ISDS 3115 Final

C. The meat department stocking up on turkeys before Thanksgiving.

A grocery store is attempting to implement a kanban system. Which of the following would NOT be an application of​ kanbans? A. A red light on top of the​ cashier's lane signals that the cashier needs additional change replenished. B. An empty doughnut tray signaling the bakery to produce 2 dozen glazed doughnuts. C. The meat department stocking up on turkeys before Thanksgiving. D. A line of 5 people in the Chinese department signaling the department to heat 5 orders of crab rangoon. E. All of the above are kanban applications.

C. ​vendor-managed inventory.

A lawnmower assembly plant uses a variety of​ nuts, bolts,​ screws, and other fasteners in its operation. Its supplier delivers these items directly to the point of use on the assembly line and ensures that there are always sufficient quantities of fasteners to maintain the production schedule. This is an example of A. ​e-procurement. B. postponement. C. ​vendor-managed inventory. D. single stage control of replenishment.

A. a production facility organized around specific activities.

A process focused facility is A. a production facility organized around specific activities. B. a​ rapid, low-cost production facility that caters to constantly changing unique customer desires. C. a production facility organized around products. D. based on the classical assembly line

B. 26

A specific product has demand during lead time of 100​ units, with a standard deviation during lead time of 25 units. What safety stock​ (approximately) provides an​ 85% service​ level? A. 165 B. 26 C. 133 D. 41 E. 126

A. 14

A work system has five stations that have process times of​ 5, 9,​ 14, 9, and 8. What is the bottleneck​ time? A. 14 B. 18 C. 45 D. 35 E. 9

D. 32

A work system has five stations that have process times of​ 5, 9,​ 4, 6, and 8. What is the throughput time of the​ system? A. 18 B. 35 C. 9 D. 32 E. 7

C. there are usually a few critical​ items, and many items that are less critical.

ABC analysis is based upon the principle​ that: A. more time should be spent on class​ "C" items because there are many more of them. B. an item is critical if its usage is high. C. there are usually a few critical​ items, and many items that are less critical. D. all items in inventory must be monitored very closely. E. as with grade distributions in many MBA​ courses, there should be more​ medium-level "B" items than either​ "A" or​ "C" items.

B. the existing product has seasonal or cyclical demand.

Adding a complementary product to what is currently being produced is a demand management strategy used​ when: A. efficiency exceeds 100 percent. B. the existing product has seasonal or cyclical demand. C. price increases have failed to bring about demand management. D. capacity exceeds demand for a product that has stable demand. E. demand exceeds capacity.

A. is a​ fast-growing mode of shipping.

Airfreight A. is a​ fast-growing mode of shipping. B. represents about​ 10% of the tonnage shipped in the United States. C. is the oldest means of freight transportation. D. is the best way to transport natural gas.

C. has a facility that is above optimum operating level and should reduce facility size.

An organization whose capacity is on the portion of the average unit cost curve that increases as output​ rises: A. has a facility that is at optimum operating level. B. has utilization higher than efficiency. C. has a facility that is above optimum operating level and should reduce facility size. D. is enjoying economies of scale. E. has a facility that is below optimum operating level and should build a larger facility.

A. 98%

A​ firm's probability of a stockout for a popular item is​ 2%. Given this​ information, what is its service level for this popular​ item? A. 98% B. 96% C. 2% D. 4%

A. ​high-volume, low-variety products.

A​ product-focused process is commonly used to​ produce: A. ​high-volume, low-variety products. B. ​low-variety products at either​ high- or​ low-volume. C. ​low-volume, high-variety products. D. ​high-volume, high-variety products. E. ​high-volume products of either​ high- or​ low-variety.

B. furniture.

A​ single-period inventory model is NOT applicable for A. seasonal goods. B. furniture. C. newspapers. D. milk.

e. more than 40

Demand for dishwasher water pumps is 8 per day. The standard deviation of demand is 3 per​ day, and the order lead time is four days. The service level is​ 95%. What should the reorder point​ be? A. about 24 B. about 38 C. about 18 D. about 32 E. more than 40

false

Because most services cannot be​ inventoried, there is little place for JIT to help service organizations achieve competitive advantage. True False

A. level 0

By​ convention, what is the top level in a product​ structure? A. level 0 B. level 1 C. level T D. level 100 E. level 10

C. ​product, mass customization

Frito-Lay is to​ ________ focus as Dell Computer is to​ ________ focus. A. ​process, repetitive B. ​repetitive, product C. ​product, mass customization D. ​product, repetitive E. ​process, product

