Materials Management Flashcards
They are created ahead of a peak selling season, a promotion program, vacation shutdown, or possibly the threat of a strike.
Anticipation Inventory
This is built up from expectation of future demand.
Anticipation Inventory
This exist because of the time needed to move goods from one location to another
Transportation Inventory
Its purpose is to prevent disruptions in manufacturing of deliveries to customers.
Fluctuation Inventory
This is created when items purchased or manufactured are in greater quantities than needed.
Lot-Sized Inventory
This is held to cover random unpredictable fluctuations in supply & demand or lead time.
Fluctuation Inventory
It is replenished cyclically when suppliers orders are received.
Cycle Stock
What is/are the objective/s of inventory Management.
Maximum customer service
Low-cost plant operation
Minimum Inventory Investment
This is the portion of inventory that depletes gradually as customers’ orders come in.
Cycle Stock
These are made in cases where it is impossible to make or purchase items at the same rate that they will be used or sold.
Lot-Sized Inventory
A highly market-oriented company DOES NOT focus on exceeding customer expectations. T/F
False
Order winners provide a competitive advantage for the firm. T/F
True
Manufacturing must design a strategy to achieve a long lead time. T/F
False
Manufacturing must design a strategy to achieve a short lead time. T/F
True
Which of the ff factors affect Operating Management
Government, Economy, Competition, Customers, Quality
This/these is/are the basic strategies for Manufacturing and Lead Time. Select all that apply.
Engineer to order, Make to order, Assemble to order, Make to stock
- Customers and suppliers share the same perspective on Delivery Lead time. T/F
False
The manufacturer does not start to make the product until a customer’s order is received.
Make-to-order
The supplier manufactures the goods & sells from finished goods inventory.
Make-to-stock
The final product is usually made from standard items but may include custom-designed components as well.
Make-to-order
Delivery lead time is reduced further because there is no design time needed & inventory is held ready for assembly.
Assemble-to-order
Delivery lead time is shortest
Make-to-stock
Delivery lead time is reduced because there is a little design time required and inventory is held as raw material.
Make-to-order
The customer has the least direct involvement in the product design.
Make-to-stock
The customer’s specifications require significant customization
Engineer-to-order
What is the main aim of Materials Management.
To improve a company’s profit
This/these is/are the objective/s of Materials Management. Select all that apply.
Maximize the use of the firm’s resources
Provide the required level of customer service
Materials Management is also known by this/these term/s.
Distribution planning & control
Logistics Management
These are used either for sale or to provide inputs or supplies to the production process.
Inventories
This is a coordinating function responsible for planning & controlling materials flow
Materials Management
This is another term for distribution planning and control.
Materials Management
These are materials and supplies that business or institution carries.
Inventories
This is responsible for planning and controlling inventory from the raw material stage to the customer.
Inventory management
What is the basic purpose of inventories?
Decouple supply and demand
This is also called as cycle stock
Lot-Size Inventory
Safety stock is also known by this/these term/s
Buffer Stock
Reserve Stock
If buyers expect prices to rise, they can purchase for this inventory when prices are low.
Hedge Inventory
Transportation inventory is also known by this/these term/s
Pipeline Inventory
Movement Inventory
This takes advantage of quantity discounts to reduce shipping, clerical, and setup costs.
Lot-Sized Inventory
This is the portion of inventory that depletes gradually as customers’ orders come in.
Cycle stock.
These are made in cases where it is impossible to make or purchase items at the same rate that they will be used or sold.
Lot-Size Inventory
This is carried out to protect against a possible stock out.
Fluctuation inventory
Inventory Methods
Items brought first are also used or sold first.
First in, first out method
The earliest units brought are the first ones used.
First in, first out method
Items still in stock are the newest ones.
First in, first out method
This is serviced in the order of items with the earlier date of consumption regardless of the date of entry or acquisition.
First expired, first out method
This assumes that items bought last are sold first.
Last in, first out method
Reserves or material with low purchase price are consumed first.
Lowest in, first out method
Requirements and materials are serviced in order from the most expensive items regardless of date of entry or acquisition.
Highest in, first out method
There is only one inventory layer in this method
Weighted average method
Reserves with high purchase price remain at the end
Lowest in, first out method
The cost of any new inventory purchases are rolled into the cost of any existing inventory, which in turn is adjusted again as more inventory is purchased.
Weighted average method
Products with an earlier date of consumption are shipped first.
First expired, first out method
This method is banned under International Financing Reporting Standards.
Last in, first out method
This is mostly used in the management of food and drugs.
First expired, first out method.
Customer requirements are usually based on the following factors. Select all that apply
- Price
- Delivery
- Strategy
- Quality
- Management
The products is made from standard components that the manufacturer can inventory and arrange according to to a customer order.
assemble-to-order
