Certified Production & Operations Manager (POM) Practice Exam

Supplying operations with parts and materials is part of the firm's:

1. External process orientation

2. Division of labor

3. Internal supply chain

4. Market development

The correct answer is: Internal supply chain

The correct answer is based on the concept of internal supply chains, which encompasses the activities and processes that ensure that operations are provided with the necessary parts and materials for production. The internal supply chain involves managing the flow of information and goods within the organization, from sourcing raw materials to producing finished products. This process is critical for maintaining efficient production operations, as it ensures that the right materials are available at the right time and in the right quantities. Effective management of the internal supply chain can lead to reduced lead times, lower inventory carrying costs, and improved overall operational efficiency. The other options do not directly relate to the specific function of supplying operations with parts and materials. External process orientation focuses on the company's interactions with outside entities, while division of labor refers to the splitting up of tasks among workers to increase efficiency. Market development relates to strategies used to increase sales in existing or new markets, which does not address the internal logistics of supplying materials for production. Thus, the concept of the internal supply chain is clearly the most relevant and accurate choice in this context.