BUAD 331 Exam 2

Which one of these is a direct cost for the airplane manufacturer Boeing? A. Airplane rivets B. Office supplies C. Payroll D. Airplane tires

A. Airplane rivets

The video about Boeing 737 manufacturing is an example of: A. Discrete manufacturing B. Continuous or process manufacturing

A. Discrete manufacturing

Manufacturing and Service Operations is primarily about creating which type of utility. A. Form B. Time C. Place D. Electric

A. Form

What term is best described as the process of combining purchasing requirements across operating units in order to capitalize on suppliers' fixed cost allocations and improvements in suppliers' productivity? A. Leveraging B. Specifying C. Spot Buying D. Strategizing E. Contracting

A. Leveraging

________ is the product placement concept that involves assigning SKUs to an appropriate storage or picking location by accounting for factors that influence the movement, staging, and storage of the SKU in the warehouse including volume and the variability of that volume. A. Product profiling B. Cross-docking C. Variability handling D. Product placement

A. Product profiling

What is the best tactic purchasing can use in order to meet the material and support needs of its internal customers? A. Provide an uninterrupted flow of the appropriate quality materials and services. B. Buy from suppliers that are geographically close to the location of internal customers. C. Find the lowest possible price through low-cost country sourcing. D. Minimize the number of suppliers in the supplier pool. E. Automate the purchasing process with the suppliers.

A. Provide an uninterrupted flow of the appropriate quality materials and services

What type of warehouse has the advantages of minimizing labor disputes, economies of scale, and letting experts run the warehouse? A. Public B. Private C. Exempt D. Bonded logistics park E. Subcontracted

A. Public

Best Buy has a warehouse containing TVs, video game consoles, and movies. The TVs sell slowly, the consoles sell periodically, and the movies sell quickly. How should Best Buy arrange its warehouse? A. TVs in the back, consoles in the middle, movies in the front B. TVs in the front, consoles in the back, movies in the middle C. Movies in the front, TVs in the middle, consoles in the back D. Movies and consoles in the middle, TVs in the front

A. TVs in the back, consoles in the middle, movies in the front

Samsung wants to transport a load of 52-inch HDTVs from Carlsbad, California, to San Francisco. What method of transportation should Samsung use? A. Truck B. Water C. Pipeline D. Air

A. Truck

Purchasing has become a strategic contributor to organizational value by contributing to both the top and bottom line of the business. A. True B. False

A. True

The choice of suppliers is important to ensure an uninterrupted flow of supply and avoid some of the problems inherent in complex supply chains. A. True B. False

A. True

The following items for an automobile manufacturer would fit in the Supply Commodity category titled "Indirect Materials Office Supply Product category". (images of a pen, whiteout, stapler, water bottle, and pencil) A. True B. False

A. True

The purchasing function contributes to the type and bottom line of an organization. A. True B. False

A. True

When purchasing and supply management works well within an organization, the company acquires the best resources from around the world, which allows its to compete on cost, quality, and innovation. A. True B. False

A. True

______ + ______ = Rate bargaining power when negotiating rates. A. Volume + Consistency B. Technology + Consistency C. Rates + Consistency D. Volume + Good Relationships E. Volume + Value Density

A. Volume + Consistency

Which of the following is generally NOT true about supply management and the bottom line (net profit to the firm)? A. Purchased items account for a large percentage of the cost of goods sold. Hence, a reduction in cost of purchased goods has a major impact on the bottom line B. A Euro increase in sales is equivalent to a Euro decrease in materials cost in impacting the bottom line C. Outsourcing can allow firms to focus on their core competencies, possibly reducing waste, which then has the potential to improve the bottom line D. A dollar saved in materials cost is usually considered a dollar increase in net income, which directly translates into bottom line savings E. All of the above are true.

