Exam 1: Introduction to Materials Management

Operations management works in a complex environment affected by:

Assembly- to- order means that the customer's specifications require unique engineering design or significant customization.

Using the data below, if direct materials can be reduced by 10% and direct labor by 5%, the improvement in profit would be: Dollars Percent of Sales Revenue \1 ,000,000 100\% Cost of Goods Sold Direct Material \5 00,000 50\% Direct Labor \2 00,000 20\% Factory Overhead \2 00,000 20\% Total Cost of Goods 90\% Sold Gross Profit \1 00,000 10\%

____________means that the product is made from standard components that the manufacturer can inventory and assemble according to a customer order.

Just- in- time JIT) concepts were originally developed by Motorola and other American companies in the 1970s.

Services are physical objects, something we can touch, feel, or see.

If the cost of manufacturing which includes direct material and direct labor is 70% of sales and profit is 10% of sales, what would be the improvement in profit, if through your better planning and control, the cost of manufacturing was reduced from 70% of sales to 50% of sales?

Demand information usually flows from:

A ____________ function is needed to transform our resources into useful goods.

Since competition is international and aggressive, successful companies provide quality that not only meets customers' high expectations but exceeds them.