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14. The use of a computer graphics applications in product design is called _______.
Answer
Correct Answer:
Computer aided design (CAD)
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15. When discussing the TOC, the term _______ represents the work center that sets the pace for the entire facility.
Answer
Correct Answer:
Drum
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16. When discussing the TOC, _______ refers to the control or scheduling of work releases to the facility.
Answer
Correct Answer:
Rope
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17. What is another term used to describe material flow mapping?
Answer
Correct Answer:
All of the above
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18. Understanding the correct symbol to use to represent an action or activity in material flow mapping is essential. Which symbol is used to indicate a delay or storage?
Answer
Correct Answer:
Triangle
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19. Understanding the correct symbol to use to represent an action or activity in material flow mapping is essential. Which symbol is used to indicate the start or end of a process?
Answer
Correct Answer:
Rounded rectangle
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20. Understanding the correct symbol to use to represent an action or activity in material flow mapping is essential. Which symbol is used to indicate information flow?
Answer
Correct Answer:
Dashed arrow
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21. Work-in-Process is an item in some intermediate stage of processing by
Answer
Correct Answer:
The firm .
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22. These inventories are owned by the firm and are in-transit either in-bound to the firm or out-bound to the firm’s customers is known as ______ .
Answer
Correct Answer:
Transportation Inventories
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23. The sum of the annual inventory carrying costs, order costs, stockout costs, and purchase costs is known as _______ .
Answer
Correct Answer:
Total Annual Inventory Costs
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24. Target Inventory Level is the order-up-to level when using the periodic review model .
Answer
Correct Answer:
True
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25. Stockout Costs is encountered when the _______ for items cannot be met
Answer
Correct Answer:
Both a & b
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26. Service Level is the ______ of time the firm does not want to stockout during the order lead time period.
Answer
Correct Answer:
Percentage
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27. Safety Stocks are held to satisfy demand when delivery or production problems occur, or when demand is higher than expected .
Answer
Correct Answer:
True
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28. Robust model refers to the flatness of the ________ curve, which means the EOQ model can be used in a variety of situations.
Answer
Correct Answer:
Total inventory cost
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29. The inventory on-hand needed to satisfy demand during the order lead time period is known as _____ .
Answer
Correct Answer:
Reorder Point
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30. Quantity Discount Model used when the purchase price is allowed to vary—for instance, when quantity discounts are offered by a supplier Raw Materials.
Answer
Correct Answer:
True
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31. The actual cost of the items bought from suppliers is known as ______
Answer
Correct Answer:
Both a & b
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32. The actual cost of the items bought from suppliers is known as ______
Answer
Correct Answer:
Both a & b
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33. Which model assumes the purchase lead time to be constant; however, the time between orders would vary ?
Answer
Correct Answer:
Probabilistic Demand Reorder Point Model
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34. EOQ stands for _____ .
Answer
Correct Answer:
Economic order quantity
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35. Periodic review model requires ________ stock levels than the reorder point models.
Answer
Correct Answer:
Higher safety
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36. The time from order receipt to delivery to the customer is known as _______
Answer
Correct Answer:
Order Lead Time
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37. The administrative costs associated with purchasing items is known as _______ .
Answer
Correct Answer:
Order Costs
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38. Optimal review period used for the periodic review model.
Answer
Correct Answer:
True
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39. Maintenance, repair, and operating supplies is defined as purchased items consumed in-house or used to support _______ .
Answer
Correct Answer:
Both a & b
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40. ________ measures of how well companies are creating good customer service while keeping inventories low.
Answer
Correct Answer:
Inventory Management Performance
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41. Inventory Days of Supply is an inventory performance measure that tells management how long inventory is held before it is sold.
Answer
Correct Answer:
True
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42. The costs associated with storing inventories is known as ______ .
Answer
Correct Answer:
Inventory Carrying Costs
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43. Independent Demand is the external demand for a firm’s finished products
Answer
Correct Answer:
True
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44. Hedge inventories used when companies stockpile inventories to protect against ______ or supply shortages
Answer
Correct Answer:
Price increases
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45. Finished Goods completed products ready for delivery to ______ .
Answer
Correct Answer:
Customers
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46. The order quantity that will minimize the sum of the annual inventory holding cost and the annual order cost is known as ______ .
Answer
Correct Answer:
Economic Order Quantity
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47. Dependent demand required to build end-items and are dependent on the ________ of the finished product .
Answer
Correct Answer:
External demand
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48. An inventory performance measure that indicates the average number of days it takes a company to collect is known as _____ .
Answer
Correct Answer:
Days of Receivables Outstanding
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49. Days Payable Outstanding measure that tells about how long it takes a company to pay its creditors, such as suppliers .
Answer
Correct Answer:
True
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50. Cycle Inventories created when the firm _______ a quantity large enough to last until the next purchase or production period.
