Question 1

Suppliers that cannot meet delivery schedules create delivery uncertainty.

Accepted Answer

A) True 
 B)False  True

Question 2

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)  Transportation planning and vehicle load scheduling. 
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)  Transportation planning and vehicle load scheduling. D

Question 3

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

Accepted Answer

A) True 
 B)False  True

Question 4

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 5

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 6

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

Accepted Answer

A)  Make-to-stock 
B)  Push 
C)  MRP 
D)  DRP 
E)  Pull 
A)  Make-to-stock 
B)  Push 
C)  MRP 
D)  DRP 
E)  Pull

Question 7

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

Accepted Answer

A) True 
 B)False

Question 8

Most inventory waste results from underlying problems that blue collar workers have failed to correct.

Accepted Answer

A) True 
 B)False

Question 9

_____ inventory is in transit to a customer or is located throughout distribution channels.

Accepted Answer

A)  Pipeline/in-transi 
B)  MRO 
C)  WIP 
D)  Raw materials and semifinished items 
E)  Just-in-time 
A)  Pipeline/in-transi 
B)  MRO 
C)  WIP 
D)  Raw materials and semifinished items 
E)  Just-in-time

Question 10

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

Accepted Answer

A) True 
 B)False

Question 11

It is harder to increase a material release by 10 percent or carry safety stock to cover supplier quality problems than to correct the root cause of a problem.

Accepted Answer

A) True 
 B)False

Question 12

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

Accepted Answer

A) True 
 B)False

Question 13

Production inventory consumes a minor portion of inventory investment.

Accepted Answer

A) True 
 B)False

Question 14

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 15

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

Accepted Answer

A)  Lean supply 
B)  Lean transportation 
C)  Lean warehousing 
D)  Lean ordering 
E)  None of the above. 
A)  Lean supply 
B)  Lean transportation 
C)  Lean warehousing 
D)  Lean ordering 
E)  None of the above.

Question 16

All of the following are common signaling methods used in a kanban system except _____.

Accepted Answer

A)  single-card system 
B)  color coding of containers 
C)  designated storage spaces 
D)  computerized bar coding systems 
E)  verbal notification 
A)  single-card system 
B)  color coding of containers 
C)  designated storage spaces 
D)  computerized bar coding systems 
E)  verbal notification

Question 17

Suppliers seldom offer quantity discounts to encourage larger orders from purchasers.

Accepted Answer

A) True 
 B)False

Question 18

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

Accepted Answer

A) True 
 B)False

Question 19

The underlying emphases of lean- to eliminate all forms of uncertainty and waste - are relevant to all organizations, regardless of the specific planning and control tools that are used.

Accepted Answer

A) True 
 B)False

Question 20

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

Accepted Answer

A) True 
 B)False

Suppliers that cannot meet delivery schedules create delivery uncertainty.

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

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

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

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

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

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

Most inventory waste results from underlying problems that blue collar workers have failed to correct.

_____ inventory is in transit to a customer or is located throughout distribution channels.

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

It is harder to increase a material release by 10 percent or carry safety stock to cover supplier quality problems than to correct the root cause of a problem.

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

Production inventory consumes a minor portion of inventory investment.

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

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

All of the following are common signaling methods used in a kanban system except _____.

Suppliers seldom offer quantity discounts to encourage larger orders from purchasers.

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

The underlying emphases of lean- to eliminate all forms of uncertainty and waste - are relevant to all organizations, regardless of the specific planning and control tools that are used.

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

Introduction to Purchasing and Supply Chain Management

The Purchasing Process

Purchasing Policy and Procedures

Supply Management Integration for Competitive Advantage

Purchasing and Supply Management Organization

Category 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

Suppliers that cannot meet delivery schedules create delivery uncertainty.

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

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

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

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

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

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

Most inventory waste results from underlying problems that blue collar workers have failed to correct.

_____ inventory is in transit to a customer or is located throughout distribution channels.

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

It is harder to increase a material release by 10 percent or carry safety stock to cover supplier quality problems than to correct the root cause of a problem.

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

Production inventory consumes a minor portion of inventory investment.

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

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

All of the following are common signaling methods used in a kanban system except _____.

Suppliers seldom offer quantity discounts to encourage larger orders from purchasers.

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

The underlying emphases of lean- to eliminate all forms of uncertainty and waste - are relevant to all organizations, regardless of the specific planning and control tools that are used.

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

Introduction to Purchasing and Supply Chain Management

The Purchasing Process

Purchasing Policy and Procedures

Supply Management Integration for Competitive Advantage

Purchasing and Supply Management Organization

Category 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

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