Question 1

When firms produce goods in anticipation of future customer order, they are operating in a/an _____ environment.

Accepted Answer

A) make-to-order 
B) make-to-stock 
C) make-to-forecast 
D) WIP 
E) None of these answers. 
A) make-to-order 
B) make-to-stock 
C) make-to-forecast 
D) WIP 
E) None of these answers. A

Question 2

A higher-than-anticipated level of finished-goods inventory may mean that an increase in customer demand is occurring.

Accepted Answer

A) True 
 B)False  False

Question 3

_____ of inventory refers to how quickly raw material and work-in-process inventory transform into finished goods that the customer accepts.

Accepted Answer

A) Volume 
B) Velocity 
C) Value 
D) Vigor 
E) None of these answers. 
A) Volume 
B) Velocity 
C) Value 
D) Vigor 
E) None of these answers. B

Question 4

All of the following are important barriers to lean supply except _____.

Accepted Answer

A) large warehouses 
B) dispersed supply base 
C) historic buyer-supplier relationships​ 
D) number of suppliers 
E) supplier quality performance 
A) large warehouses 
B) dispersed supply base 
C) historic buyer-supplier relationships​ 
D) number of suppliers 
E) supplier quality performance

Question 5

All of the following are common signaling methods used in a kanban system except _____.

Accepted Answer

A) single-card systems 
B) color coding of containers 
C) designated storage spaces 
D) computerized bar coding systems 
E) verbal notifications 
A) single-card systems 
B) color coding of containers 
C) designated storage spaces 
D) computerized bar coding systems 
E) verbal notifications

Question 6

When firms produce goods in anticipation of future customer orders, they are operating in a just-in-time environment.

Accepted Answer

A) True 
 B)False

Question 7

Suppliers that cannot meet delivery schedules create delivery uncertainty.

Accepted Answer

A) True 
 B)False

Question 8

A major step toward eliminating delivery uncertainty is a commitment to stable release schedules with realistic (but not overly generous) supplier lead times.

Accepted Answer

A) True 
 B)False

Question 9

_____ of inventory refers to the amount of inventory that a firm owns at any given time.

Accepted Answer

A) Volume 
B) Velocity 
C) Value 
D) Vigor 
E) None of these answers. 
A) Volume 
B) Velocity 
C) Value 
D) Vigor 
E) None of these answers.

Question 10

Which of the following is a component of carrying cost?

Accepted Answer

A) Cost of capital. 
B) Cost of storage. 
C) Cost of obsolescence, deterioration, and loss. 
D) All of these answers. 
E) None of these answers. 
A) Cost of capital. 
B) Cost of storage. 
C) Cost of obsolescence, deterioration, and loss. 
D) All of these answers. 
E) None of these answers.

Question 11

It is harder to increase a material release by 10 percent or carry safety stock to cover supplier quality problems than to correct the root cause of a problem.

Accepted Answer

A) True 
 B)False

Question 12

Most inventory waste results from underlying problems that blue collar workers have failed to correct.

Accepted Answer

A) True 
 B)False

Question 13

Record integrity exists when the physical inventory on hand exceeds the electronic record on hand, regardless of the quantity of inventory.

Accepted Answer

A) True 
 B)False

Question 14

Which of the following is not one of the benefits of simplified designs?

Accepted Answer

A) Fewer suppliers. 
B) Increased number of manual transactions. 
C) Reduced transactions to support the inventory. 
D) Fewer part numbers. 
E) Lower inventory management costs. 
A) Fewer suppliers. 
B) Increased number of manual transactions. 
C) Reduced transactions to support the inventory. 
D) Fewer part numbers. 
E) Lower inventory management costs.

Question 15

Suppliers seldom offer quantity discounts to encourage larger orders from purchasers.

Accepted Answer

A) True 
 B)False

Question 16

_____ inventory is in transit to a customer or is located throughout distribution channels.

Accepted Answer

A) Pipeline/in-transit 
B) MRO 
C) WIP 
D) Raw materials and semifinished items 
E) Just-in-time 
A) Pipeline/in-transit 
B) MRO 
C) WIP 
D) Raw materials and semifinished items 
E) Just-in-time

Question 17

A logical place to begin when managing inventory investment is to make sure there is agreement between physical and electronic inventory.

Accepted Answer

A) True 
 B)False

Question 18

Anything less than perfect quality leads to waste.

Accepted Answer

A) True 
 B)False

Question 19

The underlying emphases of lean - to eliminate all forms of uncertainty and waste - are relevant to all organizations, regardless of the specific planning and control tools that are used.

Accepted Answer

A) True 
 B)False

Question 20

It is often difficult to quantify the total costs associated with ordering and carrying physical inventory.

