MGT 227 Exam 3 Questions and Answers 100% Correct
21.2 Expected benefits - ✔✔Assemble-to-stock: High
Make-to-stock: Medium
Assemble-to-order: High
Make-to-order: Low
Engineer-to-order: High
Process: Medium
ABC inventory classification - ✔✔divides inventory into dollar volume categories
that map into strategies appropriate for the category
Aggregate operations plan - ✔✔A plan for labor and production for the
intermediate term with the objective to minimize the cost of resources needed
to meet demand.
Available to Promise - ✔✔A feature of MRP systems that identifies the
difference between the number of units currently included in the master
schedule and the actual (firm) customer orders.
Backorder costs - ✔✔Costs incurred by a business when it is unable to
immediately fill an order and promises the customer that it will be completed
with a later delivery date
Bill of materials - ✔✔a comprehensive list of parts, items, assemblies,
subassemblies, intermediate assemblies, documents, drawings, and other
materials required to create a product
, Bullwhip effect - ✔✔The variability in demand is magnified as we move from
the customer to the producer in the supply chain.
Chase strategy - ✔✔a strategy that involves hiring and laying off employees to
match the demand forecast
constraint theory - ✔✔a problem-solving methodology to help you identify the
most important bottleneck or limiting factor standing in the way of your project
objectives and goals.
Cycle counting - ✔✔a physical inventory-taking technique in which inventory is
counted on a frequent basis rather than once or twice a year
Decoupling point - ✔✔the boundary between make-to-order (MTO) and make-
to-stock (MTS)
Dependent demand - ✔✔the demand for an item that is directly linked to the
demand for another item or items
Dollar days - ✔✔a measurement of the value of inventory and the time it stays
within an area
Drum-Buffer-Rope - ✔✔a planning and control system that regulates the flow of
work-in-process materials at the bottleneck or the capacity constrained
resource in a productive system
EOQ - ✔✔Economic Order Quantity
21.2 Expected benefits - ✔✔Assemble-to-stock: High
Make-to-stock: Medium
Assemble-to-order: High
Make-to-order: Low
Engineer-to-order: High
Process: Medium
ABC inventory classification - ✔✔divides inventory into dollar volume categories
that map into strategies appropriate for the category
Aggregate operations plan - ✔✔A plan for labor and production for the
intermediate term with the objective to minimize the cost of resources needed
to meet demand.
Available to Promise - ✔✔A feature of MRP systems that identifies the
difference between the number of units currently included in the master
schedule and the actual (firm) customer orders.
Backorder costs - ✔✔Costs incurred by a business when it is unable to
immediately fill an order and promises the customer that it will be completed
with a later delivery date
Bill of materials - ✔✔a comprehensive list of parts, items, assemblies,
subassemblies, intermediate assemblies, documents, drawings, and other
materials required to create a product
, Bullwhip effect - ✔✔The variability in demand is magnified as we move from
the customer to the producer in the supply chain.
Chase strategy - ✔✔a strategy that involves hiring and laying off employees to
match the demand forecast
constraint theory - ✔✔a problem-solving methodology to help you identify the
most important bottleneck or limiting factor standing in the way of your project
objectives and goals.
Cycle counting - ✔✔a physical inventory-taking technique in which inventory is
counted on a frequent basis rather than once or twice a year
Decoupling point - ✔✔the boundary between make-to-order (MTO) and make-
to-stock (MTS)
Dependent demand - ✔✔the demand for an item that is directly linked to the
demand for another item or items
Dollar days - ✔✔a measurement of the value of inventory and the time it stays
within an area
Drum-Buffer-Rope - ✔✔a planning and control system that regulates the flow of
work-in-process materials at the bottleneck or the capacity constrained
resource in a productive system
EOQ - ✔✔Economic Order Quantity
