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| Section | Weight | Objectives |
|---|---|---|
| Topic 1: Capacity Planning and Facility Layout | 15% | - Layout Design
|
| Topic 2: Process Design and Analysis | 20% | - Process Types
|
| Topic 3: Supply Chain and Inventory Management | 20% | - Inventory Control
|
| Topic 4: Forecasting and Project Management | 20% | - Project Management
|
| Topic 5: Quality Management Methods | 25% | - Quality Tools and Techniques
|
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NEW QUESTION # 51
What is the measure of how much supply chain is owned or operated by the manufacturer?
Answer: B
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 # 52
How do just-in-time (JIT) and lean systems add value?
Answer: B
Explanation:
Just-in-time (JIT) and lean systems add valueby reducing wasteacross all operational processes.
Lean Operations define value strictly from thecustomer's perspective. Any activity that does not add value to the product or service is considered waste (muda). JIT and lean systems systematically identify and eliminate this waste to improve efficiency, quality, and responsiveness.
Common types of waste targeted include:
* Overproduction
* Waiting time
* Excess inventory
* Unnecessary motion
* Transportation
* Defects and rework
* Overprocessing
By reducing waste, organizations achieve:
* Shorter lead times
* Lower costs
* Improved quality
* Greater flexibility
Options such as improving lighting or enhancing responsibility may support efficiency indirectly but do not define the core value mechanism of JIT and lean systems. Increasing simplicity is a result of waste reduction, not the primary method.
Operations Management emphasizes waste elimination as the foundation of sustainable operational excellence, making optionCthe correct answer.
NEW QUESTION # 53
What is one advantage of a periodic review system?
Answer: D
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 # 54
How does the status of overall customer satisfaction support supply chain objectives?
Answer: B
Explanation:
Comprehensive and Detailed Explanation (#250 words):
Overallcustomer satisfaction measures supply chain efficiency.
Customer satisfaction reflects how well the supply chain performs in:
* On-time delivery
* Order accuracy
* Product availability
* Responsiveness
Efficient supply chains deliver value reliably with minimal waste. High satisfaction signals that processes are synchronized and effective.
The other options measure internal metrics, not end-to-end performance. Operations Management emphasizes customer satisfaction as aleading indicatorof supply chain health and efficiency.
NEW QUESTION # 55
Why is the marketing plan essential to the creation of the aggregate plan?
Answer: B
Explanation:
The marketing plan is essential to the aggregate plan because itprovides insight into operations goals and activities for the year.
Aggregate planning aligns production, workforce, and inventory decisions withexpected demand, which is forecasted by marketing. Marketing defines:
* Sales volume expectations
* Product mix
* Promotional timing
* Market priorities
Operations uses this information to:
* Set capacity levels
* Plan workforce size
* Schedule production rates
* Manage inventory
While demand data and cash flow matter, the key contribution of marketing is translating market strategy into operational requirements.
Operations Management emphasizes cross-functional integration; without marketing input, aggregate plans risk misalignment with actual market needs.
NEW QUESTION # 56
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