B. A Euro increase in sales is equivalent to a Euro decrease in materials cost in impacting the bottom line

What warehouse automation system is used for high assortment, low volume SKUs and for maximizing space usage? A. Conveyors B. Carousel C. Item bins D. Automated storage/retrieval system E. Forklifts

B. Carousel

What warehouse automation system is used for high-assortment, low-volume SKUs and maximizes space use? A. Conveyors B. Carousel C. Item bins D. Automated storage/retrieval system E. Forklifts

B. Carousel

Which is part of a quick response system where inbound shipments of bulk items are not stored long term but instead broken into smaller quantities, mixed together, and quickly shipped to individual stores? A. Warehouse B. Crossdock C. Combine D. Picking operation

B. Crossdock

Which of the following is NOT an area in which successful supply managers need expertise? A. Technologies B. Customers C. Suppliers D. Processes E. Resources

B. Customers

Theoretical capacity includes which of the following items? A. Time for holidays B. Equipment design rate times 24 hours/day times 365 days/year C. Rate of the constraint times operational efficiency D. A solid forecast of next year performance by the plant manager E. Standard rate set by each plant

B. Equipment design rate times 24 hours/day times 365 days/year

A dollar saved in material costs goes directly to an increase in revenue for the organization. A. True B. False

B. False

A manufacturing facility that produces automobiles would be considered a process manufacturing facility A. True B. False

B. False

Sourcing is the inputs (or things we buy), including materials, sub-assembled components, equipment, and services, that are required to create value. A. True B. False

B. False

Supplier portfolio analysis was introduced by Michael Porter. A. True B. False

B. False

When calculating the theoretical capacity of a manufacturing facility, operating time for holidays and weekends is subtracted. A. True B. False

B. False

_________ is part of the supply chain involved in managing the forward and reverse flow and storage of goods, services, and related information between the point of origin and the point of consumption to meet customers' requirements. A. Procurement B. Logistics C. Transportation D. Negotiation

B. Logistics

What warehouse activity includes identifying the location of the product required to fill an order? A. Shipping B. Order picking C. Put-away D. Shipment assembly E. Towline

B. Order picking

A shared understanding of values and priorities is critical to run a successful manufacturing operation. Which one of these categories will change based upon the annual corporate strategy. A. Values B. Priorities

B. Priorities

Which of the follow maintenance strategies was NOT discussed? A. Corrective B. Probabilistic C. Preventative D. Predictive E. Autonomous

B. Probabilistic

Which type of equipment should a manufacturer select for a new facility that will produce state-of-the-art batteries for electric vehicles which have been designed and developed by the company's research team? A. Industry Standard B. Proprietary C. Used D. Reconditioned

B. Proprietary

The advantage of proprietary equipment is: A. Less capital required B. Provides competitive advantage C. Faster delivery time D. Less technical support required E. Less unique spare parts

B. Provides competitive advantage

The key to effective procurement strategy is ______ of suppliers and ___________ management. A. Comparison, aligned B. Segmentation, strategically appropriate C. Strengthening, customer-focused D. Disconnection, dishonest

B. Segmentation, strategically appropriate

Which of the Krajlic's Portfolio Matrix items is highly complex in the supply market and has a high importance of purchasing? A. Leverage Items B. Strategic Items C. Mosaic Items D. Pertinent Items E. Expendable Items

B. Strategic Items

When thinking about price reductions what can purchasing do to achieve significant price or cost savings and maintain the appropriate supplier relationship when buying leverage items? A. Forward buying B. Supply base reduction C. Hard ball negotiations D. Buy the product from more suppliers E. All of the above are tactics to achieve price or cost savings

B. Supply base reduction

A current best practice strategy that focuses on equipment maintenance is: A. RtT B. TPM C. Lean D. PtD E. Six Sigma

B. TPM

Transportation costs per unit of freight increase at a decreasing rate with increasing volume, increasing distance traveled, and higher weight density. This defines what theory? A. Weighing out theory B. Transportation cost theory C. Cube standpoint theory D. Intermediary theory

B. Transportation cost theory

non-critical commodities

(Versatile & Unimportant) -Many alternative products & services -many sources of supply -looking for best price deal -Low value small individual transactions Ex: Ut buying office supplies in bulk from Staples

Discrete manufacturing involves

*assembles parts in a prescribed process to produce a distinct item. the creation of individual products such as a pair of jeans, a mobile phone, or a car Main Types: -Projects -Job Shops -batch -Assembly Line

Process or continuous manufacturing involves

*relies on creating formulas or recipes to produce a product liquids or gases that undergo continuous processes such as at an oil refinery, a paint manufacturer, or plastic resin plant. -also pharmaceuticals and biotech

You are working as a Procurement Manager for a Fortune 500 company and are in charge of buying a new make and model of work computers for the entire company headquarters. You know it will be an expensive purchase, but have many options to choose from so you can make the computer manufacturers bid against each other to get the best price. Which type of commodity are these computers? A. Noncritical Commodity B. Strategic Commodity C. Leverage Commodity D. Bottleneck Commodity

