Refer to the Scenario Below to Answer the Following Question(s)

question 26

Multiple Choice

Refer to the scenario below to answer the following question(s) .
Alpha Stampings Inc. produces 14 metal stampings for the automotive industry. Due to industry design changes and consumer demands, for the next financial year, six of those stampings will require a slight change: two will have an extra hole punched through the side, two will require an extra plating process, and two will require an additional weld operation.
In the meantime, purchasing agent Richard Koehl has been asked to reduce the number of Alpha's steel suppliers in an effort to cut costs. After obtaining updated price quotations and steel samples from his current suppliers, Richard faced a dilemma. Until now, he had selected his suppliers based on quality and price, but the major consideration had been the type of steel required and the specialized production processes of his respective suppliers. Not all of Alpha's suppliers could produce the exact grades of steel needed; some suppliers were better at producing certain types of steel than others.
Richard contacted several employees at Alpha who had worked with the various types of steel in the past. The quality control manager and line inspector, for example, could help to determine which suppliers had the capabilities of producing specific types of steel. The production control manager could provide input regarding which types of steel worked best in which presses. The warehouse foreman gave inputs regarding how long various types of steel could be held in inventory before rust spots began to form on their surfaces. Each person contributed the necessary information to help Richard in making his decision.
-The demand for Alpha Stampings' products is ultimately based on the demand for new automobiles in the consumer market. This is an example of ________ demand.

• A) negative
• B) latent
• C) primary
• D) derived
• E) composite

Understand the principles and applications of material-requirements planning (MRP) and just-in-time (JIT) inventory management in operations management.

Comprehend the breadth of activities encompassed by production, including the making of both tangible and intangible products.

Grasp the concept of the transformation process in operations management and its significance in converting inputs into valuable outputs.

Recognize the roles and responsibilities of operations management in organizations.

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Definitions:

Authority

The authority or control given to a person or body to make choices, issue commands, and ensure compliance.

Legitimacy

The quality of being justified, acceptable, or in accordance with recognized principles or standards.

Discredit

To harm the reputation or credibility of someone or something, often by providing evidence of wrongdoing.

Formal Authority

It is the right granted to individuals within organizations to make decisions, give orders, and enforce obedience based on their position or role.