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| Section | Weight | Objectives |
|---|---|---|
| Supply Chain and Inventory Management | 20% | - Inventory Control
|
| Capacity Planning and Facility Layout | 15% | - Capacity Concepts
|
| Forecasting and Project Management | 20% | - Demand Forecasting
|
| Quality Management Methods | 25% | - Total Quality Management (TQM)
|
| Process Design and Analysis | 20% | - Process Performance
|
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NEW QUESTION # 62
What is the measure of how much supply chain is owned or operated by the manufacturer?
Answer: A
Explanation:
Vertical integrationmeasures how much of the supply chain isowned or controlled by the manufacturer.
In Operations and Supply Chain Management, vertical integration refers to the degree to which a firm performs activities upstream (suppliers) or downstream (distribution, retail) rather than relying on external partners. A highly vertically integrated company may own raw material sources, manufacturing plants, distribution centers, and even retail outlets.
Vertical integration affects:
* Cost structure
* Control over quality
* Lead times
* Supply reliability
* Strategic flexibility
The other options are not standard measures:
* Horizontal integration refers to acquiring competitors at the same stage
* "Insource" and "outsource integration" are not formal OM terms
Operations strategy evaluates vertical integration carefully because while it increases control, it also:
* Requires high capital investment
* Reduces flexibility
* Increases managerial complexity
Thus, vertical integration directly quantifies how much of the supply chain the manufacturer owns or operates.
NEW QUESTION # 63
Which two factors affect a service location decision? Choose 2 answers
Answer: C,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 # 64
What is the primary purpose in using the master production schedule (MPS) in the marketing department of an organization?
Answer: D
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 # 65
What is the third basic element in the just-in-time (JIT) system if the first element is total quality management (TQM) and the second is JIT manufacturing?
Answer: A
Explanation:
The third foundational element of theJust-In-Time (JIT) systemisrespect for people.
JIT is not merely a production technique; it is asocio-technical systembuilt on:
* Total Quality Management (TQM)
* JIT manufacturing (waste elimination, pull systems)
* Respect for people
Respect for people emphasizes:
* Employee involvement
* Continuous improvement (Kaizen)
* Training and skill development
* Empowerment to stop processes and solve problems
Operations Management recognizes that JIT cannot function without engaged, knowledgeable employees.
Workers are expected to identify problems, suggest improvements, and maintain quality at the source.
The other options are tools or outcomes, not core principles. Respect for people integrates human capability with operational excellence, making JIT sustainable and effective.
NEW QUESTION # 66
What would be an organization's next step after it has revised or implemented new operations?
Answer: D
Explanation:
After implementing revised or new operations, the correct next step is tofollow up to ensure that the new operation resolves quality problems.
Operations Management emphasizes that implementation alone does not guarantee improvement. Post- implementation follow-up is required to:
* Verify performance improvements
* Detect unintended consequences
* Confirm quality objectives are met
* Ensure process stability
This step is central tocontinuous improvementand aligns with PDCA (Plan-Do-Check-Act) and DMAIC cycles.
The other options are ineffective or redundant:
* Reversing operation order adds no value
* Revising before use contradicts implementation
* Re-analyzing the old process ignores the change
Follow-up transforms change into learning and ensures operational improvements are sustained over time.
NEW QUESTION # 67
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