Accepted Answer

A) True 
 B)False

When firms produce goods in anticipation of future customer order, they are operating in a/an _____ environment.

A higher-than-anticipated level of finished-goods inventory may mean that an increase in customer demand is occurring.

_____ of inventory refers to how quickly raw material and work-in-process inventory transform into finished goods that the customer accepts.

All of the following are important barriers to lean supply except _____.

All of the following are common signaling methods used in a kanban system except _____.

When firms produce goods in anticipation of future customer orders, they are operating in a just-in-time environment.

Suppliers that cannot meet delivery schedules create delivery uncertainty.

A major step toward eliminating delivery uncertainty is a commitment to stable release schedules with realistic (but not overly generous) supplier lead times.

_____ of inventory refers to the amount of inventory that a firm owns at any given time.

Which of the following is a component of carrying cost?

It is harder to increase a material release by 10 percent or carry safety stock to cover supplier quality problems than to correct the root cause of a problem.

Most inventory waste results from underlying problems that blue collar workers have failed to correct.

Record integrity exists when the physical inventory on hand exceeds the electronic record on hand, regardless of the quantity of inventory.

Which of the following is not one of the benefits of simplified designs?

Suppliers seldom offer quantity discounts to encourage larger orders from purchasers.

_____ inventory is in transit to a customer or is located throughout distribution channels.

A logical place to begin when managing inventory investment is to make sure there is agreement between physical and electronic inventory.

Anything less than perfect quality leads to waste.

The underlying emphases of lean - to eliminate all forms of uncertainty and waste - are relevant to all organizations, regardless of the specific planning and control tools that are used.

It is often difficult to quantify the total costs associated with ordering and carrying physical inventory.

Introduction to Purchasing and Supply Chain Management

The Purchasing Process

Purchasing Policies and Procedures

Supply Management Integration for Competitive Advantage

Purchasing and Supply Management Organization

Supply Management and Commodity Strategy Development

Supplier Evaluation and Selection

Supplier Quality Management

Supplier Management and Development: Creating a World-Class Supply Base

Worldwide Sourcing

Strategic Cost Management

Purchasing and Supply Chain Analysis: Tools and Techniques

Negotiation and Conflict Management

Contract Management

Purchasing Law and Ethics

Purchasing Services

Supply Chain Information Systems and Electronic Sourcing

Performance Measurement and Evaluation

Purchasing and Supply Strategy Trends

Filters

Exam 16: Lean Supply Chain Management

When firms produce goods in anticipation of future customer order, they are operating in a/an _____ environment.

A higher-than-anticipated level of finished-goods inventory may mean that an increase in customer demand is occurring.

_____ of inventory refers to how quickly raw material and work-in-process inventory transform into finished goods that the customer accepts.

All of the following are important barriers to lean supply except _____.

All of the following are common signaling methods used in a kanban system except _____.

When firms produce goods in anticipation of future customer orders, they are operating in a just-in-time environment.

Suppliers that cannot meet delivery schedules create delivery uncertainty.

A major step toward eliminating delivery uncertainty is a commitment to stable release schedules with realistic (but not overly generous) supplier lead times.

_____ of inventory refers to the amount of inventory that a firm owns at any given time.

Which of the following is a component of carrying cost?

It is harder to increase a material release by 10 percent or carry safety stock to cover supplier quality problems than to correct the root cause of a problem.

Most inventory waste results from underlying problems that blue collar workers have failed to correct.

Record integrity exists when the physical inventory on hand exceeds the electronic record on hand, regardless of the quantity of inventory.

Which of the following is not one of the benefits of simplified designs?

Suppliers seldom offer quantity discounts to encourage larger orders from purchasers.

_____ inventory is in transit to a customer or is located throughout distribution channels.

A logical place to begin when managing inventory investment is to make sure there is agreement between physical and electronic inventory.

Anything less than perfect quality leads to waste.

The underlying emphases of lean - to eliminate all forms of uncertainty and waste - are relevant to all organizations, regardless of the specific planning and control tools that are used.

It is often difficult to quantify the total costs associated with ordering and carrying physical inventory.

Introduction to Purchasing and Supply Chain Management

The Purchasing Process

Purchasing Policies and Procedures

Supply Management Integration for Competitive Advantage

Purchasing and Supply Management Organization

Supply Management and Commodity Strategy Development

Supplier Evaluation and Selection

Supplier Quality Management

Supplier Management and Development: Creating a World-Class Supply Base

Worldwide Sourcing

Strategic Cost Management

Purchasing and Supply Chain Analysis: Tools and Techniques

Negotiation and Conflict Management

Contract Management

Purchasing Law and Ethics

Purchasing Services

Supply Chain Information Systems and Electronic Sourcing

Performance Measurement and Evaluation

Purchasing and Supply Strategy Trends

Filters