OPMA 3306 EXAM 2 STUDY GUIDE | 2026 |
GUARANTEED PASS
Production Process - Answers -Used to make any manufactured item
Step 1- Source the parts needed
Step 2- Make the product
Step 3- Deliver the product
Lead Time - Answers -The time needed to respond to a customer order
Customer Order Decoupling Point - Answers -Where inventory is positioned to allow
entities in the supply chain to operate independently
Lean Manufacturing - Answers -A means of achieving high levels of customer service
with minimal inventory investment
Types of Firms - Answers -1. Make-to-Stock
2. Assemble-to-Order
3. Make-to-Order
4. Engineer-to-Order
Make-to-Stock - Answers -Serve customers from finished goods inventory
Televisions, clothing, packaged food products
Essential issue in satisfying customers is to balance the level of inventory against the
level of customer service (easy with unlimited inventory but inventory costs money;
trade-off between the cost of inventory and level of customer service must be made)
Use lean manufacturing to achieve higher service levels for a given inventory
investment
Assemble-to-Order - Answers -Combine a number of preassembled modules to meet a
customer's specifications
A primary task is to define a customer's order in terms of alternative components since
these are carried in inventory
One capability required is a design that enables as much flexibility as possible in
combining components
, Make-to-Order - Answers -Make the customer's product from raw materials, parts, and
components
Customer order decoupling point could be in either raw materials at the manufacturing
site or the supplier inventory
Depending on how similar the products are, it might not even be possible to pre-order
parts
Engineer-to-Order - Answers -Work with the customer to design and then make the
product
Boeing's process for making commercial aircraft
Customer order decoupling point could be in either raw materials at the manufacturing
site or the supplier inventory
Depending on how similar the products are, it might not even be possible to pre-order
parts
Production Process Mapping - Answers -Develop a high-level map of a supply chain
process
Useful to understand how material flows and where inventory is held
First step in analyzing the flow of material through a production process
Little's Law - Answers -The flow of items through a production process can be
described through this
Inventory = (Throughput Rate)(Flow Time)
Throughput- Long term average rate of flow through the process
Flow Time- Time for a single unit to traverse the entire process
Inventory- Materials held by the firm for future use
Total Average Value of Inventory - Answers -The sum of the value (at cost) of the raw
material, work-in process, and finished goods inventory
Commonly tracked in accounting systems and reported in financial statements
Inventory Turns - Answers -The cost of goods sold divided by the average inventory
value
GUARANTEED PASS
Production Process - Answers -Used to make any manufactured item
Step 1- Source the parts needed
Step 2- Make the product
Step 3- Deliver the product
Lead Time - Answers -The time needed to respond to a customer order
Customer Order Decoupling Point - Answers -Where inventory is positioned to allow
entities in the supply chain to operate independently
Lean Manufacturing - Answers -A means of achieving high levels of customer service
with minimal inventory investment
Types of Firms - Answers -1. Make-to-Stock
2. Assemble-to-Order
3. Make-to-Order
4. Engineer-to-Order
Make-to-Stock - Answers -Serve customers from finished goods inventory
Televisions, clothing, packaged food products
Essential issue in satisfying customers is to balance the level of inventory against the
level of customer service (easy with unlimited inventory but inventory costs money;
trade-off between the cost of inventory and level of customer service must be made)
Use lean manufacturing to achieve higher service levels for a given inventory
investment
Assemble-to-Order - Answers -Combine a number of preassembled modules to meet a
customer's specifications
A primary task is to define a customer's order in terms of alternative components since
these are carried in inventory
One capability required is a design that enables as much flexibility as possible in
combining components
, Make-to-Order - Answers -Make the customer's product from raw materials, parts, and
components
Customer order decoupling point could be in either raw materials at the manufacturing
site or the supplier inventory
Depending on how similar the products are, it might not even be possible to pre-order
parts
Engineer-to-Order - Answers -Work with the customer to design and then make the
product
Boeing's process for making commercial aircraft
Customer order decoupling point could be in either raw materials at the manufacturing
site or the supplier inventory
Depending on how similar the products are, it might not even be possible to pre-order
parts
Production Process Mapping - Answers -Develop a high-level map of a supply chain
process
Useful to understand how material flows and where inventory is held
First step in analyzing the flow of material through a production process
Little's Law - Answers -The flow of items through a production process can be
described through this
Inventory = (Throughput Rate)(Flow Time)
Throughput- Long term average rate of flow through the process
Flow Time- Time for a single unit to traverse the entire process
Inventory- Materials held by the firm for future use
Total Average Value of Inventory - Answers -The sum of the value (at cost) of the raw
material, work-in process, and finished goods inventory
Commonly tracked in accounting systems and reported in financial statements
Inventory Turns - Answers -The cost of goods sold divided by the average inventory
value
