another country [1]; re-shoring brings them back to the home country [1]. [2] (b) 500,000 x (1.10 - 0.80) [1] = £150,000 [1]. [2] (c) Longer supply lines risk late delivery or poorer quality control [1], which could damage reputation with UK customers [1]. [2] Examiner insight: “Non-financial” means do not answer with cost; name a risk and its effect.

10. Recommend just in time (JIT) [1], because stock costs are high and JIT cuts stock held [1]. Suppliers within 20 miles make fast, reliable deliveries likely [1]. A skilled, stable workforce also suits kaizen, but JIT addresses the stated problem more directly [1]. Risk: any supplier failure stops production, so agree delivery terms and keep a small buffer [1]. Overall JIT is justified because its main condition, reliable nearby supply, is met [1]. [6] Examiner insight: Justification gains credit when the choice is tied to the case facts and the main alternative is considered.

11. Location affects cost, speed and customer service [1]. Near motorways and customers cuts delivery time and fuel cost [1]; cheaper land away from cities lowers rent, though staff may be harder to recruit [1]. Stakeholders: customers gain faster delivery, employees gain or lose commuting convenience, the local community gains jobs but may face traffic [1]. A weakness is that modern digital tracking reduces some location needs [1]. Judgement: location is very important for a distribution centre because transport is its main cost, so access should outweigh rent [1]. [6] Examiner insight: Cover both the business and at least one other stakeholder, then reach a clear judgement.

Where marks are usually lost

• Treating added value as profit.
• Omitting x 100 when asked for a percentage.
• Forgetting to subtract usage during lead time for maximum stock.
• Calculating float without subtracting duration.
• Writing a one-sided evaluation with no judgement.
• Giving generic benefits with no use of case data.
• Confusing quality control with quality assurance.
• Naming a risk without explaining its effect.

Frequently asked questions

What calculations come up in OCR A Level Business operational strategy questions? Topic 4 of OCR A Level Business (H431) includes added value, labour productivity, capacity utilisation, wastage rates, stock control charts, critical path analysis and PERT. Calculation questions are often followed by a part asking you to analyse or explain what the figure means.

How should you answer a “recommend” question on operations, such as choosing a stock control method? Choose one option, give reasons drawn from the case, such as supplier distance and reliability or stock costs, and explain why the main alternative is weaker. Saying a method like JIT is always best without discussing the case is a common way to lose marks.

What is the difference between quality control and quality assurance? Quality control inspects output to find defects after production. Quality assurance builds quality into the whole process to prevent defects happening in the first place.

Next steps

• Revisit the revision notes and the study guide.
• Check the course hub and the checklist.
• Take the free 10-minute diagnostics.
• Book a free trial class.

Official syllabus

OCR Level 3 Advanced GCE in Business (H431), Version 2.1 (January 2026), topic 4 Operational strategy, published by OCR.