OPM Chapter 1, 2, 4

  1. What is OPM (operation management)
    oversight of planning, analysis and implementation of activities involved in transforming inputs and outputs. EX: Ink=brochures, crude oil=legos, freshmen=grads
  2. Inputs
    • materials, supplies, equipment, and employees. Services also include the customer.
    • Car wash inputs: Dirty vehicles Customers Attendants and cashiers   Facilities Car Cleaning Supplies     (tire cleaner, towels,     vacuum cleaners,     detergents, wax, water) Office Supplies
  3. Outputs
    • Completed services or products or both
    • carwash: OUTPUTS Clean Car Satisfied customer Waste water Dirty towels and rags
  4. Downstream information
    cost  and pricing
  5. Upstream
    feedback about the outputs, processes and inputs
  6. The Transformation Process
    Inputs-transformation process (includes feedback) - outputs-customers/stakeholders

    • Ex: baker, inputs are raw materials for baking, recipes, employees, utensils, facilities and utitlities. Transformation process is all activities associated with creating and selling baked goods (developing recipes, mixing and baking, selling products, cleaning). Outputs are finished products sold to customers including waste products. Stakeholders are customers, owners, employees, health dept, other business connected.
    • CarWash: TRANSFORMATION PROCESSES Customer Order Vacuuming Automatic washing, waxing,    and drying Hand drying Window washing Payment for Services
  7. Information
    essential to the transformation process. Helps estimate cost or revenues, or assess product and service quality. customer demand, feedback
  8. Feedback
    INPUTS: Quality of detergents and    wax Ability of employees to    perform job duties Friendliness of employees Cleanliness of facility

    TRANSFORMATION PROCESSES Time to perform service Wait time in line Rate of water usage

    OUTPUTS Appearance of car:     Number of Missed spots    Streaks Number of return customers Overall customer satisfaction    (scale of 1-5)
  9. Feedback and Performance measures
    • TIME On-time delivery/receipt Order cycle time Order cycle time variability Response time Wait time Total service time Throughput (units/time period)
    • QUALITY Overall customer satisfaction Order accuracy Percent nonconforming Order fulfillment: On-time Complete Accurate Damage-free Accurate invoice
    • COST Inventory turnover Cash-to-cash cycle time Total delivered cost: Cost of goods Transportation cost Inventory cost
  10. Inventory turnover
    COGS/Inventory investment
  11. Cash-to-cash cycle time
    is the time that elapses between purchasing an item to sell and receiving cash for it. The lower the cash-to-cash cycle time, the better.
  12. Operation Management activities
    • Inventory Management
    • Process Design
    • Capacity Management
    • Employee Scheduling
    • Equipment Maintenance
    • Facility Layout
    • Quality Management
    • Supply and Distribution management
  13. Inventory Management
    • Ensures that supplies are available in order to conduct business, including office supplies as well as supplies for flights: spare parts for planes, beverages and food, first aid equipment, and so on.
    • Ex: develop a system for tracking inventory to minimize inv costs.
  14. Process Design
    • Ensures that customer interaction occurs at natural points in the process, planning and deplaning processes flow smoothly, potential failure points are identified, and recovery processes are in place. Also includes “back-office” processes.
    • Ex: determine the process steps and analyze them for where problems can occur. Develop procedure for dealing with them
  15. Capacity Management
    • Ensures that there is adequate capacity to meet customer demand.
    • Ex: determine how much space for providing customers waiting in line, how long, how many attendants,
  16. Employee scheduling
    • Ensures adequate staffing to meet customer demand.
    • Ex: determine how many to hire each day
  17. Equipment Maintenance
    • Ensures that equipment breakdowns do not disrupt customer service
    • Ex: follow the manufacture guildlines on maintenance
  18. Facility Layout
    • Ensures customers, employees, and equipment can be adequately accommodated in the facility.
    • Ex: develop a layout that makes it way for customers to know where to go. Adequate space for each step, adequate space for supplies
  19. Quality Management
    • Ensures that customers and employees are satisfied, and that customers will return.
