PostTest, Practice Exam 1 & Practice Exam 2 Questions And Answers 100% Solved

PostTest, Practice Exam 1 & Practice Exam 2 Questions And Answers 100% Solved What type of demand inventory ordering model includes fixed reorder cycles, fixed reorder quantities, optional replenishment, and hybrid models? Material requirements planning Kanban Drum-buffer-rope Independent - answerIndependent independent demand inventory ordering models include fixed reorder cycles, fixed reorder quantities, optional replenishment, and hybrid models, among others. Dependent demand inventory ordering models include material requirements planning, kanban, and drum-buffer- rope. In a bill of material, the path that adds up to the greatest number of lead time periods defines the: cumulative lead time. lead time offset. delivery lead time. demand lead time. - answercumulative lead time Cumulative lead time for an item consists of the longest lead time path for a given bill of material. Delivery and demand lead times are subsets of the cumulative lead time. The lead time offset is a technique used in MRP where a planned order receipt in one time period requires the release of that order in an earlier time period based on the lead time for the item. Which of the following statements is true when production lead time is increased? Work-in-process inventory will decrease. Work-in-process inventory may be insufficient. Work-in-process inventory will increase. Component inventory will increase. - answerWork-in-process inventory will increase. When production takes longer, the raw materials, components, and subassemblies will spend more time in work-in-process. The size of the component inventory and the necessary inventories needed in production are unaffected by an increase in product lead times. Which of the following statements is true of inventory when the final product design is continuously influenced by the customer? Large safety stocks must be maintained. Lot-size inventory increases to the finished goods level. Buffer inventory should be held closer to the raw material stage. Customer influence on the product design should not affect inventory levels. - answerBuffer inventory should be held closer to the raw material stage. Because the final configured item is often not determined until the actual customer order, leaving materials and components in an unfinished state significantly reduces stocked finished goods. The materials and components are then made- or assembled-to-order based on customer specifications. Increasing the lot-size inventory to the finished goods level will only build inventory as the company waits for a customer order with pre-designed configurations. Large safety stocks further increase the amount of finished goods maintained in inventory. Unless the customer requires only off-the-shelf products, the production and inventory functions must be flexible to build any customer configuration. With which of the following modes of transportation does the carrier typically have the highest fixed costs? Rail Air Road Water - answerRail In contrast to variable costs, fixed costs do not change with the volume of goods carried. Railways have large fixed costs, for example, tracks, terminals, and vehicles. Which financial document shows sources of revenue (sales in cash or as accounts receivable) followed by various types of expenses incurred throughout the period? General ledger Cash flow statement Income statement Balance statement - answerincome statement An income statement is a summary of management's performance as reflected in the profitability of an organization over a certain period. It itemizes the revenues and expenses that led to the current profit or loss and indicates what may be done to improve the results. How should a forecast for snowmobile sales for the coming year be constructed? In the same schedule as production In the same schedule as shipping In weeks In the same schedule as customer orders - answerIn the same schedule as customer orders The forecast should be constructed in the same schedule as that in which sales from customer orders are expected for the coming year. Note that the forecast will probably need a seasonality component due to the nature of the product. The production schedule will be influenced by the expected lead time required to produce the snowmobiles, and it will precede the shipping schedule for the snowmobiles. The shipping schedule will be influenced by the arrivals from production and the lead times required to deliver the snowmobiles through the delivery supply chain to finally reach the customer who placed the order. The schedules throughout the supply chain will be in the time increments needed for each to coordinate with all the other components of the snowmobile supply chain. Which of the following capacity management techniques is most appropriately used to test the feasibility of the plans generated by material requirements planning? Capacity requirements planning Input/output control Rough-cut capacity planning Resource planning - answerCapacity requirements planning Capacity requirements planning (CRP) refers to the process of determining in detail the amount of labor and machine resources required to accomplish the tasks of production. Companies typically make final purchasing decisions based on which of the following supplier characteristics? Delivery reliability Product advertising Supplier fixed cost Free-on-board shipping - answerDelivery reliability Besides perfect quality, a key final purchasing decision point is delivery reliability. Ensuring that purchase deliveries arrive on time is an essential feature of supplier partnerships. A shipment of remote control components is delivered to a factory and immediately taken to a workstation ready to begin assembly. What is the name of this inventory management technique? Efficient Wall-to-wall inventory Lot control