C215 Operations Management
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Free C215 Operations Management Questions
Which element of material requirements planning (MRP) is examined in the capacity requirements planning (CRP) method?
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Bills of material
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Planned orders
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Inventory record file
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Master production schedule (MPS)
Explanation
Correct Answer:
B. Planned orders.
Explanation:
Capacity requirements planning (CRP) examines planned orders from the material requirements planning (MRP) system to determine whether the available capacity of resources, such as machines and labor, is sufficient to complete the planned production schedule. It helps organizations identify potential capacity problems before production begins.
Which of the following is not in the process category of the operations decision framework?
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Layout of the facility
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Job design
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The type of equipment and technology
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Product or service inspection
Explanation
Explanation:
The process category in the operations decision framework focuses on how goods or services are produced, including the layout of facilities, job design, and the type of equipment or technology used. These aspects define the physical and organizational setup of the production process. Product or service inspection, however, is part of the quality category because it involves monitoring and controlling the output to ensure it meets established standards, not designing or structuring the process itself.
Correct Answer:
Product or service inspection
Why Other Options Are Wrong:
Layout of the facility
Facility layout directly impacts the flow of materials and efficiency of production, making it a core process decision. It determines how equipment and workstations are arranged to optimize workflow and minimize waste.
Job design
Job design involves structuring tasks, responsibilities, and work methods to improve efficiency and employee satisfaction. This is a key process-related decision because it affects how the work is performed.
The type of equipment and technology
Selecting equipment and technology defines the capabilities and methods of production. These choices are fundamental process decisions that shape production capacity and efficiency.
How does an organization use the acceptance sampling method to maintain its productivity and quality?
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By selecting a specified number of items for testing
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By selecting a low number of items for testing
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By selecting one or two samples for testing
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By selecting a significant number of items for testing
Explanation
Correct Answer
A. By selecting a specified number of items for testing
Explanation
Acceptance sampling is a quality control method where an organization selects a specified number of items from a batch or lot and tests them to determine whether the entire batch meets quality standards. This approach helps maintain productivity by reducing the need to inspect every item while still ensuring acceptable quality levels.
What describes a value chain?
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It flows from raw materials to the delivery of products or services.
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It creates a focus for organizational downsizing.
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It allows an organization to manage diversity in multiple markets.
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It is the internal strengths and weaknesses of an organization.
Explanation
A value chain describes the full range of activities involved in bringing a product or service from conception to delivery. This includes sourcing raw materials, production, marketing, distribution, and after-sales service. The goal is to analyze each step to increase value for customers and gain a competitive advantage through efficiency and differentiation.
Correct Answer Is:
It flows from raw materials to the delivery of products or services.
At Disney, "making people happy" is an example of:
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Operations Mission
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Corporate Strategy
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Business Strategy
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Operations Strategy
Explanation
Explanation:
A corporate strategy expresses the overarching purpose and direction of the entire organization. Disney’s statement “making people happy” reflects the company’s fundamental mission and long-term vision that guides all business units and functions. It is broad, inspirational, and not limited to a specific department or operational activity, which makes it a corporate strategy rather than a business or operations strategy.
Correct Answer:
Corporate Strategy
Why Other Options Are Wrong:
Operations Mission
An operations mission would focus specifically on how the operations department contributes to the company’s goals, such as improving production efficiency or service quality. “Making people happy” is too broad and company-wide to be limited to operations.
Business Strategy
A business strategy targets how a particular business unit or product line competes in its market. Disney’s statement applies to the entire corporation rather than an individual business unit.
Operations Strategy
Operations strategy deals with how operations supports the broader business strategy through decisions on capacity, technology, and process. The phrase “making people happy” reflects a higher-level corporate mission, not an operations-specific plan.
Which competitive force is reduced by the barriers provided by government policies, capital requirements, brand identification, and cost disadvantages?
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Threat of supplier power
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Threat of substitutes
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Threat of new entrants
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Threat of customer power
Explanation
The correct answer is the threat of new entrants. Barriers such as government regulations, high capital requirements, brand loyalty, and cost disadvantages prevent new companies from easily entering an industry. These factors protect established businesses by reducing competition and maintaining market stability. In Porter’s Five Forces model, these barriers directly weaken the competitive pressure from potential new market entrants.
Correct Answer Is:
Threat of new entrants
In the product imitator strategy, the order winner is usually ____, while in the product innovator strategy, the order winner is usually _____.
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Flexibility, price
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Flexibility, quality
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Quality, price
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Price, flexibility
Explanation
Explanation:
A product imitator strategy focuses on offering lower-cost versions of products already in the market. For such a strategy, the key factor that convinces customers to purchase—known as the order winner—is price, because customers are primarily looking for affordability. In contrast, a product innovator strategy relies on introducing new, unique, or cutting-edge products. In this case, the order winner is flexibility, as the company must be able to adapt and innovate quickly to deliver novel features and respond to rapidly changing market demands.
Correct Answer:
Price, flexibility
Why Other Options Are Wrong:
Flexibility, price
This reverses the actual priorities. Imitators focus on cost leadership, not flexibility, while innovators need flexibility rather than a primary emphasis on low price.
Flexibility, quality
While quality is important, innovators compete more on unique offerings and adaptability than simply on superior quality, and imitators still emphasize price over flexibility.
Quality, price
Imitators do not primarily win orders through quality, and innovators are not mainly driven by price competition.
Which production system are JIT systems based on?
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Push production system
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Pull production system
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Make-to-stock production system
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Traditional production system
Explanation
Correct Answer:
B. Pull production system.
Explanation:
Just-in-time (JIT) systems are based on a pull production system, where production and the movement of materials are driven by actual customer demand rather than forecasts. This approach helps reduce inventory levels, minimize waste, and improve production efficiency.
Which of the following functions is responsible for the actual movement of goods and/or services across organizations?
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Logistics
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Operations
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Purchasing
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None of these
Explanation
Explanation:
The function responsible for the actual movement of goods and services between organizations is logistics. Logistics focuses on the transportation, warehousing, and distribution necessary to move products from suppliers to manufacturers, from manufacturers to distributors, and ultimately to customers. It ensures that goods and services reach the right place at the right time efficiently and cost-effectively, which distinguishes it from operations or purchasing functions.
Correct Answer:
Logistics
Why Other Options Are Wrong:
Operations
Operations is the management of the internal processes used to produce goods or services, such as scheduling, production, and quality control. It does not specifically handle the external movement of goods across organizations, which is the realm of logistics.
Purchasing
Purchasing involves acquiring raw materials, components, or services needed for production. While it initiates the procurement of goods, it does not manage the physical movement of those goods from one organization to another.
None of these
This is incorrect because logistics is clearly a defined function responsible for the physical movement of goods and services, making this option invalid.
A food company received a large order for gift baskets from a corporate client. All baskets will have the same content and be delivered in a box with the client's logo. The food company must hire temporary workers to assemble the gift baskets and the worker standard is 40 baskets per shift. Which compensation system should be used?
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Time based
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Individual incentive based
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Group incentive based
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Knowledge based
Explanation
Correct Answer:
B. Individual incentive based.
Explanation:
An individual incentive-based compensation system is appropriate because the work involves a standardized task where each temporary worker’s output can be measured easily. Workers can be rewarded based on the number of gift baskets they assemble compared with the established standard of 40 baskets per shift, encouraging higher productivity.
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