    • Ex: Establish processes and procedures for quality assurance. Evaluate product and employee performance.
  20. Supply and Distribution Management
    • Ensures that suppliers provide the right products at the right time in the right quantity at the right price and in the right condition to the right place.
    • Ex: determine suppliers for different products, work with suppliers to agree on quantities, shipping, costs, and acceptable level of quality. Time for deliveries
  21. Goods Producing
    • is a pure goods producing process.
    • Ex: Natural resources and mining     Mining, Quarrying, and Oil and Gas Extraction     Construction     Manufacturing

    Ex: GOODS Tangible Product can be held in inventory. Production is distinct from consumption. Inputs tend to be homogenous. Automation of transformation processes is feasible. Low customer interaction during the transformation process. Product can be returned, recycled, or reused. Measurement of quality is based on tangible product characteristics. Product can be transported
  22. Service producing
    • Purchasing insurance is a pure service process.
    • Ex: Trade, Transportation, and Utilities Retail Trade Transportation and Warehousing Utilities Information Financial Activities Real Estate and Rental and Leasing Professional and Business Services Management of Companies and Enterprises Administrative and Support and Waste Management and Remediation Services Education and Health Services Health Care and Social Assistance   Leisure and Hospitality Accommodation and Food Services Other Services (except Public Administration)

    Ex: Intangible Services cannot be held in inventory. Service is produced and consumed simultaneously. Inputs tend to be heterogeneous. Automation of transformation processes may be impossible or undesirable. High customer interaction during the transformation process. Services are consumed while they are produced and cannot be returned, recycled, or reused. Due to the intangible nature of services, quality measurement is more difficult. Services are not generally transported.
  23. Manufacturing and service process
    Fast food, automobile supply chain (manufacturing, shipping, selling(
  24. Capacity Management (goods compared to services)
    • Goods - depends on primarily on infrastructure and capital outlays, but labor to a lesser extend due to automation
    • Services - relies on infrastructure, but labor and employee scheduling to a greater degree due to labor intensive nature of services
  25. Employee scheduling
    • Goods - is fairly stable or predictable throughout the year
    • Services - employee scheduling depends on customer demand and is therefore subject to greater volatility
  26. equipment maintenance
    • Goods - equip breakdowns can completely shut down operations and impose large costs on a company
    • Services - equip breakdowns can be serious, especially in services that have goods-producing components, but for pure services, equip breakdowns are less costly than for goods
  27. Supply and distribution management
    • Goods - can be very complex, containing networks of numerous suppliers, distribution centers, retailers and logistics.
    • Services - supply and distribution is used to manage the products needed to provide a service, and therefore, tend to be less complex than for goods
  28. Facility Layout (goods vs services)
    • goods - are configured in accordance with product manufacturing requirements
    • Services - facilities are configured in accordance with service requirements
  29. Inventory Management (goods vs services)
    • Goods - hold inventories to hedge against uncertain demand
    • Services - hold inventories of products required to perform services
  30. Process design (goods vs services)
    • Goods - design the process in accordance with product specifications
    • Services - design the process in accordance with customer expectations
  31. quality management (goods vs. services)
    • Goods - Quality can be measured based on product specifications and performance
    • Services - Quality measurements tend to be more subjective, based on customer perceptions
  32. Which is not true regarding differences between goods and services?
    1. Services are generally produced and consumed simultaneously.
    2. Automation of services may be undesirable.
    3. Quality measurement is more difficult for services.
    4. Goods have higher customer interaction during the transformation process than services.
    5. All of the above are true.
    4. Goods have higher customer interaction during the transformation process than services.
  33. Which of the following is not an operations decision?
    1. equipment maintenance
    2. determination of price points
    3. facility layout
    4. quality management
    5. inventory management
    determination of price points
  34. Which of the following OM decision pertains to sensible location of processes and materials in relation to each other?
