Chapter 1 introduction to materials management

Question 1

Introduction: Gross national product?

Answer 1

The output of goods and services produced by the nation in a given time

Question 2

introduction: the wealth of the country is measured by?

Answer 2

Gross national product

Question 3

introduction: what is the source of wealth?

Answer 3

Wealth is measured by the amount of goods and services produced

Question 4

introduction: to get the most value out of our resources we must design a….

Answer 4

Production process which makes products most efficiently

Question 5

operating environment: operations management works in a complex environment affected by many factors?

Answer 5

1 government regulation 2 the economy and 3 competition 4 customer expectations and 5 quality

Question 6

2. operating environment order: qualifiers and order winners; What are order qualifiers

Answer 6

Order qualifiers are customer requirements based on price what, quality, or delivery

Question 7

2. Operating environment: Order qualifiers and order winners; what are order winners?

Answer 7

Order winners are competitive characteristics, or combinations of characteristics, that persuade a company’s customers to choose its products or services

Question 8

3. Operating environment: manufacturing strategy; what is delivery lead time?

Answer 8

Delivery lead Time is the time from receipt of an order to the delivery of the product

Question 9

3. Operating environment: manufacturing strategies; for basic strategies for the shortest possible delivery lead time…

Answer 9

1 engineer to order
2 make to order
3 assembled to order
4 make to stock

Question 10

3. Operating environment: manufacturing strategies; Delivery lead times engineer to order?

Answer 10

Engineered to order means that the customer specifications require a unique engineering design or significant customization; long delivery lead time… customer highly involved in the product design

Question 11

3. Operating environment: manufacturing strategies; delivery lead times make to order?

Answer 11

The manufacturer does not start to make the product until the customer’s order is received; delivery lead time is reduced from engineer to order because there is little design time required and inventory is held as raw material

Question 12

3. Operating environment: manufacturing strategies; delivery lead times assembled to order?

Answer 12

Assembled to order means that the product is made from standard components that the manufacturer can inventory and assemble according to a customer order; No design time needed; inventory held ready to assemble

Question 13

3. Operating environment: manufacturing strategies; Delivery lead times make to stock?

Answer 13

Make to stock means the supplier manufactures the goods and cells from finished goods inventory delivery lead time is shortest; customers have very little involvement in product design

Question 14

4. Operating environment: manufacturing strategies; Delivery lead times… Assembled to order; postponement?

Answer 14

Postponement is another application of assembled to order A product design strategy that shifts product differentiation closer to the consumer by postponing identity change to the last possible supply-chain location example computer printers

Question 15

4.The supply chain concept: Five factors in the supply chain

Answer 15

1. All activities and processes to supply a product or service to the customer
2. Any number of companies can be linked in the supply chain
3. The total supply chain can have a number of supplier customer relationships
4. The distribution system can be direct from supplier to customer although many systems have intermediaries called distributors
5. Products or services usually flow from supplier to customer; design and demand information usually flows from customer to supplier

Question 16

4. The supply chain concept: the basic elements of the supply chain are…

Answer 16

1 supply

2. Production
3. Distribution

Question 17

5. Supply chain concepts: historical perspective

Answer 17

most of the supply chain management working inside their own company; specialists in purchasing sales and logistics were assigned to deal with outside businesses

Question 18

5. Supply chain concepts: just-in-time concepts

Answer 18

supplier partnerships are now felt to be a major aspect of successful just-in-time concepts suppliers are viewed as partners as opposed adversaries

Question 19

6. Supply chain concepts:Three issues in the supply chain concept…

Answer 19

1. Flow of materials
2. Flow of information and sharing of information, mostly through the Internet
3. Fund transfers

Question 20

6. Supply chain concepts: New trends in the supply chain concept…

Answer 20

Recovery, recycling, and reuse of material

Question 21

6. Supply chain concepts: to manage the supply chain, one must not only understand the network of…

Answer 21

suppliers and customers along the chain but also try to efficiently plan material and information flows to maximize cost efficiency, effectiveness, delivery, and flexibility

Question 22

6. Supply chain concepts: the key to the supply chain concept is…

Answer 22

rapid flows of accurate information and increased organizational flexibility

Question 23

7. The supply chain concept: supply chain metrics;A metric is a….

Answer 23

Verifiable measure stated neither quantitative or qualitative terms defined with respect to a reference point

Question 24

7. The supply chain concept: supply chain metrics; Metrics provide an organization…

Answer 24

1. Control by supervisors
2. Reporting of data to supervisors and external groups
3. Communication
4. Learning
5. Improvements

Question 25

9. What is materials management?

Answer 25

One Department in an organization is responsible for the flow of materials from suppliers through production to the customer

Question 26

9. What is materials management? Work in process inventory ?

Answer 26

Work in process inventory is inventory that has to be purchased at the beginning of production to be processed into finished goods

Question 27

11. Manufacturing planning and control are responsible for...

Answer 27

manufacturing planning and control are responsible for the planning and control of the flow of materials through the manufacturing process

Question 28

11. Manufacturing planning and control Are primarily concerned with...

Answer 28

1 production planning 2. Implementation and Control 3. Inventory management

Question 29

12. Physical supply and distribution...

Answer 29

all the activities involved in moving goods from a supplier to the beginning of the production process and from the end of the production process to the consumer

Question 30

12. Physical supply and distribution... The objectives of materials management

Answer 30

To deliver what customers want, when and where they wanted, and to do so in a minimum cost