Exam 20: Inventory Management: Economic Order Quantity, Jit, and the Theory of Constraints

When comparing the traditional approach of inventory management to JIT, which of the following statements is true?

Using the graphic approach to linear programming, the solution is usually

Which of the following equations determines the total annual carrying costs when no safety stock is kept?

Inventory management identifies an economic order quantity that

The theory of constraints focuses on each of the following measures of organizational performance EXCEPT

Smith Products Corporation produces two products.The manufacture of these products is partially automated.Total available labor hours are 400, and the total available machine hours are 600.Time requirements and contribution margins per unit for each product are as follows: Required:

One of the traditional reasons for holding inventory is to avoid shutdowns due to defective parts.The JIT solution is to

The objectives of JIT are achieved by

The drum-buffer-rope system is another name for

The cost of preparing equipment and facilities so they can be used to produce a particular product or component is known as

Tiffany Manufacturing Company produces X and Y with contribution margins per unit of $10 and $90, respectively.Only 200 labor hours and 400 machine hours are available for production. Time requirements to produce one unit of X and Y are as follows: - What is the constraint on labor hours for Tiffany Manufacturing Company?

A marker or card that specifies the quantity that a subsequent process should take from a preceding process is a

Coffee Corporation manufactures two different miniature models of furniture, a table and a chair.The company has 500 feet of lumber, 400 machine hours, and 600 direct labor hours available for production.The miniature tables and chairs provide $5 and $4 of contribution margin, respectively. The time and lumber requirements to build a miniature table or chair are as follows: Required:

A linear programming model would NOT include which of the following items?

Burley Company has the following information available concerning one of its inventory items: -The economic order quantity for this item is

Figure 20 -2 Seal Company has the following information available concerning one of its inventory items: -Refer to Figure 20-2.The economic order quantity for this item is

A linear programming problem has the following objective function: 20X + 40Y + 60Z. If the optimal solution provided by the model is to produce and sell 100, 200, and 300 units of X, Y, and Z, respectively, what is the expected return?

Theory of constraints focuses on what three operation measures of system performance?

The Kanban system is used to

Nashville Company manufactures candy.The company buys chocolate used in the candy in 10-pound boxes that cost $10 each.The company uses 30,000 of the boxes per year, and usage occurs evenly throughout the year. The average cost to carry a 10-pound box in inventory per year is $4, and the cost to place an order is $3. Required: