C720 Operations Management and Supply Chain QUESTIONS WITH ANSWERS LATEST 2023

Vertical Integration - correct answerswhen a company owns multiple assets in a supply chain Backward Vertical Integration - correct answersOwns the supplier to make the products themselves Forward Vertical Integration - correct answersOwns the retail stores to sell the products themselves A mattress manufacturer holds many patents on their mattress because they are specially constructed out of unique materials. This leads the manufacturer to open retail stores in high-traffic areas to increase visibility and brand recognition. Which supply chain integration strategy is the mattress manufacturer using? - correct answersForward Vertical Integration Jackson Manufacturing owns two of its upstream suppliers, Ajax Electronics and Colgate Components, for the purpose of promoting supply chain coordination. Jackson Manufacturing engages in... - correct answersBackward Vertical Integration Agile Supply Chain - correct answerssuitable for innovative products; focus: speed and flexibility For products with short life cycles Lean Supply Chain - correct answerssuitable for traditional products with minimum innovation; Focus: eliminate waste and lower cost For products with long life cycles A cell phone manufacturer makes a new model every six months and with the latest available technology. The demand for these high-end models is not easy to predict. The manufacturer needs to ensure it has the right components for the new phone models on time. Which supply chain integration strategy should the manufacturer use? - correct answersAgile Bottleneck - correct answerspoint of congestion or blockage A road building crew is supplied with hot asphalt mix from a supplier that is located 30 miles from the worksite. As the road extends, the distance increases from the asphalt supplier. Currently, the bottleneck for the project has been throughput rate of the paving equipment being used on the road. What will happen to the bottleneck as the project nears completion? - correct answersIt will change to become the transportation time of the asphalt trucks Design Capacity - correct answersmaximum achievable output of a process or system Effective Capacity - correct answersthe maximum capacity given the product mix, equipment changeovers, and scheduled downtime of the production schedule Capacity Utilization - correct answersActual Output/Design Capacity Efficiency Rate - correct answersActual output/Effective Capacity A rental company has a fleet of 50 cars that can be rented daily if all vehicles have been washed and inspected and are free of mechanical and electrical defects. Due to maintenance requirements and late returns by customers, the rental company is, in general, able to prepare 45 cars per day for rental. On average, 30 cars are rented daily. What is the efficiency rate for this company? - correct answersEfficiency Rate = Actual Output/Effective Capacity Actual Output: 30 Effective Capacity: 45 Efficiency Rate: 0.667 or 67% A rental company has a fleet of 50 cars that can be rented daily if all vehicles have been washed and inspected and are free of mechanical and electrical defects. Due to maintenance requirements and late returns by customers, the rental company is, in general, able to prepare 45 cars per day for rental. On average, 30 cars are rented daily. What is the Capacity Utilization for this company? - correct answersCapacity Utilization = Actual Output/Design Capacity Actual Output: 30 Design Capacity: 50 Capacity Utilization: 0.600 or 60% What is Capacity Planning? - correct answerswhat is needed to support customer demand and maintain production capacity as demands for products change What is Lead? - correct answersproactive strategy in which companies add capacity with an anticipation of increase in demand When Apple creates more iPhones at the time of their launch, what strategy is this? - correct answersLead What is lag? - correct answersreactive strategy when a company doesn't add capacity until there is proof of an increase in demand What is Match? - correct answersstrategy in which a company increases or decreases capacity incrementally due to changes in demand What is Adjustment strategy? - correct answersstrategy in which companies add capacity due to changes in demand driven by a system or process change What are the four types of process selection? - correct answersAssembly Line Continuous flow Batch Flow Job Shop What are three characteristics for the processes? - correct answersVolume: How much are you producing Variety: What degree of variation takes place? Facility Layout: Is it a product or process layout Assembly Line - correct answersHigh Volume Very little variation Product Layout Continuous Flow - correct answersHigh volume No variation Product layout Batch Flow - correct answersHigh volume Some Variation Product layout You are given an order of 300 vanilla, 300 strawberry, and 300 chocolate cakes. What is the best process selection? - correct answersBatch flow, to not not get flavors mixed together Job shop - correct answerslow volume high variation Process Layout You receive an order for 1 strawberry, 1 vanilla, and 1 wedding cake. What is the best process selection? - correct answersJob shop You only make vanilla cakes at your facility. What is the best process selection? - correct answersContinuous Flow If a firm wants to produce a wide variety of different products in small volumes, which process is most appropriate? - correct answersJob Shop A firm would most likely use the assembly line process instead of the continuous flow process to - correct answersprovide some variation to the standard product What are the four types of qualitative forecasting methods? - correct answersPanel of Experts Test market Survey Build-up method A hospital administrator needs to determine how many beds to make available for exam rooms, operating rooms, and in-patient care. The hospital board announces they will be getting more patient referrals from specialists at a newly opened clinic. What should the administrator use to forecast how many beds to make available, given the increased number of patients? - correct answersWeighted moving average using patient referral