Section G Quiz Q&A
Product inventory that is accumulated by the manufacturer in advance of the peak
selling season is an example of
anticipation inventory.
fluctuation inventory.
transportation inventory.
hedge inventory. - (correct answer)anticipation inventory.
Anticipation inventories are accumulated above basic pipeline stock to cover projected
increases in sales or plant shutdowns and vacations.
For more information, refer to Module 1, Section G, Topic 1
A key performance indicator critical to manufacturing execution and accurately reflecting
the company's assets is
Record accuracy
Order fill rates
Shortages
Schedule attainment - (correct answer)Record accuracy
Record accuracy is a measure of the conformity of recorded values in a bookkeeping
system to the actual values. This measure is critically important to production planning
and purchasing teams as inaccurate records lead to stock outs and lost production time.
For more information, refer to Module 1, Section G, Topic 7
,At a technology manufacturer, a replenishment order is submitted at the end of the day
when inventory of a particular tablet drops below 50 units. The replenishment order is
always calculated to ensure that inventory is brought back up to 100 units. What is the
name for this type of order replenishment system?
Min-max system
Period order quantity
Fixed order quantity
Lot-for-lot - (correct answer)Min-max system
A min-max system is a type of order point replenishment system where the minimum is
the order point, and the maximum is the 'order up to' inventory level. An order is
recommended when the sum of the available and on-order inventory is at or below the
min.
For more information, refer to Module 1, Section G, Topic 5
A manufacturer has a 7 working day week. Using a periodic review system, multiple
orders are placed every Tuesday, with a lead time of two days. For one item, a
manufacturer maintains a safety stock level of 50, and has an average daily demand of
25. What would be the target (maximum) inventory level?
225
175
475
275 - (correct answer)275
T = D x (R + L) + SS. In this case: 25 x (7 + 2) + 50 = 275.
For more information, refer to Module 1, Section G, Topic 6
, Items used in support of general operations and maintenance such as maintenance
supplies, spare parts, and consumables used in the manufacturing process and
supporting operations are known as
Overhead
Indirect spend
Maintenance, repair, and operating supplies (MRO)
Expense items - (correct answer)Maintenance, repair, and operating supplies (MRO)
Maintenance, repair, and operating supplies (MRO) include items used in support of
general operations and maintenance such as maintenance supplies, spare parts, and
consumables used in the manufacturing process and supporting operations.
For more information, refer to Module 1, Section G, Topic 1
Work in process inventory includes
Finished goods and quarantined goods still in the plant.
Maintenance, repair and operating supplies in the plant.
Goods in various stages of completion throughout the plant.
Purchased materials in the plant. - (correct answer)Goods in various stages of
completion throughout the plant.
Work in process (WIP) includes a good or goods in various stages of completion
throughout the plant, including all material from raw material that has been released for
initial processing up to completely processed material awaiting final inspection and
acceptance as finished goods inventory.
For more information, refer to Module 1, Section G, Topic 1
Product inventory that is accumulated by the manufacturer in advance of the peak
selling season is an example of
anticipation inventory.
fluctuation inventory.
transportation inventory.
hedge inventory. - (correct answer)anticipation inventory.
Anticipation inventories are accumulated above basic pipeline stock to cover projected
increases in sales or plant shutdowns and vacations.
For more information, refer to Module 1, Section G, Topic 1
A key performance indicator critical to manufacturing execution and accurately reflecting
the company's assets is
Record accuracy
Order fill rates
Shortages
Schedule attainment - (correct answer)Record accuracy
Record accuracy is a measure of the conformity of recorded values in a bookkeeping
system to the actual values. This measure is critically important to production planning
and purchasing teams as inaccurate records lead to stock outs and lost production time.
For more information, refer to Module 1, Section G, Topic 7
,At a technology manufacturer, a replenishment order is submitted at the end of the day
when inventory of a particular tablet drops below 50 units. The replenishment order is
always calculated to ensure that inventory is brought back up to 100 units. What is the
name for this type of order replenishment system?
Min-max system
Period order quantity
Fixed order quantity
Lot-for-lot - (correct answer)Min-max system
A min-max system is a type of order point replenishment system where the minimum is
the order point, and the maximum is the 'order up to' inventory level. An order is
recommended when the sum of the available and on-order inventory is at or below the
min.
For more information, refer to Module 1, Section G, Topic 5
A manufacturer has a 7 working day week. Using a periodic review system, multiple
orders are placed every Tuesday, with a lead time of two days. For one item, a
manufacturer maintains a safety stock level of 50, and has an average daily demand of
25. What would be the target (maximum) inventory level?
225
175
475
275 - (correct answer)275
T = D x (R + L) + SS. In this case: 25 x (7 + 2) + 50 = 275.
For more information, refer to Module 1, Section G, Topic 6
, Items used in support of general operations and maintenance such as maintenance
supplies, spare parts, and consumables used in the manufacturing process and
supporting operations are known as
Overhead
Indirect spend
Maintenance, repair, and operating supplies (MRO)
Expense items - (correct answer)Maintenance, repair, and operating supplies (MRO)
Maintenance, repair, and operating supplies (MRO) include items used in support of
general operations and maintenance such as maintenance supplies, spare parts, and
consumables used in the manufacturing process and supporting operations.
For more information, refer to Module 1, Section G, Topic 1
Work in process inventory includes
Finished goods and quarantined goods still in the plant.
Maintenance, repair and operating supplies in the plant.
Goods in various stages of completion throughout the plant.
Purchased materials in the plant. - (correct answer)Goods in various stages of
completion throughout the plant.
Work in process (WIP) includes a good or goods in various stages of completion
throughout the plant, including all material from raw material that has been released for
initial processing up to completely processed material awaiting final inspection and
acceptance as finished goods inventory.
For more information, refer to Module 1, Section G, Topic 1
