Question 1

Specifying customized parts when standardized parts are available adversely affects material inventory because customized parts are usually more expensive.

Accepted Answer

A) True 
 B)False

Question 2

_____ means that inventory moves through the supply chain continuously with minimal queueing or non-value-adding activity being performed.

Accepted Answer

A) Pull 
B) WIP 
C) MRO 
D) Flow 
E) Push 
A) Pull 
B) WIP 
C) MRO 
D) Flow 
E) Push

Question 3

The true cost of MRO inventory often goes unnoticed because firms fail to track these items with the same intensity as production inventory.

Accepted Answer

A) True 
 B)False

Question 4

Lean is an easy approach to implement.

Accepted Answer

A) True 
 B)False

Question 5

_____ inventory includes the items purchased from suppliers or produced internally to directly support production requirements.

Accepted Answer

A) Work-in-process 
B) Finished-goods 
C) MRO suppliers 
D) Pipeline/in-transit 
E) Raw material and semifinished items 
A) Work-in-process 
B) Finished-goods 
C) MRO suppliers 
D) Pipeline/in-transit 
E) Raw material and semifinished items

Question 6

Which of the following is not one of the key principles of the lean concept?

Accepted Answer

A) Maximize the use of people. 
B) Simplify first, and only then apply new technology. 
C) Focus on gradual, but continuous, improvement. 
D) Minimize waste (including poor quality). 
E) None of these answers. 
A) Maximize the use of people. 
B) Simplify first, and only then apply new technology. 
C) Focus on gradual, but continuous, improvement. 
D) Minimize waste (including poor quality). 
E) None of these answers.

Question 7

The downside of poor forecasting includes all of the following except _____.

Accepted Answer

A) higher inventory volumes 
B) poor customer service as inventory is misallocated across locations and products 
C) higher inventory carrying charges 
D) excessive safety stock levels 
E) decreased customer service costs 
A) higher inventory volumes 
B) poor customer service as inventory is misallocated across locations and products 
C) higher inventory carrying charges 
D) excessive safety stock levels 
E) decreased customer service costs

Question 8

Which of the following is not one of the functions of a distribution resource planning system?

Accepted Answer

A) Forecasting finished-goods inventory requirements. 
B) Establishing correct inventory levels at each stocking location. 
C) Determining the timing and replenishment of finished-goods inventories. 
D) Producing a time-phased set of material, component, and subassembly requirements timed to support an expected build schedule. 
E) Planning transportation and scheduling vehicle load. 
A) Forecasting finished-goods inventory requirements. 
B) Establishing correct inventory levels at each stocking location. 
C) Determining the timing and replenishment of finished-goods inventories. 
D) Producing a time-phased set of material, component, and subassembly requirements timed to support an expected build schedule. 
E) Planning transportation and scheduling vehicle load.

Question 9

Production inventory consumes a minor portion of inventory investment.

Accepted Answer

A) True 
 B)False

Question 10

According to lean thinking, inspection is a waste of both time and personnel and is caused by defects.

Accepted Answer

A) True 
 B)False

Question 11

Supply chains are insensitive to changes in markets, including changes in the availability of material supply as well as price changes.

Accepted Answer

A) True 
 B)False

Question 12

WIP is an incomplete good - it has not yet been transformed to a saleable finished good.

Accepted Answer

A) True 
 B)False

Question 13

_____ inventory includes completed items or products that are available for shipment or future customer orders.

Accepted Answer

A) WIP​ 
B) Finished-goods 
C) MRO 
D) Pipeline/in-transit 
E) Raw materials and semifinished items​ 
A) WIP​ 
B) Finished-goods 
C) MRO 
D) Pipeline/in-transit 
E) Raw materials and semifinished items​

Specifying customized parts when standardized parts are available adversely affects material inventory because customized parts are usually more expensive.

_____ means that inventory moves through the supply chain continuously with minimal queueing or non-value-adding activity being performed.

The true cost of MRO inventory often goes unnoticed because firms fail to track these items with the same intensity as production inventory.

Lean is an easy approach to implement.

_____ inventory includes the items purchased from suppliers or produced internally to directly support production requirements.

Which of the following is not one of the key principles of the lean concept?

The downside of poor forecasting includes all of the following except _____.

Which of the following is not one of the functions of a distribution resource planning system?

Production inventory consumes a minor portion of inventory investment.

According to lean thinking, inspection is a waste of both time and personnel and is caused by defects.

Supply chains are insensitive to changes in markets, including changes in the availability of material supply as well as price changes.

WIP is an incomplete good - it has not yet been transformed to a saleable finished good.

_____ inventory includes completed items or products that are available for shipment or future customer orders.

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

Specifying customized parts when standardized parts are available adversely affects material inventory because customized parts are usually more expensive.

_____ means that inventory moves through the supply chain continuously with minimal queueing or non-value-adding activity being performed.

The true cost of MRO inventory often goes unnoticed because firms fail to track these items with the same intensity as production inventory.

Lean is an easy approach to implement.

_____ inventory includes the items purchased from suppliers or produced internally to directly support production requirements.

Which of the following is not one of the key principles of the lean concept?

The downside of poor forecasting includes all of the following except _____.

Which of the following is not one of the functions of a distribution resource planning system?

Production inventory consumes a minor portion of inventory investment.

According to lean thinking, inspection is a waste of both time and personnel and is caused by defects.

Supply chains are insensitive to changes in markets, including changes in the availability of material supply as well as price changes.

WIP is an incomplete good - it has not yet been transformed to a saleable finished good.

_____ inventory includes completed items or products that are available for shipment or future customer orders.

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