MGMT 339 CORE EXAM SET 2025/2026 QUESTIONS AND
ANSWERS GUARANTEE A+
✔✔Assemble to Order - ✔✔Definition: This strategy involves postponing the final
assembly of a
product until a customer order is received. Major components are produced
in advance, but the final product is assembled once specific order details
are known.
Process Type: A combination of Batch Process for manufacturing parts
and Line Process for assembly. This allows for mass customization.
Examples: Computers, cars, or electronic devices where parts like hard
drives or processors are standardized, but final assembly (such as specific
configurations) is based on customer preferences.
Impact:
Employees: Workers must be skilled in both batch production of
components and final assembly, with the ability to adapt to different
customer specifications. Finance: Inventory costs are controlled by producing
components in
advance, but there is flexibility to meet customer demands. Forecasting
is important to manage component inventory.
Customers: They get a level of customization without the long lead
times of fully custom products.
✔✔Make to Stock - ✔✔Definition: This is the most traditional production strategy, where
products
are made in advance and stocked for future sales based on forecasted
demand.
Process Type: Typically associated with a Line Process or Continuous
Flow Process, designed for high-volume, low-customization products.
Examples: Mass-produced cars, household items like plastic chairs, or
consumer electronics such as smartphones.
Impact:
Employees: Workers operate in a more repetitive, high-volume
environment. The focus is on efficiency and consistency.
Finance: Inventory costs can be high due to the need to store products
until they are sold, but cash flow is more predictable as products are
ready for immediate sale.
Customers: They receive products quickly, but customization is
minimal.
✔✔Advantages of Customer Involvement - ✔✔Increased net value to the customer
Some customers seek active participation in and control
over the service process
_ Better quality, faster delivery, greater flexibility, and
lower cost
IKEA customers do product assembly.
, Reduction in product, shipping, and inventory costs
Demand forecasts from customers (Boeing suppliers)
Coordination across the supply chain
Walmart provides feedback to P&G on product sales &
inventory.
✔✔Disadvantages Customer Involvement - ✔✔O Can be disruptive
O Managing timing and volume can be challenging
o Quality measurement can be difficult
a Requires interpersonal skills
Multiple locations may be necessary
costs money
✔✔Capital Intensity - ✔✔Definition: Capital intensity refers to the degree to which
production or a process
relies on expensive equipment (capital) versus human labor. .
Impact: The more a process relies on equipment or automation (versus human
labor), the higher the capital intensity. This is common in industries where the cost
of labor is minimized by using machines or robotics, which are expensive but
efficient at high volumes. .
Example: Gillette's investment of $750M in automation to produce 1.2 billion razors
annually. This is a high capital intensity setup where the upfront cost is large, but
the volume of production justifies the investment.
✔✔Automating Manufacturing Processes - ✔✔Purpose: Automation is introduced to
reduce labor costs and
improve efficiency in manufacturing.
Types of Automation:
• Fixed Automation:
Characteristics: This type of automation is set up to
produce a specific product through a fixed sequence of
operations. It is best suited for high -volume production.
Process Type: Line or continuous flow.
Customization: Low. Product designs are stable, and
the same product is produced repeatedly with little
variation.
Examples: Automobile assembly lines where the same
model is produced in large quantities.
✔✔Automating Service Processes - ✔✔Definition: Automation is not limited to
manufacturing-it is also
transforming service industries.
Examples:
Distance learning technology replacing or supplementing traditional
classrooms.
Benefits: It's not only about reducing costs but also about improving
ANSWERS GUARANTEE A+
✔✔Assemble to Order - ✔✔Definition: This strategy involves postponing the final
assembly of a
product until a customer order is received. Major components are produced
in advance, but the final product is assembled once specific order details
are known.
Process Type: A combination of Batch Process for manufacturing parts
and Line Process for assembly. This allows for mass customization.
Examples: Computers, cars, or electronic devices where parts like hard
drives or processors are standardized, but final assembly (such as specific
configurations) is based on customer preferences.
Impact:
Employees: Workers must be skilled in both batch production of
components and final assembly, with the ability to adapt to different
customer specifications. Finance: Inventory costs are controlled by producing
components in
advance, but there is flexibility to meet customer demands. Forecasting
is important to manage component inventory.
Customers: They get a level of customization without the long lead
times of fully custom products.
✔✔Make to Stock - ✔✔Definition: This is the most traditional production strategy, where
products
are made in advance and stocked for future sales based on forecasted
demand.
Process Type: Typically associated with a Line Process or Continuous
Flow Process, designed for high-volume, low-customization products.
Examples: Mass-produced cars, household items like plastic chairs, or
consumer electronics such as smartphones.
Impact:
Employees: Workers operate in a more repetitive, high-volume
environment. The focus is on efficiency and consistency.
Finance: Inventory costs can be high due to the need to store products
until they are sold, but cash flow is more predictable as products are
ready for immediate sale.
Customers: They receive products quickly, but customization is
minimal.
✔✔Advantages of Customer Involvement - ✔✔Increased net value to the customer
Some customers seek active participation in and control
over the service process
_ Better quality, faster delivery, greater flexibility, and
lower cost
IKEA customers do product assembly.
, Reduction in product, shipping, and inventory costs
Demand forecasts from customers (Boeing suppliers)
Coordination across the supply chain
Walmart provides feedback to P&G on product sales &
inventory.
✔✔Disadvantages Customer Involvement - ✔✔O Can be disruptive
O Managing timing and volume can be challenging
o Quality measurement can be difficult
a Requires interpersonal skills
Multiple locations may be necessary
costs money
✔✔Capital Intensity - ✔✔Definition: Capital intensity refers to the degree to which
production or a process
relies on expensive equipment (capital) versus human labor. .
Impact: The more a process relies on equipment or automation (versus human
labor), the higher the capital intensity. This is common in industries where the cost
of labor is minimized by using machines or robotics, which are expensive but
efficient at high volumes. .
Example: Gillette's investment of $750M in automation to produce 1.2 billion razors
annually. This is a high capital intensity setup where the upfront cost is large, but
the volume of production justifies the investment.
✔✔Automating Manufacturing Processes - ✔✔Purpose: Automation is introduced to
reduce labor costs and
improve efficiency in manufacturing.
Types of Automation:
• Fixed Automation:
Characteristics: This type of automation is set up to
produce a specific product through a fixed sequence of
operations. It is best suited for high -volume production.
Process Type: Line or continuous flow.
Customization: Low. Product designs are stable, and
the same product is produced repeatedly with little
variation.
Examples: Automobile assembly lines where the same
model is produced in large quantities.
✔✔Automating Service Processes - ✔✔Definition: Automation is not limited to
manufacturing-it is also
transforming service industries.
Examples:
Distance learning technology replacing or supplementing traditional
classrooms.
Benefits: It's not only about reducing costs but also about improving
