INTRODUCTION TO MM

1. What is called Customer requirements based on price, quality and delivery? Order qualifiers.
2. What should be focused on by a highly market-oriented company? Meeting or exceeding customer expectations and on order winners.
3. Those competitive characteristics, or combination of characteristics, that persuade a company’s customers to choose its products or services ar e called order
winners
4. Engineer-to-order means that the customer’s specifications require unique engineering design or significant customization. Usually the customer is highly involved
in the product design. Inventory will not normally be purchased until needed by manufacturing. Delivery lead time is long because it includes not only purchase
lead time but design lead time as well.
5. Make-to-order means that the manufacturer does not start to make the product until a customer’s order is received. The final product is usually made from
standard items but may include custom-designed components as well. Delivery lead time is reduced because there is little design time required and inventory is
held as raw material.
6. Assemble-to-order means that the product is made from standard components that the manufacturer can inventory and assemble according to a customer order.
Delivery lead time is reduced further because there is no design time needed and inventory is held ready for assembly. Customer involvement in the design of the
product is limited to selecting the component part options needed.
7. Make-to-stock means that the supplier manufactures the goods and sells from finished goods inventory. Delivery lead time is shortest. The customer has little
direct involvement in the product design
8. In terms of “Introduction to Material Management” SCM stands for what? Supply Chain Management.
9. In Supply Chain Management, Raw materials flow into a manufacturing company from a physical supply system, they are processed by manufacturing, and finally
finished goods are distributed to end consumers through a physical distribution system.
10. In terms of “Introduction to Material Management” JIT stands for ? Just in Time
11. What is the full form of WIP in terms of “Introduction to Material Management? Work in Process.
12. Inventory not only makes up a portion of the cost of goods sold but has to be purchased at the beginning of production to be processed into finished goods. This
type of inventory is called work-in-process (WIP)
13. Production planning. Production must be able to meet the demand of the marketplace. Finding the most productive way of doing so is the responsibility of
production planning. It must establish correct priorities (what is needed and when) and make certain that capacity is available to meet those priorities. It will
involve:
a.Forecasting.
b.Master planning.
c. Material requirements planning.
d. Capacity planning
14. Implementation and control. These are responsible for putting into action and achieving the plans made by production planning. These responsibilities are
accomplished through production activity control (often called shop floor control) and purchasing.
15. Inventory management. Inventories are materials and supplies carried on hand either for sale or to provide material or supplies to the production process. They
are part of the planning process and provide a buffer against the differences in demand rates and production rates.
16. There are five basic inputs to the manufacturing planning and control system.
a). The Product description
b). Process specifications
c). Time needed to perform operations
d). Available facilities.
e). Quantities required.

