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| Section | Objectives |
|---|---|
| Operations Management Foundations | - Introduction to Operations and Productivity - Operations Strategy and Competitiveness |
| Forecasting and Planning | - Demand Forecasting Methods - Aggregate Planning |
| Project and Operations Scheduling | - Project Management Basics - Scheduling Techniques |
| Process Design and Analysis | - Capacity Planning and Bottlenecks - Process Mapping and Flow |
| Supply Chain and Inventory Management | - Just-in-Time (JIT) and Lean Operations - Supply Chain Design and Logistics - Inventory Models and Control Systems |
| Quality Management | - Six Sigma and Continuous Improvement - Total Quality Management (TQM) |
>> Latest Operations-Management Questions <<
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NEW QUESTION # 44
What is the primary purpose in using the master production schedule (MPS) in the marketing department of an organization?
Answer: C
Explanation:
Comprehensive and Detailed Explanation (#270 words):
The primary purpose of using theMaster Production Schedule (MPS)-including from a marketing
/customer-commitment perspective-isto manage the demand for promised deliveries(AnswerA).
In the planning hierarchy, forecasts and customer requirements are translated into a detailed schedule. The document explains that, based on demand forecasting, the organization creates aMaster Plan Schedule (MPS) where "specific dates are set in detail," and that the MPS is then used to plan material requirements. This makes the MPS the central bridge between what the market is asking for and what operations can realistically commit to.
Marketing uses the MPS not to "create" demand, but tocoordinate commitments: delivery promises, timing, and order quantities must align with feasible production and materials availability. If marketing promises deliveries that the MPS cannot support, the system experiences late orders, expediting, and customer dissatisfaction.
Therefore, MPS in a marketing context supportsavailable-to-promise discipline, ensuring customer commitments are consistent with operational reality and planned workloads. It is a planning control instrument, not a tool for controlling production departments or identifying new product demand.
NEW QUESTION # 45
When is capacity measurement at the best operating level?
Answer: D
Explanation:
Comprehensive and Detailed Explanation (#250 words):
Thebest operating levelof capacity occurswhen the average unit cost is minimized.
In Operations Management, the best operating level reflects the most economical output rate for a process or facility. At this level:
* Fixed costs are spread efficiently
* Variable costs are controlled
* Congestion and inefficiencies are minimized
Operating below this level leads tounderutilizationand high unit costs, while operating above it often causes overcrowding, overtime, equipment breakdowns, and quality problems, which increase costs.
OptionAis incorrect because the minimum point of the total cost curve does not necessarily correspond to minimum average unit cost.
OptionBis incorrect because maximum capacity typically increases costs due to inefficiencies.
OptionDfocuses on total cost, not unit efficiency.
Thus, the best operating level balances efficiency and flexibility, ensuring sustainable performance and cost control.
NEW QUESTION # 46
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 # 47
Which quality control tool should be used to monitor the current status or end result of a process?
Answer: B
Explanation:
Acontrol chartis the primary quality control tool used tomonitor the current status and end results of a process over time.
Control charts, a core component ofStatistical Process Control (SPC), distinguish between:
* Common-cause variation(natural process variation)
* Assignable-cause variation(abnormal, correctable issues)
By plotting data points against upper and lower control limits, control charts help operations managers determine whether a process isstable or out of control.
Why control charts are ideal:
* They provide real-time monitoring
* They detect trends before defects occur
* They support preventive quality management
* They reduce reliance on inspection
Other tools serve different purposes:
* Checklistscollect data
* Flowchartsmap processes
* Scatter diagramsanalyze correlations
Operations Management emphasizes control charts because they supportprocess-based quality, aligning with TQM and Six Sigma philosophies. Instead of fixing defects after they occur, organizations canintervene early
, reducing cost and improving consistency.
Control charts reinforce continuous improvement by enabling data-driven decisions, reducing variability, and stabilizing production processes-making them indispensable in modern quality management systems.
NEW QUESTION # 48
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: B
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 # 49
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