Knoxville Manufacturing Company produces X and Y with contribution margins per unit of $10 and $90, respectively. Only 200 labor hours and 400 machine hours are available for production. Time requirements to produce one unit of X and Y are as follows: $\begin{array}{lll}&\text { Froduct } \mathrm{X}& \text { Product } Y\\ \text { Labor hours per unit } & 1 & 2 \\ \text { Machine hours per unit } & 5 & 1 \end{array}$ What is the objective function to maximize profits for Knoxville Manufacturing Company?

A) Minimize 10X + 90Y B) Maximize 10X + 90Y C) Maximize 1X + 2Y D) Minimize 1X + 2Y A) Minimize 10X + 90Y B) Maximize 10X + 90Y C) Maximize 1X + 2Y D) Minimize 1X + 2Y

The following information is available for Woodside Furniture Company, which sells two products: \[\begin{array} { l c c } &\text { Chair } \mathrm { X } & \text { Chair } \mathrm { Y } \\ \text { Processing time } & 4 \text { hours } & 6 \text { hours } \\ \text { Metal used } & 30 \text { sq. t. } & 18 \text { sq. t. } \\ \text { Selling price } & \$ 200.00 & \$ 100.00 \\ \text { Variable cost } & \$ 150.00 & \$ 60.00 \\ \text { Fixed cost } & \$ 30.00 & \$ 30.00 \end{array}\] There are 200 hours available in the plant and 200 square feet of metal available per operating period. The constraint equation representing processing time available is

A) 4X + 6Y ? 200. B) 4X + 6Y ? 200. C) 30X + 18Y ? 200. D) 4X + 6Y ? 400. A) 4X + 6Y ? 200. B) 4X + 6Y ? 200. C) 30X + 18Y ? 200. D) 4X + 6Y ? 400.

Walrus Company has the following information available concerning one of its inventory items: \[\begin{array} { l r } \text { Cost of placing an or der } & \$ 30.00 \\ \text { Unit carrying cost per year } & \$ 3.00 \\ \text { Annual unit demand } & 6,625 \\ \text { Safety stock } & 125 \\ \text { Average daily demand } & 25 \\ \text { Normal lead time in days } & 10 \end{array}\] If there is a delay in shipping the item, approximately how many days can be covered by the safety stock?

A) 5 days B) 31 days C) 26 days D) 110 days A) 5 days B) 31 days C) 26 days D) 110 days

Exam 20: Inventory Management: Economic Order Quantity, Jit, and the Theory of Constraints

The inventory management system which represents the continuous goal of eliminating waste is called the __________ inventory management.

(Short Answer)

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Question 41

Dry Creek Company decreased the size of inventory order quantities that had previously been determined using the EOQ model. If demand remains the same, what is the impact on the number of orders made during the year?

(Multiple Choice)

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Question 42

The quantity that minimizes total cost is called the:

(Multiple Choice)

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Question 43

Knoxville Manufacturing Company produces X and Y with contribution margins per unit of $10 and $90, respectively. Only 200 labor hours and 400 machine hours are available for production. Time requirements to produce one unit of X and Y are as follows: Froduct Product Y Labor hours per unit 1 2 Machine hours per unit 5 1 What is the objective function to maximize profits for Knoxville Manufacturing Company?

(Multiple Choice)

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Question 44

The optimal mix chosen which maximizes the total contribution margin given the constraints face by a firm is called __________ .

(Short Answer)

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Question 45

Competitive pressures have led many companies to favor the JIT inventory approach.

(True/False)

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Question 46

JIT is a manufacturing approach focused on present demand rather than anticipated demand.

(True/False)

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Question 47

Under the Kanban system, which of the following controls the movement of work among manufacturing processes?

