Question 1

Form utility drives the need for
A) supply chain capabilities only.
B) time utility and place utility.
C) place utility only.
D) supply chain capabilities, time utility, and place utility.

Accepted Answer

Form utility refers to the value added to a product or service by transforming it into its final form. To create form utility, supply chain capabilities, time utility (making the product available when it is needed), and place utility (making the product available where it is needed) are all necessary. Therefore, the best choice is D.

Question 2

Ship to order is another version one of four manufacturing methods.

Accepted Answer

False

Question 3

A newly launched twenty-first century addition to production strategy which leverages lean manufacturing strategies, Six Sigma best practices, and real-time actionable intelligence from the factory floor is called:
A) just-in-time inventory
B) adaptive manufacturing
C) machine flexibility
D) capacity requirements planning

Accepted Answer

The description of this new production strategy indicates a focus on both operational efficiency (lean manufacturing, Six Sigma) and real-time data analysis (actionable intelligence from the factory floor), which is characteristic of adaptive manufacturing. Just-in-time inventory is a well-established production strategy that focuses only on minimizing inventory levels, while machine flexibility and capacity requirements planning are important considerations for any manufacturing operation but do not fully encapsulate the features described in the question prompt.

Question 4

In assemble-to-order production,
A) customer orders are filled from finished goods inventories, and production orders are used to replenish finished goods inventories.
B) the finished product is a combination of standard and custom-designed components that meet unique needs of a specific customer.
C) the finished product is generally a combination of common components and a limited number of options or accessories made available to the customer.
D) highly tailored products are created for the customer whose specifications require unique engineering design or significant customization.

Accepted Answer

In assemble-to-order production, the finished product is generally a combination of common components and a limited number of options or accessories made available to the customer. This allows for some customization while still maintaining efficiency in the manufacturing process. Customer orders are filled from the finished goods inventories, and production orders are used to replenish finished goods inventories. It is not as highly tailored as option D, and it is not completely custom-designed as option B.

Question 5

Delayed differentiation is a hybrid strategy in which a common product platform is built to stock. It is later differentiated by assigning to it certain customer-specific features, only after demand is realized.

Accepted Answer

Delayed differentiation is indeed a hybrid strategy that involves building a common product platform to stock and then later differentiating it by assigning certain customer-specific features only after demand is realized.

Question 6

Resource requirements planning (RRP) is a long-run, macro-level planning tool.

Accepted Answer

Resource requirements planning (RRP) is a tool used to plan for the long-term resource needs of an organization.

Question 7

World-class organizations can improve performance along multiple dimensions without making extensive performance tradeoffs or sacrifices.

Accepted Answer

World-class organizations have systems and processes in place that allow them to improve performance in multiple areas simultaneously without having to make significant compromises or tradeoffs. They do this by prioritizing continuous improvement, investing in technology and infrastructure, fostering a culture of collaboration and innovation, and continuously monitoring and measuring performance metrics to identify areas for further improvement.

Question 8

Processes that can produce a range of products are said to have economies of scope.

Accepted Answer

Economies of scope means that a process or a business can produce a variety of products using the same resources, lowering the average cost per unit of each product due to shared costs.

Question 9

The materials requirement plan (MRP) is a long-range materials plan that converts information regarding end-items in the MPS into a set of time-phased component and part requirements.

Accepted Answer

The answer of The materials requirement plan (MRP) is a...

Question 10

One type of reactive capability is machine flexibility.

Accepted Answer

Machine flexibility refers to a machine's capability to adapt to different tasks or functions, making it a reactive capability.

Question 11

Offshoring is a term that means relocating an activity to a contract manufacturer in another country.

Accepted Answer

Offshoring involves relocating an activity or process to a contract manufacturer or service provider in another country.

Question 12

A workcenter and a manufacturing cell are the same.

Accepted Answer

A workcenter is a single machine or group of machines that perform similar operations, while a manufacturing cell is a group of machines and employees working together to produce a product or part of a product. They are not the same.

Question 13

Most processes are basically organized the same.

Accepted Answer

While many processes may share similar aspects, not all processes are organized the same. Factors such as the specific task, industry, and organizational structure can greatly impact how a process is organized.

Question 14

Routing flexibility is a term used in connection with how spare parts move through the supply chain.

Accepted Answer

Routing flexibility typically refers to the ability of a manufacturing or production system to alter the path and sequence by which products or materials are made or transported, not specifically to how spare parts move through the supply chain.

Question 15

Processes that can produce a range of products are said to have
A) economies of scale.
B) economies of scope.
C) routing flexibility.
D) work centers.

Accepted Answer

Processes that can produce a range of products are said to have economies of scope because they are able to use their resources more efficiently to produce a variety of products, rather than having to dedicate resources to only one product. Economies of scale refer to the cost advantages gained by producing large quantities of one product. Routing flexibility and work centers are related concepts but do not directly address the ability to produce a range of products.

Question 16

Capacity planning and materials planning are the same.

Accepted Answer

Capacity planning is focused on determining the optimal production capacity to meet anticipated demand, while materials planning is focused on ensuring the necessary materials and supplies are available to support production. While the two are related, they are distinct activities.

Question 17

Manufacturing and production operations create form utility.

Accepted Answer

Manufacturing and production operations involve transforming raw materials or components into finished goods, thereby creating form utility or changing the shape, form, or appearance of the product to add value for the customers.

Question 18

Packaging is very important in the manufacturing operation.

Accepted Answer

The answer of Packaging is very important in the manufacturing...

Question 19

The "bullwhip" effect occurs when forecast errors are magnified and demand variability increases as orders move upstream from retailers to distributors to producers.

Accepted Answer

The bullwhip effect is a well-documented phenomenon in supply chain management, where even small variations in customer demand can lead to large variations in demand at the upstream levels of the supply chain. This can be caused by a variety of factors, including order batching, price promotions, and information delays. The result is often inefficient production and inventory management, and can lead to stockouts or excess inventory.

Question 20

Companies now use strategies that are lean, flexible, or adaptive; they wait for customers to push products to the market.

Accepted Answer

Companies use strategies that are lean, flexible, or adaptive, but they often use a pull strategy where market demand pulls products into the market, rather than waiting for customers to push products to the market.

Quiz 14: Operations-Producing Goods and Services

Form utility drives the need for