B. supplier location near plants

How can a reduction of​ in-transit inventory be​ encouraged? A. low carrying costs B. supplier location near plants C. high setup costs D. ​low-cost, global suppliers E. use of​ trains, not trucks

B. 100

In the basic EOQ​ model, if D​ = 6000 per​ year, S​ = $100, and holding cost​ = $10 per unit per​ month, what is the economic order​ quantity? A. 600 B. 100 C. 24 D. 141 E. 346

False

Capacity decisions are based on technological​ concerns, not demand forecasts. True/False

E. large lot sizes to save on setup costs and to gain quantity discounts.

Characteristics of​ just-in-time partnerships do NOT​ include: A. produce with zero defects. B. removal of​ in-transit inventory. C. ​long-term contracts. D. focus on core competencies. E. large lot sizes to save on setup costs and to gain quantity discounts.

D. close relationships with trust

Concerning relationships with​ suppliers, which of the following combinations is critical to the success of​ JIT? A. distant relationships with skepticism B. distant relationships with trust C. close relationships with skepticism D. close relationships with trust E. none of the above

C. Station 4

Consider a production line with five stations. Station 1 can produce a unit in 9 minutes. Station 2 can produce a unit in 10 minutes. Station 3 has two identical​ machines, each of which can process a unit in 12 minutes​ (each unit only needs to be processed on one of the two​ machines). Station 4 can produce a unit in 11 minutes. Station 5 can produce a unit in 8 minutes. Which station is the bottleneck​ station? A. Station 3 B. Station 2 C. Station 4 D. Station 5 E. Station 1

C. ​management's attempt to continually respond to minor changes in production requirements.

In​ MRP, system nervousness is caused​ by: A. ​management's marking part of the master production schedule as​ "not to be​ rescheduled". B. the use of the​ lot-for-lot approach. C. ​management's attempt to continually respond to minor changes in production requirements. D. ​management's attempt to evaluate alternative plans before making a decision. E. the use of phantom bills of material.

A. drive down inventory​ investment, lower delivery​ costs, and improve delivery reliability and speed.

Supply chain managers outsource logistics to meet three​ goals: A. drive down inventory​ investment, lower delivery​ costs, and improve delivery reliability and speed. B. drive down inventory​ investment, improve delivery reliability and​ speed, and provide better market response. C. lower delivery​ costs, improve delivery reliability and​ speed, and provide better market response. D. drive down inventory​ investment, lower delivery​ costs, and provide better market response.

A. ​78.9%

The Academic Computing Center has five trainers available in its computer labs to provide training sessions to students. Assume that the design capacity of the system is 1900 students per semester and that effective capacity equals​ 90% of design capacity. If the number of students who actually got their orientation session is​ 1500, what is the utilization of the​ system? A. ​78.9% B. ​87.7% C. 1710 students D. ​90% E. 1350 students

E. ​78.9%

The Academic Computing Center has five trainers available in its computer labs to provide training sessions to students. Assume that the design capacity of the system is 1900 students per semester and that effective capacity equals​ 90% of design capacity. If the number of students who actually got their orientation session is​ 1500, what is the utilization of the​ system? A. ​90% B. ​87.7% C. 1350 students D. 1710 students E. ​78.9%

E. a stockout can occur during the review period as well as during the lead time.

The fixed−period inventory system requires more safety stock than a​ fixed-quantity system​ because: A. this model is used for products that require very high service levels. B. setup costs and holding costs are large. C. this model is used for products that have large standard deviations of demand. D. replenishment is not instantaneous. E. a stockout can occur during the review period as well as during the lead time.

A. inventory has limited value after a certain period of time.

The main trait of a​ single-period model is​ that: A. inventory has limited value after a certain period of time. B. the order quantity should usually equal the expected value of demand. C. the cost of a shortage cannot be determined accurately. D. supply is limited. E. it has the largest EOQ sizes.