    1. facility layout
    2. process design
    3. supply and distribution management
    4. a and b
    5. b and c
          a and b
  35. Common categories of metrics used to measure performance of operations include 1. employee satisfaction and customer satisfaction
    2. process and product quality
    3. cost and quality time, cost, and quality
    4. All of the above
    time, cost, and quality
  36. Which of these organizations is likely to have the most important inventory decisions?
    1. a restaurant
    2. a lobbying agency
    3. a management consulting firm
    4. a marketing research firm
    5. a law firm
    1. a restaurant
  37. Which of the following is not part of the transformation process?
    1. physical flows of goods or products
    2. inputs and outputs
    3. information flows
    4. feedback
    5. none of the above
    none of the above
  38. Which of the following performance measures would be the least helpful for a public library wishing to improve customer service?
    1. Fees charged for returning books late
    2. Availability of e-books
    3. Waiting time for assistance from a librarian 4. Average number of visitors per month
    5. Overall customer satisfaction
    Fees charged for returning books late
  39. The Bureau of Labor Statistics (BLS) classifies industries as either service-producing or goods-producing.   According to the BLS, which of the following statements is true?
    1. Total hourly compensation for service producing industries is higher than goods-producing industries because services include high wage-earners such as surgeons, university chancellors, and hotel owners.
    2. Total hourly compensation for goods-producing industries is higher than service-producing industries.
    3. There are more goods-producing establishments than service-producing establishments.
    4. The number of people employed in the goods-producing industries is greater than the number of people employed in service-producing industries.
    5. There are 4 “supersectors” for service-producing industries.
    Total hourly compensation for goods-producing industries is higher than service-producing industries
  40. Which of the following statements is false?
    1. Operations management activities typically fall into 8 categories
    2. Operations management tools and techniques can be applied to both goods and services.
    3. Operations management focuses mainly on manufacturing, and has little to contribute to managing service operations.
    4. Feedback about operations can be internal, from within the organization, or external, from customers.
    5. Operations management is an essential function of business.
    Operations management focuses mainly on manufacturing, and has little to contribute to managing service operations.
  41. A new business instructor is concerned about the quality of “inputs” for her new course on sustainable business models.  Which of the following inputs and measures would be the least useful to her?
    1. Preparedness of students, measured by a “pre-test”
    2. Quality of the textbook,  measured by a “star-rating” provided by other instructors
    3. Availability of supplemental material, measured by the number of items provided by the publisher
    4. Computer technology available for classroom instruction, measured subjectively by the instructor based on her preferences
    5. Readiness of students to learn, measured by their academic level (junior, senior, etc.)
    Readiness of students to learn, measured by their academic level (junior, senior, etc.)
  42. Supply chain management encompasses
    planning and management of all activities involved in sourcing and procurement, conversion, and all logistic management activities. Coordination and collaboration with channel partners (suppliers, intermediaries, 3rd party service providers, customers. Supply & demand management
  43. First, second and third tier suppliers
    1st, 2nd, and 3rd tier suppliers are positioned “upstream” of the manufacturer.

    the chemical supplier, plastic bottle supplier and detergent box supplier are all considered first tier suppliers because they provide products directly to the manufacturer.  The raw material supplier, petroleum products supplier, and paper products supplier are second tier suppliers. Finally, the third tier supplier is represented by the tree, the supplier of raw material to the paper products supplier.
  44. Information in the transformation process
    it flows upstream and downstream
  45. Information that flows upstream
    • market research data, ordering information and cash flow.
    • Recycled, refurbished, remanufactured.
  46. Downstream
    credit flows downstream.
  47. Flow in the supply chain
    The upstream portion of the supply chain encompasses the goods-producing activities whereas the downstream activities are closer to the final customer and include more of the service-producing activities.
