BUSQOM - Exam 2
When attempting to balance an assembly-line, the amount of idle time across workstations should be ______.
Minimized
Workcenters are often structured to ______ the movement of material.
Optimize
The logic of the few having the greatest importance and the many having little importance is termed the______ principle.
Pareto
Inventory ____ is defined as the on-hand plus on-order minus backordered quantities.
Position
______ techniques are typically used to manage production processes that follow a project layout structure.
Project management
Projected balance, the amount of inventory expected at the end of a period, is calculated using which equation?
Projected available balance = sum of on-hand inventory - gross requirements + scheduled receipts + planned orders
Which of the following is not a step in the process to balance an assembly line?
Randomly assign tasks to workstations.
An EOQ lot sizing technique will try to balance the sum of which of the following costs given a fairly constant demand?
Setup & Holding costs
Which type of activities are a key source of competitive advantage?
Strategic
Which of the following is NOT a part of the material requirements planning system?
Supplier delivery schedule
The next level in the planning process down from an aggregate plan is called?
The master production schedule
A company that manages all or part of another company's product delivery operations is known as which of the following?
Third-party logistics company
______ _______ are a company's attempt to provide a controlled window of opportunity to make changes to the master production schedule. (Enter only one word per blank.)
Time fences
True or False: A fixed-order quantity model is triggered by inventory dropping to a specified level.
True
True or false: Innovative products have higher profit margins than functional products.
True
Which of the following is a policy and control of an inventory system?
When stock should be replenished
In a ______ layout, machines are grouped according to type or function and parts travel to the appropriate location for processing.
Workcenter
The factor-rating system uses ______ to evaluate potential locations.
a diverse set of factors
Least unit cost provides ______ as an advantage when taking variable ordering costs and setup costs into account.
a more complete analysis
Outside of determining parts, components, and materials, MRP provides...
a schedule for when each of these should be produced or ordered.
Inventory turn is calculated by...
dividing cost of goods sold by average inventory value.
The required workstation cycle time is determined by
dividing the production time per day by the required output per day.
Inventory classifications of A, B and C are based on
dollar value or measure of importance.
The master production schedule is used to plan...
end items.
Green sourcing is not only for developing new technologies, but also for
increasing the use of recyclable materials.
Transaction cost is dependent on the level of ______ incorporated into the control system matrix.
integration and automation
Spot purchases have ______ specificity and ______ transaction costs.
low; low
If inventory turn is known, days-of-supply is calculated by...
multiplying the inverse of inventory turn by 365 days.
In an assemble-to-order system, the total number of unique combinations possible is calculated by
multiplying the number of options for each choice together.
The managerial and clerical costs to prepare purchase or production orders are called
ordering costs.
A framework depicting when the different production process types are typically used depending on volume and standardization is known as the
product-process matrix.
The calculated theoretical number of workstations should be ______.
rounded up to the next highest integer.
Acme Company carries an additional level of inventory beyond the expected demand during reorder lead times. This additional inventory is known as
safety stock.
A _____ bill-of-materials includes items with fractional options.
super
The bullwhip effect can be reduced by ____ efforts among members of the supply chain.
synchronizing, coordinating, synchronization
In a project layout, a high degree of ______ is common.
task ordering
Inventory turn is a key measure for a business and directly relates to...
the financial performance of the firm.
If ordering costs and setup costs remain constant, then ______ is the easiest method for lot sizing.
the lowest total cost method
At any point in time, an MRP system can access the status segment of the inventory record according to specific time periods commonly known as...
time buckets.
A production process map is built by
tracking the flow of material through the system.
Identify the true statements about assembly-line and continuous process layouts.
- In an assembly line, a product goes through a progressive set of steps. - In a continuous process, a product moves continuously through the process. - Often, the item being produced in a continuous process is a liquid or chemical that actually flows through the system.
Which categories of inventory typically go through a cycle count?
A, B, C items
Which type of supply chain strategy is aimed at being responsive and flexible to customer needs and hedges against pooled inventory and other capacity resources?
Agile supply chains
In which of the following industry types would MRP provide high benefits?
