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| Section | Weight | Objectives |
|---|---|---|
| Supply Chain and Inventory Management | 20% | - Inventory Control
|
| Capacity Planning and Facility Layout | 15% | - Layout Design
|
| Quality Management Methods | 25% | - Quality Tools and Techniques
|
| Forecasting and Project Management | 20% | - Demand Forecasting
|
| Process Design and Analysis | 20% | - Process Performance
|
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NEW QUESTION # 10
What are two product system differences between the push and pull processes?
Choose 2 answers
Answer: B,F
Explanation:
The two correct differences between push and pull systems are:
* Push moves the product forward in anticipation of demand
* Pull eliminates excessive inventory
Push systems rely on forecasts and schedule production in advance, often leading to overproduction and excess inventory if forecasts are inaccurate.
Pull systems, by contrast, produce only what is needed when it is needed, significantly reducing inventory levels and associated costs.
The incorrect options describe misconceptions:
* Overproduction increases cost, not lowers it
* Pull systems do not create additional products
* Employee relations are not defining characteristics
* Quality control exists in both systems
Operations Management favors pull systems in environments where demand variability and cost control are critical, reinforcing lean principles.
NEW QUESTION # 11
A company manufactures and distributes its own products.
When should the company consider outsourcing its distribution?
Answer: B
Explanation:
A company should consider outsourcing distributionwhen it determines that distribution is no longer a core function.
Operations Management defines core functions as activities that:
* Create competitive advantage
* Differentiate the firm
* Require proprietary knowledge or capabilities
If distribution does not meet these criteria, outsourcing can:
* Lower costs
* Improve service reliability
* Increase scalability
* Allow management to focus on strategic priorities
The other options do not justify outsourcing:
* Forecasting difficulty is a management issue
* Lowest-cost operators should retain distribution
* Regulations do not eliminate strategic relevance
Outsourcing decisions must align with long-term operations strategy, not short-term cost fluctuations.
NEW QUESTION # 12
Which statement is true about capacity requirements planning (CRP)?
Answer: B
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 # 13
What are two ways management can assist employees' focus in a just-in-time (JIT) processing environment?
Choose 2 answers
Answer: B,D
Explanation:
Management can assist employee focus in a JIT environment byproviding multifunctional trainingand developing incentive systems that reward performance.
Multifunctional trainingenables employees to:
* Perform multiple tasks
* Rotate between roles
* Support flexible staffing
* Respond quickly to disruptions
This flexibility is essential in JIT systems, where minimal buffers exist and disruptions must be resolved immediately.
Incentive systemsreinforce desired behaviors such as problem-solving, quality improvement, teamwork, and waste reduction. Rewards aligned with JIT objectives encourage employees to maintain discipline and continuous improvement.
The incorrect options conflict with JIT philosophy:
* Separating cultures undermines teamwork
* Forcing quality charting during free time creates resistance
Operations Management emphasizes that JIT success depends onpeople-centered management, not just technical tools.
NEW QUESTION # 14
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: C
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 # 15
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