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| Section | Objectives |
|---|---|
| Topic 1: Process Design and Analysis | - Capacity Planning and Bottlenecks - Process Mapping and Flow |
| Topic 2: Supply Chain and Inventory Management | - Just-in-Time (JIT) and Lean Operations - Supply Chain Design and Logistics - Inventory Models and Control Systems |
| Topic 3: Project and Operations Scheduling | - Project Management Basics - Scheduling Techniques |
| Topic 4: Forecasting and Planning | - Demand Forecasting Methods - Aggregate Planning |
| Topic 5: Operations Management Foundations | - Introduction to Operations and Productivity - Operations Strategy and Competitiveness |
| Topic 6: Quality Management | - Six Sigma and Continuous Improvement - Total Quality Management (TQM) |
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NEW QUESTION # 64
How does a just-in-time (JIT) system influence all functional areas within a company?
Choose 2 answers
Answer: A,C
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 # 65
What is one advantage of a periodic review system?
Answer: B
Explanation:
A key advantage of aperiodic review inventory systemis thatall items are reviewed at the same time interval.
In a periodic review system:
* Inventory levels are checked at fixed intervals (e.g., weekly, monthly)
* Orders are placed to raise inventory to a target level
* Multiple items can be ordered together
This approach simplifies administration and reduces ordering costs, making it especially suitable for:
* Retail environments
* Low-value or slow-moving items
* Situations where continuous monitoring is impractical
The other options describe continuous review systems:
* Individual item handling
* Real-time inventory updates
* Lower safety stock requirements
Operations Management recognizes periodic review as a trade-off between control and simplicity. While it may require higher safety stock, it offers operational efficiency and cost savings in many contexts.
NEW QUESTION # 66
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 # 67
Which concept of variation measures the central tendency of a set of data?
Answer: C
Explanation:
Comprehensive and Detailed Explanation (#250 words):
Themeanis the statistical measure that represents thecentral tendencyof a set of data.
In quality management and statistical process control (SPC), the mean indicates theaverage performance level of a process. It is calculated by summing all observed values and dividing by the number of observations.
In Operations Management, understanding central tendency is essential because:
* It defines the process target or expected output
* It serves as the reference point for evaluating variation
* It is used to establish control limits in control charts
Other options measure different aspects of variation:
* Rangemeasures dispersion between the highest and lowest values
* Standard deviationmeasures variability around the mean
* Variableis a generic term, not a measurement
TQM emphasizes not only achieving a desired mean but alsoreducing variability around it. A process can have the correct average output yet still produce defects if variation is excessive.
The mean is therefore foundational in quality analysis, process capability assessment, and continuous improvement initiatives. It helps managers understand whether processes are centered on customer specifications.
NEW QUESTION # 68
What are two common drawbacks of implementing an enterprise resource planning (ERP) solution?
Choose 2 answers
Answer: A,C
Explanation:
Comprehensive and Detailed Explanation (#270 words):
Two widely recognized drawbacks of ERP implementations are that theytake a long time to implement (and to realize benefits)andrequire extensive, often complex training-optionsAandB.
ERP systems integrate data and processes across functions (planning, procurement, production, inventory, finance, distribution). That integration is valuable, but it also makes implementation complex: processes must be aligned, data standardized, roles clarified, and change managed across departments. As a result, organizations often experience long project timelines before stable adoption and measurable benefits occur.
Training is a major burden because ERP changes how people work day-to-day. Users must learn new transaction flows, reporting logic, and discipline in data entry. Without strong training, adoption collapses into workarounds, bad data, and loss of trust in the system.
This connects to the operations principle that planning and control systems are "mechanisms and operating logics" used to manage resources and supplies over time to meet requests. ERP is one such enabling infrastructure-but it must support operations rather than become a constraint.
While customization can be an issue in some cases, the most universal drawbacks across organizations remain time-to-valueandtraining complexity, makingA and Bthe best answers.
NEW QUESTION # 69
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