Production and Operations Management Test Questions with Correct Answers 100% Solved

Production and Operations Management Test Questions with Correct Answers 100% Solved Waste - Answers any activity that does not add value to the good or service in the eyes of the consumer Lean Six Sigma - Answers a methodology that combines the organizational elements and tools of Six Sigma with Leans's focus on waste reduction Lean supply chain management - Answers an extension of the Lean philosophy to supply chain efforts beyond production. Lean supply chain management seeks to minimize the level of resources required to carry out all supply chain activities Kanban systems - Answers a production control approach that uses containers, cards, or visual cues to control the production and movement of goods through the supply chain Two-card kanban systems - Answers a special form of the kanban system that uses one card to control production and another card to control movement of materials Move card - Answers a kanban card that is used to indicate when a container of parts should be moved to the next process map Production card - Answers a kanban card that is used to indicate when another container of parts should be produced Pull system - Answers a production system in which actual downstream demand sets off a chain of events that pulls material through the various process systems Inventory - Answers this stock or items used to support production (raw materials and work-in-process items), supporting activities (maintenance, repair, and operating supplies) and customer service (finished goods and spare parts) Cycle stock - Answers components or products that received in bulk by a downstream partner, gradually used up, and then replenished again in bulk by the upstream partner Safety stock - Answers extra inventory that a company holds to protect itself against uncertainties in either demand or replenishment time Anticipation inventory - Answers inventory that is held in anticipation of customer demand Hedge inventory - Answers a form of inventory buildup to buffer against some event that may not happen. Hedge inventory planning involves speculation related to potential labor strikes, price increases, unsettled governments, and events that could severely impair the company's strategic initiatives Transportation inventory - Answers inventory that is moving from one line in the supply chain to another Smoothing inventory - Answers inventory that is used to smooth out differences between upstream production levels and downstream demand inventory drivers - Answers business conditions that force companies to hold inventory Supply uncertainty - Answers the risk of interruptions in the flow of components from upstream suppliers Demand uncertainty - Answers the risk of significant and unpredictable fluctuations in downstream demand Independent demand inventory - Answers inventory items whose demand levels are beyond a company's complete control Dependent demand inventory - Answers inventory items whose demand levels are tied directly to a company's planned production of another item Periodic review system - Answers an inventory system that is used to manage independent demand inventory. The inventory level for an item is checked at regular intervals and restocked to some predetermined level Service level - Answers a term used to indicate the amount of demand to be met under conditions of demand and supply uncertainty 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 Economic order quantity (EOQ) - Answers the order quantity that minimizes annual holding and ordering costs for an item Single-period inventory system - Answers a system used when demand occurs in only a single