SCMT 2103 STEPHANIE THOMAS
EXAM 3 QUESTIONS AND ANSWERS
What is lean manufacturing? - Correct Answers -philosophy of production that
emphasizes the minimum of the amount of all resources used in the various activities.
What does it mean to eliminate waste? - Correct Answers -getting rid of anything that
doesn't add value.
What are the 5 steps of Lean implementation? - Correct Answers -1. Specify Value
2. Identify Value Stream
3. Create flow
4. Establish pull
5. Seek perfection
Lead time is the time between when an order is placed and the inventory is
___________________. - Correct Answers -Available for use
In a retail store, when does lead time end? - Correct Answers -When the inventory is
stocked on the shelf
Which has the correct order of lead time processes? - Correct Answers -Order creation,
picking, staging, transit
Which is a common bottleneck mentioned in the video that increases lead time? -
Correct Answers -Receiving facilities at or near capacity
What are components of lead time? - Correct Answers -Loading onto the truck, order
transmittal, order picking
Lead time variability is really a measure of lead time ___________________. - Correct
Answers -uncertainty
Which inventory policy requires less safety stock? - Correct Answers -Continuous
review
Safety stock increases which aspect of a continuous review policy? - Correct Answers -
Reorder Point
, If a fulfillment center has no on-hand inventory but receives an order that cannot be
immediately filled, this order represents ______________ if the customer will wait. -
Correct Answers -A backorder
If a company places a replenishment order on the same day each week, which policy is
being used? - Correct Answers -Periodic Review
In the US, which is NOT a type of water transportation category? - Correct Answers -
Plains
In the US, which mode represents the largest total spend? - Correct Answers -Moto
Carriage
In China, what product dominates rail movements? - Correct Answers -Coal
Why might starting an LTL carrier be even more difficult than starting a TL carrier? -
Correct Answers -The Capital investment required is much greater.
If a customer uses a continuous review policy to manage inventory, when is it possible
to stockout? - Correct Answers -Only during lead time
How can a company's inventory position be determined? - Correct Answers -on hand
inventory + on order inventory - backorders
When determining when or how much to order, which inventory variable should be
used? - Correct Answers -Inventory Position
Which inventory policy will create the most uncertainty for a company's transportation
providers? - Correct Answers -Continuous Review
Inventory is a supply of goods that are held for purpose of _______________. - Correct
Answers -Future utilization
Inventory is good in the right _______________. - Correct Answers -Quantity
Which type of inventory is the amount of inventory that is expected to sell during a
replenishment period? - Correct Answers -Cycle stock
Which form of inventory is the most expensive to hold? - Correct Answers -Finished
Goods
Which form of inventory is being transformed into a final product? - Correct Answers -
Work-in-process
Which is a clear sign of a bottleneck in a manufacturing process? - Correct Answers -
Work-in-process inventory is building behind
EXAM 3 QUESTIONS AND ANSWERS
What is lean manufacturing? - Correct Answers -philosophy of production that
emphasizes the minimum of the amount of all resources used in the various activities.
What does it mean to eliminate waste? - Correct Answers -getting rid of anything that
doesn't add value.
What are the 5 steps of Lean implementation? - Correct Answers -1. Specify Value
2. Identify Value Stream
3. Create flow
4. Establish pull
5. Seek perfection
Lead time is the time between when an order is placed and the inventory is
___________________. - Correct Answers -Available for use
In a retail store, when does lead time end? - Correct Answers -When the inventory is
stocked on the shelf
Which has the correct order of lead time processes? - Correct Answers -Order creation,
picking, staging, transit
Which is a common bottleneck mentioned in the video that increases lead time? -
Correct Answers -Receiving facilities at or near capacity
What are components of lead time? - Correct Answers -Loading onto the truck, order
transmittal, order picking
Lead time variability is really a measure of lead time ___________________. - Correct
Answers -uncertainty
Which inventory policy requires less safety stock? - Correct Answers -Continuous
review
Safety stock increases which aspect of a continuous review policy? - Correct Answers -
Reorder Point
, If a fulfillment center has no on-hand inventory but receives an order that cannot be
immediately filled, this order represents ______________ if the customer will wait. -
Correct Answers -A backorder
If a company places a replenishment order on the same day each week, which policy is
being used? - Correct Answers -Periodic Review
In the US, which is NOT a type of water transportation category? - Correct Answers -
Plains
In the US, which mode represents the largest total spend? - Correct Answers -Moto
Carriage
In China, what product dominates rail movements? - Correct Answers -Coal
Why might starting an LTL carrier be even more difficult than starting a TL carrier? -
Correct Answers -The Capital investment required is much greater.
If a customer uses a continuous review policy to manage inventory, when is it possible
to stockout? - Correct Answers -Only during lead time
How can a company's inventory position be determined? - Correct Answers -on hand
inventory + on order inventory - backorders
When determining when or how much to order, which inventory variable should be
used? - Correct Answers -Inventory Position
Which inventory policy will create the most uncertainty for a company's transportation
providers? - Correct Answers -Continuous Review
Inventory is a supply of goods that are held for purpose of _______________. - Correct
Answers -Future utilization
Inventory is good in the right _______________. - Correct Answers -Quantity
Which type of inventory is the amount of inventory that is expected to sell during a
replenishment period? - Correct Answers -Cycle stock
Which form of inventory is the most expensive to hold? - Correct Answers -Finished
Goods
Which form of inventory is being transformed into a final product? - Correct Answers -
Work-in-process
Which is a clear sign of a bottleneck in a manufacturing process? - Correct Answers -
Work-in-process inventory is building behind
