TEST BANK For Operations and Supply Chain Management,
10th Edition, by Russell and Taylor's Verified Chapters 1 - 17,
Complete Newest Version
What is operations management? - ANSWER: The management of systems or
processes that create goods and/or provide services
What is the main goal in operations management? - ANSWER: Maximize efficiency
while adding value to the customer
How is the main goal of operations management achieved? - ANSWER: The
transformation models process
What is inventory? - ANSWER: A list of items a company owns that will be sold or
used in the production process
Replacement Parts Inventory - ANSWER: Inventory used to maintain machinery.Also
called maintenance and repairs (MRO) inventory.
Supples - ANSWER: Items used in production but not considered part of the final
product
Safetystock - ANSWER: Extra inventory to prevent a stockout
Stockout - ANSWER: When Inventory is depleted
Why do companies want to avoid a stockout? - ANSWER: - customer shop at
competitions
Why don't companies order enough so they don't run out? - ANSWER: Companies
don't want there cash tied on shelves when the money can be used elsewhere
Perishables - ANSWER: The shelf life of the inventory.
What are the different types of inventory? - ANSWER: Raw materials,
Work In Process,
Finished Goods,
Replacement parts or MRO
Supplies,
Transportation Pipeline, &
Safety stock
What are two of the inventory control strategies? - ANSWER: Ordering costs &
Carrying Costs
, Ordering Costs - ANSWER: All costs incurred to acquire the products or material
Carrying costs - ANSWER: All costs incurred to store or hold inventory
What are the two common inventory control models? - ANSWER: ECONOMIC ORDER
QUALITY (EOQ)
ECONOMIC PRODUCTION QUALITY (EPQ)
EOQ is use for? - ANSWER: Finished goods
EPQ is used for? - ANSWER: Raw Materials or production
EOQ Qualities - ANSWER: - one product involved
- annual demand requirements are known.
- demand rate constant
- lead time doesn't vary
- each order received in single delivery.
- no quantity discounts
EPQ Qualities - ANSWER: - one product involved
- demand is known
- constant usage rule
- production rate is constant
- lead time does not vary
- there are no quantity discounts
Lead time - ANSWER: Amount of time it takes for the customer to receive the
product
Quantity Discount Model - ANSWER: Price reduction for larger orders offered to
customers to induce them to buy in large quantities
reorder point - ANSWER: The inventory level that signals the need to place a new
order
ABC analysis - ANSWER: An inventory categorization technique often used in
material management wherein accuracy and control decreases from a to c.
Pareto Principle - ANSWER: roughly 80% of the effects come from 20% of the causes
vendor managed inventory - ANSWER: an inventory management system where the
supplier (vendor) manages the inventory for the customer and distributor
Just In Time Inventory: - ANSWER: A production strategy that strivers to reduce in
process inventory and carrying costs in a manufacturing system by receiving
inventory just in time for use
10th Edition, by Russell and Taylor's Verified Chapters 1 - 17,
Complete Newest Version
What is operations management? - ANSWER: The management of systems or
processes that create goods and/or provide services
What is the main goal in operations management? - ANSWER: Maximize efficiency
while adding value to the customer
How is the main goal of operations management achieved? - ANSWER: The
transformation models process
What is inventory? - ANSWER: A list of items a company owns that will be sold or
used in the production process
Replacement Parts Inventory - ANSWER: Inventory used to maintain machinery.Also
called maintenance and repairs (MRO) inventory.
Supples - ANSWER: Items used in production but not considered part of the final
product
Safetystock - ANSWER: Extra inventory to prevent a stockout
Stockout - ANSWER: When Inventory is depleted
Why do companies want to avoid a stockout? - ANSWER: - customer shop at
competitions
Why don't companies order enough so they don't run out? - ANSWER: Companies
don't want there cash tied on shelves when the money can be used elsewhere
Perishables - ANSWER: The shelf life of the inventory.
What are the different types of inventory? - ANSWER: Raw materials,
Work In Process,
Finished Goods,
Replacement parts or MRO
Supplies,
Transportation Pipeline, &
Safety stock
What are two of the inventory control strategies? - ANSWER: Ordering costs &
Carrying Costs
, Ordering Costs - ANSWER: All costs incurred to acquire the products or material
Carrying costs - ANSWER: All costs incurred to store or hold inventory
What are the two common inventory control models? - ANSWER: ECONOMIC ORDER
QUALITY (EOQ)
ECONOMIC PRODUCTION QUALITY (EPQ)
EOQ is use for? - ANSWER: Finished goods
EPQ is used for? - ANSWER: Raw Materials or production
EOQ Qualities - ANSWER: - one product involved
- annual demand requirements are known.
- demand rate constant
- lead time doesn't vary
- each order received in single delivery.
- no quantity discounts
EPQ Qualities - ANSWER: - one product involved
- demand is known
- constant usage rule
- production rate is constant
- lead time does not vary
- there are no quantity discounts
Lead time - ANSWER: Amount of time it takes for the customer to receive the
product
Quantity Discount Model - ANSWER: Price reduction for larger orders offered to
customers to induce them to buy in large quantities
reorder point - ANSWER: The inventory level that signals the need to place a new
order
ABC analysis - ANSWER: An inventory categorization technique often used in
material management wherein accuracy and control decreases from a to c.
Pareto Principle - ANSWER: roughly 80% of the effects come from 20% of the causes
vendor managed inventory - ANSWER: an inventory management system where the
supplier (vendor) manages the inventory for the customer and distributor
Just In Time Inventory: - ANSWER: A production strategy that strivers to reduce in
process inventory and carrying costs in a manufacturing system by receiving
inventory just in time for use
