Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

HIS 1 > Materials Management > Flashcards

Materials Management Flashcards

1
Q

They are created ahead of a peak selling season, a promotion program, vacation shutdown, or possibly the threat of a strike.

A

Anticipation Inventory

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

This is built up from expectation of future demand.

A

Anticipation Inventory

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

This exist because of the time needed to move goods from one location to another

A

Transportation Inventory

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

Its purpose is to prevent disruptions in manufacturing of deliveries to customers.

A

Fluctuation Inventory

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

This is created when items purchased or manufactured are in greater quantities than needed.

A

Lot-Sized Inventory

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

This is held to cover random unpredictable fluctuations in supply & demand or lead time.

A

Fluctuation Inventory

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

It is replenished cyclically when suppliers orders are received.

A

Cycle Stock

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

What is/are the objective/s of inventory Management.

A

Maximum customer service
Low-cost plant operation
Minimum Inventory Investment

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

This is the portion of inventory that depletes gradually as customers’ orders come in.

A

Cycle Stock

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

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.

A

Lot-Sized Inventory

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

A highly market-oriented company DOES NOT focus on exceeding customer expectations. T/F

A

False

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

Order winners provide a competitive advantage for the firm. T/F

A

True

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

Manufacturing must design a strategy to achieve a long lead time. T/F

A

False

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

Manufacturing must design a strategy to achieve a short lead time. T/F

A

True

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

Which of the ff factors affect Operating Management

A

Government, Economy, Competition, Customers, Quality

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

This/these is/are the basic strategies for Manufacturing and Lead Time. Select all that apply.

A

Engineer to order, Make to order, Assemble to order, Make to stock

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q
  1. Customers and suppliers share the same perspective on Delivery Lead time. T/F
A

False

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

The manufacturer does not start to make the product until a customer’s order is received.

A

Make-to-order

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

The supplier manufactures the goods & sells from finished goods inventory.

A

Make-to-stock

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

The final product is usually made from standard items but may include custom-designed components as well.

A

Make-to-order

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

Delivery lead time is reduced further because there is no design time needed & inventory is held ready for assembly.

A

Assemble-to-order

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

Delivery lead time is shortest

A

Make-to-stock

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

Delivery lead time is reduced because there is a little design time required and inventory is held as raw material.

A

Make-to-order

24
Q

The customer has the least direct involvement in the product design.

A

Make-to-stock

25
Q

The customer’s specifications require significant customization

A

Engineer-to-order

26
Q

What is the main aim of Materials Management.

A

To improve a company’s profit

27
Q

This/these is/are the objective/s of Materials Management. Select all that apply.

A

Maximize the use of the firm’s resources

Provide the required level of customer service

28
Q

Materials Management is also known by this/these term/s.

A

Distribution planning & control

Logistics Management

29
Q

These are used either for sale or to provide inputs or supplies to the production process.

A

Inventories

30
Q

This is a coordinating function responsible for planning & controlling materials flow

A

Materials Management

31
Q

This is another term for distribution planning and control.

A

Materials Management

32
Q

These are materials and supplies that business or institution carries.

A

Inventories

33
Q

This is responsible for planning and controlling inventory from the raw material stage to the customer.

A

Inventory management

34
Q

What is the basic purpose of inventories?

A

Decouple supply and demand

35
Q

This is also called as cycle stock

A

Lot-Size Inventory

36
Q

Safety stock is also known by this/these term/s

A

Buffer Stock

Reserve Stock

37
Q

If buyers expect prices to rise, they can purchase for this inventory when prices are low.

A

Hedge Inventory

38
Q

Transportation inventory is also known by this/these term/s

A

Pipeline Inventory

Movement Inventory

39
Q

This takes advantage of quantity discounts to reduce shipping, clerical, and setup costs.

A

Lot-Sized Inventory

40
Q

This is the portion of inventory that depletes gradually as customers’ orders come in.

A

Cycle stock.

41
Q

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.

A

Lot-Size Inventory

42
Q

This is carried out to protect against a possible stock out.

A

Fluctuation inventory

Inventory Methods

43
Q

Items brought first are also used or sold first.

A

First in, first out method

44
Q

The earliest units brought are the first ones used.

A

First in, first out method

45
Q

Items still in stock are the newest ones.

A

First in, first out method

46
Q

This is serviced in the order of items with the earlier date of consumption regardless of the date of entry or acquisition.

A

First expired, first out method

47
Q

This assumes that items bought last are sold first.

A

Last in, first out method

48
Q

Reserves or material with low purchase price are consumed first.

A

Lowest in, first out method

49
Q

Requirements and materials are serviced in order from the most expensive items regardless of date of entry or acquisition.

A

Highest in, first out method

50
Q

There is only one inventory layer in this method

A

Weighted average method

51
Q

Reserves with high purchase price remain at the end

A

Lowest in, first out method

52
Q

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.

A

Weighted average method

53
Q

Products with an earlier date of consumption are shipped first.

A

First expired, first out method

54
Q

This method is banned under International Financing Reporting Standards.

A

Last in, first out method

55
Q

This is mostly used in the management of food and drugs.

A

First expired, first out method.

56
Q

Customer requirements are usually based on the following factors. Select all that apply

A
  • Price
  • Delivery
  • Strategy
  • Quality
  • Management
57
Q

The products is made from standard components that the manufacturer can inventory and arrange according to to a customer order.

A

assemble-to-order

HIS 1 (8 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2025 Bold Learning Solutions. Terms and Conditions