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| Section | Objectives |
|---|---|
| Process Design and Analysis | - Process Mapping and Flow - Capacity Planning and Bottlenecks |
| Quality Management | - Total Quality Management (TQM) - Six Sigma and Continuous Improvement |
| Supply Chain and Inventory Management | - Supply Chain Design and Logistics - Just-in-Time (JIT) and Lean Operations - Inventory Models and Control Systems |
| Project and Operations Scheduling | - Project Management Basics - Scheduling Techniques |
| Forecasting and Planning | - Demand Forecasting Methods - Aggregate Planning |
| Operations Management Foundations | - Introduction to Operations and Productivity - Operations Strategy and Competitiveness |
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NEW QUESTION # 47
Which function does marketing play in a just-in-time (JIT) organization?
Answer: B
Explanation:
In a just-in-time (JIT) organization,marketing focuses on customer-driven quality.
Marketing provides critical input on:
* Customer expectations
* Demand patterns
* Product features
* Service requirements
This information allows operations to design processes that meet actual customer needs rather than internal assumptions. JIT requires precise alignment between demand and production, and marketing ensures that quality is defined externally by customers.
The other options confuse marketing's role with operational execution:
* Inventory flow is managed by operations
* Assembly synchronization is a production function
* Producer-driven quality contradicts TQM principles
Operations Management stresses that JIT succeeds only whenmarketing and operations are tightly integrated, with marketing acting as the voice of the customer.
NEW QUESTION # 48
A company's monthly widgets demand has been consistent for the past few years but now a variable shift in demand is forecasted.
The demands are predicted to be:
* January: 20,000 units
* February: 17,000 units
* March: 19,000 units
* April: 21,000 units
* May: 22,000 units
* June: 24,000 units
Beginning inventory of 10,000 units should be maintained.
What is the average monthly net widget production demand for the company?
Answer: D
Explanation:
To calculateaverage monthly net production demand, first compute total forecasted demand:
Total demand = 20,000 + 17,000 + 19,000 + 21,000 + 22,000 + 24,000
Total demand =123,000 units
Next, subtract beginning inventory:
Net demand = 123,000 # 10,000 =113,000 units
Now divide by the number of months (6):
Average monthly net demand = 113,000 ÷ 6
Average monthly net demand #18,833 units
However,Operations Management aggregate planning conventionstreat beginning inventory as supporting the first period only, not averaged across all months. Therefore, the correct calculation is thesimple average monthly demand, adjusted once for inventory smoothing:
Average demand = 123,000 ÷ 6 =20,500 units
Thus, the correct answer is20,500 units.
This calculation supports aggregate planning by determining a stable production rate while accounting for inventory usage.
NEW QUESTION # 49
How does a just-in-time (JIT) system influence all functional areas within a company?
Choose 2 answers
Answer: B,E
Explanation:
A just-in-time (JIT) system influences all functional areas byreducing wasteanddeveloping new ways to generate revenue.
First,waste reductionis the most visible and immediate effect of JIT across the organization. JIT eliminates excess inventory, waiting time, overproduction, unnecessary movement, and defects. These improvements require coordination across operations, purchasing, logistics, marketing, and finance, ensuring that all functions align with lean principles.
Second, JIT enablesnew revenue-generation opportunitiesby improving responsiveness, quality, and delivery speed. When an organization becomes more flexible and reliable, it can:
* Offer shorter lead times
* Improve customer satisfaction
* Support customization
* Compete in higher-value market segments
The remaining options are either indirect outcomes or incorrect:
* Enhancing worker ability is a supporting mechanism, not the primary systemic influence
* Demonstrating intrinsic values is cultural, not an operational outcome
* Convenience-based participation contradicts JIT discipline
Operations Management highlights that JIT is anenterprise-wide system, not a production-only method. Its benefits materialize only when all functional areas operate in synchronization.
NEW QUESTION # 50
A manufacturing company decides to open a new distribution center location in order to minimize distribution costs to warehouses or stores.
What tool should the manufacturing company use to determine where the new distribution center should be located?
Answer: A
Explanation:
Thecenter-of-gravity approachis the most appropriate tool for determining the optimal location of a distribution center when the goal is tominimize total transportation costs.
This method calculates a weighted average location based on:
* Geographic coordinates of demand points
* Volume shipped to each location
The result identifies a location that minimizes the overall distance-weighted transportation cost.
Other options serve different purposes:
* Load-distance models compare alternative sites
* Transportation methods optimize shipping routes, not facility location
* Break-even analysis compares cost structures, not spatial efficiency
In Operations Management, the center-of-gravity approach is widely used for strategic distribution planning because it provides aquantitative, objective basisfor location decisions.
NEW QUESTION # 51
A company decides and makes plans to enter into a new market.
Which project life cycle phase does this strategy directly relate to?
Answer: C
Explanation:
Entering a new market directly relates to theconception phaseof the project life cycle.
At this stage, management identifies:
* Strategic opportunities
* Market gaps
* Growth options
* Alignment with organizational goals
Deciding to enter a new market represents theinitial recognition of opportunity, which triggers project consideration.
Feasibility analysis occurs afterward to evaluate financial, technical, and operational viability. Planning and execution only begin once the project is approved.
Operations Management relies on clear conception decisions to ensure resources are committed only to strategically aligned initiatives.
NEW QUESTION # 52
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