B. ​99%

The minimum record accuracy required for successful MRP is approximately which of the​ following? A. lower than​ 90% B. ​99% C. ​90% D. ​95% E. ​97%

B. 89.5​ percent; 70.8 percent

The staff training center at a large regional hospital provides training sessions in CPR to all employees. Assume that the capacity of this training system was designed to be 1200 employees per year. Since the training center was first put into​ use, the program has become more​ complex, so that 950 now represents the most employees that can be trained per year. In the past​ year, 850 employees were trained. The efficiency of this system is approximately​ ________ and its utilization is approximately​ ________. A. 950​ employees; 850 employees B. 89.5​ percent; 70.8 percent C. 90.5​ percent; 79.2 percent D. 87.5​ percent; 950 employees E. 79.2​ percent; 90.5 percent

E. timing of orders and order quantity.

The two most basic inventory questions answered by the typical inventory model​ are: A. order quantity and service level. B. timing of orders and cost of orders. C. order quantity and cost of orders. D. ordering cost and carrying cost. E. timing of orders and order quantity.

D. All of the above

The use of effective contracts with penalties could reduce which form of supply chain​ risk? A. Supplier failure to deliver B. Logistic delays or damages C. Distribution D. All of the above

E. low space requirements

Which of the following is characteristic of lean​ operations? A. no supplier partnerships B. ​easy, mindless jobs C. specialty workers with no​ cross-training D. inventory buffers between each workstation to minimize system downtime E. low space requirements

D. pull systems

Which of the following is generally found in most Lean​ environments? A. a push system for high margin items and a pull system for low margin items B. a push or pull​ system, depending upon the rate of demand C. push systems D. pull systems E. a push system for purchased parts and a pull system for manufactured parts

D. inspect all incoming shipments to ensure zero defects

Which of the following is not a goal of JIT​ partnerships? A. removal of​ in-plant inventory B. removal of unnecessary activities C. removal of​ in-transit inventory D. inspect all incoming shipments to ensure zero defects E. All of the above are goals of JIT partnerships.

C. mass customization

Which of the following is not one of the strategies for improving service​ productivity? A. separation B. automation C. mass customization D. ​self-service E. scheduling

E. Release work orders to the system at the​ bottleneck's capacity pace.

Which of the following is one of the four principles of bottleneck​ management? A. Lost time at a​ non-bottleneck is lost system capacity. B. Increased​ non-bottleneck capacity is increased system capacity. C. Bottlenecks should be moved to the end of the system process. D. Increasing capacity at bottleneck stations is a mirage. E. Release work orders to the system at the​ bottleneck's capacity pace.

B. Toyota Production System​ (TPS)

Which of the following is specifically characterized by a focus on continuous​ improvement, respect for​ people, and standard work​ practices? A. ​Just-in-time (JIT) B. Toyota Production System​ (TPS) C. Lean operations D. Material requirements planning​ (MRP) E. kanban

C. ​Just-in-time (JIT)

Which of the following is specifically characterized by continuous and forced problem solving via a focus on throughput and reduced​ inventory? A. Toyota Production System​ (TPS) B. kanban C. ​Just-in-time (JIT) D. Material requirements planning​ (MRP) E. Lean operations

B. Lean operations

Which of the following is specifically characterized by the elimination of waste through a focus on exactly what the customer​ wants? A. Material requirements planning​ (MRP) B. Lean operations C. Just-in-time (JIT) D. Toyota Production System​ (TPS) E. kanban

D. low​ volume, high variety

Which of the following phrases best describes process​ focus? A. Operators are less broadly skilled. B. high fixed​ costs, low variable costs C. Finished goods are usually made to a forecast and stored. D. low​ volume, high variety E. low inventory

b. safety stock

Which of the following should be higher in P systems than Q​ systems? A. lead time B. safety stock C. order size D. demand E. order spacing

B. Having certain demand raises the possibility of a stockout.

Which of the following statement is NOT​ true? A. The service level is the complement of the probability of a stockout. B. Having certain demand raises the possibility of a stockout. C. Probabilistic models relax the assumption that demand for a product is constant and certain. D. Probabilistic models are a​ real-world adjustment because demand and lead time will not always be known and constant.

A. ​lot-for-lot

Which of the following​ lot-sizing techniques results in the lowest holding​ costs? A. ​lot-for-lot B. POQ C. ​Wagner-Whitin algorithm D. the quantity discount model E. EOQ

E. removal of incoming inspection

Which one of the following is a characteristic of a JIT​ partnership? A. ​third-party logistics never used B. maximal product specifications imposed on supplier C. active pursuit of vertical integration D. frequent deliveries in large lot quantities E. removal of incoming inspection

B. It is the minimum inventory necessary to keep a perfect system running.

Which one of the following statements is TRUE regarding JIT​ inventory? A. It increases if setup costs decrease. B. It is the minimum inventory necessary to keep a perfect system running. C. It hides variability. D. It is minimized with large lot production. E. It exists just in case something goes wrong.

