SCM 381 Quiz 3

3 main inputs of an MRP system are

BOM, master production schedule, inventory record

In kanban systems large raw materials inventories are necessary

False

Operator action is required when output goes out of UCL or LCL

True

Quality function deployment is a system that seeks both spoken and unspoken customer needs

True

forecasting janitorial services using commercial building permits issued is an example of

causal model

Demand for buttons and zippers at a sportswear company are an example of

derived demand

the fairest means of treating all suppliers alike in competitive bidding is

establish a policy of firm bidding

an escalator clause provides an increase but not a decrease in price if costs change

false

If delivery date is months away and risk of price escalation, supplier may feel risk to sell under

firm fixed price

"C" items in ABC analysis are

often managed by the supplier

A six sigma approach to quality

prevents defects by using data to reduce variation and waste

The cost approach to pricing

prices cover direct, contribute to indirect, & attain profit

The real costs of quality

rise significantly as defects increase in finished product

Determination of the "best buy" is based on

trade-offs among stakeholders

info about price trends cant be easily obtained because most organizations dont share cost and price info

true