C720 Operations and Supply Chain Management Practice Questions - Set 3 - Part 1

Correct Answer: b) Just-in-time (JIT)

JIT reduces inventory by ordering materials just as they are needed, minimizing holding costs and reducing excess inventory.

Correct Answer: b) Transportation (pipeline) inventory

Transportation or pipeline inventory represents goods in transit, moving through the supply chain from one location to another.

Correct Answer: b) Minimize total costs of ordering and holding inventory

EOQ determines the optimal order quantity that balances ordering and holding costs, reducing the total annual cost of inventory.

Correct Answer: b) Process-oriented layout

Process-oriented layouts organize similar tasks and equipment together, providing flexibility for handling varied products with different requirements.

Correct Answer: c) Value stream mapping

Value stream mapping visually identifies each process step, distinguishing between value-adding and non-value-adding activities to reduce waste.

Correct Answer: c) Process-oriented layout

Process-oriented layouts support low-volume, high-variety production, offering flexibility to accommodate varied processing needs.

Correct Answer: b) Exponential smoothing

Exponential smoothing relies on historical data and trends, applying weighted averages to forecast future demand accurately.

Correct Answer: b) Electronic kanban (E-kanban)

E-kanban uses digital signals to trigger inventory movement or production, integrating electronic data with traditional Kanban practices.

Correct Answer: c) Lead strategy

The lead strategy proactively increases capacity to meet future demand, reducing lead times and enhancing customer service during high growth periods.

Correct Answer: c) Theory of Constraints (TOC)

TOC identifies and addresses bottlenecks within a process to improve production flow and overall system efficiency.

Correct Answer: a) Just-in-time (JIT)

JIT operates on a pull system, where materials and production are triggered by actual customer orders, minimizing excess inventory.

Correct Answer: b) Minimize defects and variability in processes

Six Sigma aims to reduce defects and variability in processes, achieving high-quality, consistent outputs through statistical analysis.

Correct Answer: c) Continuous flow

Continuous flow processes are ideal for producing standardized goods in large volumes without variation, such as chemicals or oil.

Correct Answer: d) Supplies inventory

Supplies inventory includes items that support production processes but are not directly used in the finished product, like lubricants.

Correct Answer: b) Dependent demand

Dependent demand arises from the need for components based on production requirements for the finished product.

Correct Answer: c) Control chart

Control charts track process stability by monitoring variation, enabling the manager to identify inconsistencies in quality.

Correct Answer: d) Match strategy

The match strategy incrementally adds capacity to align with minor changes in demand, balancing cost control and responsiveness.

Correct Answer: b) Product-oriented layout

A product-oriented layout is suited for high-volume production of identical items, where tasks are organized in sequence.

Correct Answer: a) Kaizen

Kaizen events involve teams working together to improve a particular area, promoting continuous improvement in lean systems.

Correct Answer: b) To list materials needed for production

A bill of materials (BOM) details all materials and quantities required to produce a finished product.