SCM Exam 2
Efficient supply chain management distribution requires that modern warehouses concentrate their efforts on a wide array of warehousing and distribution functions like storing purchases, work in progress inventories, and finished goods inventories, receiving shipments, breaking down shipments, repackaging, and the distribution of components
False
In the Economic Manufacturing Quantity model, the annual consumption rate must be higher than the annual production rate
False
Inventory turnover ratio shows how many times a firm turns over its inventory in an accounting period. Faster turnovers are generally viewed as negative because it indicates instability in the firm's inventory level.
False
A lean system is also known as a push system.
False; MTO is pull, MTS push
Public warehouses can provide a wide range of services. Which of the following is NOT one of the services offered by public warehouses?
High Security Shipments
Successful supply chains evolve through stages; the internally focused stage is characterized by all of the following EXCEPT:
Long-term planning
According to the textbook, which of the following is NOT a way to closely match supply and demand?
Maintaining a rigid pricing system
____, such as lubricants for machines, are used in the production process, but do not become parts of the final products.
Maintenance, repair and operating supplies
Which of the following consists of different products that share similar characteristics, components or manufacturing processes?
Product Family
According to the text, a warehouse location strategy that proposes locating a warehouse closest to the sources of supply is referred to as:
Product Position Strategy
According to the text, in supply chain, the term lean has begun to replace the term JIT.
True
Because air transport is so expensive the best cargo candidates for air travel are those cargo shipments with a high cost to weight ratio
True
The resource and operations planning done by operations managers is intended to balance capacity and output.
True