Material Requirement Planning

1. In terms of Material Management, MRP stands for what? Material Requirement Planning.
2. Material Requirement Plan is the system used to………….? Avoid missing parts.
3. Which one of the followings establish a schedule (Priority Plan) showing the components required at each level of the assembl y and, based on lead times,
calculates the time when these components will be needed? Material Requirement Planning.
4. What is called a “Parent item” in terms of Material Requirement Planning? An assembly of components items.
5. What do you mean Component items? The items that comprise an Assembly is called “Component item”
6. In relation to Materials Requirement Planning, the span of time needed to perform a process is called….? Lead time.
7. What is “Lead Time” in manufacturing? The time for order preparation, queuing, processing, moving, receiving and inspecting, and any expected delays.
8. What is the definition of “Offsetting”? The orders placed on manufacturing or on a vendor and represent a commitment to make or buy .
9. In terms of Material Requirement Planning, Net Requirements = Available Inventory - Gross Requirements – Scheduled Receipts.
10. In terms of MRP, the immediate or most current period is called………? Action Bucket.
11. Material requirements planning has two major objectives: determine requirements and keep priorities current.
12. The computer software program that organizes and maintains the bills of material structures and their linkages is called a bill of material processor
13. There are three inputs to MRP systems: 1. Master production schedule. 2. Inventory records. 3. Bills of material.
14. Master production schedule. The master production schedule is a statement of which end items are to be produced, the quantity of each, and the dates th ey are
to be completed. It drives the MRP system by providing the initial input for the items needed.
15. A major input to the MRP system is inventory..
16. These data are maintained in an inventory record file, also called a part master file or item master file. Each item has a record, and all the records together form
the file
17. Bills of material. The bill of material is one of the most important documents in a manufacturing company.
18. An assembly is considered a parent, and the items that comprise it are called its component items
19. Multilevel bills are formed as logical groupings of parts into subassemblies based on the way the product is assembled. For example, a frame, chassis, doors,
windows, and engine are required to construct an automobile. Each of these forms a logical group of components and parts and, in turn, has its own bill of
material.
20. A multiple bill is used when companies usually make more than one product, and the same components are often used in several products
21. A single-level bill of material contains only the parent and its immediate components, which is why it is called a single-level bill.
22. A multilevel bill of material can also be shown as an indented bill of material. This bill uses indentations as a way of identifying parents fr om components.
23. Summarized parts list It lists all the parts needed to make one complete assembly
24. Releasing an order means that authorization is given to purchasing to buy the necessary material or to manufacturing to make the component.
25. Scheduled receipts are orders placed on manufacturing or on a vendor and represent a commitment to make or buy
CAPACITY MANAGEMENT
1. In terms of Capacity Management, the amount of work that can be done in a specified time period is called…..? Capacity.
2. In relation to Capacity Management, Capacity Requirements Planning is directly linked to the……? Material Requirement Planning.
3. In the context Capacity Management, CRP stands for what? Capacity Requirement Planning.
4. In the context of Capacity Management, a record of all the active shop orders is called…..? Open Order File.
5. In the Capacity Management, the time normally taken to move material from one workstation to another is called….? The Move time.
6. What will you say “the time a job waits at a work center before being handled” in the Capacity Management? The Queue Time
7. In terms of Capacity Management, the product of available time, utilization and efficiency is called…? Related Capacity.
8. Capacity required is the capacity of a system or resource needed to produce a desired output in a given time period
9. Capacity management is responsible for determining the capacity needed to achieve the priority plans as well as providing, monitoring, and controlling that
capacity so the priority plan can be met
10. Capacity planning is the process of determining the resources required to meet the priority plan and the methods needed to make that capacity available
11. Capacity control is the process of monitoring production output, comparing it with capacity plans, and taking corrective action when needed.
12. Resource planning involves long-range capacity resource requirements and is directly linked to production planning. Resource planning involves changes in
staffing, capital equipment, product design, or other facilities that take a long time to acquire and eliminate
13. The move time is the time normally taken to move material from one workstation to another.
14. The wait time is the time a job is at a work center after completion and before being moved.
15. The queue time is the time a job waits at a work center before being handled.
16. Lead time is the sum of queue, setup, run, wait, and move times.
17. Back scheduling. The usual process is to start with the due date and, using the lead times, to work back to find the start date for each operation. This process is
called back scheduling.
PRODUCTION ACTIVITY CONTROL
1. What does Project Manufacturing usually involve? The creation of one or a small number of Units.
2. Manufacturing Lead Time(MLT) consists of five elements. Which is out of these five elements? Queue Time, Set up Time, Run Time, Wait Time and Move Time.
3. The length of time from when material enters a production facility until it exits is called……? Cycle Time.
4. What is the synonym of Cycle Time? Throughput Time.
5. Which one of the following developed the section of “Scheduling Bottlenecks” in his Theory of Constraints? Eliyahu M. Goldratt.
6. What is generally called the Control the work going into and coming out of a work center? Input/Output Control.
7. Which one is not correct in terms of Production Activity Control? Crisis ration(CR)[CR=Critical Ration]
8. Which one is correct? CR(Critical Ration) = (due date – present date) / (lead time remaining)
9. CR less than 1 (actual time less than lead time). Order is behind schedule.
10. CR greater than 1 (actual time greater than lead time). Order is ahead of schedule.
11. CR zero or less (today’s date greater than due date) Order is already late.
12. CR equal to 1 (actual time equal to lead time). Order is on schedule.
13. Manufacturing lead time is the time normally required to produce an item in a typical lot quantity. Typically, MLT consists of five elements:
1. Queue time, amount of time the job is waiting at a work center before operation begins.
2. Setup time, time required to prepare the work center for operation.
3. Run time, time needed to run the order through the operation.
4. Wait time, amount of time the job is at the work center before being moved to the next work center.
5. Move time, transit time between work centers.
16. Forward scheduling assumes that material procurement and operation scheduling for a component start when the order is received, whatever the due date, and
that operations are scheduled forward from this date
17. Backward scheduling is used to determine when an order must be started. Backward scheduling is common in industry because it reduces inventory.
18. The overloaded workstations are called bottlenecks and, by definition, are those workstations where the required capacity is greater than the available capacity.
19. Dispatching is the function of selecting and sequencing available jobs to be run at individual work centers

