QUESTIONS WITH ANSWERS GRADED A+
◍ Why is the marketing plan essential to the creation of the aggregate plan?.
Answer: the marketing plan provides insight into operations goals and
activities for the year
◍ What are two reasons a company might be hesitant to provide overtime as a
capacity-based option?.
Answer: overtime is not a long term solutionovertime is typically a 50%
wage premium
◍ Infinite Loading.
Answer: A scheduling approach that ignores capacity limits and assumes all
work can be completed.
◍ When is capacity measurement at the best operating level?.
Answer: When the average unit cost is minimized
◍ Time-Based Compensation.
Answer: Pay based on hours worked, such as hourly wages or salaries.
◍ Disadvantages of Labor Specialization.
Answer: Employee boredom, fatigue, lower motivation, and higher turnover.
◍ A comprehensive automobile collision shop offers body and engine repair as
well as custom vehicle paint options. Which two operational processes
would suit this shop?.
Answer: batch processproject process
◍ Which two factors affect a service location decision?.
Answer: Proximity to customersQuality of life issues
◍ Why is it beneficial for an organization to designate employees to
, communicate alternative ways to complete a job in a methods analysis?.
Answer: they may have suggestions for improving the operation
◍ Methods Analysis.
Answer: The systematic study of how a job is performed to improve
efficiency and reduce waste.
◍ Which work system acknowledges the benefits of employee proficiency?.
Answer: labor specialization
◍ What are two product system differences between the push and pull
processes?.
Answer: push moves the product forward in anticipation for demandpull
eliminates excessive inventory
◍ Which two statements are true about effective capacity?.
Answer: An effective capacity maintains a minimum output rate under
normal conditions.An effective capacity is lower than design capacity
◍ Which is a key factor of a location analysis for a service company?.
Answer: Proximity to customers
◍ Which function does marketing play in a just in time (JIT) organization?.
Answer: JIT marketing focuses on customer driven quality
◍ Which concept takes a total system approach to creating an efficient
operation and combines concepts such as just in time (JIT), total quality
management (TQM), and continuous improvement?.
Answer: enterprise resource planning (ERP)
◍ Why is capacity requirements planning (CRP) important?.
Answer: it provides the ability to compare available production capabilities
to the planned workload
◍ Which role do third party logistics providers play in the supply chain?.
Answer: external distributors
◍ Shop Loading.
Answer: The assignment of work to production facilities or work centers.