Question 1

What is distribution requirements planning?

Accepted Answer

Distribution requirements planning is a system that forecasts when the various demands will be made by the system on central supply. This gives central supply and the factory the opportunity to lan for the goods that will actually be needed and when. It is able to both respond to customer demand and coordinate planning and control.

Question 2

Given the following actual demands for a 10- week period, calculate the average x- bar of the distribution. $\begin{array} { l c } 
\text {Period}\
\text {Actual}\
\text {demand}\
1 & 1200 \ 2 & 1000 \ 3 & 800 \ 4 & 900 \ 5 & 1400 \ 6 & 1100 \ 7 & 1100 \ 8 & 700 \ 9 & 1000 \ 10 & 800 \end{array}$

Accepted Answer

Period Actual demand $$\begin{array} { l l } 
1 & 1200 \
2 & 1000 \
3 & 800 \
4 & 900 \
5 & 1400 \
6 & 1100 \
7 & 1100 \
8 & 700 \
9 & 1000 \
10 & 800
\end{array}$$ 10,000/10 = 1,000 units

Question 3

Distribution inventory includes all the finished goods held anywhere in the distribution system.

Accepted Answer

A) True 
 B)False  True

Question 4

What is the purpose of safety stock?

Accepted Answer

Safety stock is intended to protect agai

Question 5

Distribution inventory management systems can be classified as:

Accepted Answer

A)  decentralized and centralized 
B)  decentralized and DRP 
C)  decentralized, centralized and DRP 
D)  centralized and DRP 
A)  decentralized and centralized 
B)  decentralized and DRP 
C)  decentralized, centralized and DRP 
D)  centralized and DRP

Question 6

Permanent or static inventory includes data such as:

Accepted Answer

A)  lead time and safety stock 
B)  order point and quantity 
C)  part number, name, and description 
D)  all of the above 
A)  lead time and safety stock 
B)  order point and quantity 
C)  part number, name, and description 
D)  all of the above

Question 7

An inventory record contains variable and permanent information.

Accepted Answer

A) True 
 B)False

Question 8

Variable or dynamic information changes with each transaction and includes:

Accepted Answer

A)  quantities ordered 
B)  quantities issues 
C)  quantities received 
D)  all of the above 
A)  quantities ordered 
B)  quantities issues 
C)  quantities received 
D)  all of the above

Question 9

Materials requirements planning is a system that forecasts when the various demands will be mady by the system on central supply.

Accepted Answer

A) True 
 B)False

Question 10

The decentralized system is sometimes called the pull system because orders are placed on central supply and "pulled" through the system.

Accepted Answer

A) True 
 B)False

Question 11

Why do stickouts cost money?

Accepted Answer

Stockouts cost money

Question 12

The purpose of holding inventory in distribution centers is to improve customer service by locating stock away from the customer and to increase transportation costs.

Accepted Answer

A) True 
 B)False

Question 13

In the order point system, an order is placed when:

Accepted Answer

A)  the quantity on hand falls to a predetermined order point 
B)  the quantity on hand rises to a predetermined order point 
C)  neither A nor B 
D)  both A and B 
A)  the quantity on hand falls to a predetermined order point 
B)  the quantity on hand rises to a predetermined order point 
C)  neither A nor B 
D)  both A and B

Question 14

The kanban system is a simply system that signals the need for less product.

Accepted Answer

A) True 
 B)False

Question 15

Unless a firm delivery directory from factory to customer demand n the factory is created by central supply.

Accepted Answer

A) True 
 B)False

Question 16

In a centralized system, each distribution center first determines what it needs and when, and then places orders in central supply.

Accepted Answer

A) True 
 B)False

Question 17

The forecast interval is 4 weeks and the lead time interval is 2 weeks. Sigma for the forecast interval is 150 units. Calculate the standard deviation for the lead time interval.

Accepted Answer

The answer of The forecast interval is 4 weeks and...

Question 18

Planned order releases from the various distribution centers become the ________to the material plan of central supply in DRP.

Accepted Answer

A)  by product 
B)  output 
C)  input 
D)  product 
A)  by product 
B)  output 
C)  input 
D)  product

Question 19

The advantage of the decentralized system is that each center can operate on its own and thus reduce communication and coordination expense.

