Question 1

A logical place to begin when managing inventory investment is to make sure there is agreement between physical and electronic inventory.

Accepted Answer

A) True 
 B)False

Question 2

When firms produce goods in response to a customer order, they are operating in a/an _____ environment.

Accepted Answer

A)  make-to-order 
B)  make-to-stock 
C)  make-to-forecast 
D)  WIP 
E)  None of the above. 
A)  make-to-order 
B)  make-to-stock 
C)  make-to-forecast 
D)  WIP 
E)  None of the above.

Question 3

_____ of inventory refers to the amount of inventory that a firm owns at any given time.

Accepted Answer

A)  Volume 
B)  Velocity 
C)  Value 
D)  Vigor 
E)  None of the above. 
A)  Volume 
B)  Velocity 
C)  Value 
D)  Vigor 
E)  None of the above.

Question 4

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

Accepted Answer

A) True 
 B)False

Question 5

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

Accepted Answer

A) True 
 B)False

Question 6

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

Accepted Answer

A) True 
 B)False

Question 7

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 8

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 9

_____ 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 10

A higher-than-anticipated finished-goods inventory level may mean that a increase in customer demand is occurring.

Accepted Answer

A) True 
 B)False

Question 11

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

Accepted Answer

A)  Volume 
B)  Velocity 
C)  Value 
D)  Virtue 
E)  None of the above. 
A)  Volume 
B)  Velocity 
C)  Value 
D)  Virtue 
E)  None of the above.

Question 12

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 13

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

Accepted Answer

A)  kanban order 
B)  MRO order 
C)  consignment order 
D)  perfect order 
E)  MRP order 
A)  kanban order 
B)  MRO order 
C)  consignment order 
D)  perfect order 
E)  MRP order

Question 14

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

Accepted Answer

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

Question 15

Record integrity exists when the physical inventory on hand exceeds the electronic record on hand, regardless of the quantity of inventory.

Accepted Answer

A) True 
 B)False

Question 16

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)  All of the above. 
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)  All of the above.

Question 17

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.

Accepted Answer

A)  Kanban 
B)  Just-in-time 
C)  Consignment 
D)  MRO 
E)  None of the above. 
A)  Kanban 
B)  Just-in-time 
C)  Consignment 
D)  MRO 
E)  None of the above.

Question 18

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

Accepted Answer

A)  Raw materials 
B)  WIP 
C)  Semifinished items 
D)  MRO 
E)  Pipeline/in-transit 
A)  Raw materials 
B)  WIP 
C)  Semifinished items 
D)  MRO 
E)  Pipeline/in-transit

Question 19

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

Accepted Answer

A) True 
 B)False

Question 20

_____ 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

A logical place to begin when managing inventory investment is to make sure there is agreement between physical and electronic inventory.

When firms produce goods in response to a customer order, they are operating in a/an _____ environment.

_____ of inventory refers to the amount of inventory that a firm owns at any given time.

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

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

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

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.

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

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

A higher-than-anticipated finished-goods inventory level may mean that a increase in customer demand is occurring.

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

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

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

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

Record integrity exists when the physical inventory on hand exceeds the electronic record on hand, regardless of the quantity of inventory.

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

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.

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

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

_____ means that supply chains must have perfect quality.

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

A logical place to begin when managing inventory investment is to make sure there is agreement between physical and electronic inventory.

When firms produce goods in response to a customer order, they are operating in a/an _____ environment.

_____ of inventory refers to the amount of inventory that a firm owns at any given time.

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

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

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

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.

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

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

A higher-than-anticipated finished-goods inventory level may mean that a increase in customer demand is occurring.

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

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

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

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

Record integrity exists when the physical inventory on hand exceeds the electronic record on hand, regardless of the quantity of inventory.

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

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.

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

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

_____ means that supply chains must have perfect quality.

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