Answer
Correct Answer:
Both a & b
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51. Cash-to-Cash Cycle Time indicating how ______ is tied up in the main cash- producing and cash- consuming area .
Answer
Correct Answer:
Long cash
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52. Forecasts of demand combined with additions of safety stock that tend to amplify purchases from suppliers is known as _______ .
Answer
Correct Answer:
Bullwhip Effect
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53. Anticipation Inventories can be met ______ of expected high demand
Answer
Correct Answer:
During periods
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54. ABC Inventory Classification is an approach used to help companies manage their independent demand inventories.
Answer
Correct Answer:
True
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55. Transportation inventories transit in containers or trucks (also known as pipeline inventories)
Answer
Correct Answer:
True
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56. Single-echelon inventory systems
Answer
Correct Answer:
Stock-out costs
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57. In Smoothing inventories inventories held to smooth out fluctuations in production
Answer
Correct Answer:
True
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58. _______ is the System Ordering the entire inventory of a product at one time and it is not replenished
Answer
Correct Answer:
Single-period system
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59. ______ is a system in which each supply chain partner sequentially forecasts demand that invariably leads to the bullwhip effect
Answer
Correct Answer:
Single-echelon inventory systems
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60. Setup costs the costs of setting up the machines or changing over production from one item to another
Answer
Correct Answer:
True
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61. RFID stands for
Answer
Correct Answer:
Radio frequency identification
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62. Money paid to an upstream supplier for materials or goods purchased Is known as
Answer
Correct Answer:
Purchase costs
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63. Portfolio planning is a channel alignment strategy in which a company signs _______ with one or two suppliers
Answer
Correct Answer:
Long-term contracts
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64. _______ determining the real quantity of inventory that is physically available on a periodic basis
Answer
Correct Answer:
Physical count
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65. A system in which inventory is physically counted periodically and all reordering takes place at these intervals is known as
Answer
Correct Answer:
Periodic review systems
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66. ______ administrative costs related to determining an order quantity, preparing purchase invoices, inspecting goods received for quality and quantity, and moving goods for temporary storage
Answer
Correct Answer:
Ordering costs
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67. Order fulfillment lead time is the the average time it takes from the submission of a customer’s purchase order until the company delivers the order
Answer
Correct Answer:
Order fulfillment lead time
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68. A system in which optimum levels of inventory are determined and updated continuously across the supply chain network based on the demand variability is known as
Answer
Correct Answer:
Multi-echelon inventory systems
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69. Lost sales occur when a customer doesn’t buy an item if that item is not in stock
Answer
Correct Answer:
True
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70. ________ measure of how frequently a business sells its inventory in a given time period
Answer
Correct Answer:
Inventory turnover
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71. Holding costs associated with holding (carrying) inventory
Answer
Correct Answer:
True
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72. Which type of inventory is purchased in advance to guard against uncertainties in pricing?
Answer
Correct Answer:
Hedge inventory
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73. The percentage of customer orders that can be satisfied from inventory in stock is known as
Answer
Correct Answer:
Fill rate
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74. _______ is a process whereby an upstream supply chain member such as a manufacturer sells directly to the final consumer
Answer
Correct Answer:
Disintermediation
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75. Decoupling is a function that enables production to _____ while the production problem at a given process stage is resolved
Answer
Correct Answer:
Continue temporarily
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76. Define Days of inventory in stock.
Answer
Correct Answer:
The number of days of inventory a firm has on hand to meet its sales
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77. The inventory that a company carries to satisfy its normal cycle of sales orders or production requirements is known as
Answer
Correct Answer:
Cycle stock
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78. Counting a random sample or subset of inventory in stock in a particular location on a specific day. This statement is correct for
Answer
Correct Answer:
Cycle counting
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79. ______ a system in which inventory levels of every item in stock, including its quantity and availability, are monitored and updated continuously
Answer
Correct Answer:
Continuous review systems
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80. A specific set of professional behaviors and values including confidentiality, accuracy,that all company employees must know and strictly is known as
Answer
Correct Answer:
Code of ethics
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81. Why in Bullwhip effect supply chain in close proximity to the consumer (such as a retailer) to order more goods from the immediate upstream supplier to
Answer
Correct Answer:
Meet the demand
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82. Anticipation inventory is a customer order a company was unable to meet because the item demanded was not in stock
Answer
Correct Answer:
True
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83. Inventory held in excess of a firm’s cycle stock to meet the expected increase in demand is known as
Answer
Correct Answer:
Anticipation inventory
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84. Activity-based costing is a system that accounts for inventory cost and enables companies to recognize the excessive costs
Answer
Correct Answer:
True
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85. ________ sort items into A, B, and C categories according to criteria such as their unit costs, value, or the annual revenue they generate for a firm
Answer
Correct Answer:
ABC classification method
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