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| Section | Objectives |
|---|---|
| Topic 1: Project and Operations Scheduling | - Project Management Basics - Scheduling Techniques |
| Topic 2: Process Design and Analysis | - Capacity Planning and Bottlenecks - Process Mapping and Flow |
| Topic 3: Supply Chain and Inventory Management | - Inventory Models and Control Systems - Supply Chain Design and Logistics - Just-in-Time (JIT) and Lean Operations |
| Topic 4: Operations Management Foundations | - Introduction to Operations and Productivity - Operations Strategy and Competitiveness |
| Topic 5: Quality Management | - Total Quality Management (TQM) - Six Sigma and Continuous Improvement |
| Topic 6: Forecasting and Planning | - Aggregate Planning - Demand Forecasting Methods |
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NEW QUESTION # 42
A company suddenly finds demand has increased to 140% of its previous capacity. It has been able to hire only a fraction of the employees previously laid off, and a warehouse fire destroyed 80% of its inventory.
Which two options does the company have to rapidly meet the new demand?
Choose 2 answers
Answer: A,B
Explanation:
When demand rises suddenly to140% of existing capacity, the firm must rely onshort-term, flexible capacity optionsto respond quickly.
The two appropriate options are:
* Hiring temporary workers
* Subcontracting a portion of production capacity
Temporary workers can be deployed rapidly with minimal onboarding time, allowing the firm to increase output without long-term labor commitments. This option is especially effective when the demand surge may be temporary or uncertain.
Subcontracting provides immediate access toexternal capacitywithout requiring capital investment. It allows the firm to meet demand while avoiding the risks associated with permanent expansion.
The other options are not viable in the short term:
* Building new facilities is capital-intensive and slow
* Hiring and training full-time employees requires time and long-term commitment Operations Management distinguishescapacity-based optionsinto short-term (temporary labor, overtime, subcontracting) and long-term (facilities, permanent workforce). In crisis situations, speed and flexibility dominate decision-making.
NEW QUESTION # 43
Which definition used for quality evaluates how well a product performs its intended function?
Answer: C
Explanation:
The concept ofquality as "fitness for use"evaluates how well a product or service performs itsintended function from the customer's perspective. This definition was strongly emphasized by quality pioneer Joseph Juranand is widely adopted in Operations Management and Total Quality Management (TQM) frameworks.
Fitness for use means that a product must not only meet technical specifications but must alsoperform reliably, safely, and effectively in real customer usage conditions. For example, a shoe that looks attractive but causes discomfort or wears out quickly is not "fit for use," even if it meets internal manufacturing standards.
This definition contrasts with other quality perspectives:
* Support servicesfocus on after-sales service, not the product's core function.
* Value for price paidevaluates perceived value, which includes cost considerations.
* Psychological criteriarelate to image, aesthetics, or brand perception.
Operations Management emphasizes fitness for use because it directly linksdesign, production, and customer satisfaction. Products designed without considering how customers actually use them often lead to defects, complaints, and warranty costs-even if internal quality standards are met.
Fitness for use also reinforcescross-functional coordination, especially between marketing (understanding customer needs), design (translating needs into specifications), and operations (producing consistently). This definition supports continuous improvement by encouraging organizations to reduce variability, improve reliability, and focus on customer-defined quality rather than internally defined metrics alone.
NEW QUESTION # 44
What is a major factor in the decision to locate a business near its primary market territory?
Answer: A
Explanation:
Comprehensive and Detailed Explanation (#250 words):
The dominant factor in locating a business near its primary market territory isproximity to customers.
From an Operations Management perspective, closeness to customers:
* Reduces transportation and delivery time
* Improves service responsiveness
* Enhances customer satisfaction
* Supports demand growth
This is especially critical for service organizations and distribution-intensive businesses, where customer access and speed are competitive advantages.
While proximity to labor is important, it does not define market territory. Community centers and parks are not operational drivers.
Locating near customers aligns capacity with demand, minimizes logistics complexity, and strengthens market presence.
NEW QUESTION # 45
A company manufactures and distributes its own products.
When should the company consider outsourcing its distribution?
Answer: A
Explanation:
A company should consider outsourcing distributionwhen it determines that distribution is no longer a core function.
Operations Management defines core functions as activities that:
* Create competitive advantage
* Differentiate the firm
* Require proprietary knowledge or capabilities
If distribution does not meet these criteria, outsourcing can:
* Lower costs
* Improve service reliability
* Increase scalability
* Allow management to focus on strategic priorities
The other options do not justify outsourcing:
* Forecasting difficulty is a management issue
* Lowest-cost operators should retain distribution
* Regulations do not eliminate strategic relevance
Outsourcing decisions must align with long-term operations strategy, not short-term cost fluctuations.
NEW QUESTION # 46
Which tier-level supplier directly supplies materials or services to a processing and packaging plant?
Answer: E
Explanation:
Comprehensive and Detailed Explanation (#250 words):
Tier one suppliersdirectly supply materials or services to a processing and packaging plant.
In supply chain hierarchy:
* Tier one suppliersdeliver components, raw materials, or services directly to the manufacturer
* Tier two suppliers supply tier one
* Tier three and beyond supply upstream tiers
JIT systems rely heavily on tier one suppliers because:
* Delivery frequency is high
* Quality must be consistent
* Lead times must be short
* Coordination must be tight
Operations Management stresses the importance of strong partnerships with tier one suppliers to ensure uninterrupted flow and minimal inventory.
NEW QUESTION # 47
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