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| Section | Objectives |
|---|---|
| Supply Chain and Inventory Management | - Just-in-Time (JIT) and Lean Operations - Supply Chain Design and Logistics - Inventory Models and Control Systems |
| Forecasting and Planning | - Aggregate Planning - Demand Forecasting Methods |
| Quality Management | - Six Sigma and Continuous Improvement - Total Quality Management (TQM) |
| Operations Management Foundations | - Operations Strategy and Competitiveness - Introduction to Operations and Productivity |
| Project and Operations Scheduling | - Project Management Basics - Scheduling Techniques |
| Process Design and Analysis | - Process Mapping and Flow - Capacity Planning and Bottlenecks |
>> Valid Operations-Management Exam Notes <<
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NEW QUESTION # 24
Which two statements are true about effective capacity?
Choose 2 answers
Answer: B,C
Explanation:
Effective capacityrepresents themaximum output a system can realistically achieve under normal operating conditions. It is alwayslower than design capacity, which assumes ideal, uninterrupted conditions.
StatementAis correct because effective capacity accounts for:
* Scheduled maintenance
* Breaks and shift changes
* Setup times
* Normal inefficiencies
StatementBis also correct because effective capacity is considered astable, ongoing measureused for operational planning and performance evaluation. It reflects how a system is designed to operate sustainably over time, not temporarily.
StatementCis incorrect because effective capacity is not a short-term or temporary measure; it is used consistently for planning, scheduling, and forecasting.
StatementDis incorrect because effective capacity does not define aminimumoutput level-it defines a realistic maximumunder expected conditions.
In Operations Management, effective capacity is essential for:
* Capacity utilization calculations
* Aggregate planning
* Location and facility decisions
* Bottleneck analysis
By distinguishing between design and effective capacity, managers avoid unrealistic expectations and plan resources more accurately, reducing congestion, overtime, and quality problems.
NEW QUESTION # 25
Which work system acknowledges the benefits of employee proficiency?
Answer: A
Explanation:
Comprehensive and Detailed Explanation (#250 words):
Labor specializationacknowledges the benefits of employee proficiency by allowing workers to focus on specific tasks, increasing skill, speed, and consistency.
In Operations Management, labor specialization:
* Reduces learning time
* Increases productivity
* Improves quality consistency
* Lowers unit costs
Employees become highly proficient through repetition and experience. This principle underpins early scientific management and remains relevant in many high-volume environments.
The other options are outcomes or enablers, not work systems:
* Employee longevity is a result, not a system
* Enhanced relations support performance but do not define task design
* Lower operating cost is a consequence of specialization
While specialization can create efficiency, it must be balanced with job design strategies (e.g., enrichment or rotation) to avoid fatigue and disengagement.
NEW QUESTION # 26
Which two capacity measurement concepts should a firm consider when conducting a location analysis?
Choose 2 answers
Answer: B,D
Explanation:
When conducting a location analysis, firms must considerproximity to sources of supplyandsite considerationsas key capacity-related factors.
Proximity to sources of supplyaffects:
* Transportation cost and reliability
* Lead times
* Inventory requirements
* Production continuity
Reliable supply access directly influences effective capacity by reducing disruptions and variability.
Site considerationsinclude:
* Land availability and cost
* Infrastructure and utilities
* Expansion potential
* Zoning and regulatory constraints
These factors determine how much capacity can be installed, expanded, and operated efficiently over time.
The other options are less relevant:
* Throughput time is a process performance metric
* Employee relations are important but not capacity measurement concepts Operations Management emphasizes that capacity decisions are long-term and capital-intensive. Poor location choices constrain future capacity, flexibility, and growth.
NEW QUESTION # 27
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: D
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 # 28
Which role do third-party logistics providers play in the supply chain?
Answer: C
Explanation:
Third-party logistics (3PL) providers act asexternal distributorsin the supply chain.
They perform logistics functions such as:
* Transportation
* Warehousing
* Distribution
* Order fulfillment
These providers operate outside the firm but integrate closely with its operations. Organizations use 3PLs to:
* Reduce capital investment
* Increase flexibility
* Access logistics expertise
* Improve service levels
Operations Management recognizes outsourcing logistics as a strategic decision that allows firms to focus on core competencies while maintaining efficient distribution networks.
NEW QUESTION # 29
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