Final Exam

Question 1

ABC analysis divides inventory into three classes based on

Answer 1

annual dollar volume

Question 2

The EOQ model is best suited for items whose demand is ______

Answer 2

independent

Question 3

additions to the reorder point that allow for variability in the rate of demand, the length of lead time, or both.

Answer 3

safety stock

Question 4

provides a measure of inventory accuracy

Answer 4

cycle counting

Question 5

The two most basic inventory questions answered by the typical inventory model are

Answer 5

timing and quantity of orders

Question 6

the primary purpose of the basic economic order quantity model is

Answer 6

to minimize the sum of setup cost and holding cost

Question 7

time between placement and receipt of an order

Answer 7

lead time

Question 8

3 Demand options for aggregate planning

Answer 8

1) influencing demand
2) back ordering during high-demand periods
3) Counterseasonal product and service mixing

Question 9

5 Capacity options for aggregate planning

Answer 9

1) Changing inventory levels
2) Varying workforce size by hiring and layoffs
3) Varying production rate through overtime and idle time
4) Subcontracting
5) Using part-time workers

Question 10

The _______ model is a formal planning model built around a manager’s experience and performance.

Answer 10

management coefficients

Question 11

A pure chase strategy allows _____ inventories when compared to pure level scheduling.

Answer 11

lower

Question 12

type of scheduling that inventory goes up or down to buffer the difference between demand and production.

Answer 12

level scheduling

Question 13

in level scheduling, what is kept uniform from month to month?

Answer 13

production/workforce levels

Question 14

strategy using inventory to meet demand requirement

Answer 14

pure level strategy

Question 15

which plan does not work if hiring and layoffs are possible

Answer 15

transportation method

Question 16

capacity allocation to different classes of customers in order to maximize profits

Answer 16

yield management

Question 17

strategy sets production equal to forecasted demand

Answer 17

chase

Question 18

strategy maintains a constant output rate, or work force level, over the planning horizon.

Answer 18

level

Question 19

Effective use of dependent demand inventory models require (5) things

Answer 19

1) Master Production Schedule (MPS)
2) Bill of Material (BOM)
3) Accurate Inventory Records
4) Open Orders
5) Lead Times

Question 20

MRP is generally practiced on items with _____ demand

Answer 20

dependent

Question 21

describe subassemblies that exist only temporarily

Answer 21

Phantom Bills

Question 22

____ material requirements do not take into account the amount of inventory on hand

Answer 22

gross

Question 23

_____ technique is particularly appropriate when demand is not very smooth and set up cost is small compared to holding cost.

Answer 23

lot-for-lot lot-sizing

Question 24

A master production schedule specifies

Answer 24

what product is to be made, and when

Question 25

In continuous (make-to-stock) operations, the master production schedule is usually expressed in terms of

Answer 25

end items

Question 26

In job shop (make-to-order) operations, the master production schedule is usually expressed in

Answer 26

customer orders

Question 27

_____ bills represent subassemblies that actually exist and are inventoried,

Answer 27

modular

Question 28

_____ bills represent subassemblies that exist only temporarily and are not inventoried.

Answer 28

phantom

Question 29

____ scheduling starts as soon as the requirements are known

Answer 29

forward

Question 30

____ scheduling begins with the due date and schedules the final operation first

Answer 30

backward

Question 31

Scheduling Criteria (4 objectives)

Answer 31

1) Minimize completion time
2) Maximize utilization of facilities
3) Minimize work-in-process (WIP) inventory
4) Minimize customer waiting time

Question 32

file that contains important information regarding an item’s flow through the shop

Answer 32

routing file

Question 33

file that is NOT part of the planning files of a production planning and control system

Answer 33

progress file

Question 34

file that tracks word order progress

Answer 34

control file

Question 35

file that has the production database containing information about each of the components that a firm produces or purchases

Answer 35

item master file

Question 36

Aid used to monitor jobs in process

Answer 36

a Gantt schedule chart

Question 37

what critical ratio value implies that a job is already late

Answer 37

less than 1

Question 38

____ system is generally found in most JIT environments

Answer 38

pull

Question 39

characterized by continuous and forced problem solving via a focus on throughput and reduced inventory

Answer 39

Just-in-time (JIT)

Question 40

characterized by a focus on continuous improvement, respect for people, and standard work practices

Answer 40

Toyota Production System (TPS)

Question 41

characterized by the elimination of waste through a focus on exactly what the customer wants

Answer 41

Lean operations

Question 42

time required to move orders through the production process, from receipt to delivery

Answer 42

throughput

Question 43

time from raw materials receipt to finished product exit

Answer 43

manufacturing cycle time