2026 ||ACCURATE EXAM APPROVED QUESTIONS
AND CORRECT DETAILED ANSWERS WITH
RATIONALES (CORRECT VERIFIED SOLUTIONS)
CURRENTLY UPDATED VERSION 2026 EDITION
|GUARANTE
Another tool used with VMI is consignment inventory, where
the customer does not pay until the inventory is used, whether in
production or delivered to their customers. It reduces the
suppliers cost a bit, the customer benefits most primarily in a
reduction in the cash-to-cash cycle time, however there is no
savings due to the reduced
inventory and the current inventory at the customer location still
incurs carrying cost and included in the cost that the customer
pays the
supplier
All production generally starts with
a production order
Every parent item in the BOM will have its
own work order and any number of production orders may be
created before goods go into inventory
Role of the production order
Authorize production
Provide instructions
Track progress through the
plant Report materials usage
Completion of the order
,Order creation
the production order and tells people what to start doing
Lifecycle of a production order
- Order creation
- Component and machine availability check
- order releae
- download and print order on floor
- stage and reserve material
- comfirmation
- WIP
- quality checks
- good receipt
- deviation determinations
- order settlement
- move to next stage of production or DC
The component and machine availability checks ensure
you have enough materials and machine capacity to run the order
before putting it out on the shop
With material staging/reserving,
Staging should only be for a short time because you don't
release it unless you have all of the parts needed
In lean organizations, many of these steps have been __ and most
manual transaction reporting has been __
automated, eliminated
, Manufacturing Facility Layout Strategies is
how you arrange your equipment and tradeoff between efficiency
and responsiveness
Manufacturing Facility Layout Strategies
Process, Product, of Fixed
Product focused facility layout
Lower cost efficiency but lose flexibility
Process focused facilities
High flexible but have many set ups, company order placement
costs, and long lead times
Job Shop
low volume of any single items and no standardization, which
lines up with the jumbled flow job shop process.
, Example of a job shop
custom made furniture or cars, commercial printers
Disconnected line flow (batch)
Large variety of products but there are multiples of each, giving us
the opportunity to batch units into a single production order.
Both job shops and batch production use a
process layout: material moves from work center to work center
as it moves through the required processes
Connected line flow (assembly line)
Required processing where we use flow or assembly lines to make a
small number of product with high volume of each such as
automobiles