AD 680 test quiz questioins 2 Flashcards
Backorders May occur as a result of a ________
-Stockout
-blank out
-Failed inventory
stockout.
Inventory that acts as a buffer between workstations in work-in-process (WIP).flow shops or departments in job shops is called _____ inventory.
- progressive Inventory
-Work-in-progress Inventory
-agile Inventory
Work-in-progress Inventory
Costs associated with back ordering a product are called _____ costs.
-Shortage
-open
-procurment
Shortage
Using a fixed quantity system (FQS) as the reorder point increases ______
Target fill Price
-Safety Stock Prices
Procurement price point
Safety Stock Prices
_____________ Demand varies over time
-Dynamic
-Agile
-Flexible
Dynamic
The inability to satisfy the demand for an item is the definition of a
- Stock out
- inventory management
- inventory procurement
- copasity buffering
Stock out
Costs associated with inspecting, unpacking and putting into storage incoming inventory are components of ____ costs
-dependant demand
-Independant demand
-postive demand
-Independant demand
For “single-Period inventory model, solving the optimal order quantity involves using:
- Target fill rate
- Marginal Economic Analysis
- Independent Analysis
Marginal Economic Analysis
In ABC inventory analysis this is true:
-All items are equally important for inventory control.
-‘C’ items are the most valuable items in the inventory.
- Items make up a lower percentage of total inventory value ($)
Items make up a lower percentage of total inventory value ($)
What demand is stable over time:
Seasonal demand
Static
Dynamic demand
Static
A ______ is a statement of how many finished items are to be produced and when they are to be produced:
Master Production Schedule
Bill of Materials (BOM)
Forecast
Master Production Schedule
____ are the total demand for an item derived from all of its parents:
Net requirements
Planned order releases
Gross requirements
Gross requirements
The Lot-for-lot (LFL) rule:
-Is best used when setup/order costs are high and inventory carrying costs are low
-Is best used when inventory carrying costs are high and setup/order is low
-Always recommends a constant order quantity
Is best used when inventory carrying costs are high and setup/order is low
Which sizing rule may base the order quantity on a standard-size container or pallet:
Fixed order quantity
Economic Order Quantity (EOQ)
Periodic Order Quantity (POQ)
Fixed order quantity
Inventory items can be:
Only parent, never component
Only component, never parent
Both parent and component
Both parent and component
If forecast demand exceeds the total factory or supply capacity, managers might simply decide not to meet forecast demand. This demand would most likely be made at which planning level?
Master Scheduling-Level 2
Aggregate planning-Level 1.
Material Requirements Planning-Level 3
Aggregate planning-Level 1.
Which aggregate planning strategy generally would result in the least amount of inventory?
Chase demand.
Level strategy
Hybrid strategy
Chase demand.
Which of the following is not an aggregate planning decision option?
Building a new plant.
Subcontracting
Backordering
Building a new plant.
Which of the following is not correct regarding aggregate planning?
It deals with demand fluctuations
It involves capacity planning
Costs are sunk and irrelevant.
Costs are sunk and irrelevant.
In an aggregate planning system, the so-called “PSI” plan shows:
The inventory level at the end of each period
The number of workers needed in each period
The level of planned production by period.
The level of planned production by period.
Which of the following is NOT a goal for an aggregate planning system for a company?
Set prices for purchased goods.
Manage customer service level
Minimize production cost
Set prices for purchased goods.
The following is not a goal for an aggregate planning system for a company:
:Determine product pricing
:Determine product levels for products.
:Determine the capacity needed to meet forecasted demand.
:Determine how many workers to hire/fire to meet the forecast demand
Determine product pricing
Development of a firm’s supply chain strategy:
:Is independent of its marketing strategy
:Integrates its marketing strategy with its supply chaindesign.
:Contradicts its marketing strategy
Integrates its marketing strategy with its supply chaindesign.
When the global supply chain expands:
:Certainty decreases
:Uncertainty grows
:Variability decreases
Uncertainty grows