9 – 16 WITH COMPLETE QUESTIONS
AND ANSWERS (GRADED A+)
Purchase Order - ANSWER-Commercial document Issued by a buyer to a seller for
products or services
The purchase order indicates - ANSWER-Types
Quantities
Prices
Other terms and conditions
A PO is a - ANSWER-legal offer to buy products or services
A contract exists when the seller accepts the - ANSWER-PO
Electronic Data Interchange (EDI) - ANSWER-the computer-to-computer exchange of
business documents in a standard format. These include invoices, purchase orders,
payments, order status, etc
Benefits of EDI - ANSWER-- Minimize data entry time & eliminate redundant entry
- Save time and cost due to standardized process
- Reduce errors & paper consumption
- Improve quality and increase productivity
EDI is a special software that - ANSWER-translates such documents into and out of a
generic form
enablers buyers and sellers to exchange information regardless of any hardware and
software differences
EDI essentially is - ANSWER-Used to transfer business data from one computer system
to another computer system
EDI systems were created by the idea of - ANSWER-a paperless office and better
communication
EDIFACT = - ANSWER-electronic data interchange for administration, commerce, and
transport processes
EDI plays a role in global - ANSWER-financial systems
,UN EDIFACT - ANSWER-international EDI standards developed within the united
nations
First patent for a barcode product was issued in - ANSWER-1952
The barcodes we know didn't come around until ___ and the UPC, Universal product
code, invented in ___ is still in use today - ANSWER-1966, 1973
RFID - ANSWER-use of a wireless non contact system that uses radio frequency
electromagnetic fields from a tag attached to the object for the purpose of automatic
identification and tracking
RFID has - ANSWER-more features than a barcode, also move expensive, which is
why barcode is used more extensively
Technology in the supply chain has helped with - ANSWER-speed and accuracy
Vendor managed inventory with suppliers (supplier-facing VMI) enables you to -
ANSWER-share on-hand, supplies, and forecast information with suppliers, transfer
replenishment responsibility to suppliers, and automate replenishment processes
Collaborative planning uses VMI with suppliers to - ANSWER-automate the
replenishment process, lower inventory, improve supplier performance, and drive out
non-value added costs
You can provide suppliers necessary information to manage inventory they provide. -
ANSWER-VMI
Vendor managed inventory is integrated with the execution system to enable any
desired level of - ANSWER-automation in fulfillment
Another tool used with VMI is consignment inventory, where - ANSWER-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 - ANSWER-a production order
Every parent item in the BOM will have its - ANSWER-own work order and any number
of production orders may be created before goods go into inventory
Role of the production order - ANSWER-Authorize production
Provide instructions
Track progress through the plant
, Report materials usage
Completion of the order
Order creation - ANSWER-the production order and tells people what to start doing
Lifecycle of a production order - ANSWER-- 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
Both continuous flow and connected line flow use - ANSWER-product layout where
equipment is dedicated to a specific product line
Usually refers to process industries where people and mixing and blending things such
as foods, paints, and chemicals
These do not take on an identifiable shape or SKU until they are packaged - ANSWER-
Continuous flow
One of the most important aspects of planning is the sequencer box which - ANSWER-
Based on the assembly schedule, suppliers must stack material and the sequence
required at the point of use
Auto makers using ____ communicate with their tier 1 suppliers using broadcast
system. This tell suppliers the model sequence coming down the line. Suppliers must
then select and arrange their items in the assembly sequence - ANSWER-EDI
For a process layout - ANSWER-Facilities are organized around specific activities or
processes
The component and machine availability checks ensure - ANSWER-you have enough
materials and machine capacity to run the order before putting it out on the shop
With material staging/reserving, - ANSWER-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 __ - ANSWER-automated, eliminated