B. product focus

​High-volume, low-variety production is best suited for which of the following process​ strategies? A. repetitive focus B. product focus C. mass customization D. process focus

A. process focus

​Low-volume, high-variety production is best suited for which of the following process​ strategies? A. process focus B. repetitive focus C. mass customization D. product focus

A. tend to have​ long, continuous production runs.

​Product-focused processes: A. tend to have​ long, continuous production runs. B. apply only to service​ firms, not to manufacturers. C. are processes that accommodate a variety of products or customer groups. D. allow more​ customization, but are not very efficient. E. are profitable because customers demand​ flexibility, not specialization.

C. planning bill

A grill assembly takes 20 washers. Instead of listing these washers​ separately, they are grouped into a single kit for production. How is the bill of material for the washers​ classified? A. component bill B. phantom bill C. planning bill D. ​low-level bill E. modular bill

B. JIT prevents long runs of defects.

JIT makes quality cheaper​ because: A. the cost of low quality can be hidden in inventory. B. JIT prevents long runs of defects. C. JIT adds more buffers to the system. D. B and C E. A, B and C

A. increased material handling

Kanban is associated with all EXCEPT which of the​ following? A. increased material handling B. small lot sizes C. ​signals, such as​ cards, lights, or flags D. moving inventory only as needed E. reductions in inventory

E. increased material handling

Kanban is associated with all EXCEPT which of the​ following? A. reductions in inventory B. moving inventory only as needed C. ​signals, such as​ cards, lights, or flags D. small lot sizes E. increased material handling

C. a component item is coded at the lowest level at which it appears in the BOM structure.

Low-level coding means​ that: A. the​ lowest-paid staff member in the production department performs the coding. B. the code being used is the code for the lowest level in the BOM structure. C. a component item is coded at the lowest level at which it appears in the BOM structure. D. the top level of the BOM is below level zero and that BOMs are not organized around the finished product. E. a final item has only a few levels in the BOM structure.

False

MRP can be effective only if very accurate lot sizes are calculated in advance. True/False

False

MRP can be effective only if very accurate lot sizes are calculated in advance. True/False

B. the volume of outputs.

One of the similarities between product focus and​ mass-customization is: A. many departments and many routings. B. the volume of outputs. C. the use of modules. D. the variety of outputs. E. All of the above are similarities.

True

Price changes are useful for matching the level of demand to the capacity of a facility. True/False

C. ​"make-or-buy" and outsourcing decisions.

Prior to embarking on supply chain​ design, operations managers must first consider A. what kind of distribution network to have. B. how to select suppliers. C. "make-or-buy" and outsourcing decisions. D. how to manage supply chain inventory.

postponement

The​ do-it-yourselfer plucked a gallon can of base paint from the shelf of the local hardware store and handed it to​ Keith, the cheerful clerk at the paint counter. Their eyes met briefly and the​ do-it-yourselfer silently handed over sample​ 150C-1, Musical​ Mist, to the clerk. It was impractical to keep several gallons of every possible color on the shelves at the hardware​ store, so the paint manufacturer had created clever workaround. The workaround was a​ computer-based system that added predetermined quantities of pigments to a gallon can of base paint depending on the desired​ shade, in this​ case, Musical Mist. The hardware store now needed to stock only the base​ paint, this​ machine, and a small supply of paint pigments in order to create the thousands of colors in its catalog. This scenario is a prime example of A. postponement. B. drop shipping. C. vendor-managed inventory. D. the bullwhip effect.

A. a joint venture.

To reduce the risks from vertical​ integration, firms may choose to develop some form of formal collaboration known as A. a joint venture. B. cross sourcing. C. channel assembly. D. vendor managed inventory.

B. is increasingly using computers to manage its operations.

Trucking A. is one of the least flexible transportation modes. B. is increasingly using computers to manage its operations. C. is the least used transportation mode for manufacturing goods. D. does not play a role in multimodal shipping.

False

Utilization is the number of units a facility can​ hold, receive,​ store, or produce in a period of time. True/False

B. effective capacity is less than design capacity.

Utilization will typically be lower than efficiency​ because: A. effective capacity equals design capacity. B. effective capacity is less than design capacity. C. expected output is less than actual output. D. effective capacity is greater than design capacity. E. expected output is less than rated capacity.

