29 Questions
What is the main purpose of upper-management processes?
To govern the operation of the entire organization
Which type of variation is generally predictable and important for capacity planning?
Structural variation in demand
What is the primary goal of operations management?
To ensure quality and customer satisfaction
Which of the following is NOT a supporting process?
Factory
What is the result ofAssignable variation in operations?
Disruptions to operations and supply chain
What is the purpose of forecasting in operations management?
To predict future demand
What is a characteristic common to all forecasting techniques?
They assume a casual system that existed in the past will persist into the future
Why are forecasts not perfect?
Because of random variation and residual error
What is a key element of a good forecast?
That it is expressed in meaningful units
What is the first step in the forecasting process?
Determine the purpose of the forecast
What happens to forecast accuracy as the forecast horizon increases?
It decreases
What is the primary goal of sustainability in business operations?
To use resources in ways that do not harm ecological systems that support human existence
What is a common consequence of not managing supply chains beyond immediate suppliers?
Oscillating inventory levels
What is a key driver of the need for supply chain management?
Increasing levels of outsourcing
Which of the following is an example of an ethical issue in operations management?
Ensuring product safety
What is a consequence of not incorporating social criteria in decision making?
Neglect of social responsibility
What is a potential impact of poor supply chain management on business operations?
Quality problems
What is multifactor productivity a measure of?
Output divided by labor and capital inputs
Why is it difficult to measure and manage productivity in the service sector?
Because it involves intellectual activities
What is process yield a measure of in manufacturing?
Ratio of output of goods to the quantity of raw material input
What is the primary difference between efficiency and effectiveness?
Efficiency is doing things right, effectiveness is doing the right things
What is a forecast primarily used for in operations management?
To plan the system and make informed decisions
What are the two important aspects of forecasting?
Expected level of demand and forecast accuracy
What is the primary reason for having inventories in business operations?
To meet anticipated customer demand
What percentage of current assets do inventories typically account for in a firm?
30%
What is a key objective of inventory control?
To balance customer service and inventory costs
What type of inventory includes goods that are in transit to warehouses or customers?
Pipeline inventory
What is a benefit of sharing forecasts or demand data through the supply chain?
Improved forecast quality
What is an example of an independent demand item?
A finished good
Learn about the different categories of business processes, including upper-management, operational, and supporting processes. Understand the concepts of supply and demand, process variation, and its four sources.
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