BIBUnit XI Logistic
BIBUnit XI Logistic
Sentences Answer
1. Pull strategies are based on Current demand
2. Pull systems only buy or produce Thing when they are needed
3. Kanban systems signal That items need to be replaced
4. Push strategies are based on Estimated future demand
5. Push strategies often allow for Safety stocks and lead times
Sentences T/F
1. Replenishment strategy was developed as JIT production in Japan. T
2. MRP has the same strategy as JIT productions. F
3. Company which is used pull strategy only produces their products T
based on the customers’ demand.
4. In stockless production and agile manufacturing production begins F
according to the planned production lead time.
5. In push strategy production is based on estimates of future demand. T
C. Comprehension
1. Why do companies want to keep inventory as low as possible?
Answer: Because it costs money and inventory is capital tied up that could otherwise
be used to grow the business, so there are always pressure to keep inventory as low as
possible.
The sales department identifies a need for a The plan is approved and passed to the
product, and tells the marketing departments. analyst to prepare and implement the
manufacturing process.
1 4
As stock has now been used the computer The analysts pass details of raw
system generates a request for new stock. materials and components to purchasing.
14 5
Customer services take orders and input them The order is sent to the warehouse. 12
to the computer system.
11 The product is manufactured.
8
Customers place orders through customer The purchasing, logistics, and transport
services. departments plan the purchase of
materials and their delivery to the
10 manufacturing plant. 6
Finished goods are put into inventory in a The re-order process generates a request
warehouse awaiting orders, and the company to the purchasing department to place
computers system is updated. new orders with the suppliers.
9 15
Suppliers receive orders and dispatch raw The senior business managements make
materials and components to the a decision on the project.
manufacturing sites on agreed dates.
7 3
The marketing department researches the The transport company collects the
project, and forwards a detailed business plan consignment and delivers it to the
to the Business Unit Manager. 2 customers.
13