C. Material requirements planning​ (MRP)

What is a dependent demand technique that uses a​ bill-of-material, inventory, expected​ receipts, and a master production schedule to determine material​ requirements? A. Periodic order planning​ (POP) B. Economic order method​ (EOM) C. Material requirements planning​ (MRP) D. Material requirements method​ (MRM)

C. ​bill-of-material

What is a list of quantities of​ components, ingredients, and materials required to make a​ product? A. engineering change notice B. master production schedule C. ​bill-of-material D. purchase order

C. blanket order

What is a​ long-term purchase commitment to a supplier for items that are to be delivered against​ short-term releases to​ ship? A. postponement B. advanced shipping notice C. blanket order D. drop shipping

C. vertical integration

What is developing the ability to produce goods or services previously purchased or actually buying a supplier or a​ distributor? A. virtual companies B. outsourcing C. vertical integration D. horizontal integration

B. Accurate inventory records

What is required for an MRP system to​ work? A. A high number of purchase orders outstanding B. Accurate inventory records C. Long lead times D. A small bill of material

B. Drop shipping

What is the term of shipping directly from the supplier to the end consumer rather than from the​ seller, saving both time and reshipping​ costs? A. ​Vendor-managed inventory B. Drop shipping C. Postponement D. Direct shipping

C. outsourcing

What is transferring a​ firm's activities that have traditionally been internal to external​ suppliers? A. keiretsu network B. ​make-or-buy C. outsourcing D. vertical integration

C. minimizes the sum of​ holding, ordering, and product costs.

When quantity discounts are​ allowed, the​ cost-minimizing order​ quantity: A. minimizes the sum of holding and ordering costs. B. minimizes the unit purchase price. C. minimizes the sum of​ holding, ordering, and product costs. D. may be a quantity below that at which one qualifies for that price. E. is always an EOQ quantity.

c. the mps disaggregates the aggregate plan

Which of the following best represents the relationship between the master production schedule​ (MPS) and the aggregate​ plan? A. The MPS precedes the aggregate plan in the planning process. B. The MPS is the same as the aggregate plan. C. The MPS disaggregates the aggregate plan. D. There is no relationship between the MPS and the aggregate plan.

B. careful​ selection, monitoring and effective contracts with penalties

Which of the following could reduce distribution​ risk? A. secure IT systems B. careful​ selection, monitoring and effective contracts with penalties C. ​cross-country diversification D. use multiple suppliers

E. They allow easy switching from one product to the other.

Which of the following is FALSE regarding repetitive​ processes? A. They include the assembly of basically all automobiles. B. They are the classic assembly lines. C. They have more structure and less flexibility than a job shop layout. D. They use modules. E. They allow easy switching from one product to the other.

D. JIT increases the cost of obtaining good quality.

Which of the following is FALSE regarding the links between JIT and​ quality? A. As quality​ improves, fewer inventory buffers are​ needed; in​ turn, JIT performs better. B. Inventory hides bad​ quality; JIT immediately exposes it. C. JIT reduces the number of potential sources of error by shrinking queues and lead times. D. JIT increases the cost of obtaining good quality. E. If consistent quality​ exists, JIT allows firms to reduce all costs associated with inventory.

C. ABC analysis is based on the presumption that all items must be tightly controlled to produce important cost savings.

Which of the following statements about ABC analysis is​ FALSE? A. ABC analysis is based on the presumption that controlling the few most important items produces the vast majority of inventory savings. B. In ABC​ analysis, forecasting methods for​ "C" items may be less sophisticated than for​ "A" items. C. ABC analysis is based on the presumption that all items must be tightly controlled to produce important cost savings. D. In ABC​ analysis, "A" items should have tighter physical inventory control than​ "B" or​ "C" items have. E. Criteria other than annual dollar​ volume, such as high holding cost or delivery​ problems, can determine item classification in ABC analysis.

B. The larger the annual​ demand, the less attractive a discount schedule will be.

Which of the following statements about quantity discounts is​ FALSE? A. The smaller the ordering​ cost, the less attractive a discount schedule will be. B. The larger the annual​ demand, the less attractive a discount schedule will be. C. If carrying costs are expressed as a percentage of​ value, EOQ is larger at each lower price in the discount schedule. D. The​ cost-minimizing solution may or may not be where annual holding costs equal annual ordering costs. E. In inventory​ management, item cost becomes relevant to order quantity decisions when a quantity discount is available.

