Exam 1: Introduction to Materials Management

If the cost of manufacturing (direct labor and materials) is 50% of sales and profit is 15% of sales, what would the profit percentage be if the direct costs of manufacturing was reduced from 50% to 47%?

Savings in the supply chain mostly are the result of:

Postponement is best used with items that:

Which of the following statements is best?

The purpose of the materials management concept is: I. To manage materials in a production operation. II. To have purchasing support the needs of production. III. To have production support the needs of purchasing.

Making a pizza at a fast-food restaurant would be considered a form of:

If the manufacturing lead time of an item is reduced by 50% the work in process inventory:

Which of the following statements is best? I. The conflict between marketing, finance and production centers on customer service, disruption to production, and inventory levels. II. Marketing's objectives can be met with higher inventories. III. Finance's objectives can be met with higher inventories. IV. Production's objectives can be met with higher inventories.

Which of the following are generally considered overall objectives of an organization? I. Providing good customer service. II. Maintaining low levels of inventory investment. III. Optimizing use of resources. IV. Providing sufficient return on investment.

Which of the following strategies has the shortest delivery lead time and the least customer input?