Chapter 6 and 6A

The closer the customer is to the customer order decoupling point the longer it takes the customer to receive the product.

FALSE Selection of decoupling points is a strategic decision that determines customer lead times and can greatly impact inventory investment. The closer this point is to the customer, the quicker the customer can be served.

Little's law can be thought of as a relationship between units and time.

TRUE

The focus in the make-to-stock environment is on providing finished goods where and when the customers want them.

TRUE

One difference between an assembly line process flow and a continuous process flow is that on the assembly line the flow is discrete rather than continuous.

TRUE A continuous process is similar to an assembly line in that production follows a predetermined sequence of steps, but the flow is continuous such as with liquids, rather than discrete.

The closer the customer is to the customer order decoupling point the more quickly the customer receives the product.

TRUE Selection of decoupling points is a strategic decision that determines customer lead times and can greatly impact inventory investment. The closer this point is to the customer, the quicker the customer can be served.