A. Use buffer stocks to ensure speedy supply.

Which of the following statements is NOT one of the differentiation strategy​ decisions? A. Use buffer stocks to ensure speedy supply. B. Gather and communicate market research data. C. Modular design to aid product differentiation. D. Minimize inventory to avoid product obsolescence.

B. gather and communicate market research data

Which of the following statements is NOT one of the response strategy​ decisions? A. use buffer stocks to ensure speedy supply B. gather and communicate market research data C. low setup time D. fast transportation

C. The bullwhip effect occurs as order are relayed from​ retails, to​ distributors, to​ wholesalers, to​ manufacturers, with fluctuations decreasing at each step in the sequence.

Which of the following statements is NOT true regarding the bullwhip​ effect? A. Bullwhip fluctuations in the supply chain decrease customer service and profitability. B. Inaccurate information results in distortions and​ fluctuations, causing what is known as the bullwhip effect. C. The bullwhip effect occurs as order are relayed from​ retails, to​ distributors, to​ wholesalers, to​ manufacturers, with fluctuations decreasing at each step in the sequence. D. Bullwhip fluctuations in the supply chain increase the costs associated with​ inventory, transportation, shipping and receiving.

B. An increased sales effort may help a firm reach its profit goals more easily than would effective cost cutting.

Which of the following statements is NOT​ true? Part 2 A. Supply chain management describes the coordination of all supply chain​ activities, starting with raw​ materials, and ending with a satisfied customer. B. An increased sales effort may help a firm reach its profit goals more easily than would effective cost cutting. C. A supply chain includes​ suppliers; manufacturers​ and/or service​ providers; and​ distributors, wholesalers,​ and/or retailers who deliver the product​ and/or service to the final customer. D. The objective of supply chain management is to coordinate activities within the supply chain to maximize the supply​ chain's competitive advantage and benefits to the ultimate consumer.

C. The quantity of gross requirements for a child item is equal to the quantity of planned order​ release(s) multiplied by the number of child items used in the parent assembly.

Which of the following statements is TRUE about the MRP plan when using​ lot-for-lot ordering? A. The quantity of gross requirements for a child item is always equal to the quantity of planned order releases for its parent. B. The quantity of gross requirements for a child item is always equal to the quantity of gross requirements for its parent. C. The quantity of gross requirements for a child item is equal to the quantity of planned order​ release(s) multiplied by the number of child items used in the parent assembly. D. The quantity and gross requirements for a child item is always equal to the quantity of net requirements for its parent. E. All of the above are true.

C. ​Cross-sourcing uses one supplier for a component and a second supplier for another​ component, where each supplier acts as a backup for the other.

Which of the following statements is true regarding​ cross-sourcing? A. ​Cross-sourcing enhances technological skills. B. ​Cross-sourcing describes suppliers who become part of a company coalition. C. ​Cross-sourcing uses one supplier for a component and a second supplier for another​ component, where each supplier acts as a backup for the other. D. ​Cross-sourcing develops the ability to produce goods or services previously purchased or actually buying a supplier or distributor.

B. ​Cross-sourcing uses one supplier for a component and a second supplier for another​ component, where each supplier acts as a backup for the other.

Which of the following statements is true regarding​ cross-sourcing? A. ​Cross-sourcing enhances technological skills. B. ​Cross-sourcing uses one supplier for a component and a second supplier for another​ component, where each supplier acts as a backup for the other. C.​ Cross-sourcing describes suppliers who become part of a company coalition. D. ​Cross-sourcing develops the ability to produce goods or services previously purchased or actually buying a supplier or distributor.

D. Problems become more obvious.

Which of the following statements regarding a pull system is​ TRUE? A. Manufacturing cycle time is increased. B. Large lots are pulled from upstream stations. C. Work is pulled to the downstream stations before it is actually needed. D. Problems become more obvious. E. None of the above is true of a pull system.

B. It relaxes the assumption that all the order quantity is received at one time.

Which of the following statements regarding the production order quantity model is​ TRUE? A. It applies only to items produced in the​ firm's own production departments. B. It relaxes the assumption that all the order quantity is received at one time. C. It relaxes the assumption that the demand rate is constant. D. It minimizes the total production costs. E. It minimizes inventory.

C. keiretsu networks

Which of the following strategies is part​ collaboration, part purchasing from few​ suppliers, and part vertical​ integration? A. virtual companies B. joint ventures C. keiretsu networks D. horizontal integration