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