This is the situation of lead time strategy in case of:
A. Engineer-to-order
B. Make-to-stock
C. Make-to-order
D. None of these
In the above question, if the work-in-process could be reduced to 7 weeks and the annual cost of carrying inventory was 20% of the inventory value, what would be annual saving?
A. $ 80,000
B. $ 70,000
C. $ 90,000
D. $ 60,000
Order quantity is 1000 units and safety stock is 300 units. What is the average inventory?
A. 800 units
B. 900 units
C. 890 units
D. 980 units
Physical distribution contributes to:
A. Creating demand
B. Prompt delivery
C. Product availability and accurate order filling
D. All of these
Projected available balance is calculated in which one of the following ways?
A. PAB=prior period PAB or on-hand balance + MPS ?customer orders
B. PAB=prior period PAB + MPS ?greater of customer orders or forecast
C. Both of these depending on whether the period is before or after the period is before or after the demand time fence
D. None of these
Which of the following situation that will leads or generates Exception messages?
A. Components for which planned orders are in the action bucket and which should be considered for release
B. Open orders for which the timing or quantity of scheduled receipts does not satisfy the plan.
C. Situations in which the standard lead times will result in late delivery of a Zero-level part
D. All of the above
Which cost would be the interest lost by not investing the money at the prevailing interest rate, and it may be much higher depending on investment opportunities for the firm?
A. Capital cost
B. Investment cost
C. Minimum cost
D. Capacity-associated cost
The service level is directly related to the number of standard deviations provided as safety stock and is usually called:
A. safety value
B. safety factor
C. secure level
D. secure stockout
Which function is to determine the need for labor, equipment, and material to meet the priority plans?
A. Frequency planning
B. Training level
C. Capacity planning
D. Work-in-progress planning
What is characterized by many variations in product design, process requirements and order quantities?
A. Intermittent manufacturing
B. process improvement
C. Streamline manufacturing D. Periodic manufacturing
