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What is the measure of how much supply chain is owned or operated by the manufacturer?
A. Insource integration
B. Outsource integration
C. Horizontal integration
D. Vertical integration
Answer: D
Explanation:
Vertical integrationmeasures how much of the supply chain isowned or controlled by the manufacturer.
In Operations and Supply Chain Management, vertical integration refers to the degree to which a firm performs activities upstream (suppliers) or downstream (distribution, retail) rather than relying on external partners. A highly vertically integrated company may own raw material sources, manufacturing plants, distribution centers, and even retail outlets.
Vertical integration affects:
* Cost structure
* Control over quality
* Lead times
* Supply reliability
* Strategic flexibility
The other options are not standard measures:
* Horizontal integration refers to acquiring competitors at the same stage
* "Insource" and "outsource integration" are not formal OM terms
Operations strategy evaluates vertical integration carefully because while it increases control, it also:
* Requires high capital investment
* Reduces flexibility
* Increases managerial complexity
Thus, vertical integration directly quantifies how much of the supply chain the manufacturer owns or operates.
NEW QUESTION # 64
What is the primary purpose in using the master production schedule (MPS) in the marketing department of an organization?
A. To manage the demand for promised deliveries
B. To control the production department
C. To create demand for promised deliveries
D. To identify new product demand
Answer: A
Explanation:
Comprehensive and Detailed Explanation (#270 words):
The primary purpose of using theMaster Production Schedule (MPS)-including from a marketing
/customer-commitment perspective-isto manage the demand for promised deliveries(AnswerA).
In the planning hierarchy, forecasts and customer requirements are translated into a detailed schedule. The document explains that, based on demand forecasting, the organization creates aMaster Plan Schedule (MPS) where "specific dates are set in detail," and that the MPS is then used to plan material requirements. This makes the MPS the central bridge between what the market is asking for and what operations can realistically commit to.
Marketing uses the MPS not to "create" demand, but tocoordinate commitments: delivery promises, timing, and order quantities must align with feasible production and materials availability. If marketing promises deliveries that the MPS cannot support, the system experiences late orders, expediting, and customer dissatisfaction.
Therefore, MPS in a marketing context supportsavailable-to-promise discipline, ensuring customer commitments are consistent with operational reality and planned workloads. It is a planning control instrument, not a tool for controlling production departments or identifying new product demand.
NEW QUESTION # 65
What are two strategic objectives for every member of the supply chain?
Choose 2 answers
A. Becoming more efficient
B. Finding the best distribution location
C. Increasing cost effectiveness
D. Reducing production and delivery times
E. Increasing end-customer demand
Answer: A,C
Explanation:
Two universal strategic objectives for all supply chain members areincreasing cost effectivenessand becoming more efficient.
Every organization in the supply chain-suppliers, manufacturers, distributors, and retailers-must manage costs while improving operational efficiency to remain competitive.
Cost effectiveness ensures:
* Sustainable margins
* Competitive pricing
* Resource optimization
Efficiency focuses on:
* Process improvement
* Waste reduction
* Throughput enhancement
* Reliable delivery
While reducing lead times and increasing demand are desirable outcomes, they are not universal strategic objectives for every participant. Distribution location decisions apply only to specific nodes.
Operations Management views supply chains asinterdependent systems, where overall performance depends on efficiency and cost discipline at each stage.
NEW QUESTION # 66
Which two types of operations include repetitive processes?
Choose 2 answers
A. Project process
B. Batch process
C. Continuous process
D. Line process
Answer: C,D
NEW QUESTION # 67
Which design work system minimizes repetitiveness in tasks by assigning employees the role of planning and scheduling?
A. Job entitlement
B. Job rotation
C. Job enrichment
D. Job rating
Answer: C
Explanation:
Job enrichmentminimizes task repetitiveness byexpanding employee responsibilitiesto include planning, scheduling, decision-making, and problem-solving.
In Operations Management, job enrichment increases thedepth of a job, not just the variety of tasks.
Employees gain greater autonomy and control over their work, reducing monotony and increasing motivation.
Key characteristics of job enrichment include:
* Vertical job loading
* Increased responsibility
* Feedback on performance
* Greater task significance
The other options differ:
* Job rotationincreases task variety but does not add responsibility
* Job entitlementandjob ratingare not work design systems
Job enrichment is especially valuable in repetitive environments such as assembly lines, where adding planning and quality responsibilities improves both morale and performance.
NEW QUESTION # 68
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