Question 1

The most basic and the easiest inventory-related cost to quantify and track is unit cost.

Accepted Answer

A) True 
 B)False

Question 2

Which of the following is not one of the policies used to improve design simplification and reduce complexity?

Accepted Answer

A) Increase the number of suppliers. 
B) Establish premium pricing for customization. 
C) Establish geographic-specific options and standards. 
D) Do not eliminate frequently requested options. 
E) Utilize business modeling and TCO tools to support complexity reduction decisions. 
A) Increase the number of suppliers. 
B) Establish premium pricing for customization. 
C) Establish geographic-specific options and standards. 
D) Do not eliminate frequently requested options. 
E) Utilize business modeling and TCO tools to support complexity reduction decisions.

Question 3

Which of the following is an example of WIP inventory?

Accepted Answer

A) Waiting to be moved to another process. 
B) Currently being worked on at a work center. 
C) Lining up at a processing center due to a capacity bottleneck or machine breakdown. 
D) All of these answers. 
E) None of these answers. 
A) Waiting to be moved to another process. 
B) Currently being worked on at a work center. 
C) Lining up at a processing center due to a capacity bottleneck or machine breakdown. 
D) All of these answers. 
E) None of these answers.

Question 4

A _____ details the components or subassemblies and the quantity required to produce a final part number or end item.

Accepted Answer

A) kanban 
B) perfect order 
C) bill of material file 
D) DRP system​ 
E) RFID system 
A) kanban 
B) perfect order 
C) bill of material file 
D) DRP system​ 
E) RFID system

Question 5

A/An _____ system takes a period-by-period set of master production schedule requirements (anticipated or booked customer orders) and produces a time-phased set of material, component, and subassembly requirements timed to support an expected build schedule.

Accepted Answer

A) kanban 
B) DRP 
C) just-in-time 
D) perfect order 
E) MRP 
A) kanban 
B) DRP 
C) just-in-time 
D) perfect order 
E) MRP

Question 6

_____ are calculated as Average Inventory in Units x Unit Price x Carrying Cost per Year.

Accepted Answer

A) Quality costs 
B) Ordering costs 
C) Inventory carrying costs​ 
D) MRO costs 
E) Cycle counting costs 
A) Quality costs 
B) Ordering costs 
C) Inventory carrying costs​ 
D) MRO costs 
E) Cycle counting costs

Question 7

_____ means that supply chains must have perfect quality.

Accepted Answer

A) DRP 
B) Flow 
C) Pull 
D) Push 
E) Striving for excellence 
A) DRP 
B) Flow 
C) Pull 
D) Push 
E) Striving for excellence

Question 8

_____ of inventory refers to the unit cost of the inventory.

Accepted Answer

A) Volume 
B) Velocity 
C) Value 
D) Virtue 
E) None of these answers. 
A) Volume 
B) Velocity 
C) Value 
D) Virtue 
E) None of these answers.

Question 9

The advantage of consignment to the buyer is the ability to defer ownership and avoid committing working capital and incurring carrying charges.

Accepted Answer

A) True 
 B)False

Question 10

Shortening the material pipeline in terms of time between suppliers and a buyer can reduce the average amount of inventory in a system.

Accepted Answer

A) True 
 B)False

Question 11

In _____, demand for an item is not directly dependent upon the demand for any other item that is produced.

Accepted Answer

A) dependent demand 
B) independent demand 
C) codependent demand 
D) Six Sigma​ 
E) just-in-time 
A) dependent demand 
B) independent demand 
C) codependent demand 
D) Six Sigma​ 
E) just-in-time

Question 12

When firms produce goods in anticipation of future customer orders, they are operating in a/an _____ environment.

Accepted Answer

A) assemble-to-order 
B) make-to-order 
C) make-to-stock 
D) just-in-time 
E) None of these answers. 
A) assemble-to-order 
B) make-to-order 
C) make-to-stock 
D) just-in-time 
E) None of these answers.

Question 13

Very few organizations use distributors to provide at least some portion of their inventory requirements, particularly maintenance, repair, and operating supplies.

Accepted Answer

A) True 
 B)False

Question 14

According to Shook, lean is a philosophy that seeks to shorten the time between when the customer orders and the shipment to the customer by eliminating waste.

Accepted Answer

A) True 
 B)False

Question 15

A repeatable lean transportation schedule, also called a _____, moves goods from supplier to purchaser and then from purchaser back to supplier with return material, such as containers.

Accepted Answer

A) MRO system 
B) pull system 
C) push system 
D) closed-loop system 
E) None of these answers. 
A) MRO system 
B) pull system 
C) push system 
D) closed-loop system 
E) None of these answers.

Question 16

Even in an era of just-in-time production, almost all firms hold some level of preproduction inventory.

Accepted Answer

A) True 
 B)False

Question 17

Which of the following is not one of the wrong reasons for investing in inventory?

Accepted Answer

A) Poor quality and material yield. 
B) Extended order-cycle times from global sourcing. 
C) Hedge against marketplace uncertainty. 
D) Specifying custom items for standard applications. 
E) Inefficient manufacturing processes. 
A) Poor quality and material yield. 
B) Extended order-cycle times from global sourcing. 
C) Hedge against marketplace uncertainty. 
D) Specifying custom items for standard applications. 
E) Inefficient manufacturing processes.

Question 18

_____ represents the funds committed to operating a business, including the purchase and holding of inventory.

Accepted Answer

A) Pipeline inventory 
B) WIP 
C) MRP 
D) Working capital 
E) None of these answers. 
A) Pipeline inventory 
B) WIP 
C) MRP 
D) Working capital 
E) None of these answers.