C. Leverage Commodity

Which is of these is not one of the four legs of manufacturing? A. People B. Materials C. Money D. Information E. Equipment

C. Money

Which of these is not a key component of transportation management? A. Meet delivery promises B. Track and monitor goods in transport C. Process appropriate information to avoid regulatory approval D. Execute the move, ensuring goods are picked up and delivered on time and undamaged

C. Process appropriate information to avoid regulatory approval

Based on similar cost and service characteristics, which mode of transportation is the biggest competition for an inland water transport? A. Truck B. Pipeline C. Rail D. Air E. Forklifts

C. Rail

What mode of transportation is the biggest competition for an inland barge? A. Truck B. Pipeline C. Rail D. Air E. Forklifts

C. Rail

Safety is a value because: Priority changes from day to day. A. Everyone likes a safe operation. B. The federal government has mandated safety as a value. C. Safety's importance does not vary with time or situation. D. Safety normally is the top priority.

C. Safety's importance does not vary with time or situation.

You are a supply manager at a large US bank and you are responsible for buying marketing and creative services (advertising, etc.). The marketing services category represents a substantial amount of procurement spend and the suppliers that compete in this industry tend to have very different capabilities. Consider the Kraljic matrix and classify this purchase. A. Leverage item. B. Bottleneck item. C. Strategic item. D. Non-critical item. E. None of these are the appropriate classification for this component.

C. Strategic item.

Which of the following is the most important right of purchasing? A. Delivery to the RIGHT place B. The RIGHT price C. The RIGHT supplier D. The RIGHT time E. The RIGHT material

C. The RIGHT supplier

Which of the following is NOT true about a value? A. Values reflects what the organization believes. B. Values depend on the history and culture of the enterprise. C. Values change with the priorities of the business. D. Values include safety, quality, and customer service. E. Values require ongoing leadership work to support them.

C. Values change with the priorities of the business.

Carousels

for high-assortment, low-volume SKUs to maximize space usage

Assemble-to-order production involves:

holding standard parts or sub-assemblies and then allowing customers to specify the desired combination. Example: Dell and Chipotle both use this strategy by allowing customers to choose from a limited set of parts or ingredients and only assembling the finished good once this decision is made.

Operational capacity is composed of

human labor and the machine capacity needed for the conversion process

Make-to-order supply chains involve:

production in generally small quantities to meet specific customer needs. Examples include construction projects or weddings.

Five main transportation modes:

rail, motor, water (both ocean and inland), air, and pipeline transport.

Materials include

raw materials, packing materials, data, information, subassemblies, and any other items that are required to produce a product or service.

indirect costs

refers to expenses incurred formaterials, services and maintenance required to operate the business.

five key values of manufacturing leadership:

safety, quality, customer service, integrity, and environment.

Core work refers to

the activities in a manufacturing operation that comprise the most important value-adding element.

Innovation is

the creation of new customer value by developing solutions that meet new needs, unarticulated needs, or old needs in new ways.

Transportation is

the movement arm of logistics that must be managed to create time and place value.

The _______________ provides a view of what is possible with zero downtime for breakdowns, training, labor issues, etc. Manufacturing organizations typically compare their actual production to this _______________. (Same answer for both)

theoretical capacity

Variable transportation costs include:

those costs that are incurred when transportation equipment is operated, including items such as fuel, labor, highway taxes or port fees, and maintenance.

What does proprietary mean?

to create a competitive advantage with your equipment/manufacturing processes. Examples of the benefits of using proprietary equipment include: -The ability to transform materials or subassemblies that are not readily convertible by the competition -Production speed/rate advantage -Production or efficiency advantage -Patented materials, equipment, or processes -Cost advantage due to a larger scale or partnerships

Make-to-stock strategies involve

using a set process to produce a fixed set of products for which the customer has no options to customize. Examples include most consumer goods bought in retail stores or automobiles purchased from car lots.

Zone layout is most appropriate...

when there are a large assortment of products being shipped to a large number of customers.

Bottleneck commodities

-Complex design requiring specific manufacturing or service process -Few alternate productions/sources of supply -Huge impact on operations/maintenance Ex: The tacate airbags were purchased and used by Toyota, they were bad quality (people has accident issues w lawsuits) and badly hit Toyota's reputation.

