D464 Managing Operations - Set 2 - Part 3

Correct Answer: Process Layout

A process layout is ideal for customized goods because it groups resources based on the nature of the tasks, allowing for flexibility in meeting different production requirements.

Correct Answer: Statistical Forecasting Models

Statistical forecasting models use historical data to identify trends, seasonal patterns, and other variations, helping to predict future demand accurately.

Correct Answer: The average time taken to collect cash after making payments for raw materials

The cash-to-cash conversion cycle measures the time required for a company to convert cash spent on inventory into cash received from sales, indicating liquidity efficiency.

Correct Answer: Reduced costs per unit as production volume increases

Economies of scale refer to the cost advantages that a business obtains due to increased production volume, leading to lower costs per unit.

Correct Answer: Control Chart

Control charts track the performance of a process or workstation over time, helping identify any variations that require corrective action.

Correct Answer: Minimize variations in employee workload

Resource leveling aims to minimize fluctuations in employee workload, ensuring that resources are used efficiently and no work center is either overloaded or underutilized.

Correct Answer: Systems that aim to eliminate waste and reduce costs

Lean operating systems focus on eliminating non-value-added activities, reducing waste, and increasing efficiency to deliver products or services at lower costs.

Correct Answer: Incremental Capacity Expansion

Incremental capacity expansion involves increasing capacity in small, manageable increments as demand increases, allowing businesses to better match production with market needs.

Correct Answer: Reduced capital investment in production

Outsourcing allows companies to avoid the capital costs associated with setting up and maintaining production facilities, leading to reduced financial risk and increased flexibility.

Correct Answer: Chase Demand Strategy

The chase demand strategy adjusts production schedules to match fluctuations in customer demand, helping ensure that supply aligns closely with actual demand, thereby minimizing inventory.