Assemble-to-order Assemble-to-stock Engineer-to-order
Which common layout format refers to the progressive build of a product?
Assembly line
Which of the following resources would a firm not outsource?
Core competencies
Which of the following is NOT a step in the process of developing a manufacturing cell?
Determine which machines perform the same process.
Fixed-time period is an inventory control method where firms place orders periodically, but the order quantity is ______ every time.
Different
A manufacturing cell is generally made up of ______ machines.
Dissimilar
_____ inventory includes items in-transit or at a warehouse ready for shipment to the customer.
Distribution
Which of the following is the term used for systems that combine the idea of consolidation and that of cross-docking?
Hub-and-spoke system
What type of products have a life cycle of just a few months?
Innovative
Major information system activities for planning logistics involve allocating resources, managing ______ levels, scheduling, and order tracking.
Inventory
Define - Engage internal sourcing agents:
Involving individuals and groups to help set realistic green goals.
In a fixed-time period system, inventory monitoring happens ____ frequently than in a fixed-order quantity system.
Less
Which of the following is not one of the types of techniques used by companies when choosing a plant location?
Location analysis method Common location techniques: factor-rating systems, transportation method of linear programming, and centroid method
The art and science of obtaining, producing, and distributing materials and products in the proper place and the proper quantities, is termed?
Logistics
What term refers to the management functions that support the complete cycle of material flow?
Logistics
A map showing the flow of materials through a manufacturing system is known as a _____-to-_____ process map.
Make to stock
In fixed-order quantity systems, the amount of inventory that minimizes total costs is called the _____ _____ _____.
Optimal order quantity
Define - Take advantage of economic purchase order size:
Order larger quantities to reduce shipping, receiving, and clerical costs
What term describes moving some of a firm's activities and decisions to outside providers?
Outsourcing
Which cost of ownership includes maintenance and ergonomic factors?
Ownership
The file created by retracing a material requirement upward in the product structure to identify each parent item that created the demand is called a _____ record.
Peg
The ______ relationship identifies the restrictions imposed by product design and process technologies.
Precedence
Because of favorable pricing in the short-term, a company is looking at ordering a larger-than-needed optimal quantity of an item, and keeping the excess in inventory. Which model is the company likely using to arrive at this decision?
Price break
Safety stock inventory levels are determined by the _____ of stock out at a given desired service level.
Probability
The _____-_____ matrix shows when different production process types are used in relation to product volume and standardization.
Product - process
To determine the required workstation cycle time, an analyst needs to know the _____ ______ per day and the required _____ per day (in units).
Production time; Output
In which production system does the product remain in one place while resources (such as workers or equipment) travel to the product when needed?
Project layout
The key difference between a fixed-order quantity model where demand is known and one where demand is uncertain is in computing the _____ point.
Reorder
A solicitation for a detailed proposal from a vendor is called a _____ for ____.
Request; proposal
Which of the following is not a common constraint regarding vendor managed inventory?
Shipping terms
A company producing widgets only needs Part A for 40% of the widgets built. This company is likely using what type of bill-of-material?
Super bill-of-material
The time between placing an order and receiving the item(s) is called the
lead time.
The bill-of-material (BOM) file is also known as a...
product tree or product structure file
Which of the following are sources of demand for products in a material requirements planning system?
- Customer orders from sales personnel. - Inter-department transactions.
Which of the following statements about inventory measures is TRUE?
- Days-of-supply measures how long (on average) a firm's inventory can support sales. - Inventory turn compares cost of goods sold to average inventory.
Logistics involves which of the following management functions?
- Distribution of finished product - Planning of work-in-process - Shipping of final goods - Purchase of production materials
Which of the following are a part of an MRP record? (3 answers)
- Gross requirements - Net requirements - Planned order receipts
Which of the following activities should not be outsourced?
- Immature technology - Activities that have lots back-and-forth exchange of information - Complex computer software - Specialized research and development
Which of the following is influenced by the customer order decoupling point?
- Lead time - Inventory investment
Which of the following is/are components of total annual costs in a fixed-quantity inventory system?