PURCHASING
1. Which is correct in terms of Material Management?
(a) Fixed costs are incurred no matter the volume of sales
(b) Variable costs are those directly associated with the amount produced or sold
(c) Total cost = Fixed cost + (variable cost per unit) * (number of units)
(d) Unit (Average) cost = Total cost / Number of units.
2. EDI : Electronic Data Interchange
3. CRM : Customer Relationship Management
4. ERP : Enterprise Resource Planning
5. SRM: Supplier Relationship Management
6. What do you call one that is competitive, gives the seller a profit, and allows the buyer ultimately to sell at a profit? Fair price.
7. Contract buying ensures suppliers a given amount of business and commits them to allocating that amount of their capacity to the customer

FORECASTING
1. In relation to Material Management, Delphi method is related to ………..? Forecasting.
2. What is the formula for calculating new forecast in terms of Material Management? Where α always express as a decimal from 0 to 1.0
New Forecast = (α) (latest demand) + (1-α) previous forecast
3. Which one method is used for ‘forecasting’ in the context of Material Management? Exponential Smoothing, Moving average, Delphi method.
4. What is called a useful indication of the degree of seasonal variation for a product? Seasonal index
5. The average demand for all periods is a value that averages out seasonality. This is called ………? Deseasonalized demand.
6. What is forecast error in terms of forecasting? It is the difference between actual demand and forecast demand.
7. Which one is in relation with ‘Mean Absolute Deviation (MAD)? Forecast error
8. In the context of Material Management, Mean Absolute Deviation(MAD) = Sum of Absolute Deviations / number of observations.
9. What is the formula for ‘Tracking Signal’ terms to Material Management? Algebraic sum of forecast error / MAD
10. Demand Lead time is the ………….? Customer’s lead time.
11. Demand management includes four major activities:
• Forecasting.
• Order processing.
• Making delivery promises.
• Interfacing between manufacturing planning and control and the marketplace.
INVENTORY FUNDAMENTALS
1. Items purchased or manufactured in quantities greater than needed immediately create ………………? Lot-Size Inventories.
2. A firm wishing to maximize profit will have at least the following objectives:
• Maximum customer service.
• Low-cost plant operation.
• Minimum inventory investment.
3. • Raw materials. These are purchased items received that have not entered the production process. They include purchased materials, component parts, and
subassemblies.
• Work-in-process (WIP). Raw materials that have entered the manufacturing process and are being worked on or waiting to be worked on.
• Finished goods. The finished products of the production process that are ready to be sold as completed items. They may be held at a factory or central
warehouse or at various points in the distribution system.
4. Maintenance, repair, and operational supplies (MROs). Items used in production that do not become part of the product. These include hand tools, spare parts,
lubricants, and cleaning supplies.
5. The following costs are used for inventory management decisions:
• Item cost. • Carrying costs. • Ordering costs. • Stockout costs. • Capacity-associated costs.
6. Which one I included in Inventory Carrying Cost? Capital cost, Storage Cost and Risk Cost.
7. The difference between assets and liabilities is …………….? Owner’s Equity.
8. Obligations or amounts owed by a company is …………….? Liabilities.
9. What is the relation between assets, liabilities and owner’s equity?
Assets = liabilities + owners’ equity
10. In terms of Inventory Fundamentals, Income = Revenue – Expenses.
11. Ordering Costs includes Production control costs, Setup and teardown costs, Lost capacity cost, Purchase order cost
12. First in first out (FIFO). This method assumes that the oldest (first) item in stock is sold first. In rising prices, replacement is at a higher price than the as sumed cost
13. Last in first out (LIFO). This method assumes the newest (last) item in stock is the first sold. In rising prices, replacement is at the current price
14. A convenient measure of how effectively inventories to use is the …………? Inventory Turn Ration
15. Which one method of Evaluating Inventory uses cost determined before production begins? Standard cost.
16. Under the method of Evaluating Inventory, Average cost assumes that ………..? An average of all prices paid for the article.
17. Control of inventory is exercised by controlling individual items, which is called………..?Stock Keeping Units(SKU)