As metrics are developed to measure procurements performance, the following areas must be considered:

-Cost -Availability -Quality -Customer Satisfaction

Manufacturing often has a high level of emphasis within the supply chain because A. It usually employs many people. B. It is often the constraint in the supply chain C. It is often capital intensive D. All of the above.

D. All of the above.

Carriers will offer better rates if clients give them revenue miles in ______________. A. Both cash and prizes B. Both cash and bonuses C. More delivery time D. Both directions E. Dollars

D. Both directions

An item with high market complexity and low importance to the organization should be classified as: A. Non-critical B. Leverage C. Strategic D. Bottleneck E. None of the above

D. Bottleneck

On Kraljic's matrix the quadrant of "bottleneck" is the most challenging for purchasing managers to deal with? In fact it is recommended that you think of ways to shift these items to other quadrants of the matrix. What is one purchasing tactic that might allow you to do that? A. Reverse auction B. Use P-cards and on-line catalogs C. Set up a long term contract D. Buying consortium, group together multiple buyers E. Switch suppliers

D. Buying consortium, group together multiple buyers

Top line contributions by the purchasing function include which of the following? A. Cost cutting B. Supply base reduction C. Leveraging D. Involvement in new product development E. All of the above

D. Involvement in new product development

Warehouses play a critical role in the supply chain system by: A. Enabling diseconomies of scale in sourcing, manufacturing, and transportation B. Preventing the consolidation of materials from multiple suppliers C. Providing an inflexible and high-cost capability for customizing products D. Placing a buffer between supply and demand

D. Placing a buffer between supply and demand

What supplier management tool is the standard to continuously track a supplier's performance and financial health and ensure that key goals are being met? A. Partnerships B. Six Sigma Projects C. Negotiations D. Scorecards E. Sourcing Projects

D. Scorecards

What invention by Malcolm McLean revolutionized how products are shipped at reduced cost, considered a key facilitator of global trade? A. Drones B. Driverless trucks C. TARS from the movie Interstellar D. Shipping containers E. Forklifts

D. Shipping containers

Strategic commodities

-Complex -Critical to profitability & operations -High level of trust & planning between buyer & supplier -FEW QUALIFIED SOURCES OF SUPPLY EX: Jet Engines fo Aircraft Manufacturers

leverage commodities

-High value to internal/external customers -Not too complex -Many qualified sources of supply -a lot of opportunity to reduce costs Ex: Delta selectively chooses right wine brands for their high-paying first class customers.

air transport:

-These fixed costs of equipment and facilities are higher than for motor transport but are relatively low when compared to rail and water. -Variable costs per unit of product moved, however, is extremely high given the high costs of labor, fuel, and use fees for airport facilities. -best suited for high-value products or products that have time sensitivity and must arrive in short timeframes.

Pipeline transport:

-a special case that lends itself only to particular goods like like chemicals and petroleum. -installing the pipelinesC and buying the land over which they run is extremely costly, but once installed, the variable cost of operations is very low.

Common warehousing facilities

-are a legal classification denoting a facility used by multiple customers with a fee for each associated with the square footage needed on a periodic basis, often monthly or quarterly. -typically for low volume needs or seasonal demand

Contract warehousing facilities

-are those that are owned by a third-party firm and operated exclusively for one customer or a small group of customers. -most appropriate for firms providing value for high and stable or growing demand volume and for demand that requires special services or handling to create value.

Rail Transport:

-extremely high fixed costs trackage rights for the land on which the roads run, tracks, rail yards, and the operating equipment itself. -low variable costs compared to the large volume that can be moved at once -well suited for high volumes of product or heavy items (big construction equip) over long distances that do not need special protection or care in transport. Ex: Bulk food, mining, heavy manufacturing, containerized goods.

Water or maritime transport:

-fixed costs for facilities and equipment are exceptionally high and variable costs per unit are extremely low since massive volumes of product can be moved for long distances. -All manner of goods are moved via water transport, from bulk commodities to extremely high-value products. -By far the most highly used mode of transportation, with over 90 percent of global trade moving via the waterways of the world. Ex: Bulk food, mining, chemicals, containerized goods

what does Theory of Constraints focus on?

