OPERATIONS MANAGEMENT PRINCIPLES || PROCESS
ANALYSIS & SUPPLY CHAIN || QUALITY CONTROL & LEAN
SYSTEMS || OA PRACTICE QUESTIONS || VERIFIED
ANSWERS || GRADED A+
Demand-Based Options - CORRECT ANSWER -includes two reactive
options and one proactive option
Reactive option - CORRECT ANSWER -the operations department uses
inventories and back orders to react to demand fluctuations
Proactive option - CORRECT ANSWER -marketing tries to shift the demand
patterns to minimize demand fluctuations
Capacity-Based Options - CORRECT ANSWER -changes output capacity to
meet demand
finished goods inventory - CORRECT ANSWER -used to absorb demand
fluctuations; allows your company to develop a stable work environment
Shifting demand - CORRECT ANSWER -proactive marketing approach to
leveling demand in which your company tries to change consumer buying
patterns by offering incentives
level aggregate plan - CORRECT ANSWER -maintains a constant workforce
and produces the same amount of product in each time period of the plan
The level plan is often used with make-to-stock products such as... -
CORRECT ANSWER -stereos, kitchen appliances, and hardware
, To calculate the number of employees needed... - CORRECT ANSWER -
divide the number of units needed per month by the monthly output per
employee
chase aggregate plan - CORRECT ANSWER -produces exactly what is
needed to satisfy demand during each period
This may be a better option when a company produces make-to-order products
such as custom cabinets, special-purpose equipment, one-of-a-kind items, or
highly perishable products - CORRECT ANSWER -chase aggregate plan
hybrid aggregate plan - CORRECT ANSWER -uses a combination of options.
With this plan, your company might maintain a stable workforce supplemented
by an inventory buildup and some overtime production to meet demand.
Sales and operations planning - CORRECT ANSWER -integrates the
medium-range functional plans developed by marketing, operations,
engineering, and finance
aggregate plan - CORRECT ANSWER -Includes the budgeted levels of
finished products, inventory, backlogs, workforce size, and aggregate
production rate needed to support the marketing plan
Also called production plan - CORRECT ANSWER -Aggregate plan
Supports marketing plan - CORRECT ANSWER -Aggregate plan
master production schedule - CORRECT ANSWER -The anticipated
production schedule for the company expressed in specific configurations,
quantities, and dates