ORDER QUANTITIES
1. Control is exercised through individual items in a particular inventory. These are called…………? Stock Keeping Units(SKU)
2. In terms of Material Management, EOQ stands for what? Economic Order Quantity.
3. What do you mean POQ in terms of Material Management? Period Order Quantity.
4. What is the formula for Period Order Quantity(POQ) POQ = EOQ / Average Weekly Usage.

PHYSICAL INVENTORY AND WARHOUSE MANAGEMENT

1. What is ‘the Cube Utilisation’ related to Material Management? It is use of space horizontally and vertically.
2. What do you mean that goods are stored wherever there is appropriate space for them? Floating Location System.
3. What do you call an SKU is assigned a permanent location or locations, and no other items are stored there? Fixed Location system.
PHYSICAL DISTRIBUTION
1. Physical supply is the movement and storage of goods from suppliers to manufacturing.
2. Physical distribution is the movement and storage of finished goods from the end of production to the customer.
3. Cost trade off is the cost of transportation increased with the use of air transport, but the cost of carrying inventory decreased.
 PRODUCTS AND PROCESS
1. Which one is expensive and risky stage or phase for new products? Introduction Phase
2. What do you call to design products for low cost manufacture requires close coordination between product design and process design? Simultaneous Engineering.
3. Recent changes in process flexibility have allowed for the development of a concept is called…..? Mass Customization
4. In the context of Material Management, CEP stands for what? Cost Equalization Point.
5. What do you mean CPI in terms of Material Management? Continuous Process Improvement.
JUST IN TIME MANUFACTURING AND LEAN PRODUCTION
1. Which one implies the concept of removing faults at the first instance and making a process or product ‘foolproof’? Yoke-Pole
2. Where was ‘Poke-Yoke’ introduced firstly? Japan.
3. Who first introduced ‘Poke-Yoke’? Shigeo Shingo
4. What do you mean MRP in terms of Material Management? Material Requirements Planning.
5. What is called the developers of the JIT concepts utilizing a simple card system? Kanban.
TOTAL QUALITY MANAGEMENT
1. What do you mean TQM in term of Material Management? Total Quality Management.
2. What is called the user satisfaction that goods or services satisfy the needs and expectation of the user? Quality.
3. Which one of the followings is correct full form in the context of Material management.
LSL = Lower Specification Limit
USL = Upper Specification Limit
4. The diagrams which are used to plot out all the potential causes for an identified problem(effects) is called…………………?
Cause and effect(fishbone) Diagrams.
5. What do you mean ISO in terms of Quality Management? International Organization for Standardization
6. When was ISO established? 1947
7. Where is headquarters of ISO? Geneva, Switzerland.
8. What is the purpose of ISO establishment? For Quality Management.
9. What are the categories of ISO? Technical Standard and Management Standard.