- Annual ordering costs - Annual purchase costs - Annual holding costs
Which of the following is/are issues a master scheduler must consider?
- Be involved with customer order promising. - Trade-off manufacturing, engineering and marketing conflicts. - Never lose sight of the aggregate plan.
Which of the following are some ideas for firms to implement green sourcing programs?
- Creating recycling partnerships with suppliers - Reducing the use of electricity throughout facilities - Waste reduction programs that employees can help use
From the highest level planning at the top to the lowest level planning at the bottom, rank the following.
1. Aggregate planning 2. Master production schedule 3. Material requirements planning
The efficiency of an assembly-line balance must always be less than or equal to ___%.
100
Last year a firm had an average inventory of $1,500,000 and the cost of goods sold was $3,750,000. What was the inventory turn last year?
2.5 = 3,750,000 / 1,500,000
Define - Meet variation in product demand:
Acts as a buffer to absorb unexpected periods of high demand
An ______ ______ arranges processes according to the sequence of steps by which the product is manufactured.
Assembly Line
Which layout moves product from workstation to workstation at a controlled rate?
Assembly line
If a company has more units in the master production schedule than firm customer orders, the residual is called?
Available to promise
This feature identifies the difference between the number of units currently included in the master schedule and firm customer orders.
Available to promise
Which of the following is NOT a component of total cost in a fixed-quantity inventory system?
Average stocking cost
With which of the following goods would a continuous process be used?
Chemicals
The term sourcing implies a more ______ process suitable for products that are strategically purchased.
Complex
Fixed-order quantity models assume there is ______ tracking of inventory.
Continual
Which process layout is best used for manufacturing liquids?
Continuous
Define - Develop the sourcing strategy:
Cultivate quantitative and qualitative criteria to evaluate the sourcing process
Which of the following is not considered when calculating the order quantity in a fixed-time period model?
Current stock at the supplier
Calculation of the reorder point for a fixed-quantity model with safety stock requires that one know the average daily ____ and the _____ time.
Demand; lead
When the number of needed items are computed based on the number of higher-level items produced, one is operating in a(n) _____ demand environment.
Dependent
Which is the correct equation used to calculate economic order quantity (EOQ)?
EOQ= √(2DS/H)
Level 0 items during the explosion process are typically referred to as _____ items, or gross requirements.
End
Define - Assess the supply base:
Engaging new and existing vendors
A(n) ____ system is a computer system that integrates application programs from the functional areas of a firm.
Enterprise resource planning
The economic order quantity (Qopt) occurs when the annual ordering and holding costs are
Equal
When the manufacturing process and underlying technology are still under development and rapidly changing, it is known as a(n) ______ supply process.
Evolving
Demand is termed as independent if it comes from sources _____ to the firm and is not related to other _______.
External; parts
In the ______-______ system, locations are ranked according to their performance on a number of different criteria.
Factor-rating
True or false: The total work at a workstation is equal to the sum of all tasks to complete a product.
False
True or false: Third-party logistics companies manage only customer service functions.
False
Which of the following is considered distribution inventory?
Finished goods inventory in a distribution center
_____ -order quantity models attempt to determine the specific point, at which an order will be placed and the size of that order.
Fixed
Little's law relates inventory, throughput rate, and flow time as...
Inventory = Throughput rate x Flow time
Which of the following is not a broad cost category in total cost of ownership?
Logistics
The framework used to describe logistics processes is which of the following?
Logistics-System Design Matrix
Work-in-process is considered a part of ____ inventory.
Manufacturing
A _____ _____ layout uses dedicated areas for production of similar products.
Manufacturing Cell
Which layout format groups machines to work on products that have similar processing requirements?
Manufacturing cell
The objective(s) of the transportation method of linear programming is(are) to...
- maximize the profit of shipping n units to m destinations. - minimize the cost of shipping n units to m destinations.
Most retailers estimate that annual inventory carrying costs equals ______ of what is paid for the product.
25%
In the ABC approach, B items account for approximately ___% of the items in inventory.
