MGT333 study
to cover a future demand.
Anticipation inventories are carried:
are generally expensive.
Capital assets:
reduce the number of setups, as well as order costs.
Cycle inventories are used to:
accommodate different rates of manufacturing or patterns of demand.
Decoupling inventories are used to:
firm-fixed-price (FFP)
If the delivery date is some months or years away and if there is substantial chance of price escalation, a supplier may feel that there is far too much risk of loss to agree to sell under a:
Affordability (the quality of being affordable)
What is not one of the outlined and recognized quality dimensions?
Value is determined subjectively by design engineers.
What is not true about value?
standard specification.
When a specification is widely known, commonly recognized and readily available to every buyer, it is called a:
A), B) and C)
Which of the following is/are considered as common problems with the development of product specifications? A)The use of unreasonable tolerances. B)The lack of clarity in describing the item/service. C)The potential to limit competition.
False
True or False: Marine transport is best suited for products of low weight and high value; and items that are extremely perishable.
True
True or False: One of the main external failure costs is the warranty cost.
False
True or False: Operator action is not required when process output exceeds the upper control (UCL) or dips below the lower control limit (LCL).
False
True or False: Ordering raw material from a supplier in full truck loads only is an example of decoupling inventory.
False
True or False: Packaging is an easy category to buy because it has a few disposal, environment, and transportation implications.
False
True or False: Rail is the most flexible mode of transportation and accounts for approximately 80% of transportation expenditures by US firms.
False
True or False: The Delphi technique is a quantitative forecasting method.
True
True or False: The process capability index (Cp) combines process spread and tolerance into one index that indicates whether process variation is satisfactory; and in practice, a value lower than "1" is considered unsatisfactory.
True
True or False: The six sigma approach to quality uses the five-step methodology of: define, measure, analyze, improve, and control (DMAIC).
2,725 units
A company manufactures 240 cylinders per day, each requiring a pressure gauge. The purchase price of the pressure gauge is $3.20. The company controller estimated annual holding costs at 25 percent per year, while the cost of placing an order was estimated at $55.00. Assuming that the plant operates 45 weeks (5 days/week) per year, the EOQ for the pressure gauge is:
The seller owns the goods while in transit up to the destination point. and will file any claims in case of lost or damaged freight.
A contract that specifies FOB Destination, freight prepaid means that:
simplification
A corporate travel department determines that employees have been staying in 15 different hotel chains. The director of corporate travel mandates that travelers may only stay in four designated hotel chains. This action is an example of:
random sampling.
A sampling technique in which every element in the population has an equal chance of being selected is called:
focuses on preventing defects by using data to reduce variation and waste.
A six sigma approach to quality:
employee training and awareness costs, and costs of pre-certifying and qualifying suppliers.
Examples of (quality) prevention costs include:
maintenance, repair, and operating supplies.
Items for which prices are comparatively low and the cost of price reduction efforts may exceed any price savings realized are:
maximizing customer value while eliminating waste.
Lean is a management philosophy that focuses on:
truck.
Organizations operating under a just-in-time system, prefer to ship by:
common, non-assignable causes of variation
Process variation that are intrinsic to the process are:
the opportunity for the potential supplier to establish how to make the most suitable product/service.
The advantage of buying by performance or function over other specification methods is that it provides.
Monopoly is the condition when there is only one provider in the market, and he will be able to charge the price that will best fit his interest.
The correct statement describing a general condition of economic competition is:
means prices are set to cover direct costs, indirect costs, and provide a profit.
The cost approach to pricing:
a fair price.
The lowest price that ensures a continuous supply of the proper quality where and when needed and allows the supplier to make a reasonable profit, is commonly known as:
who pays the carrier, when legal title to goods being shipped passes to the buyer, who is responsible for preparing and pursuing loss or damage claims and who routes the freight.
The selection of the FOB point is important to purchaser, because it determines:
False
True or False: Canceling a contract for a technicality when market prices are falling is considered an acceptable and ethical practice.
False
True or False: Governments typically play no role in establishing prices or regulating how buyers and sellers are allowed to behave in agreeing on prices.
True
True or False: Holding extra inventory to protect against a supply disruption from a supplier strike is an example of buffer inventory.
False
True or False: ISO 9000 Stands for International Supply Organization
True
True or False: In the long run, a firm must recover all costs or go out of business. In other words, facilities and machinery must be maintained, modernized, and replaced.
True
True or False: Logistics costs can be divided into three categories: inventory carrying costs, administrative costs, and transportation (with transportation costs accounting for the bulk of the costs).
True
True or False: Logistics is responsible for the management of inventory in motion and at rest.
Should include all of the above
A transportation strategy should include consideration of: a) Safely on the ground, in the air, and on water. b) Environmental factors. c) Consolidation of freight opportunities. d) Alternative transportation modes. e) Should include all of the above.
having the flexibility of delivering point-to-point service.
Compared to other modes of transportation, motor carriers provide the advantage of:
True
True or False: There are two approaches for setting prices. Under the market approach, factors stemming from competition determine the exact price each firm will quote. That is, when faced with the realities of competition, the price any specific firm will quote will be governed largely by its need for business and by what it thinks its competitors will quote.
True
True or False: Two effective logistics cost reduction strategies are partnering agreements with logistics services providers and long-term contracts.
True
True or False: When price are established using the market approach, prices may not be directly related to costs.
Inseparability, Intangibility, Variability, Perishability, and Non-Ownership
What reflects the characteristics of services?
Balance price, volume, carrying cost, and the cost of stock-outs.
What statement is most accurate when deciding how much and when to buy?
a causal model.
When a commercial janitorial service company predicts demand for its services using commercial building permits issued, office leasing and vacancy rates, this is an example of:
Can the product quality be lowered in order to reach an even lower price?
Which of the following questions does not typically belong to a value-engineering checklist? 1)If the item is not standard, can it be replaced with a standardized one? 2)Are tolerances specified closer than necessary? 3) Can the product quality be lowered in order to reach an even lower price? 4)Does the item have greater capacity than required? 5)Is unnecessary machining performed on the item?
bill of material, a master production schedule, and the inventory record.
three main inputs of a material requirements planning (MRP) system are:
