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60 Cards in this Set

  • Front
  • Back
The push method of material flow is where customer demand activates production of an item.
False
One of the numerous benefits of using small lot sizes for inventory replenishment is in reducing lead times.
True
The JIT philisophy is to look for ways to improve efficiency and reduce inventories throughout the supply chain.
True
One of the key provisions for continuous improvement is to maintain high levels of inventory to insure continuous production.
False
In a Kanban system, an activity cannot be performed unless a withdrawl or production card is used.
True
The number of containers flowing between two work stations does not affect the quantities of in-process or safety stock inventories.
False
The concept of using in-plant supplier's representative's on site, is a part time individual at the buyer's expense.
False
Flow JIT strategy involves a focus of machines and manpower organized around product flows and arranged to conform to the sequence of work operations.
True
For JIT implementation, one of the organizational considerations are to allow for frequent adjustments to the daily production schedules.
False
The manufacturing environment of a firm can only improve if they work on the basic foundation of ROP, MRP, and/or JOT systems.
True
The use of MRP systems will enable businesses to reduce inventory levels, improve utilization of labor and facilities, and improve customer service.
True
The master production schedule is a record of all components of an item, show parent-component relationships, and identify the usage quantities.
False
An intermediate item typically is the final product sold to the customer, it is a parent, but not a component.
False
The inventory record time phased information consists of gross requirements, scheduled receipts, projected on hand inventory, planned receipts, and planned order releases.
True
A planned order release indicates when an order for a specific quantity of an item ordered but not yet completed.
False
Net requirements are the total demand derived from all parent production plans.
False
Lot-for-lot rule maintains the same order quantity each time an order is issued.
False
Safety stock policy is for end items and purchased items to protect against fluctuating customer orders, and unreliable suppliers of materials.
True
Capacity requirements planning is a technique for projecting time-phased capacity requirements, for workstations in order to match material requirements planning with the plant's production capacity.
True
Manufacturing resource planning ties the basic material requirements planning system to the company's financial system.
True
Anticipation inventory protects against uncertainties in demand, lead time, and supply levels.
False
Cycle counting is where a small percentage of the total items are counted each day, and correcting errors found.
True
Economic Order Quantity (EOQ) is a technique to balance inventory, which is the lot size that minimizes total annual, inventory holding and order costs.
True
A standard is an item made to order, or if purchased, is then brought to order.
False
A continuous review system tracks the remaining inventory of an item each time an issue occurs to determine whether it is time to reorder.
True
When the inventory position reaches a predetermined minimum level, a fixed quantity is ordered this is called economic order quantity.
False
The desired probability of not running out of stock in any one inventory cycle is called the reorder point.
False
The reorder point is calculated as the average demand during lead-time, plus safety stock.
True
An inventory control system in which an item's inventory position is reviewed periodically rather than continuously is called a EOQ system.
False
The two bin system issues a replenishment order for the same quantity of the item that was issued.
False
A production plan is a prediction of future events used for planning purposes.
False
The repeated observations of demand for a product or service in their order of occurrence, form a pattern know as a Coincident indicator.
False
Demand management is the process of influencing the timing and value of demand or adapting to the undesirable effects of unchangeable demand patterns.
True
Forecast time horizons for short term is 0-3 months, for medium term is >3 months & <2 years, and for long term is >2 years.
True
A disadvantage of sales forecasts is that it does not allow for combining all of the sales force numbers to identify regional or national numbers.
False
Market research allows for excellent forecast accuracy for short term, medium term, and as well as for long term periods.
False
The Delphi method is a process of gaining consensus from a group of experts while maintaining their anonymity.
True
In linear regression, one variable, called independent variable, is related to one or more dependent variables by linear equation.
False
The naive forecast is one where the forecast for the next period equals the demand for the current period.
True
Forecast errors classified as Bias errors, are the result of consistent mistakes in that the forecast is always too high, or always too low.
True
Raw materials consists of items such as components and assemblies needed for a final product in manufacturing.
False
Backward integration is a business technique in gaining control by buying controlling interest in the firm's major suppliers.
True
Internal supply chain is the management of the acquisition process, which includes deciding which supplier to use, negotiating contracts, and deciding whether to buy locally.
False
Cooperative orientation to supplier relations, views negotiations between buyer and seller as a zero-sum game, one side gains, the other loses.
False
A special case of cooperative origination is outsourcing, which sometimes is called the make-or-buy decision, where a number of activities corner under the direct control of the firm.
False
Distribution is the management of the flow of materials from manufacturers to customers and from warehouses to retailers.
True
Forward placement means holding inventory at the manufacturing plant, closer to the source of materials.
False
Weeks of supply is an inventory measure obtained by dividing the average aggregate inventory value by sales per week at cost.
True
Responsive supply chains is to coordinate the flow of materials and service so as to minimize inventories and maximize the efficiency of manufacturers.
False
External supply chain disruption include: value changes, late deliveries, under filled shipments, and product mix changes.
True
Work force scheduling is a method to assign jobs to machines, or workers to jobs.
False
Efficiency is calculated by adding the productive work times of machines or workers and dividing by total available work time.
False
Priority rules can be used to schedule jobs. the rule first come, first served, is where the first job that arrives at the workstation has top priority.
True
Single dimension rules are based on job arrival time, due dates, or procesing times.
True
Priority sequencing rules of critical ratio shows a ratio where >1.0 is ahead of schedule, and <1.0 is behind schedule.
True
Shortest processing time rule is a favorite priority rule for those firms who are sensitive due to date changes.
False
In a labor limited environment, one of the labor assignment rules are assigning personnel to the workstation having the most jobs waiting for processing.
True
Reservation system is where customers are assigned specific times for service.
False
A work force scheduling technique of a fixed schedule, is where the employee rotates through a series of workdays or hours.
False
One key in staffing for a 7-day a week operation is identify two consecutive days off which minimizes slack time.
True