35
A computer manufacturer offers 3 types of hard disk drives, 2 types of monitors, 4 types of batteries, and 5 choices of operating systems. How many total combinations are possible using these choices?
3x2x4x5 = 120
If the sum of all task times is 100 seconds and the required cycle time is 21 seconds, what is the theoretical minimum number of workstations?
5 = 100/21 = 4.76 --> round up
For an assembly-line system with 6 workstations, the cycle time is 27 seconds and the sum of task times is 120 seconds. What is the efficiency of this balance?
74.1% = 120 / (6 x 27) Sum of tasks / (Actual # of workstations x cycle time)
Logistics, while continuing to grow, currently make up ______ % of the US gross domestic product.
8 to 9
The z-score associated with a _____ percent probability of not stocking out is 1.64.
95
Which of the following statements best characterizes an MRP system?
A system-driven logic that allows a company to tie the production functions together from a material planning and control view.
Which of the following is NOT true about a workcenter layout?
A workcenter layout is commonly used for systems with high production volumes. True: - A workcenter layout can produce a wide variety of products. - A workcenter layout is also called a job shop. - In a workcenter layout, machines with similar functions are grouped together.
Product demand for end items comes primarily from two main sources: known customers who have placed specific orders and the _____ production plan.
Aggregate
Which of the following products would use a project layout?
Bridge; large project in specific location
Which of the following terms describes the phenomenon of variability magnification as one moves upstream in the supply chain from customer to producer?
Bullwhip effect
Typically when using ABC classification, the low dollar value, or measure of importance, items are in group _____, while high dollar value items are in group ____.
C; A
Which of the following is not a major characteristic to be considered when structuring an outsourcing relationship?
Collaboration
Which of the following is identified as an approach used in consolidation warehouses, where, rather than making larger shipments, they are broken down into small shipments for local delivery in an area?
Cross-docking: approach used in consolidation warehouses, where, rather than making larger shipments, they are broken down into small shipments for local delivery in an area.
_____ ______ is a physical inventory-taking technique in which inventory is counted frequently, often times on a time-based schedule.
Cycle counting
An approach for selecting a facility location by considering many different types of criteria using a simple point-rating system is known as which of the following?
Factor-rating system
True or False: A modular bill-of-materials is a standard item with many options within the module.
False
True or False: The assumptions regarding the model on which the optimal order quantity is derived are all very applicable in real world scenarios.
False
True or false: Sourcing activities remain the same regardless of what is being purchased.
False
Which of the following is not a lot sizing technique used in MRP systems?
Fixed time costs
Which multiperiod inventory system is used for high-priced or critical items?
Fixed-order quantity
XYZ Company uses an inventory model where the amount requisitioned is fixed and ordering is triggered by inventory dropping to a specified level. What type of inventory system is XYZ using?
Fixed-order quantity
Which inventory system requires continuous monitoring of inventory levels?
Fixed-order quantity system
_____ buying occurs when a customer stocks up on products in response to a promotion or price cut.
Forward
Which of the following is not an organizationally driven reason to outsource?
Generate access to new markets
International logistics is concerned with movement of goods and materials on a ____ scale.
Global
A major drawback with lot-for-lot sizing is?
High setup costs
A fixed-time period inventory model carries a ____ level of safety stock than a fixed-order quantity system.
Higher
Which is true in regards to a request for proposal and a reverse auction?
In a reverse auction, the buyer establishes a request, sellers then place bids for the amount they are willing to accept.
Campbell's Soup makes products for Kroger and other grocery stores based on sales to the final consumer. This inventory management environment is characterized as ______ demand.
Independent
Mastertech Furniture Company makes chairs. When Walmart orders finished chairs from Mastertech, it creates what type of demand on inventory?
Independent
The functions concerned with movement of goods and materials on a global scale are known as _____ logistics.
International
The set of policies and controls that monitor levels of inventory and determine what levels should be maintained, when stock should be replenished, and how large orders should be is called a(n) _____ system.
Inventory
Using complex lot-sizing techniques, larger lot sizes can cause an increase in ______, complicating plant logistics.