Question 19

Unnecessary inventory usually results from one thing: uncertainty.

Accepted Answer

A) True 
 B)False

Question 20

A _____ system is a production control approach that uses containers, cards, or visual cues to control the production and movement of goods through the supply chain.

Accepted Answer

A) MRP 
B) DRP 
C) lean supply 
D) JIT kanban​ 
E) lean transportation 
A) MRP 
B) DRP 
C) lean supply 
D) JIT kanban​ 
E) lean transportation

The most basic and the easiest inventory-related cost to quantify and track is unit cost.

Which of the following is not one of the policies used to improve design simplification and reduce complexity?

Which of the following is an example of WIP inventory?

A _____ details the components or subassemblies and the quantity required to produce a final part number or end item.

A/An _____ system takes a period-by-period set of master production schedule requirements (anticipated or booked customer orders) and produces a time-phased set of material, component, and subassembly requirements timed to support an expected build schedule.

_____ are calculated as Average Inventory in Units x Unit Price x Carrying Cost per Year.

_____ means that supply chains must have perfect quality.

_____ of inventory refers to the unit cost of the inventory.

The advantage of consignment to the buyer is the ability to defer ownership and avoid committing working capital and incurring carrying charges.

Shortening the material pipeline in terms of time between suppliers and a buyer can reduce the average amount of inventory in a system.

In _____, demand for an item is not directly dependent upon the demand for any other item that is produced.

When firms produce goods in anticipation of future customer orders, they are operating in a/an _____ environment.

Very few organizations use distributors to provide at least some portion of their inventory requirements, particularly maintenance, repair, and operating supplies.

According to Shook, lean is a philosophy that seeks to shorten the time between when the customer orders and the shipment to the customer by eliminating waste.

A repeatable lean transportation schedule, also called a _____, moves goods from supplier to purchaser and then from purchaser back to supplier with return material, such as containers.

Even in an era of just-in-time production, almost all firms hold some level of preproduction inventory.

Which of the following is not one of the wrong reasons for investing in inventory?

_____ represents the funds committed to operating a business, including the purchase and holding of inventory.

Unnecessary inventory usually results from one thing: uncertainty.

A _____ system is a production control approach that uses containers, cards, or visual cues to control the production and movement of goods through the supply chain.

Introduction to Purchasing and Supply Chain Management

The Purchasing Process

Purchasing Policies and Procedures

Supply Management Integration for Competitive Advantage

Purchasing and Supply Management Organization

Supply Management and Commodity Strategy Development

Supplier Evaluation and Selection

Supplier Quality Management

Supplier Management and Development: Creating a World-Class Supply Base

Worldwide Sourcing

Strategic Cost Management

Purchasing and Supply Chain Analysis: Tools and Techniques

Negotiation and Conflict Management

Contract Management

Purchasing Law and Ethics

Purchasing Services

Supply Chain Information Systems and Electronic Sourcing

Performance Measurement and Evaluation

Purchasing and Supply Strategy Trends

Filters

Exam 16: Lean Supply Chain Management

The most basic and the easiest inventory-related cost to quantify and track is unit cost.

Which of the following is not one of the policies used to improve design simplification and reduce complexity?

Which of the following is an example of WIP inventory?

A _____ details the components or subassemblies and the quantity required to produce a final part number or end item.

A/An _____ system takes a period-by-period set of master production schedule requirements (anticipated or booked customer orders) and produces a time-phased set of material, component, and subassembly requirements timed to support an expected build schedule.

_____ are calculated as Average Inventory in Units x Unit Price x Carrying Cost per Year.

_____ means that supply chains must have perfect quality.

_____ of inventory refers to the unit cost of the inventory.

The advantage of consignment to the buyer is the ability to defer ownership and avoid committing working capital and incurring carrying charges.

Shortening the material pipeline in terms of time between suppliers and a buyer can reduce the average amount of inventory in a system.

In _____, demand for an item is not directly dependent upon the demand for any other item that is produced.

When firms produce goods in anticipation of future customer orders, they are operating in a/an _____ environment.

Very few organizations use distributors to provide at least some portion of their inventory requirements, particularly maintenance, repair, and operating supplies.

According to Shook, lean is a philosophy that seeks to shorten the time between when the customer orders and the shipment to the customer by eliminating waste.

A repeatable lean transportation schedule, also called a _____, moves goods from supplier to purchaser and then from purchaser back to supplier with return material, such as containers.

Even in an era of just-in-time production, almost all firms hold some level of preproduction inventory.

Which of the following is not one of the wrong reasons for investing in inventory?

_____ represents the funds committed to operating a business, including the purchase and holding of inventory.

Unnecessary inventory usually results from one thing: uncertainty.

A _____ system is a production control approach that uses containers, cards, or visual cues to control the production and movement of goods through the supply chain.

Introduction to Purchasing and Supply Chain Management

The Purchasing Process

Purchasing Policies and Procedures

Supply Management Integration for Competitive Advantage

Purchasing and Supply Management Organization

Supply Management and Commodity Strategy Development

Supplier Evaluation and Selection

Supplier Quality Management

Supplier Management and Development: Creating a World-Class Supply Base

Worldwide Sourcing

Strategic Cost Management

Purchasing and Supply Chain Analysis: Tools and Techniques

Negotiation and Conflict Management

Contract Management

Purchasing Law and Ethics

Purchasing Services

Supply Chain Information Systems and Electronic Sourcing

Performance Measurement and Evaluation

Purchasing and Supply Strategy Trends

Filters