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| Section | Weight | Objectives |
|---|---|---|
| Topic 1: Forecasting and Project Management | 20% | - Demand Forecasting
|
| Topic 2: Quality Management Methods | 25% | - Total Quality Management (TQM)
|
| Topic 3: Supply Chain and Inventory Management | 20% | - Supply Chain Design
|
| Topic 4: Capacity Planning and Facility Layout | 15% | - Layout Design
|
| Topic 5: Process Design and Analysis | 20% | - Process Performance
|
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NEW QUESTION # 26
Which type of aggregate plan is preferable when a company produces custom or special purpose equipment, one-of-a-kind items, or highly perishable products?
Answer: B
Explanation:
Comprehensive and Detailed Explanation (#270 words):
Achase aggregate planis preferable for environments withcustom, one-of-a-kind, special-purpose, or highly perishable outputsbecause production is designed to"chase" (match) demandrather than build inventory.
In a level plan, the firm maintains a constant production rate and uses inventory/backorders to absorb demand fluctuation. That works best when products can be stored economically and demand variability can be buffered. For one-of-a-kind and highly perishable items, inventory is either impossible (custom items) or risky and costly (perishability, obsolescence). Therefore, the operationally sound strategy is to adjust capacity to align output with demand.
This links directly to aggregate planning's purpose: validating whether the system has sufficient capacity to meet expected requests and defining the most appropriate combination of resources. The document also highlights that one aggregate planning mechanism is to"produce reactively (react to demand) - requires flexibility."That is the core logic of a chase strategy.
A chase plan typically uses capacity levers like hiring/layoffs, subcontracting, flexible staffing, and overtime-chosen based on the duration and magnitude of demand changes. It prioritizes responsiveness and minimal inventory, which is essential when holding finished goods is undesirable or infeasible.
NEW QUESTION # 27
Which two types of operations include repetitive processes?
Choose 2 answers
Answer: A,C
Explanation:
Line processesandcontinuous processesare the two operational process types characterized byhighly repetitive activities.
Aline processinvolves standardized products moving through a fixed sequence of steps. Each workstation performs the same task repeatedly, making it ideal for high-volume, low-variety production. Examples include automobile assembly lines and consumer electronics manufacturing.
Acontinuous processgoes a step further, operating24/7 with extremely high volume and minimal variation
. Production flows continuously rather than in discrete units. Industries such as oil refining, chemicals, and paper manufacturing use continuous processes.
The other options are not primarily repetitive:
* Project processesare unique, one-time efforts (e.g., construction projects)
* Batch processesinvolve moderate repetition but frequent changeovers between batches Operations Management classifies processes based onvolume and variety. Line and continuous processes sit at the high-volume, low-variety end of the spectrum, making repetition unavoidable and necessary for efficiency.
Repetitive processes enable:
* High labor productivity
* Low unit cost
* Process automation
* Consistent quality
However, they also require careful work system design to avoid worker fatigue and quality drift.
NEW QUESTION # 28
What is a key factor of a location analysis for a service company?
Answer: C
Explanation:
Comprehensive and Detailed Explanation (#250 words):
The most critical factor in a service company's location analysis isproximity to customers.
Service operations differ fundamentally from manufacturing because theservice is often produced and consumed simultaneously. As a result, customer access, convenience, and responsiveness are central determinants of demand and satisfaction.
From an Operations Management perspective, proximity to customers:
* Reduces waiting and travel time
* Increases service usage frequency
* Improves customer perception of reliability and availability
* Enables faster response to service failures
Examples include healthcare facilities, retail stores, hospitality, and professional services. In all cases, distance acts as ademand deterrent.
The other options are secondary:
* Community relations are important but not decisive
* Best operating level and effective capacity are internal capacity measures, not location drivers Thus, service location strategy prioritizesmarket access over production efficiency, reinforcing customer- centric operations.
NEW QUESTION # 29
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 # 30
In which organizational layout would one expect to see items arranged by type?
Answer: D
Explanation:
Comprehensive and Detailed Explanation (#250 words):
Aprocess layoutarranges itemsby type of activity or function, making it the correct answer.
In a process layout, similar resources-such as machines, skills, or functions-are grouped together. For example, all drilling machines are located in one area, all painting stations in another, and all inspection activities in another. Items move through the facility based on the specific operations they require.
This layout is commonly used when:
* Product variety is high
* Production volume is low to moderate
* Customization is required
Examples include hospitals (radiology, surgery, labs), machine shops, and repair facilities.
The other layouts differ fundamentally:
* Product layoutarranges items by sequence of operations
* Fixed layoutkeeps the product stationary (e.g., construction)
* Hybrid layoutcombines elements of process and product layouts
Operations Management favors process layouts for flexibility, but they often suffer from longer lead times, higher material handling costs, and complex scheduling. Despite these drawbacks, they are essential where customization and functional specialization dominate.
NEW QUESTION # 31
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