Inventory
______ is the stock of any item or resource used in an organization.
Inventory
______ are the part quantities issued in the planned order receipt and planned order release sections of an MRP schedule.
Lot sizes
Setting planned orders to match the net requirements exactly is what type of lot sizing technique?
Lot-for-lot
A generic pizza box that can be used by multiple pizza shops is an example of a product with ______ specificity.
Low
A process that places all identical parts at the same level in the bills-of-materials simplifies computations is known as ______ level coding.
Low
For service firms, the location decision is often closely related to the ____ selection decision.
Market
To determine the probability of stocking out over the time period, we can simply plot a ____ distribution for the expected demand and note where the amount we have on-hand lies on the curve.
Normal
The total cost of ownership includes: 1. Procurement costs 2. Disposal costs 3. Engineering design costs
Only 1 and 2
Which of the following is an innovative product?
Personal computer
In services, inventory generally refers to any ____ good and the____ necessary to administer the service.
Physical; parts
According to the logistics-system design matrix, which of the following modes of transporting products is limited to liquids, gases, and slurry?
Pipelines
Define - Accommodate variability in raw material delivery time:
Provide a buffer to absorb unexpected shortages or disruptions from vendors
A fixed-order ____ model uses a reorder point, R, to trigger an order of an optimal amount of product, labeled Q.
Quantity
The first step in the MRP explosion process is?
Retrieve the gross requirements for end items from the master schedule.
_____ stock can be defined as the amount of inventory carried in addition to the expected demand.
Safety
Define - Implement sourcing strategy:
Select vendors and products for each business requirement
Which type of time fence allows for changes to a specific product so long as parts are available?
Slushy
Which of the following describes the step where parts are procured from one or more suppliers?
Sourcing
Which type of supply process has a mature manufacturing and technology base?
Stable
What term describes the development and management of supplier relationships?
Strategic sourcing
Which of the following is the correct total annual cost equation?
TC = DC + (D/Q)*s + (Q/2)*H
An estimate of all expenses incurred while procuring and using an item is the ___ cost of ownership.
Total
Which of the following is not a cost associated with inventory management?
Transportation costs
The location analysis technique called the _____ _____ is a special linear programming method. It gets its name from its application to problems involving transporting products from several sources to several destinations.
Transportation method
True or False: A process that places all identical parts at the same level in the bills-of-materials simplifies computations. This process is known as low level coding.
True
True or False: The master scheduler typically focuses on end items rather than raw materials.
True
True or false: A least total cost lot sizing technique is a dynamic approach that continually looks for an optimal lot size where carrying costs and ordering costs are close to equal.
True
True or false: Services typically have multiple sites to maintain close contact with customer.
True
True or false: The longest required task time often defines the shortest possible workstation cycle time for production.
True
When purchasing items that are highly specified and a long contract is desirable, which sourcing process should be used?
Vendor managed inventory
Workcenters with large amounts of interdepartmental traffic are often placed
adjacent to each other.
A flexible (U-shaped) line layout may improve assembly-line balance by...
allowing work sharing among employees.
To calculate the reorder point for a fixed-order quantity model with safety stock, all of the following are required except...
current inventory level.
The point in the supply chain where inventory is positioned to allow the preceding processes to operate independently is the
customer order decoupling point.
The time required to respond to a customer order is known as
lead time.
One of the limitations with least total cost (LTC) is the influence by the...
length of the planning horizon.
Firms that service customers from finished goods inventory are known as which of the following...
make-to-stock.
An item that can be produced and stocked as a subassembly often uses a ____ bill-of-materials for planning.
modular
Periods of time having some specified level of opportunity for the customer to make changes are called ______.
time fences
The time between successive units coming off the end of an assembly line is referred to as
workstation cycle time.
Which of the following is/are manufacturing inventory items?
- Finished products - Work-in-process - Component parts in manufacturing
Which of the following would be located on the MPS plan?
- a new vehicle purchased from an automotive dealer. - pens ordered from an office supply company.
(All that apply) Customer order decoupling points
- can impact inventory investment. - determine lead times.
Lead time can vary based on ______.
- location of the manufacturing facility. - customization of the product being produced.
