MGSC 492 Actual Questions and Correct Answers
Q1
What percentage of total operating budget for a transport company is represented by fuel?
Answer: as much as 35%
Q2
Vendor Managed Inventory
Answer: the supplier takes responsibility for the inventory held at the client's
premises. ownership of the inventory passes to the client when the inventory is
utilized. the overall level of inventory in the client's warehouse can be reduced.
Q3
The quality of supplies
Answer: Substandard goods will need to be stored awaiting collection by the supplier.
When good are received or noticed that they are substandard, the supplier is
contacted and an RMA (return material authorization) number is obtained from the
supplier. This number is attached to all paperwork and the outside of the packaging so
the supplier can process the return effectively.
Q4
The hierarchy of importance
Answer: Routine purchases - use online catalogues Commodities - quote frequently to
get the best price - multiple suppliers Critical items - work with approved suppliers to
ensure the flow of supply never stops - bottle-neck parts - a specially designed screw
that only one supplier can make may only cost $1.49 but can stop shipment of a
$20,000 piece of equipment Strategic items - develop strategic partnerships with
suppliers - like Pillsbury developing a contract with Sonoco to produce the cans that
they put their product into.
Q5
What can significantly improve the speed of processing goods received in a warehouse if
suppliers provide the goods.....
Answer: in the right quantities, at the allotted time, correctly labeled and bar coded
, Q6
Independent demand
Answer: has to be forecasted or knowledge gained from outside the supply chain. It is
addressed in MRP II by Sales and Operations Planning and Master Scheduling.
Finished goods, Service parts, and MRO parts have independent demand. The lead
time for the independent demand items will be the manufacturing leadtime if
manufactured
Q7
dependent demand
Answer: can be calculated on a bills of material - components and raw materials are
dependent demand. Safety stock is not usually carried at these levels unless the lead
times are long.
Q8
Push system
Answer: the more traditional approach - where inventory requirement is used to
anticipate future demand requirements (build to stock)
Q9
pull system
Answer: where the actual demand for a product is used to pull the product through the
system (build to order). The pull system can react quickly to sudden changes in the
demand
Q10
The decoupling point
Answer: Finished Goods - Make-to-stock - customers are served from finished goods
inventory Semi-finished - Assemble-to-order - a number of pre-assembled modules and
different products are combined to satisfy a customer order requirement. Components
- Make-to-order - products ordered are made specifically for the customer from raw
material. Raw Materials - Engineer-to-order - product designed by the customer then
raw material orders are placed - important point - some engineer-to-order parts may
be at the supplier's supplier. Logistics lead time - the total time it takes to order raw
materials, make product, and deliver the product to the customer.
Q1
What percentage of total operating budget for a transport company is represented by fuel?
Answer: as much as 35%
Q2
Vendor Managed Inventory
Answer: the supplier takes responsibility for the inventory held at the client's
premises. ownership of the inventory passes to the client when the inventory is
utilized. the overall level of inventory in the client's warehouse can be reduced.
Q3
The quality of supplies
Answer: Substandard goods will need to be stored awaiting collection by the supplier.
When good are received or noticed that they are substandard, the supplier is
contacted and an RMA (return material authorization) number is obtained from the
supplier. This number is attached to all paperwork and the outside of the packaging so
the supplier can process the return effectively.
Q4
The hierarchy of importance
Answer: Routine purchases - use online catalogues Commodities - quote frequently to
get the best price - multiple suppliers Critical items - work with approved suppliers to
ensure the flow of supply never stops - bottle-neck parts - a specially designed screw
that only one supplier can make may only cost $1.49 but can stop shipment of a
$20,000 piece of equipment Strategic items - develop strategic partnerships with
suppliers - like Pillsbury developing a contract with Sonoco to produce the cans that
they put their product into.
Q5
What can significantly improve the speed of processing goods received in a warehouse if
suppliers provide the goods.....
Answer: in the right quantities, at the allotted time, correctly labeled and bar coded
, Q6
Independent demand
Answer: has to be forecasted or knowledge gained from outside the supply chain. It is
addressed in MRP II by Sales and Operations Planning and Master Scheduling.
Finished goods, Service parts, and MRO parts have independent demand. The lead
time for the independent demand items will be the manufacturing leadtime if
manufactured
Q7
dependent demand
Answer: can be calculated on a bills of material - components and raw materials are
dependent demand. Safety stock is not usually carried at these levels unless the lead
times are long.
Q8
Push system
Answer: the more traditional approach - where inventory requirement is used to
anticipate future demand requirements (build to stock)
Q9
pull system
Answer: where the actual demand for a product is used to pull the product through the
system (build to order). The pull system can react quickly to sudden changes in the
demand
Q10
The decoupling point
Answer: Finished Goods - Make-to-stock - customers are served from finished goods
inventory Semi-finished - Assemble-to-order - a number of pre-assembled modules and
different products are combined to satisfy a customer order requirement. Components
- Make-to-order - products ordered are made specifically for the customer from raw
material. Raw Materials - Engineer-to-order - product designed by the customer then
raw material orders are placed - important point - some engineer-to-order parts may
be at the supplier's supplier. Logistics lead time - the total time it takes to order raw
materials, make product, and deliver the product to the customer.
