Final - Bus 140

Start Studying!

Terms

undefined, object

copy deck

The push method of material flow is where customer demand activates production of an item.: False
One of the numerous benefits of using small lot sizes for inventory replenishment is in reducing lead times.: True
The JIT philisophy is to look for ways to improve efficiency and reduce inventories throughout the supply chain.: True
One of the key provisions for continuous improvement is to maintain high levels of inventory to insure continuous production.: False
In a Kanban system, an activity cannot be performed unless a withdrawl or production card is used.: True
The number of containers flowing between two work stations does not affect the quantities of in-process or safety stock inventories.: False
The concept of using in-plant supplier's representative's on site, is a part time individual at the buyer's expense.: False
Flow JIT strategy involves a focus of machines and manpower organized around product flows and arranged to conform to the sequence of work operations.: True
For JIT implementation, one of the organizational considerations are to allow for frequent adjustments to the daily production schedules.: False
The manufacturing environment of a firm can only improve if they work on the basic foundation of ROP, MRP, and/or JOT systems.: True
The use of MRP systems will enable businesses to reduce inventory levels, improve utilization of labor and facilities, and improve customer service.: True
The master production schedule is a record of all components of an item, show parent-component relationships, and identify the usage quantities.: False
An intermediate item typically is the final product sold to the customer, it is a parent, but not a component.: False
The inventory record time phased information consists of gross requirements, scheduled receipts, projected on hand inventory, planned receipts, and planned order releases.: True
A planned order release indicates when an order for a specific quantity of an item ordered but not yet completed.: False
Net requirements are the total demand derived from all parent production plans.: False
Lot-for-lot rule maintains the same order quantity each time an order is issued.: False
Safety stock policy is for end items and purchased items to protect against fluctuating customer orders, and unreliable suppliers of materials.: True
Capacity requirements planning is a technique for projecting time-phased capacity requirements, for workstations in order to match material requirements planning with the plant's production capacity.: True
Manufacturing resource planning ties the basic material requirements planning system to the company's financial system.: True
Anticipation inventory protects against uncertainties in demand, lead time, and supply levels.: False
Cycle counting is where a small percentage of the total items are counted each day, and correcting errors found.: True
Economic Order Quantity (EOQ) is a technique to balance inventory, which is the lot size that minimizes total annual, inventory holding and order costs.: True
A standard is an item made to order, or if purchased, is then brought to order.: False
A continuous review system tracks the remaining inventory of an item each time an issue occurs to determine whether it is time to reorder.: True
When the inventory position reaches a predetermined minimum level, a fixed quantity is ordered this is called economic order quantity.: False
The desired probability of not running out of stock in any one inventory cycle is called the reorder point.: False
The reorder point is calculated as the average demand during lead-time, plus safety stock.: True
An inventory control system in which an item's inventory position is reviewed periodically rather than continuously is called a EOQ system.: False
The two bin system issues a replenishment order for the same quantity of the item that was issued.: False
A production plan is a prediction of future events used for planning purposes.: False
The repeated observations of demand for a product or service in their order of occurrence, form a pattern know as a Coincident indicator.: False
Demand management is the process of influencing the timing and value of demand or adapting to the undesirable effects of unchangeable demand patterns.: True
Forecast time horizons for short term is 0-3 months, for medium term is >3 months & <2 years, and for long term is >2 years.: True
A disadvantage of sales forecasts is that it does not allow for combining all of the sales force numbers to identify regional or national numbers.: False
Market research allows for excellent forecast accuracy for short term, medium term, and as well as for long term periods.: False
The Delphi method is a process of gaining consensus from a group of experts while maintaining their anonymity.: True
In linear regression, one variable, called independent variable, is related to one or more dependent variables by linear equation.: False
The naive forecast is one where the forecast for the next period equals the demand for the current period.: True
Forecast errors classified as Bias errors, are the result of consistent mistakes in that the forecast is always too high, or always too low.: True
Raw materials consists of items such as components and assemblies needed for a final product in manufacturing.: False
Backward integration is a business technique in gaining control by buying controlling interest in the firm's major suppliers.: True
Cooperative orientation to supplier relations, views negotiations between buyer and seller as a zero-sum game, one side gains, the other loses.: False
A special case of cooperative origination is outsourcing, which sometimes is called the make-or-buy decision, where a number of activities corner under the direct control of the firm.: False
Distribution is the management of the flow of materials from manufacturers to customers and from warehouses to retailers.: True
Forward placement means holding inventory at the manufacturing plant, closer to the source of materials.: False
Weeks of supply is an inventory measure obtained by dividing the average aggregate inventory value by sales per week at cost.: True
Responsive supply chains is to coordinate the flow of materials and service so as to minimize inventories and maximize the efficiency of manufacturers.: False
External supply chain disruption include: value changes, late deliveries, under filled shipments, and product mix changes.: True
Work force scheduling is a method to assign jobs to machines, or workers to jobs.: False
Efficiency is calculated by adding the productive work times of machines or workers and dividing by total available work time.: False
Priority rules can be used to schedule jobs. the rule first come, first served, is where the first job that arrives at the workstation has top priority.: True
Single dimension rules are based on job arrival time, due dates, or procesing times.: True
Priority sequencing rules of critical ratio shows a ratio where >1.0 is ahead of schedule, and <1.0 is behind schedule.: True
Shortest processing time rule is a favorite priority rule for those firms who are sensitive due to date changes.: False
In a labor limited environment, one of the labor assignment rules are assigning personnel to the workstation having the most jobs waiting for processing.: True
Reservation system is where customers are assigned specific times for service.: False
A work force scheduling technique of a fixed schedule, is where the employee rotates through a series of workdays or hours.: False
One key in staffing for a 7-day a week operation is identify two consecutive days off which minimizes slack time.: True

Start Studying!

Deck Info

Number of cards 59