In cycle counting, the accuracy level recommended by experts for "A" items is +/-
0.2%.
In cycle counting, the accuracy level recommended by experts for "B" items is +/- (%)
1%
Last year a firm had an average inventory of $1,500,000 and the cost of goods sold was $3,750,000. What was the days-of-supply last year?
146 = (1 / 2.5)*365
In inventory management, the Pareto principle suggests that ____% of the items account for ____% of the total inventory cost.
20; 80
Firm ABC has an annual demand for 2,000 widgets. Their typical order quantity is 400 units and they maintain a safety stock of 50 units. What is their average inventory?
250 Average inventory = quantity/2 + SS = 400/2 + 50 = 250
An assembly line must produce 1,000 units in an 8 hour day. Assuming the line operates continuously, what is the required workstation cycle time?
28.8 seconds = (8hr/day x 60min/hr x 60sec/min) / 1000 units
Which of the following is an example of a product made with a project layout?
A house
Which category of inventory is managed most closely by the firm?
A items
From highest percentage to lowest percentage, rank the ABC categories in terms of value of items in inventory:
A items B items C items
According to the Logistics-System Design Matrix, which of the following modes of transporting products is the fastest but most expensive?
Air
Define - Maintain independence of operations:
Allow the work center flexibility to work without undue influence from other work centers
Which the following describes the layout for items produced through a fixed sequence of workstations?
Assembly line
What is the first step in the process for green sourcing?
Assess the opportunity
MRP systems tend to work best in companies where products are made in ____ using the same productive equipment.
Batches
One program for automatically resupplying customers on a regular basis is ____ ____.
Continuous replenishment
What type of activities are key to the business but do not confer a competitive advantage?
Core
Which of the following is not a step required to make a good?
Decoupling
Grocery stores would traditionally use which type of supply chain?
Efficient supply chain
Acquisition costs include which of the following?
Financing costs Initial purchase
During which step of the green sourcing process does the actual procurement process begin?
Institutionalize the sourcing strategy
_____ turn is the ratio of costs of goods sold to average inventory value.
Inventory
The long-term relationship between inventory, throughput, and flow time is mathematically related using ______'s law.
Little
The file containing the complete product description, parts listing, quantity needed and product build sequence is called?
The bill-of-material (BOM)
The fixed-time period models are _____ triggered while the fixed-order quantity models are _____ triggered.
Time; event
The BOM file is often called the product structure file or product _____
Tree
If Acme groceries wanted a 0.95 probability of not stocking out, the "z" value that would be used in the calculation to find the safety stock is ______.
equal to 1.64, located in the z chart.
The current amount of inventory (on-hand quantity plus on-order minus backordered) is known as the
inventory position.
A material requirement planning system interfaces with the master production schedule, bill-of-materials file and ______.
inventory records file.
Firms whose product is built directly from raw materials and components in response to a customer are known as
make-to-order.
Which of the following is true about MRP?
- MRP is used to determine the number of parts, components, and other materials needed to produce a product. - MRP is an acronym for Material Requirements Planning.
Which of the following is a form of inventory?
- Parts waiting to be assembled - Finished products held in a warehouse - Raw material held in a warehouse
Which of the following influences were discussed for location decisions to build a manufacturing plant or warehouse?
- Political risk - Proximity to customers - Total costs
Rank the production process layouts from lowest- to highest-volume (top to bottom).
- Project - Workcenter - Manufacturing cell - Assembly line
Which of the following affect a firm's logistics plans?
- Reaction to demand flexibility - Cost of transportation - Desired speed of delivery
Which are characteristics of a continuous process line?
- Shutdowns can be expensive. - Highly automated machinery is used. - May operate 24 hours a day.
Match each inventory measure with its definition. - Total average value of inventory - Inventory turn - Days-of-Supply
- Total average value of inventory: Sum of raw material, work-in-process, and finished goods inventory - Inventory turn: Cost of goods sold/Average inventory - Days-of-Supply: Average Inventory/Cost of goods sold x 365
Which of the following are the dimensions of the Logistics-System Design Matrix?
