BUS140 In-Class Quizzes ch9, 11, 12, 16
The supply chain for a brewery would include raw ingredients such as hops and barley but not the manufactured goods such as bottles and cans.
F
The supply chain management technique to designate one member to monitor and manage inventory is called VMI (Vendor managed inventory).
F
When using the low-cost strategy for supply chain management, a firm should use buffer stocks to ensure speedy supply.
F
With the "many suppliers" sourcing strategy, the order usually goes to the supplier that offers the highest quality.
F
Work-in-process inventory is devoted to maintenance, repair, and operating materials.
F
A blanket order is a long-term purchase commitment to a supplier for items that are to be delivered against short-term releases to ship.
T
A special arrangement of machinery and equipment to focus on production of a single product or group of related products" describes a work cell layout type.
T
Cross-docking processes items as they are received, rather than placing them in storage.
T
Drop shipping means the supplier will ship directly to the end consumer, rather than to the seller.
T
Hidden problems are generally uncovered during the process of reducing inventory.
T
In cycle counting, the frequency of item counting and stock verification usually varies from item to item depending upon the item's classification.
T
In the production order quantity (POQ) model, inventory does not arrive in a single moment but flows in at a steady rate, resulting in a larger production/order quantity than in an otherwise identical EOQ problem.
T
In the quantity discount model, it is possible to have a cost-minimizing solution where annual ordering costs do not equal to annual carrying costs.
T
Lean Operations specifically focuses on the elimination of waste through a focus on exactly what the customer wants
T
Many Suppliers sourcing strategy is particularly common when the products being sourced are commodities.
T
One guideline for a retail layout is to locate high-draw items around the periphery of the store.
T
Outsourcing refers to transferring a firm's activities that have traditionally been internal to external suppliers.
T
Product storage is an example of waste in the sense that no value is added.
T
Reducing setup costs reduces lot size and reduces average inventory
T
Retail inventory that is unaccounted for between receipt and time of sale is known as shrinkage.
T
Servicescape refers to the physical surrounding in which the service is delivered.
T
The 5Ss—sort/segregate, simplify/straighten, shine/sweep, standardize, and sustain/self-discipline—are important to lean production because they act as a means to reduce waste.
T
The concept of customizing in a warehouse layout incorporates value-added activities in warehouses.
T
The first step in reducing setup times is the separation of setup into preparation activities and actual setup, so that as much work as possible can be done while the machine or process is operating.
T
The product-oriented layout's main objective is to equalize the task time for each station.
T
The service level is the probability that demand will not be greater than supply during lead time; it is the complement of the probability of a stockout.
T
Variability in manufacturing can occur because engineering drawings or specifications are incomplete or inaccurate.
T
When the service level increases, the cost of safety stock increases.
T
Work cell layout refers to a special arrangement of machinery and equipment to focus on production of a single product or group of related products.
T
Customer demand will always remain an unknown, so it is not considered a source of variability.
F
In the simple EOQ model, if the carrying cost were to double, the EOQ would also double.
F
Process-oriented layouts typically have low levels of work-in-process inventory.
F
Safety stock in inventory systems depends only on the average demand during the lead time.
F
The biggest advantage of a product layout is its flexibility to handle a varied product mix.
F
The dominant problem associated with the fixed-position layout is that workers are fixed in position, and they cannot be reassigned.
F
The number of kanbans decreases as safety stock is increased.
F
A firm that employs a response strategy should minimize inventory throughout the supply chain.
F
A rice mill in south Louisiana purchases the trucking firm that transports packaged rice to distributors is an example of backward integration.
F
A sequence of kanbans pushes material through the manufacturing process.
F
ABC analysis classifies inventoried items into three groups, usually based on annual units or quantities used.
F
