Exam 3 Practice Flashcards

1
Q

Generates pressure to increase inventory

A

quantity discounts, inventory shrinkage costs, backorders and stockouts

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

items sold to a firm’s customers

A

finished goods

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

increasing repeatability

A

flexible automation
group technology
parts standardization

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

methods for tracking inventory and ensuring accurate records

A

logic error checks, cycle counting, assigning responsibility to specific employees for issuing and receiving materials

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

in a one-period inventory model, the higher the after- season sales price, the higher the order placed at the start of the season

A

true

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

if demand exceeds the purchased quantity then the actual payoff exceeds the expected payoff for that quantity

A

true regarding one period model.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

operating expenses

A

inlcudes selling expenses , fixed expenses and depreciation

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

comparative advantage of mass cusotmization

A

elimination of finished goods inventory, management of customer relationships, and increase in perceived value of services/ products.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

the bullwhip effect says that in any supply chain, the ordering patterns experience increasing variance as you move closer to the end customer

A

false

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

increase the likelihood of a supply chain experiencing the bullwhip effect.

A

engineering changes to the design of a product

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

SCOR

A

plan source make deliver, return

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

Advantages of Periodic Review System

A

convenient admin of inventory control & can permit combining order to common suppliers

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

Effectively changing lot size

A

increase repeatability

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

ABC Analysis

A

Class A items account for 80% of dollar usage, uses the Pareto chart concept, ranked on basis of dollar usage

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

total cost for a continuous (Q) system with uncertain demand

A

cycle inventory holding cost
safety stock holding cost
ordering cost

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

Reasonable approach for EOQ

A

demand rate is known and constant, lead time is known and constant, no constraints are placed on the size of each lot

17
Q

primary lever to reduce anticipation inventory

A

match demand rate with production rate

18
Q

P system advantage over Q system

A

orders from multiple items from one supplier can be combined into a single purchase order

19
Q

Determinant of a favorable labor climate

A

level of worker productivity, cost of labor, and worker transportation infrastructure.

20
Q

Break even analysis

A

quantitative method used to evaluate multiple locations based on total cost of product or service operations

21
Q

to decrease inventory turnover

A

increase the average aggregate inventory value

22
Q

external causes

A

expected changes in customer demand

23
Q

cross docking

A

packs products on incoming shipments so they can be easily sorted at intermediate warehouses for outgoing shipments

24
Q

one time inventory decision

A

when a manufacturer makes customized items to single order and scrap quantities are high, when lead time is longer than selling season, when items are fashion goods

25
Q

SCOR Model focuses on

A

supply chain processes of planning, making, sourcing, delivering, and returning