- Volume - Speed of delivery - Cost
Some benefits of an ERP system are
- quality management can develop inspection points for products during manufacturing. - sales can track all the details of an order. - manufacturing knows about orders as soon as they are entered.
Which of the following is also called a periodic review system?
Fixed-time period
If manufacturing equipment within a facility produces at different rates, one can use inventory to maintain ______ of operations.
Flexibility
Which of the following is not one of the five basic workflow structures?
Flow line
What term is used to describe a practice where a customer makes a large purchase in response to a promotion or price cut?
Forward buying
Which of the following highlights a dependent demand scenario?
Four tires that are needed to complete the assembly of a car
What is the term for a closed facility where goods can be brought in without being subject to normal import duties?
Free trade zone: closed facility where goods can be brought in without being subject to normal import duties.
Staple products that customers buy in a wide range of retail outlets are known as ____ products.
Functional
What type of products have low profit margins, long product life, and predictable demand?
Functional
What type of products include staples that people buy in a wide range of retail outlets?
Functional
Strategic sourcing is focused on the ______ needs of a business.
Immediate
Shorter cycle time and better risk management are ____ driven reasons to outsource.
Improvement
In a fixed-time period inventory model, the average demand over the vulnerable period depends on the review cycle (T) and the constant _____ time (L).
Lead
The practice of achieving high levels of customer service with a minimal inventory investment is known as ______ manufacturing.
Lean
Which type of firm invests in lean manufacturing programs in order to improve customer service levels for a given inventory investment?
Make-to-stock
According to the inventory control system matrix, if a company has highly independent products and high transaction costs, it is likely to deploy what type inventory control process?
Manual two-bin
The ultimate goal of any MRP lot sizing approach is to balance the setup or _____ costs and the _____ costs associated with meeting the net requirements generated by the MRP planning process.
Order, holding
A price-break model suggests that the ____ price of an item varies with order ____.
Selling; quantity
In _____, inventory generally refers to the tangible goods to be sold and the supplies necessary to administer the service.
Services
Place the steps associated with the production process into order (from first to last).
Sourcing --> Making --> Delivering
True or false: The order quantity in a fixed-order quantity model is the same, regardless if demand is known or uncertain.
True
True or false: The second step in the price-break model may not be necessary if the first feasible economic order quantity is the lowest price.
True
True or false: Typically, there is a trade-off where quicker response to customer demand comes at the expense of greater inventory investment.
True
True or false: When a vendor makes routine visits to a firm to take orders, a fixed-time period model may be a good choice.
True
True or false: When analyzing a price-break model, it is possible that the economic order quantity that is calculated is either higher or lower than the range to which the price corresponds.
True
True or false: When safety stock is expected to be on-hand, the average inventory value calculation is (Q/2 + SS)C.
True
True or false: The economic order quantity depends upon three factors: the annual demand, the setup cost, and the annual holding cost of one unit of inventory.
True Q(opt) = sqrt[2DS/H]
A _____ line layout can increase operator access and improve workstation time.
U-shaped OR Flexible
Which of the following is not a way to reduce the required time for a task?
Use a less skilled worker Instead: - Work overtime - Share the task among several workstations - Product redesign
Which of the following is not a type of time fence described in the text?
Variable
Firms invest in lean manufacturing programs in order to
achieve high customer service with minimum levels of inventory investment.
Lumpiness, or the tendency for uneven production, further down the creation sequence is...
caused by items being withdrawn from inventory in lots.
On an assembly-line, the order in which tasks must be performed is called the ______.
precedence relationship
The sum of annual purchasing costs, annual ordering costs, and annual holding costs is known as the
total annual cost.
An estimate of all costs related to the procurement and use of an item is the...
total cost of ownership.
In constructing any inventory model, there has to be a functional relationship between the
variable of interest and the measure of effectiveness.
Standardization on the product-process matrix refers to
variations in the product.
When the supplier takes full responsibility to manage items for the customer, the supplier is performing
vendor managed inventory.
When parts are moved on a conveyor that passes a series of workstations in a uniform time interval, this is called the ___.
workstation cycle time