  48. Value chain and competitive strategies
    • Product development
    • marketing and sales
    • operations
    • distributions
    • service
    • Supports a competitive strategy in terms between price, quality, variety, product availability and strategy
  49. Marketing strategy
    website, lifestyle choice
  50. Product development strategy
    design philosophy
  51. Operation strategy
    ensures the products are available for customers to buy, online and stores
  52. Distribution strategy
    where distribution centers hold products, how transported, and how often deliveries are made to the stores
  53. Service strategy
    return of products, different delivery options on website
  54. Supply chain strategies
    • responsive - strives to respond to the customer expectation (unpredictable demand), can respond best to fluctuations in customer demand. competes on time, ramp up production, meet a high level of customer service
    • efficient - strives to meet customer needs at the lowest cost. (predictable demand), competes on cost, economies of scale, offer low variety of products at a high volume.
  55. Low demand uncertainty
    horizontal axis, products like commodities flour or salt. paper, baby diapers.
  56. High demand uncertainty
    • On the right side of the horizontal axis
    • fashion items, computer products, cell phones. Whats hot and whats not.
  57. supply chain strategy axis
    • vertical axis
    • as demand uncertainty increases, a responsive supply chain will provide the best competitive advantage.
    • As uncertainty decreases, an efficient supply chain is the best
  58. Inventory management (responsive vs. efficient)
    • responsive: carry adequate buffer inventory to manage uncertainty
    • Efficient: minimize inventory costs
  59. Process design (efficient vs responsive)
    • responsive: low setup costs. produce in small batches
    • efficient: longer production runs and/or lead times compared to a responsive strategy
  60. Capacity management (efficient vs responsive)
    • Responsive: excess capacity available to absorb fluctuations. low utilization (zara maintains extra capacity to add new shifts)
    • Efficient: High utilization of facilities
  61. Employee scheduling (efficient vs responsive)
    • Responsive: may be more flexible to respond to demand changes
    • Efficient: minimize payroll costs
  62. Equipment maintenance (responsive vs efficient)
    Responsive and efficient: same for both. schedule maintenance in order to provide least disruption to schedules. An equipment breakdown is more likely to be more disruptive to an efficient supply chain because it increases uncertainty.
  63. Facility layout (efficient vs responsive)
    • responsive: flexible to accommodate design changes and product variety
    • Efficient: may be somewhat flexible, but layout supports low variety and few design changes.
  64. Quality management (responsive vs efficient)
    Responsive and Efficient: quality management is important for both strategies. However, poor quality may be more visible in a responsive environment due to lower inventory levels and shorter production runs. Therefore, quality strategies need to be consistent with the supply chain strategy.
  65. Supply and distribution management (responsive vs efficient)
    • Responsive: criteria for supplier selection, network design, information technology and transportation choices are based on the ability to respond quickly to change. Zara has utilization
    • Efficient: criteria for supplier selection, network design, information technology, and transportation choices are based on the ability to keep costs low.
  66. Supply Chain Drivers
    • ¢Facilities
    • ¢Transportation
    • ¢Inventory
    • ¢Information
    • ¢Sourcing
    • ¢Pricing
  67. facilities (supply chain driver)
    • all facilities throughout the supply chain: retail stores, distribution centers and warehouses, manufacturing facilities, 1, 2, 3 tier suppliers.
    • Measures for performance: capacity, utilization, product variety, average production batch size, and processing times
    • Response: location close to customers
    • Efficient: central location to keep costs down.
  68. Transportation (supply chain drivers)
    • 6 modes of transport: water, rail, pipeline, truck, and air and rail. Varies in time and costs. Water is least expensive, but slowest. Air most expensive, fastest.
    • Measures performance: average inbound and outbound costs, and avg inbound and outbound size
  69. Inventory (supply chain drivers)
    • raw materials, all work in process, components, and finished goods.
    • Efficient: Inventory costs are generally lower if production occurs in large batches on a less frequent basis
    • responsive: receive small batches of inventory on a frequent basis, keeping their inventory costs low and responsiveness high.
    • Measures performance: inventory turnover, average inventory level, average safety inventory, percentage of stockouts, and fill rates.