(Multiple Choice)

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Question 48

The following information is available for Woodside Furniture Company, which sells two products: Chair Chair Processing time 4 hours 6 hours Metal used 30 sq. t. 18 sq. t. Selling price \ 200.00 \ 100.00 Variable cost \ 150.00 \ 60.00 Fixed cost \ 30.00 \ 30.00 There are 200 hours available in the plant and 200 square feet of metal available per operating period. The constraint equation representing processing time available is

(Multiple Choice)

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Question 49

The correct order for the four steps that must be followed to solve problems graphically is

(Multiple Choice)

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Question 50

Walrus Company has the following information available concerning one of its inventory items: Cost of placing an or der \ 30.00 Unit carrying cost per year \ 3.00 Annual unit demand 6,625 Safety stock 125 Average daily demand 25 Normal lead time in days 10 If there is a delay in shipping the item, approximately how many days can be covered by the safety stock?

(Multiple Choice)

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Question 51

A linear programming model would NOT include which of the following items?

(Multiple Choice)

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Question 52

Using the graphic approach to linear programming, the solution is usually

(Multiple Choice)

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Question 53

With multiple internal binding constraints, the optimal mix is determined by a graphical approach or the simplex method.

(True/False)

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Question 54

Montgomery Company produces A and B with contribution margins per unit of $40 and $30, respectively. Only 500 labor hours and 300 machine hours are available for production. Time requirements to produce one unit of A and B are as follows: Product A Product B Labor hours per unit 6 3 Machine hours per unit 2 5 What is the constraint on machine hours for Montgomery Company?

(Multiple Choice)

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Question 55

Which of the following equations determines the total annual carrying costs when no safety stock is kept?

(Multiple Choice)

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Question 56

One of the traditional reasons for holding inventory is to avoid shutdowns due to unavailability of materials. The JIT solution is to

(Multiple Choice)

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Question 57

Moriah's Candle Company manufactures candles. The company buys wax in 45-Kilogram containers that cost $17 each. The company uses 25,000 containers per year, and usage occurs evenly throughout the year. The average cost to carry a 45-Kilogram container in inventory per year is $3, and the cost to place an order is $9. The company works 250 days per year. The lead time is 4 working days and the average rate of usage is 60 containers per day. What is the reorder point?

(Multiple Choice)

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Question 58

The focus on the goal of making money now and in the future by managing constraints is called the __________ .

(Short Answer)

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Question 59

Moriah's Candle Company manufactures candles. The company buys wax in 45-Kilogram containers that cost $17 each. The company uses 25,000 containers per year, and usage occurs evenly throughout the year. The average cost to carry a 45-Kilogram container in inventory per year is $3, and the cost to place an order is $9. The company works 250 days per year. The economic order quantity (rounded) is

(Multiple Choice)

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Question 60

Showing 41 - 60 of 119

The inventory management system which represents the continuous goal of eliminating waste is called the __________ inventory management.

Dry Creek Company decreased the size of inventory order quantities that had previously been determined using the EOQ model. If demand remains the same, what is the impact on the number of orders made during the year?

The quantity that minimizes total cost is called the:

The optimal mix chosen which maximizes the total contribution margin given the constraints face by a firm is called __________ .

Competitive pressures have led many companies to favor the JIT inventory approach.

JIT is a manufacturing approach focused on present demand rather than anticipated demand.

Under the Kanban system, which of the following controls the movement of work among manufacturing processes?

The correct order for the four steps that must be followed to solve problems graphically is

A linear programming model would NOT include which of the following items?

Using the graphic approach to linear programming, the solution is usually

With multiple internal binding constraints, the optimal mix is determined by a graphical approach or the simplex method.

Which of the following equations determines the total annual carrying costs when no safety stock is kept?

One of the traditional reasons for holding inventory is to avoid shutdowns due to unavailability of materials. The JIT solution is to

The focus on the goal of making money now and in the future by managing constraints is called the __________ .

Introduction to Cost Management

Basic Cost Management Concepts

Cost Behavior

Activity-Based Costing

Product and Service Costing: Job-Order System

Process Costing

Allocating Costs of Support Departments and Joint Products

Budgeting for Planning and Control

Standard Costing: a Functional-Based Control Approach

Decentralization: Responsibility Accounting, Performance

Strategic Cost Management

Activity-Based Management

The Balanced Scorecard: Strategic-Based Control

Quality and Environmental Cost Management

Lean Accounting and Productivity Measurement

Cost-Volume-Profit Analysis

Activity Resource Usage Model and Tactical Decision Making

Pricing and Profitability Analysis

Capital Investment

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