Guide Questions with Accurate
Answers
4 Types of Demand correct answer o Peak
o Seasonal
o Unexpected
o Chase
6 Types of Inventory correct answer o Raw Materials
o Work In Progress
o Finished Goods
o Replacement Parts Inventory
o Supplies
o Transportation
ABC analysis correct answer Has been developed to determine which inventory
items should receive the highest level of control. By multiplying the dollar value of
each item by its annual usage, a dollar usage value can be obtained. Dollar usage
follows the Pareto Principle in that frequently, only 20% of all the items account
for 80% of the total dollar usage, while the remaining items frequently account
for only 20% of the dollar usage. This principle leads to the _____ classification,
which is based on focusing efforts where the payoff is highest
Actual Output correct answer Total amount produced during a given time period.
,Adjustment correct answer Adds or reduce capacity in small or large amounts as
consumer demand changes; triggered by major changes to process or system
Aesthetics correct answer How a product looks, feels, sounds, tastes, or smells.
Aggregate planning correct answer Combining of individual end items into groups
or families of parts for planning purposes.
Agile correct answer The use of responsiveness, competency, flexibility, and
quickness to manage how well a supply chain entity operates on a daily basis.
Suitable for innovative products like cell phones and computers.
Focus: Speed and flexibility.
For products with short lifespan and unpredictable demand.
Assembly Line correct answer Process selection most appropriate to produce high
volume with little to no variation.
Uses product facility layout (i.e. car manufacture)
Assurance correct answer Knowledge and courtesy of employees and their ability
to convey trust and confidence.
, Backward Vertical Integration correct answer When a company owns the supplier
or supply process in the supply chain.
Batch Flow correct answer Process selection most appropriate to produce high
volume with some variation.
Uses product facility layout: requires equipment or tool changes
Benchmarking correct answer Process by which a company compares its
performance to the performance of other companies.
Bill of materials (BOM) correct answer Lists the materials needed and the
quantities of each.
Bottleneck correct answer The most limiting constraint on the system
Buildup Method correct answer Starting at the bottom of the organization and
working to the top to solicit info to determine forecast
Capacity correct answer A measure of an organization's ability to sustainably
provide customers with the demanded services or goods in the amount requested
and in a timely manner, given current resources. Capacity also describes an
organization's maximum sustainable rate of production.
Capacity planning correct answer Needed to support customer demand and
maintain production capacity as demands for products change