Chapter 8

The five forms and functions of inventory give supply managers ____________ types of inventory to operate with

25

Which system is designed to have components, materials, and services arrive at work centers exactly as needed? A) JIT B) MRP II C) ERP D) MRP

A

MRP systems give organizations the ability of (multiple answers) A) rapid rescheduling B) rapid replanning C) longer lead times D) shorter lead times

A, B

The two-card system for Kanban control has which three rules? (multiple answers) A) There is only one conveyance and one production card per container. B) Operators choose which production cards to work on. C) Only standard containers may be used. D) No parts can be made without a production card.

A, C, D

What are the implications for JIT managed systems? (multiple answers) A) Supplier training and cooperation is required. B) Less frequent deliveries with larger orders. C) Suppliers must deliver high and consistent quality. D) Frequent delivery of small orders. E) Fewer local suppliers.

A, C, D, E

MRP planning is typically mapped out over A) the next six months B) the next year C) the next six weeks D) the next quarter

B

Reduced cycle times and more responsive acquisition methods are the direct efforts of A) using forecasts that are always perfect. B) the reengineering work of supply processes. C) longer contract agreements. D) fewer suppliers being used.

B

Basic elements for determining carrying cost include (multiple answers) A) shipping costs B) storage space costs C) inventory risk costs D) inventory service costs E) capital costs

B, C, D, E

Inventories often exist A) reduce waste in the supply chain. B) reduce cost throughout the supply chain. C) to makeup for problems in the supply chain. D) coordinate supply systems throughout the supply chain.

C

Supplier evaluations include evaluation criteria to assess (multiple answers) A) packaging B) raw materials C) delivery times D) quantity

C, D

_____________ _____________ ___________ answers the question, "Do we have the needed capacity to process jobs?

Capacity Requirements Planning

MRP systems that perform routine clerical tasks allow the supply professional to focus efforts on more _________ and ________ tasks

analytical, strategic

MRP systems require an accurate _____________ ______________ ____________ to determine needs

bill of materials

Large fluctuations in demand from the retailer up through the supply chain is known as the ____________ effect

bullwhip

The primary goal in lean supply management is to _________ the root cause for holding inventory

eliminate

True or false: One suppliers finished goods can become the purchaser's raw material.

True

True or false: The human element is critical in many services.

True

There are five forms of inventory that include raw materials, work-in-process, _________ goods, ___________, and resale items

finished, MRO

Collaborative Planning, Forecasting and Replenishment off customers __________ product availability

increased

The purpose of using a fixed-quantity model is to ___________ annual costs

minimize

CRP is connected to the manufacturing plan A) with the end users feedback system B) with the customer service system C) with the suppliers data system D) on the shop floor

D

What software facilitates the flow of information across the functional boundaries of an organization effectively? A) MRP II B) MRP C) CRP D) ERP

D

True or false: Forecasting of services is an easier process than that of tangible goods.

False

True or false: MRP allows for how much and when to order decisions to be made simultaneously.

True

To determine the reorder point, the ___________ time is necessary

lead

Vendor Managed Inventory (VMI) is typically for ___________ value items that are needed in stock for immediate use as required.

low

_________________ _________________ forecasts follow patterns over time

time series

The Pareto curve is often called the ____________ - ____________ rule, or ABC analysis

80, 20

Managers typically set service coverage levels to _____%

95

What type of inventory that is managed by the supplier and at a minimum means the supplier determines when to replenish and how much to replenish? A) VMI B) JIT C) MRP D) MRP II

A

What major developments does MRP II have from MRP? (multiple answers) A) Capability for what if scenarios B) connection with financial systems C) capability for supplier demand-driven planning D) capability for automatic ordering

A, B

What five areas can supply manager focus on for reduced complexity and exploitation of economies of scale? A) planning B) product design C) procurement D) order fulfillment E) manufacturing F) quality standards

A, B, C, D, E

Forecasts provide managers with a way to make decisions before actual requirements are known, which forecasts should be considered when making purchase decisions? (multiple answers) A) prices B) Demand C) size of component D) lead times

A, B, D

Organizations often increase in their competitive advantages due to (multiple answers) A) using components of lower quality. B) using a just-in-time delivery system. C) reduced cycle time. D) increased cycle time.

B, C

Partners who use CPFR benefit from (multiple answers) A) lower demand B) reduced inventories C) increased sales D) higher service levels

B, C, D

The three basic MRP inputs are A) ABC classification list B) the structured bill of materials C) the inventory record D) the master production schedule

B, C, D

What are the types of qualitative forecasts? (multiple answers) A) time series B) market C) collective opinion D) delphi technique

B, C, D

Inventories are maintained by organizations A) to receive the lowest price from the supplier. B) to provide protection against the uncertainties of supply and demand. C) to provide and maintain good customer service. D) to smooth the flow of goods through the production process. E) to obtain a reasonable utilization of people and equipment.

B, C, D, E

What are the four basic lot-sizing rules for MRP systems? (multiple answers) A) least ship cost B) least unit cost C) lot for lot D) economic order quantity E) least total cost

B, C, D, E

What are two classes of quantitative forecasting? A) opinion gathering B) time series C) delphi technique D) causal models

B, D

This class of quantitative forecasts uses linear or multiple regression lines from leading indicators. A) time series B) opinion gathering C) causal models D) market demand

C

The quantity and inventory levels maintained depend on __________ or _____________ and if the inventory is dependent or independent

demand, usage

Compressed cycle times and proper material coordination will allow supply managers to place more _________ orders

efficient

Sales staff and sales managers can provide estimates for ______________ forecasts

market

Fixed-period models attempt to determine the __________ order period

optimal

Traditional MRP systems were designed to support ___________ systems

push

Fixed-period models place orders only at ____________ times

review

Buffer inventory level can be established by using the _________ coverage

service

The supply manager for ABC manufacturing wants to ensure he orders the right components when required by production; he must ensure he includes forecasting, costs, price-volume relationship, availability, and ________ when making decisions

shortages