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| Section | Weight | Objectives |
|---|---|---|
| Process Design and Analysis | 20% | - Process Types
|
| Capacity Planning and Facility Layout | 15% | - Capacity Concepts
|
| Quality Management Methods | 25% | - Total Quality Management (TQM)
|
| Supply Chain and Inventory Management | 20% | - Inventory Control
|
| Forecasting and Project Management | 20% | - Demand Forecasting
|
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NEW QUESTION # 68
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 # 69
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 # 70
A company is experiencing an unusual amount of deliveries that are either late or an incorrect quantity.
Which type of system is used to identify and manage this type of problem?
Answer: A
Explanation:
Comprehensive and Detailed Explanation (#280 words):
The correct system to identify and manage frequent issues such aslate deliveries or incorrect quantitiesis MRP (Material Requirements Planning)(AnswerD).
MRP is designed to translate demand into detailed plans forwhat materials are needed, in what quantities, and when-and then to time-phased plan purchase and production orders accordingly. The document states that MRP combines detailed demand forecasts and actual requests, translates higher-level forecasts into more detailed requirements, and tracks customer requests. It also emphasizes that the MPS (which sets specific dates) is used to plan material requirements.
When deliveries are late or wrong quantities are shipped, a frequent root cause is that materials were not available when needed, orders were not released correctly, or priorities were mismanaged. MRP directly addresses these by:
* Exploding bills of materials into components
* Time-phasing planned orders
* Coordinating purchasing and production schedules
* Updating plans when demand or system status changes
ERP is broader (enterprise-wide integration), CRP focuses on comparing capacity vs workloads, and FMS is a production technology-not a planning system for material timing and quantities. Because the symptoms described are classic planning/coordination failures in materials and order timing,MRP is the best fit.
NEW QUESTION # 71
Which two factors affect a service location decision? Choose 2 answers
Answer: A,D
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 # 72
Which project life cycle phase includes identifying the need for a project?
Answer: C
Explanation:
Comprehensive and Detailed Explanation (#250 words):
Theconception phaseof the project life cycle includesidentifying the need for a project.
During conception, organizations:
* Recognize problems or opportunities
* Define high-level objectives
* Align projects with strategic goals
* Decide whether a project should be considered
This phase precedes detailed planning and feasibility analysis. It focuses onwhya project is needed rather than howit will be executed.
The other phases occur later:
* Planning defines scope, schedule, and resources
* Feasibility analysis evaluates viability
* Execution implements the project
Project Management integrates with Operations Management when projects involve capacity expansion, process redesign, or system implementation.
NEW QUESTION # 73
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