MISCELLANEOUS

1. Raw Materials and WIP can be classified under ________

B. Direct Material
2. _________ are the basic materials which have not undergone any conversion since their receipt from suppliers.
B. Raw Material
3. Buying according to the requirements is called ________
b. Hand to mouth buyingWhich is not a part of 5R’s of buying?
a. Right Quality
b. Right Quantity
c. Right Source
d. None of the above
View Answer
d. None of the above
4. The business cycle, price trends, National Economy is ___________
b. Macro Factors
5. __________ also called part lists or building lists is the document generated at the design stage.
b. BOM (Bill of Materials)
6. Purchasing responsibilities can be divided into Buying, Clerical and ________ division.
b. Traffic
7. Materials Management has an important role in ______ management.
A. Production
B. Supply chain
C. Operations
D. All of the above
View Answer
D. All of the above
8. The first activity of Purchasing cycle is _____________
c. Recognizing the need for procurement

9. ________ is the time that elapses between issuing replenishment order and receiving the material in stores.
b. Lead time

10. _________ is the scientific technique for planning the ordering and usage of materials at various levels of production and for monitoring
the stocks during these transactions.
b. MRP (Material Requirement Planning)

11. _________ is the task of buying goods of the right quality, in the right quantities, at the right time and at the right price.
b. Purchasing

12. Procuring an item in staggering deliveries according to the delivery schedule finished to the supplier by the buyer.
c. Scheduled Buying

13. Buying of the annual requirements of an item during its season is called _______
d. Speculative Buying
Tip: Do not get confused with seasonal buying

14. ______ is the capability of manufacturing to produce goods and services.

C. Capacity

15. Materials management mainly focuses on _______

A. management of raw material or components required for continuous production

16. To get the most profit, a company should________

A. Provide the lowest inventory investment
______ & direct material are costs that increase or decrease with the quantity sold.
B. Direct labor

17. The available capacity can be increased by _______

D. Scheduling overtime

18. The transit time between work centers is _____.

B. move time

1. Purchasing responsibilities can be divided into Buying, Clerical and ………..division.

Answer: Traffic

2 Procuring an item in staggering deliveries according to the delivery schedule finished to the supplier by the buyer.
Answer: Scheduled Buying

3 Product life cycles for many products are ________, forcing companies to not only become ________ in design but also to communicate changes
and needs to suppliers and distributors.
Answer: shrinking rapidly, more flexible
4 To get the most profit, a company should________
Answer: Provide the lowest inventory investment

5 Materials management is also called____________

[A] Control and logistics management
[B] Distribution planning
[C] Both of the above
[D] Neither of the above
Answer: Both of the above

6 A good planning system must consider:

[A] What are we going to make?
[B] What does it take to make it?
[C] What do we have and need?
[D] All of the above
Answer: All of the above

7 ________ is responsible for analyzing the marketplace and deciding the firm's response, the markets to be served, the products supplied, and desired
levels of customer service.
Answer: Marketing

8 Purchasing and ___________ represent the implementation and control phase of the production planning and control system.
Answer: production activity control (PAC)

9 The MRP forms a vital link between sales and production as follows:
[A] The MRP makes possible valid order promises
[B] The MRP is a contract between marketing and manufacturing
[C] The MRP is a plan of what is to be produced and when
[D] All of the above
Answer: All of the above

10 The objectives in developing an MRP include:

[A] To maintain the desired level of customer service by maintaining finished goods inventory levels or by scheduling to meet customer delivery
requirements
[B] To make the best use of material, labor, and equipment
[C] To maintain inventory investment at the required levels
[D] All of the above
Answer: All of the above

11 The first step in preparing an MPS is:

Answer: Develop a preliminary MRP

12______________ exists when the cumulative actual demand varies from the cumulative forecast.
Answer: Bias

13 Over a span of several years and even decades, wavelike increases and decreases in the economy influence demand and are called _________.
Answer: cycles

14 _______________ techniques are projections based on judgment, intuition, and informed opinions.
Answer: Qualitative forecasting

15 Products likely to have seasonal or periodic demand patterns include:

Answer: Skis and lawnmowers

16 ______________ demand items need to be forecast.