  70. Information (supply chain drivers)
    • information supports all the drivers and provides an opportunity to improve performance.
    • Response Information systems: Enterprise Resourse Planning (ERP), Customer Relationship Management (CRM) and Supplier Relationship Management (SRM)
    • Measures usefulness of info: forecast error, forcast horizon, variance from plan, and ration of demand to order variability (bullwhip effect)
  71. Sourcing (supply chain drivers)
    • determines who will perform certain supply chain activities. Sourcing to china typical. Problems: responsiveness time, quality issues, payroll and transportation can be outsourced.
    • Measures performance: days payable outstanding, average purchase price, percent of ontime deleiveries, lead time and product quality.
  72. Pricing (supply chain driver)
    • Pricing decisions are affected by industry structure, supply chain costs and competitor prices. Prices influence customer demand and demand uncertainty. Walmart uses (EDLP) every day low prices to maintain stable demand with low variability. Sales and promotions increase demand uncertainty.
    • Measures performance: profit margin, average sales price, avg order size.
  73. Interaction between drivers
    none of these drivers act independently. Sourcing decisions affect the supply chain network design and facility configuration. Location of facilities within the supply chain affects transportation and inventory decisions. Pricing affects facility, transportation and inventory decisions. Info is used by all drivers and is vital for effectively and efficiently managing supply chains
  74. A responsive supply chain can
    1. respond quickly to changes in customer demand.
    2. often has excess capacity in its facilities.
    3. may carry buffer inventory.
    4. all of the above
    5. none of the above
    all of the above
  75. The variability associated with  customer demand for a product is the
    1. rate of strategic uncertainty.
    2. demand uncertainty.
    3. supply uncertainty.
    4. average forecast error.
    5. none of the above
    demand uncertainty
  76. Supply chain responsiveness includes the ability to do which of the following?
    1. Respond to wide ranges of quantities demanded
    2. Meet short lead times
    3. Handle a large variety of products
    4. Meet a very high service level all of the above
    all of the above
  77. The relationship where increasing variability in customer demand is best served by increasing responsiveness from the supply chain is known as the
    1. implied uncertainty spectrum.
    2. responsiveness spectrum.
    3. uncertainty/responsiveness map.
    4. zone of strategic fit.
    5. none of the above
    Zone of strategic fit.
  78. Which of the following is not a major driver of supply chain performance?
    1. Customers
    2. Facilities
    3. Inventory
    4. Transportation
    5. Information
  79. All raw materials, work in process, and finished goods within a supply chain are known as
    1. facilities
    2. inventory
    3. transportation
    4. information
    5. customers
  80. A facility with little excess capacity
    1. will likely  have lower average costs per unit than one with a lot of unused capacity.
    2. would be considered a high utilization facility.
    3. will have difficulty responding to demand fluctuations.
    4. All of the above are true.
    5. None of the above are true.
    All of the above are true.
  81. Which of the following are obstacles to achieving strategic fit in a supply chain?
    1.Increasing variety of products
    2. Increasing product lifecycles
    3. Increasingly demanding customers
    4. a and b
    5. a and c
    a and c
  82. An efficient supply chain strives to
    1. Have low utilization of facilities
    2. Schedule employees so that payroll costs are minimized
    3. Produce small batches in manufacturing facilities
    4. Be flexible to abrupt changes in demand
    5. Embrace design changes and product variety
    Schedule employees so that payroll costs are minimized
  83. Which of the following modes of transportation has the lowest average cost per ton?
    1. Air
    2. Truck
    3. Rail
    4. Water
    5. None of the above:  All have similar costs.
  84. Planning times
    • Short term: 3 months, inc scheduling jobs, assignments, employees, and material ordering
    • long term: at least 1 year, inc capacity decisions, r&d, new product and process introductions, facility location and expansion, and other decisions requiring capital investments.
    • Intermediate planning: 3-18 months. Aggregate plans are used to develop, decision associated with production and budgeting, sales, workforce scheduling, and inventory management. *Goal to match demand with capacity in the most efficient and effective way possible.