Accepted Answer

A) True 
 B)False

Question 20

In a centralized system:

Accepted Answer

A)  stock is pulled into the system from marketing 
B)  forecasting is decentralized by department 
C)  an attempt is made to replace the stock that has been sold and to provide for special situations 
D)  distribution centers are involved in determining what they receive 
A)  stock is pulled into the system from marketing 
B)  forecasting is decentralized by department 
C)  an attempt is made to replace the stock that has been sold and to provide for special situations 
D)  distribution centers are involved in determining what they receive

What is distribution requirements planning?

Given the following actual demands for a 10- week period, calculate the average x- bar of the distribution. Period Actual demand 1 1200 2 1000 3 800 4 900 5 1400 6 1100 7 1100 8 700 9 1000 10 800

Distribution inventory includes all the finished goods held anywhere in the distribution system.

What is the purpose of safety stock?

Distribution inventory management systems can be classified as:

Permanent or static inventory includes data such as:

An inventory record contains variable and permanent information.

Variable or dynamic information changes with each transaction and includes:

Materials requirements planning is a system that forecasts when the various demands will be mady by the system on central supply.

The decentralized system is sometimes called the pull system because orders are placed on central supply and "pulled" through the system.

Why do stickouts cost money?

The purpose of holding inventory in distribution centers is to improve customer service by locating stock away from the customer and to increase transportation costs.

In the order point system, an order is placed when:

The kanban system is a simply system that signals the need for less product.

Unless a firm delivery directory from factory to customer demand n the factory is created by central supply.

In a centralized system, each distribution center first determines what it needs and when, and then places orders in central supply.

The forecast interval is 4 weeks and the lead time interval is 2 weeks. Sigma for the forecast interval is 150 units. Calculate the standard deviation for the lead time interval.

Planned order releases from the various distribution centers become the ________to the material plan of central supply in DRP.

The advantage of the decentralized system is that each center can operate on its own and thus reduce communication and coordination expense.

In a centralized system:

Introduction to Materials Management

Production Planning System

Master Scheduling

Material Requirements Planning

Capacity Management

Production Activity Control

Purchasing

Forecasting

Inventory Fundamentals

Order Quantities

Physical Inventory and Warehouse Management

Physical Distribution

Products and Processes

Just-In-Time Manufacturing and Lean Production

Total Quality Management

Filters

Exam 11: Independent Demand Ordering Systems

What is distribution requirements planning?

Given the following actual demands for a 10- week period, calculate the average x- bar of the distribution. Period Actual demand 1 1200 2 1000 3 800 4 900 5 1400 6 1100 7 1100 8 700 9 1000 10 800

Distribution inventory includes all the finished goods held anywhere in the distribution system.

What is the purpose of safety stock?

Distribution inventory management systems can be classified as:

Permanent or static inventory includes data such as:

An inventory record contains variable and permanent information.

Variable or dynamic information changes with each transaction and includes:

Materials requirements planning is a system that forecasts when the various demands will be mady by the system on central supply.

The decentralized system is sometimes called the pull system because orders are placed on central supply and "pulled" through the system.

Why do stickouts cost money?

The purpose of holding inventory in distribution centers is to improve customer service by locating stock away from the customer and to increase transportation costs.

In the order point system, an order is placed when:

The kanban system is a simply system that signals the need for less product.

Unless a firm delivery directory from factory to customer demand n the factory is created by central supply.

In a centralized system, each distribution center first determines what it needs and when, and then places orders in central supply.

The forecast interval is 4 weeks and the lead time interval is 2 weeks. Sigma for the forecast interval is 150 units. Calculate the standard deviation for the lead time interval.

Planned order releases from the various distribution centers become the ________to the material plan of central supply in DRP.

The advantage of the decentralized system is that each center can operate on its own and thus reduce communication and coordination expense.

In a centralized system:

Introduction to Materials Management

Production Planning System

Master Scheduling

Material Requirements Planning

Capacity Management

Production Activity Control

Purchasing

Forecasting

Inventory Fundamentals

Order Quantities

Physical Inventory and Warehouse Management

Physical Distribution

Products and Processes

Just-In-Time Manufacturing and Lean Production

Total Quality Management

Filters