Answer: Independent

17 To reach its objectives, the master production schedule must:

Answer: Satisfy customer demand

18 In the _____________ environment, several product options exist (e.g., automobiles) and the customer is not willing to wait until the product is
made. Therefore manufacturers produce and stock standard component parts.
Answer: assemble-to-order

19 The cost of a _________ that is too large equals the cost of turning away business.
Answer: backlog

20 The information needed to develop an MPR includes:

[A] Actual orders received from customers and for stock replenishments
[B] Forecasts for individual end items
[C] The production plan
[D] All of the above
Answer: All of the above

21 A schedule is satisfactory when:

Answer: Capacity is consistent with the production plan

22 _______ and ______ are costs that increase or decrease with the quantity sold.
Answer: Direct labor, direct material

23 _______ is the capability of manufacturing to produce goods and services.

Answer: Capacity

24 A _________ strategy means producing the amounts demanded at any given time.
Answer: chase

25 Which is not a part of 5R’s of buying?

[A] Right Source
[B] Right Quantity
[C] Right Quality
[D] None of the above
Answer: None of the above

26 Business cycle, price trends, National Economy are …………….

Answer: Macro Factors

27 The first activity of Purchasing cycle is

Answer: Recognizing the need for procurement

28 …………..are the basic materials which have not undergone any conversion since their receipt from suppliers.
Answer: Finished Parts

29 All portions of the material production from __________ to ___________ are considered to be a linked chain under the supply chain concept.
Answer: raw material, final customer

30 Materials management is a coordinating function responsible for planning and controlling materials flow. Its objective(s) is/are:
[A] Maximize the use of the firm's resources
[B] Provide the required level of customer service
[C] Both of the above
[D] Neither of the above
Answer: Both of the above

31 Inventory not only makes up a portion of the cost of goods sold but has to be purchased at the beginning of production to be processed into finished
goods. This type of inventory is called _____________.
Answer: work-in-process

32 ______ must satisfy the demands of the marketplace. It does so by using plants, machinery, equipment, labor, and materials as efficiently as
possible.
Answer: Production

33 ____________ is the first step in a manufacturing planning and control system.

Answer: Production planning

34 Critical resources in rough-cut capacity planning include:

[A] Bottle-neck operations
[B] Labor
[C] Critical materials
[D] All of the above
Answer: All of the above

35 In the __________________ environment, many end items can be made from combinations of basic components and subassemblies.
Answer: assembly-to-order

36 Since _______ demand is not related to the demand for any other assemblies or products, it must be ___________.
Answer: independent, calculated

37 All major inputs to the MRP system include:

Answer: Master production schedule, inventory records, and bills of material

38 Financially, inventories are very important to manufacturing companies and represent _________ of total assets on the balance sheet.
Answer: 20% to 60%

39 Inventory serves as a buffer between:

[A] Finished goods and component availability
[B] Customer demand and finished goods
[C] Supply and demand
[D] All of the above
Answer: All of the above

40 _______is a measure of customer service.

[A] Percentage of orders shipped on schedule
[B] Percentage of line items shipped on schedule
[C] Order-days out of stock
[D] All of the above
Answer: All of the above

41 The near future holds _____ uncertainty than (as) the far future.
Answer: less

42 ______________ is usually thought of as occurring on a yearly basis, but it can also occur on a weekly or even daily basis.
Answer: Seasonality

43 _______________ occurs when a customer's order is received.

