Exam 16: Lean Supply Chain Management

All of the following are considered to be the right reasons for investing in inventory except _____.

Most cost accounting systems are capable of identifying and assigning the true costs related to maintaining physical inventory.

Using a RFID system, if supplier quality and lead times are reliable, planners can time the arrival of components just before production of the final part number.

Record integrity is the result of various activities and procedures designed to ensure that the amount of _____ is equal to the computerized record of _____.

_____ means that customer orders start the work process, which ripples down through the supply chain.

Carrying costs do not vary with the level of inventory, which makes these costs fixed.

From the financial accounting perspective, inventory has historically been considered a current asset.

_____ involves frequent deliveries of smaller quantities directly to the point of use at the purchaser.

Continuous improvement involves small, daily improvements that ensure that the process is moving forward.

The ability to plan material requirements accurately increases as order-cycle time lengthens.

Decisions in lean must be based on the opinions or preferences of influential individuals, as well as on facts and data.

In a pull system, an upstream work center or operation will create output regardless whether a downstream center directly requests that output.

_____ inventory includes the items used to support production and operations and are not physically part of a finished product.

Purchasers should not accept any of the blame for delivery uncertainty.

If WIP builds up at a workstation, a scheduler should not have to reroute the flow of material to another work center.

All of the following actions support reduced order-cycle time with suppliers except _____.

The _____ is one that is delivered on time, accurately, and in perfect condition.

All of the following are categories of inventory except _____.

Ordering costs are a composite of the costs associated with the release of a material order.

According to the APICS Dictionary, _____ is defined as the process of a supplier placing goods at a customer location without receiving payment until after the buyer uses the goods.