  85. Forecasting
    essential in deveiloping good plans. Used by top management to develpp long-term plans. These are used as a basis to develop intermediate range plans. Short term are based off intermediate plans to make adjustments to better match demand and capacity.
  86. Fundamentals of Aggregate Planning
    Do not make plans for individual products and specific resources (labor and equip), but aggregate similar products together to identify overall capacity requirements. Begins by adding the demand for all products together and then determing how well the monthly demand can be met by current capacity. Aggregated based on common characteristics to create a product "family". Include the facility in which they are produced, the sector they support, or common manufacturing and component characteristics.
  87. 5 different ways to adjust capacity to meet demand (Capacity or Demand Options):
    • 1. use inventories to absorb changes in demand. Inc in periods of lower demand. **inc inventory costs Capacity Option
    • 2. varying workforce size. **higher training and separation costs, lower morale, and lower productivity for new workers. Capacity Option
    • 3. Use part-time workers to absorb demand fluctuations. **used to fill unskilled or low skilled positions Capacity Option
    • 4. Use overtime. **labor costs higher and worker burnout exists. not good if demand fluctuation large.
    • 5. Use subcontractors and maintain a stable workforce. **Viable when demand is at peak. More costly, possibility in creating a new competitor. Capacity Option
    • 6. Change prices or other factors to influence demand. Demand Option
  88. 3 different options a firm can use to influence demand and creating a stable pattern:
    • 1. use advertising and promotions to shift demand from peak to non-peak periods. **not usually sufficient and may cause instability if upstream partners are not aware of promotions.
    • 2. Use back ordering during high demand periods. **efficient if substitutes are not available. Will result in loss of goodwill
    • 3. Develop a product mix that is counter-seasonal. I.e. Snowmobile with jet ski. **downside is the company might provide products outside of their expertise.
  89. Daily production quantity
    • Demand / production days
    • average demand / average production days
  90. Level Strategy
    Select the minimum workforce size necessary to meet average demand. Inventory is used to absorb demand fluctuations.
  91. Chase Strategy
    • Select a workforce size required to meet lowest monthly demand.
    • Use subcontracting to absorb demand fluctuation
    • Use overtime to absorb demand fluctuations.
    • Change workforce levels to absorb demand fluctuations
  92. Mixed Strategy
    • Given a workforce size, use subcontracting and inventory to absorb demand fluctuations.
    • use overtime, subcontracting and inventory to absorb demand fluctuations. Limit overtime to 40 units per month.
  93. Use inventory to absorb demand fluctuations
    • Advantages: Production rate is constant which makes planning easier.
    • Disadvantages: increased costs to carry inventory. Shortages may result in lost sales.
    • **Applies mainly to production
  94. Use overtime to absorb demand fluctuations.
    • Advantages: Matches demand fluctuations without hiring additional employees.
    • Disadvantages: cost of overtime, worker fatigue. May still not meet demand.
    • **Allows flexibility. Can be used in production or services.
  95. Subcontract production
    • Advantages: allows for constant production rates.
    • Disadvantages: Possible loss of quality and reliability. May lose future business due to new competitor. Reduced profit.
    • **Applies mainly to production.
  96. Varying workforce size by hiring or layoffs.
    • Advantages: provides another alternative.
    • Disadvantages: costs to hire, layoff and train may be too high. Morale is often impacted.
    • **May be used when size of labor pool is large, work is seasonal, and skill level is relatively low. Used in production or service.
  97. Use part-time workers
    • Advantages: less costly than full-time workers. Provides flexibility.
    • Disadvantages: Potential for high turnover and training costs. As a result, quality may decline and scheduling can be challenging.
    • **better for unskilled jobs and large temporary labor pools. Used in production or service.
  98. Influence demand
    • Advantages: Attempts to use excess capacity.
    • Disadvantages: challenging to exactly match demand and supply
    • **used in conjunction with marketing. Can be applied to production or services.