Answer: Order processing

44 Materials such as copper, coal, wheat, meat, and metals are:

Answer: Commodities

45 _______ is most often used in wholesale or retail businesses but is also used extensively in manufacturing.
Answer: Description by brand

46 ________ is the systematic use of techniques that identify a required function, establish a value for that function, and finally provide the function at
the lowest overall cost.
Answer: Value analysis

47 Storing inventory requires ___________________ and as inventory increases, so do these costs.

Answer: space, workers, and equipment

48 Liabilities are obligations or amounts owed by a company and include:

Answer: Finished Parts

49 The risks in carrying inventory are:

Answer: Obsolescence, damage, pilferage, and deterioration

50 ___________ is the process of multiplying the requirements by the usage quantity and recording the appropriate requirements throughout the
product tree.
Answer: Exploding

51 linked to production planning.

Answer: Resource planning

52 The inputs needed for a CRP include:

[A] Open shop orders
[B] Planned order released
[C] Routings
[D] All of the above
Answer: All of the above

53 _____________ is the number of hours a work center can be used.

Answer: Available hours

54 Rated capacity is calculated by taking into account the work center ___________.
Answer: utilization and efficiency

55 If the workload in a manufacturing plan cannot be changed, an alternative is to:

[A] Schedule overtime
[B] Schedule undertime
[C] Adjust the workforce by hiring
[D] All of the above
Answer: All of the above

56 Flow of work through the shop is varied and depends on the design of a particular product. In _____________, as orders are processed, they will
take more time at one workstation than at another. Thus, the work flow is not balanced.
Answer: intermittent manufacturing

57 Each active manufacturing order has a record in the _____________________.

Answer: shop order master file

58 into two or more lots and run on two or more machines simultaneously.
Answer: Operation splitting

59 The objectives of purchasing include:

[A] Ensuring the best possible service and prompt delivery by the supplier
[B] Obtaining the goods and services at the highest price
[C] Obtaining goods and services of the lowest quality
[D] All of the above
Answer: Ensuring the best possible service and prompt delivery by the supplier

60 When the supplier's invoice is received, the following should agree:

Answer: The purchase order, the receiving report, and the invoice

61 In purchasing an item or service from a supplier, which factor is not included when specifications are being developed?
Answer: Delivery requirement

62 Buying of the annual requirements of an item during its season.

Answer: Speculative Buying

63 Finance must keep investment and costs low. This can be done by___________
Answer: Decreasing the number of plants and warehouses

64 It is possible to increase the available capacity by:

Answer: Scheduling overtime

65 In the __________________ environment, many different end items are made from a small number of components.
Answer: make-to-order

66 A _________ is used when companies usually make more than one product and the same components are often used in several products.
Answer: multiple bill

67 __________ are purchased items received that have not entered the production process. They include purchased materials, component parts, and
sub-assemblies.
Answer: Raw materials

68 ___________ include hand tools, spare parts, lubricants, and cleaning supplies.
Answer: MRO supplies

69 __________ inventory is held to cover random unpredictable changes in supply and demand or lead time.
Answer: Fluctuation

70 A(n) _____________ lists all the parts needed to make one complete assembly.
Answer: summarized parts list

71 The Gregorian calendar:

Answer: Presents problems for manufacturing planning and control

72 The term _____________means that the work center is overloaded and the term ________________ means the work center is under loaded.
Answer: overcapacity, under capacity

73 ______________is concerned with the production of high-volume standard products.

Answer: Flow manufacturing

74 An example of project manufacturing is:

Answer: Large shipbuilding

75 The _________________ collects all of the relevant data on a work center.

Answer: work center master file
76 _________ is the amount of time the job is waiting at a work center before an operation begins.
Answer: Queue time

77 A ________________ is a legal offer to purchase.

Answer: purchase order

78 ___________specifications and standard specifications are the two major sources of specifications or ways of describing a product.
Answer: Buyer

79 Trends:
[A] Are level
[B] Have no change from period to period
[C] Can rise or fall
[D] All of the above
Answer: All of the above

80 Raw Materials and WIP can be classified under-

Answer: Direct Material