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| Section | Objectives |
|---|---|
| Topic 1: Competency 1: Operations Management Fundamentals | - History and evolution of operations management - Product and service design - Operations strategy and competitive priorities |
| Topic 2: Competency 6: Production Planning and Scheduling | - Aggregate planning - Just-in-Time (JIT) and Kanban systems - Material Requirements Planning (MRP) - Theory of Constraints (TOC) - Master Production Schedule (MPS) |
| Topic 3: Competency 4: Supply Chain Management | - Inventory management - Sourcing and procurement - Supply chain design and strategy - Logistics and distribution |
| Topic 4: Competency 2: Quality Management | - Cost of quality (prevention, appraisal, internal/external failure) - Total Quality Management (TQM) - Quality management philosophies (Deming, Juran, Crosby) - Malcolm Baldrige National Quality Award criteria |
| Topic 5: Competency 5: Capacity Planning and Facility Layout | - Facility layout types (process, product, cellular, fixed-position) - Location analysis and decisions - Capacity planning strategies |
| Topic 6: Competency 3: Process Improvement and Problem Solving | - Cause-and-effect diagrams (fishbone diagrams) - Plan-Do-Study-Act (PDSA) cycle - Statistical Process Control (SPC) - Lean operations and waste elimination - Six Sigma methodology |
| Topic 7: Competency 7: Forecasting | - Qualitative forecasting methods - Quantitative forecasting methods (moving averages, exponential smoothing) - Forecast accuracy measures |
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NEW QUESTION # 57
The annual cost of goods sold for a company is $8,400,000 and the average inventory is $1,200,000.
What is the number of weeks of supply?
Answer: D
Explanation:
Weeks of supplymeasures how long inventory will last based on average usage. It is calculated using the formula:
Weeks of Supply = (Average Inventory / Annual Cost of Goods Sold) × 52
Substituting the given values:
Weeks of Supply = (1,200,000 / 8,400,000) × 52
Weeks of Supply = 0.142857 × 52
Weeks of Supply #7.43 weeks
When rounded to the nearest whole number, the answer is7 weeks.
In Operations and Supply Chain Management, weeks of supply is a key inventory performance metric because it:
* Indicates inventory efficiency
* Helps balance service levels and holding costs
* Supports cash flow management
* Enables comparison across products or firms
Too many weeks of supply signal excess inventory and high holding costs, while too few weeks increase the risk of stockouts and service failures.
Managers use this metric alongside inventory turnover to evaluate how effectively inventory supports demand while minimizing waste.
NEW QUESTION # 58
What would be an organization's next step after it has revised or implemented new operations?
Answer: D
Explanation:
After implementing revised or new operations, the correct next step is tofollow up to ensure that the new operation resolves quality problems.
Operations Management emphasizes that implementation alone does not guarantee improvement. Post- implementation follow-up is required to:
* Verify performance improvements
* Detect unintended consequences
* Confirm quality objectives are met
* Ensure process stability
This step is central tocontinuous improvementand aligns with PDCA (Plan-Do-Check-Act) and DMAIC cycles.
The other options are ineffective or redundant:
* Reversing operation order adds no value
* Revising before use contradicts implementation
* Re-analyzing the old process ignores the change
Follow-up transforms change into learning and ensures operational improvements are sustained over time.
NEW QUESTION # 59
Which statement is true about capacity requirements planning (CRP)?
Answer: C
Explanation:
The correct statement aboutCapacity Requirements Planning (CRP)is thatavailable capacity is compared to calculated workloads of relevant items.
CRP is a planning technique used after material requirements planning (MRP). While MRP determineswhat andwhenmaterials are needed, CRP verifies whether the organization hassufficient capacity-in terms of machines, labor, and work centers-to execute the planned production schedule.
CRP works by:
* Translating planned orders into workload requirements
* Assigning those workloads to specific work centers
* Comparing required capacity with available capacity
* Identifying overloads or underutilization
The incorrect options misrepresent CRP:
* CRP does not create capacity; it evaluates feasibility
* Human capital adequacy is part of workforce planning, not CRP's primary role
* CRP evaluates workloads in relation to the whole system, not isolated items Operations Management emphasizes CRP as afeasibility check, ensuring that production plans are realistic and executable before release to the shop floor.
NEW QUESTION # 60
Which two factors affect a service location decision? Choose 2 answers
Answer: A,C
Explanation:
For service organizations,proximity to customersandquality-of-life issuesare two dominant factors in location decisions.
Unlike manufacturing, service operations requiredirect customer contact. Being close to customers reduces travel time, improves convenience, enhances responsiveness, and increases perceived service quality.
Examples include hospitals, banks, restaurants, and consulting offices, where location accessibility directly influences demand.
Quality-of-life issues-such as education, healthcare, housing, safety, climate, and cultural amenities-affect the ability toattract and retain skilled service employees. Human capital is a critical input in service operations, and workforce availability often outweighs cost considerations.
The other options are less relevant:
* Manufacturing proximity matters mainly for production facilities
* Warehouse storage is a logistics concern, not a service driver
Operations Management emphasizes that service location decisions balancecustomer accessandemployee satisfaction, since both directly influence service quality, productivity, and long-term sustainability.
NEW QUESTION # 61
Why might a company avoid using demand-based options such as inventory and backorders over a long period of time?
Answer: A
Explanation:
Comprehensive and Detailed Explanation (#250 words):
Demand-based options such asinventory accumulation and backordersare avoided long term becausethey are more risky.
Maintaining high inventory levels increases:
* Holding costs
* Obsolescence risk
* Damage and theft
* Cash flow constraints
Backorders, while avoiding inventory buildup, risk:
* Customer dissatisfaction
* Lost sales
* Damage to brand reputation
Operations Management categorizes these options asshort-term demand smoothing tools, not sustainable strategies. Over time, uncertainty in demand magnifies the risks associated with inventory imbalances or unmet demand.
The other options are incorrect:
* These methods are not inherently time consuming
* They do not directly affect subcontracting or labor policies
Thus, firms avoid long-term reliance on demand-based options to maintain stability and customer trust.
NEW QUESTION # 62
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