  99. Customer back ordering when demand is high
    • Advantages: keeps production smooth and may avoid overtime.
    • Disadvantages: customer must be willing to wait, but goodwill is lost.
    • **Appropriate for customized products or those with few substitutes.
  100. Develop counter-seasonal products and services
    • Advantages: allows for constant production rate and stable workforce.
    • Disadvantages: may require additional skills and equipment.
    • **Can be tricky to identify appropriate products or services.
  101. Supply and distribution management
    1. is not necessary for service processes
    2. can be complex, especially for manufacturing
    3. can affect inventory management decisions
    4. all of the above are correct
    5. A and B are correct
    6. B and C are correct
    7. A and C are correct
    B and C are correct
  102. Measuring quality in services
    1. Is not advisable because customer expectations vary widely
    2. Is more difficult than manufacturing because of the intangible nature of services
    3. Is more difficult than manufacturing because you can’t measure customer satisfaction
    4. Is more difficult than manufacturing because processes are not as clearly defined 5. Is easy to do because the metrics used to measure quality in manufacturing can be used to measure service quality
    Is more difficult than manufacturing because of the intangible nature of services
  103. Process design
    1. refers to how a facility is laid out or configured in order to support a production or service process.
    2. can influence process capacity because it can affect the flow of goods and/or customers
    3. is useful only in a manufacturing setting. 4. Identifies how much inventory to hold at different places in a process
    5. Is usually influenced by supply chain activities
    can influence process capacity because it can affect the flow of goods and/or customers
  104. In order to support their responsive strategy, Zara clothing company
    1. outsources most of their manufacturing to Asia
    2. has excess production and distribution capacity
    3. maintains high inventory levels to be able to quickly ship products to where they are needed
    4. has distribution centers located close to their markets all over the world
    has excess production and distribution capacity
  105. The value chain
    1. helps to visualize the relationship between a firm’s competitive strategy and the market. 2. is used to Target to develop their marketing strategy.
    3. includes mechanisms for assessing service and manufacturing quality.
    4. is a concept that can be helpful to ensure that a firm’s competitive strategy is supported by product development, marketing, operations, distribution and service strategies.
    5. applies only to manufacturing
    4. is a concept that can be helpful to ensure that a firm’s competitive strategy is supported by product development, marketing, operations, distribution and service strategies.
  106. In trying to achieve a “strategic fit” in terms of responsiveness vs. efficiency, firms must take into account:
    1. the size of their business
    2. the demand uncertainty of products they produce
    3. the location of their business
    4. the competence of their employees
    5. the location of their customers
    the demand uncertainty of products they produce
  107. The typical time horizon for aggregate planning is
    1. less than a month
    2. up to 3 months
    3. 3 to 18 months
    4. over one year
    5. over 5 years
    3. 3 to 18 months
  108. In level scheduling, what is kept uniform from month to month?
    1. product mix
    2. inventory levels
    3. production/workforce levels
    4. demand levels
    5. subcontracting levels
    production/workforce levels
  109. Which of the following aggregate planning strategies is a "demand option"?
    1. sales and product promotions
    2. subcontracting
    3. varying production levels
    4. expanding facilities
    5. using part-time workers
    sales and product promotions
  110. Which of the following aggregate planning strategies is a “capacity” option?
    1. sales and product promotions
    2. improving product quality
    3. expanding facilities
    4. advertising
    5. subcontracting
  111. Given the following information, determine the production rate required in March for a level aggregate plan.  

    Demand = 400
    Production days = 20
    1. 15
    2. 20
    3. 40
    4. 50
    5. 60
  112. 5 obstacles to achieving a "strategic fit"
    • ¢Increasing variety of products
    • ¢Decreasing product life cycles
    • ¢Increasingly demanding customers
    • ¢Fragmentation of supply chain ownership
    • ¢Globalization
Card Set
OPM Chapter 1, 2, 4
OPM Chapter 1, 2, 4