BCOR 3050 Exam 2 Questions with Correct Answers Graded A+
Quality - Answers The extent to which the product or service meets or exceeds the expectations
of the customer
Internal Customer - Answers Recipient of anothers work within an organization.
External Customer - Answers Customers outside the organization between the organization and
the consumer
Demings Chain Reaction - Answers Improve quality --> Decrease costs --> Productivity improves
--> Capture market with better qaulity and price --> Stay in business --> Provide jobs
Total Quality Management - Answers Prevention based management system for identifying and
meeting customer needs at every level of the organization
Characteristics of Product Quality - Answers Performance, Features, Reliability, Conformance,
Durability, Serviceability, Aesthetics, Perceived Quality
SIPOC - Answers Suppliers, Inputs, Process, Outputs, Customers
DMAIC - Answers Define, Measure, Analyze, Improve, Control
Six Sigma - Answers Popularized by Jack Welch at Motorola, it indicates that the mean is six
standard deviations away from the nearest customer imposed limits
series system - Answers If one component fails, the entire system fails
parallel system - Answers uses redundancy, the system will successfully operate as long as one
component functions
Objective of an inventory system - Answers When items should be ordered, what quantity to
order them in
bullwhip effect - Answers When the decisions of one part of the supply chain ripple through the
entire system.
Reasons to Carry Inventory - Answers Set-up and ordering costs • Customer service and
variation in demand • Labor and equipment utilization • Transportation cost • Costs of
materials/quantity discounts
Reasons to Reduce Inventory - Answers • Storage and Handling
• Interest and opportunity cost
• Property taxes and insurance premiums
• Shrinkage and spoilage
, Cycle Inventory - Answers a quantity of inventory that varies in proportion to order quantity
Safety Stock Inventory - Answers surplus inventory that a company holds to protect against
uncertainties in demand, lead time, and supply
Anticipation Inventory - Answers inventory built in anticipation of future demand
Pipeline Inventory - Answers inventory that is in the process of moving from one location in the
supply chain to another
work in process inventory - Answers goods that are partway through the manufacturing process
but not yet complete
Remanufactured/reconditioned inventory - Answers products that have been used by a
customer and then reacquired by a company and either remanufactured or reconditioned for
resale
Continuous review system - Answers An inventory system used to manage independent
demand inventory. The inventory level for an item is constantly monitored, and when the reorder
point is reached, an order is released.
Periodic review system - Answers an inventory system that has a fixed time between orders but
has different order quantities from order to order
Economic order quantity - Answers the order quantity that minimizes the total annual cost of
ordering and holding inventory for a particular item
Lead time - Answers time between when an order is placed and when it is expected to arrive
Enterprise Resource Planning - Answers integrated information system that supports most
enterprise processes and data storage needs across the entire organization
Electronic data interchange - Answers allows companies or units within a company to exchange
orders, forecasts, and invoices electronically without human intervention to enter data into the
receiving system
ABC Systems - Answers Inventory systems that utilize some measure of importance to classify
inventory items and allocate control efforts accordingly
Bin System - Answers a type of inventory system that uses either one or two bins to hold a
quantity of the item being inventoried; an order is placed when one of two bins is empty or a line
on a single bin is reached.
Can system - Answers reviews the inventory position at fixed time intervals and places orders to
bring the inventory up to an expected target level, but only if the inventory position is below a
minimum quantity
Quality - Answers The extent to which the product or service meets or exceeds the expectations
of the customer
Internal Customer - Answers Recipient of anothers work within an organization.
External Customer - Answers Customers outside the organization between the organization and
the consumer
Demings Chain Reaction - Answers Improve quality --> Decrease costs --> Productivity improves
--> Capture market with better qaulity and price --> Stay in business --> Provide jobs
Total Quality Management - Answers Prevention based management system for identifying and
meeting customer needs at every level of the organization
Characteristics of Product Quality - Answers Performance, Features, Reliability, Conformance,
Durability, Serviceability, Aesthetics, Perceived Quality
SIPOC - Answers Suppliers, Inputs, Process, Outputs, Customers
DMAIC - Answers Define, Measure, Analyze, Improve, Control
Six Sigma - Answers Popularized by Jack Welch at Motorola, it indicates that the mean is six
standard deviations away from the nearest customer imposed limits
series system - Answers If one component fails, the entire system fails
parallel system - Answers uses redundancy, the system will successfully operate as long as one
component functions
Objective of an inventory system - Answers When items should be ordered, what quantity to
order them in
bullwhip effect - Answers When the decisions of one part of the supply chain ripple through the
entire system.
Reasons to Carry Inventory - Answers Set-up and ordering costs • Customer service and
variation in demand • Labor and equipment utilization • Transportation cost • Costs of
materials/quantity discounts
Reasons to Reduce Inventory - Answers • Storage and Handling
• Interest and opportunity cost
• Property taxes and insurance premiums
• Shrinkage and spoilage
, Cycle Inventory - Answers a quantity of inventory that varies in proportion to order quantity
Safety Stock Inventory - Answers surplus inventory that a company holds to protect against
uncertainties in demand, lead time, and supply
Anticipation Inventory - Answers inventory built in anticipation of future demand
Pipeline Inventory - Answers inventory that is in the process of moving from one location in the
supply chain to another
work in process inventory - Answers goods that are partway through the manufacturing process
but not yet complete
Remanufactured/reconditioned inventory - Answers products that have been used by a
customer and then reacquired by a company and either remanufactured or reconditioned for
resale
Continuous review system - Answers An inventory system used to manage independent
demand inventory. The inventory level for an item is constantly monitored, and when the reorder
point is reached, an order is released.
Periodic review system - Answers an inventory system that has a fixed time between orders but
has different order quantities from order to order
Economic order quantity - Answers the order quantity that minimizes the total annual cost of
ordering and holding inventory for a particular item
Lead time - Answers time between when an order is placed and when it is expected to arrive
Enterprise Resource Planning - Answers integrated information system that supports most
enterprise processes and data storage needs across the entire organization
Electronic data interchange - Answers allows companies or units within a company to exchange
orders, forecasts, and invoices electronically without human intervention to enter data into the
receiving system
ABC Systems - Answers Inventory systems that utilize some measure of importance to classify
inventory items and allocate control efforts accordingly
Bin System - Answers a type of inventory system that uses either one or two bins to hold a
quantity of the item being inventoried; an order is placed when one of two bins is empty or a line
on a single bin is reached.
Can system - Answers reviews the inventory position at fixed time intervals and places orders to
bring the inventory up to an expected target level, but only if the inventory position is below a
minimum quantity