-focuses on identifying a single primary constraint within an operating system and managing it to eliminate its impact on performance. **a management process introduced by Dr. Eli Goldratt in his book entitled The Goal.

randomized storage

-involves placing products in the first open bay available to minimize put-away and pick distances traveled and make best use of available warehouse space. Each location and each SKU is assigned an identifiable number and bar code or ID tag and is registered within the warehouse information system, called WAREHOUSE MANAGEMENT SYSTEM (WMS)

Motor transport (18 wheelers):

-low fixed costs because travel on roads and highways is largely subsidized by taxes, tariffs, and fees paid by the general public as well as by motor carriers. -equipment costs for motor carrier power units (tractors) and trailers and facilities are far less than those associated with rail transport. -Variable costs are higher due to costs of drivers, fuel, and highway use taxes -particularly well suited for goods that need to move a short distance (500 miles or less); have a high value per unit such as consumer finished goods and light to medium weight manufactured goods; and originate or are destined for locations that do not have rail access. Ex: Consumer goods, medium/light manufacturing

what are the four legs of manufacturing:

-the categories of work that define the key components of the manufacturing task: people, materials, equipment, and information.

Two key rules of transportation economics include:

1. Transportation costs per unit of freight increase at a decreasing rate with increasing volume and/or weight density. -Due to economies of scale, it is cheaper per unit to ship large volume (full Vehicle Load - VL - or full Container Load - CL) than small volume shipments. 2. The "tapering principle" holds that transportation costs per unit of freight or weight increase at a decreasing rate with increasing distance traveled -it is cheaper per mile to ship over a long-distance haul vs. a short haul as fixed costs can be spread over a longer operating distance.

What emerging trend will alleviate the need to carry certain inventory such as spare automotive or aircraft parts? A. Drones B. Automation in warehouses C. Additive manufacturing D. Digital supply chains E. People moving back to cities

C. Additive manufacturing

Both objective and subjective measures are used to measure the performance of suppliers. Which of the following is NOT true regarding objective and subjective measures? A. Objective (Hard) Measures are quantitative B. Subjective (Soft) Measures are based on preference or judgment C. An example of a subjective measure is supplier on-time delivery D. Subjective measures can be biased and dependent on the user. E. All of the above are true.

C. An example of a subjective measure is supplier on-time delivery

Incoming replenishment shipments are preassigned to actual demand orders, so that as soon as a product arrives in the facility it is already assigned to an order. This describes? A. Assortment B. Spot stocking C. Cross docking D. Break bulking E. Product life cycle management

C. Cross docking

Crowded urban markets require innovative approaches for delivery in the "last mile" logistics initiative. One such solution would be: A. Bus B. Drop shipping C. Drones D. Blockchain

C. Drones

A GE refrigerator has a sensor that tracks milk consumption based upon the weight of the container and automatically orders from a grocery store when it senses the milk is getting low. This is an example of what global trend? A. Drones B. Automation in warehouses C. Internet of Things (IoT) D. Digital supply chains E. People moving back to cities

C. Internet of Things (IoT)

4th step in the Strategic procurement process:

Contract Negotiation

As a category specialist, you need to develop expertise on which of the following? A. Price B. Data retrieval C. Puzzles D. Availability E. A and D only

E. A and D only

Form Operations are considered the "center" of the supply chain since they typically are characterized as: A. Employing the most people B. Using the most equipment C. Consuming the most resources D. Acting as the main supply chain constraint E. All of the above

E. All of the above

Manufacturing is referred to as the "center" of the supply chain due to: A. Most people B. Most equipment C. Most resources D. Usually is the supply chain constraint E. All of the above

E. All of the above

One of the most challenging aspects of purchasing is to ensure an uninterrupted flow of supply. Which of the following might "interrupt" that flow? A. Natural disasters B. Supplier quality issues C. Logistics interruptions D. Financial issues E. All of the above

E. All of the above

When are supplier evaluation and selection decisions initiated? A. In response to requests from internal customers B. During the design and building of new facilities C. During new product development D. During routine market testing E. All of the above

E. All of the above

How can purchasing add value to an organization? A. By ensuring an uninterrupted flow of materials or services B. By reducing the total cost of products C. By collaborating with other areas such as logistics on supplier location decisions. D. By increasing revenue through supplier innovation and new product launch E. All of the above (and MORE) are ways that purchasing can contribute to organizational success.

