Assignment #1:
Chapter One Questions
1. What is wealth, and how is it created?
2. What is value added, and how is it achieved?
3. Name and describe four major factors affecting operations management.
4. What is an order qualifier and an order winner?
5. Describe the five primary manufacturing strategies. How does each affect delivery lead time?
6. What is a supply chain? Describe five important factors in supply chains.
7. What must manufacturing management do to manage a process or operation? What is the major way in which management plans and controls?
8. Name and describe the three main divisions of supply, production, and distribution systems.
9. What are the four objectives of a firm wishing to maximize profit?
10. What are the objectives of finance? How can these objectives be met?
11. What are the objectives of production? How can these objectives be met?
12. Describe how the objectives of marketing, production, and finance are in conflict over customer service, disruption to product, and inventories.
13. What is the purpose of materials management?
14. Name and describe the three primary activities of manufacturing planning and control.
15. Name and describe the inputs to a manufacturing planning and control system.
16. What are the six activities involved in the physical supply/distribution system?
17. Why can materials management be considered a balancing act?
18. What are metrics? What are their uses?
19. Which manufacturing strategies are used in a fast-food business? How does this affect the lead time from the customers’ point of view?
20. On the average, a company has a work-in-process lead time of 12 weeks and annual cost of goods sold of $40 million. Assuming that the company works 50 weeks a year:
a. What is the dollar value of the work-in-process?
b. If the work-in-process could be reduced to 5 weeks and the annual cost of carrying inventory was 20% of the inventory value, what would be the annual savings?
