BADM 2110 – Flashcards
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One option for altering the pattern of the man through aggregate planning is
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Pricing
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The type of strategy used with respect to the amount of capacity cushion when" The cost or consequence of running out is approximately in balance with the cost of excess capacity" is called
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Moderate cushion
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Demand management variables include
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Reservation pricing and advertising
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Which of the following accurately describes a Chase strategy
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The firm produces exactly what is needed each month
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Supply management variables include
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Inventory subcontracting and corporate arrangements
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Aggregate planning differs from scheduling in that
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A former is concerned with the acquisition of resources and the latter with allocating available resources
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The most popular type of facility use by fortune 500 companies is
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Product focused
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Why can justify incapacity expansion with economies of scale be dangerous
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Because the common notion that unit cost will decline for larger facilities due to size is not necessarily accurate
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Which of the following statements is true about facilities decisions
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Facilities decisions involve all organizational units and are often made at the highest corporate level
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Which of the following is not a factor affecting the elements of a facilities strategy
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Whether the company uses are-to-stock or assemble- to order
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Which of the following is not a purpose of inventory
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To decrease obsolescence
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In the basic EOQ model if the leadtime doubles the EO Q will
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Remain the same
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A computerized inventory system checks inventory levels at the end of each week and produces suggested orders for the coming week. What kind of system is this?
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A periodic review system
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Which of the following is not an assumption of the basic EOQ model
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Quantity discounts are available
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The Cowboys saddle company manufactures plastic sandals that are used in the assembly process for their Mr. Ed doll. If the run time for producing a batch of saddles is four days the rate of the production is uniform at 600 saddles pre day and the uniform usage rate is 150 saddles per day what is the maximum inventory quantity
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1800 saddles
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Which cost is not considered part of inventory ordering cost
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Obsolescence
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ABC analysis requires that inventory be classified according to
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Annual dollar usage
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Independent demand inventory consist of
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Inventory who's demand is determined by market conditions outside the firm
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Capacity as opposed to inventory
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Is all ideal resources, except for material, that provide the potential to produce items
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The carrying cost consist of the following three cost components
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Obsolescence cost, Storage cost, capital cost
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A requirement- based system derives orders from
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Master scheduling
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Which of the following most closely describes net material requirements
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Gross requirements -(on hand + scheduled receipts)
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The M RP scheduled receipts are
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Open orders not delivered yet
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The three inputs for every MRP parts explosion are
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Inventory master scheduling and bill of materials
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The bill of materials
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Is a list of all materials required to produce a part
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Cycle counting
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Is counting a fraction of inventory today
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The MRP system is designed to cope with a following type of demand
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Lumpy
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The parts explosion result in the following outputs
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Purchase orders and shop orders
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Which system specifies the output of the operations function
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Master scheduling