E. All of the above (and MORE) are ways that purchasing can contribute to organizational success.

What type of storage technique assigns a specific location for each SKU every time it is stored? A. Assortment B. Random C. Product profiling D. Spot stocking E. Dedicated

E. Dedicated

Which mode of transportation is best used to transport each of the products listed below? Heavy construction equipment: Short distance consumer finished goods: Long distance containerized goods: High value good: Petroleum or mineral slurry:

Heavy construction equipment: Rail Short distance consumer finished goods: Motor Long distance containerized goods: Water High value good: Air Petroleum or mineral slurry: Pipeline

1st step in the Strategic procurement process:

Market Research: -to conduct a market analysis to gain a clear understanding of the supply and demand trends in the various markets in which the organization must buy, the relative strength of competitors, the volumes purchased by the company in various categories, etc. The objective is to provide a holistic perspective for the procurement organization and a sense of the strengths, opportunities, weaknesses, and threats in the potential markets

______________'s primary purpose is to provide the correct item at the required time at the lowest possible cost.

Procurement

"make versus buy" decision asks

Should we manufacture a product ourselves or pay someone else to do so? Components: -Capability to produce -Scale(Cost/Volume advantage) -Proprietary(knowledge to produce?) -Capacity( does org have manufacturing capacity in terms of people and equipment)

2nd step in the Strategic procurement process:

Spend Analysis -building on the analysis of supply markets, is to conduct a spend analysis in each of the categories to understand how much money is spent on purchases during a period of time, which suppliers are receiving the majority of business (is there an opportunity to reduce the supply base?), and whether pricing is accurate.

Steps in the Strategic Procurement Process

Step 1: Market Research Step 2: Spend Analysis Step 3: Portfolio Analysis Step 4: Contract Negotiation Step 5: Supplier Relationship Management

5th step in the Strategic procurement process:

Supplier Relationship Management

3rd step in the Strategic procurement process:

Supply Portfolio Analysis -Based on the external market research analysis and the internal spend analysis, the procurement process can now focus on determining how best to manage purchases of each commodity category. (Strategic, Non-Critical, Bottleneck, and Leverage Commodities (Kraljic portfolio)) -Enables the procurement strategy to become segmented based on the potential of the category to provide value and the characteristics of the supplier market in which the input is purchased.

what are ISO Standards?

The International Organization for Standards provides a certification process for which international companies can apply. -Extensive documentation of a firm's quality processes is provided to an independent auditor to certify they meet the standards.

Commodity

The inputs (or things we buy), including materials, sub-assembled components, equipment, and services, which are required to create value.

Intermodal Shipping

The use of multiple modes of transportation to complete a single long-distance movement of freight.

Sourcing

The processes involved in identifying the requirements, locations, and identity of specific companies and providers that may be used to acquire various inputs required to create value.

Purchasing

The processes used to actually make a buy from a source.

Procurement/Supply Management

The strategic approaches and processes used to secure needed inputs into the organization to create relevant value.

_______ create the foundation of a business enterprise, the base layer of the organizational pyramid.

Values

Dedicated storage assigns

a specific location for each SKU every time it is stored. -most appropriate when humans without information-enabled tools conduct put-away and picking. -makes best use of picker efficiency as pickers can build up knowledge of where products are always stored, but it can underutilize space

Total productive maintenance (TPM) is

a system of maintaining and improving supply chain performance through machines, equipment, processes, and employees. *widely used in automotive industries & other capital intensive industries such as high tech and aerospace

Cross Docking or flow through layout:

allowing high-volume and fast-moving product to "flow through" the facility as value gets added, and then immediate shipment on a transportation asset for movement to customers without ever being stored. -as soon as a product arrives in the facility, it is already assigned to an order. -reduces operating and storage costs

Fixed transportation costs include:

capital expenditures for transportation equipment, infrastructure such as ports and rail yards, trucking terminals, and airports.

Direct Costs

involves the procurement ofgoods, materials and services directly related to the production of goods and/or services that a business is offering.

what is lean manufacturing?

it focuses on removing waste from the process, driving out non-value-added work, simplifying the system, and then repeatedly delivering with excellence every day. -effective in orgs that have significant complexity and relatively stable demand

Form operations is another way of saying

manufacturing facilities

Automated storage/retrieval systems (AS/RS)

mechanized cranes that put away and pick pallet-sized loads based on WMS commands

Conveyors

moving items over long distances in the facility