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NEW QUESTION 1
Which of the following concepts could a firm implement to reduce defects?
- A. Hansei
- B. Jidoka
- C. Muri
- D. Heijunka
Answer: B
NEW QUESTION 2
Which of the following types of layouts is most efficient in a lean production environment?
- A. Islands
- B. Connected islands
- C. Functional layout
- D. Cells
Answer: D
NEW QUESTION 3
Consignment stock is typically owned by:
- A. a supplier until consumed.
- B. the company who will consume the stock.
- C. a joint trust set up for this purpose.
- D. the carrier who transports the stock.
Answer: A
NEW QUESTION 4
Which of the following situations requires the largest amount of safety stock based on demand variability and replenishment lead time?
- A. Low variability, short replenishment lead time.
- B. Low variability, long replenishment lead time.
- C. High variability, short replenishment lead time.
- D. High variability, long replenishment lead time.
Answer: D
NEW QUESTION 5
Which of the following capacity management techniques is used to support the production plan?
- A. Resource planning
- B. Capacity requirements planning
- C. Rough-cut capacity planning
- D. Input/output control
Answer: A
NEW QUESTION 6
Which of the following activities positions goods or services closer to the customer?
- A. Distribution
- B. Manufacturing
- C. Materials handling
- D. Transportation
Answer: A
NEW QUESTION 7
Which of the following terms refers to the practice of stopping the production line when a defect occurs?
- A. Haiku
- B. Arigato
- C. Poka-yoke
- D. Jidoka
Answer: D
NEW QUESTION 8
Which of the following issues would be of greatest concern for a company choosing to reduce its finished goods inventory?
- A. Long production changeover time
- B. Customer service expectations
- C. Product quality requirements
- D. Product shelf life constraints
Answer: B
NEW QUESTION 9
Inventory turns is an appropriate performance measure for which of the following functions?
- A. Material control
- B. Activity-based costing control
- C. Total quality management
- D. Flexible manufacturing
Answer: A
NEW QUESTION 10
Backward scheduling begins with which of the following dates?
- A. Order receipt
- B. Order due
- C. Component availability
- D. Supplier delivery
Answer: B
NEW QUESTION 11
Vendor-managed inventory is most appropriate for which of the following types of products?
- A. Critical components with high value
- B. Standard design products with low value
- C. Long lead-time components with medium value
- D. Complex design products with low value
Answer: B
NEW QUESTION 12
An extreme change in demand in the supply position upstream generated by a small change in demand downstream in the supply chain is called the:
- A. efficiency variance.
- B. bullwhip effect.
- C. estimate of error.
- D. stockout probability.
Answer: B
NEW QUESTION 13
Which of the following items is considered an external failure cost?
- A. Warranty cost
- B. Incoming inspection
- C. Prevention cost
- D. Appraisal cost
Answer: A
NEW QUESTION 14
A product has a forecast of 200 units a month. The actual demand for the past 6 months has been 195, 210, 205, 190, 220, and 225. Calculate the tracking signal for this product's forecast.
- A. 6
- B. 7.5
- C. 45
- D. 75
Answer: A
NEW QUESTION 15
Material requirements planning requires which of the following files to plan requirements?
- A. Standard cost
- B. Bill of materials
- C. Routing
- D. Work center
Answer: B
NEW QUESTION 16
Which of the following measures should a company focus on to reduce variation in the product?
- A. Mode
- B. Mean
- C. Median
- D. Standard deviation
Answer: D
NEW QUESTION 17
Which method of record audit is concerned with the total value of inventory?
- A. Weight counts
- B. Cycle counts
- C. Physical inventory
- D. Sampling records
Answer: C
NEW QUESTION 18
Having bolts and tools at the point of use on the automobile assembly line eliminates the waste of :
- A. waiting.
- B. overproduction.
- C. making defects.
- D. stocks.
Answer: A
NEW QUESTION 19
An appropriate reason to carry safety stock is to protect against:
- A. demand fluctuations before the order point is reached.
- B. demand fluctuations after the order point is reached.
- C. price fluctuations before the order point is reached.
- D. price fluctuations after the order point is reached.
Answer: B
NEW QUESTION 20
Which of the following is a graphical representation of a frequency distribution?
- A. Cause-and-effect diagram
- B. Pareto analysis
- C. Scatter diagram
- D. Histogram
Answer: D
NEW QUESTION 21
When demand is uncertain, what is the most appropriate action to take?
- A. Recalculate safety stock
- B. Increase order quantity
- C. Change method of transportation
- D. Increase number of warehouses for distribution
Answer: A
NEW QUESTION 22
A company's cost of goods sold would be found on which of the following financial documents?
- A. Balance sheet
- B. Income statement
- C. Cash flow statement
- D. Performance statement
Answer: B
NEW QUESTION 23
The final purchasing steps in order completion are:
- A. receipt of goods and approval of invoice.
- B. selecting suppliers and receipt of goods.
- C. requesting quotations and approval of invoice.
- D. selecting suppliers, follow-up, and delivery.
Answer: A
NEW QUESTION 24
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