UTA OPMA-3306 CHAPTER 6 EXAM
QUESTIONS & ANSWERS
Lead time - Correct Answers -The time needed to respond to a customer order.
Customer order decoupling point - Correct Answers -Where inventory is positioned in
the supply chain.
Make-to-stock - Correct Answers -A production environment where the customer is
served "on-demand" from finished goods inventory.
Assemble-to-order - Correct Answers -A production environment where preassembled
components, subassemblies, and modules are put together in response to a specific
customer order
Days-of-supply - Correct Answers -A measure of the number of days of supply of an
item.
Little's law - Correct Answers -Mathematically relates inventory, throughput, and flow
time.
Throughput - Correct Answers -The average rate (e.g., units/day) that items flow
through a process.
Make-to-order - Correct Answers -A production environment where the product is built
directly from raw materials and components in response to a specific customer order.
Engineer-to-order - Correct Answers -Here the firm works with the customer to design
the product, which is then made from purchased material, parts, and components.
Lean manufacturing - Correct Answers -To achieve high customer service with
minimum levels of inventory investment
The total average value of inventory - Correct Answers -The total investment in
inventory at the firm, which includes raw material, work-in-process, and finished goods.
Inventory turn - Correct Answers -An efficiency measure where the cost of goods sold is
divided by the total average value of inventory
Flow time - Correct Answers -The time it takes one unit to completely flow through a
process.
QUESTIONS & ANSWERS
Lead time - Correct Answers -The time needed to respond to a customer order.
Customer order decoupling point - Correct Answers -Where inventory is positioned in
the supply chain.
Make-to-stock - Correct Answers -A production environment where the customer is
served "on-demand" from finished goods inventory.
Assemble-to-order - Correct Answers -A production environment where preassembled
components, subassemblies, and modules are put together in response to a specific
customer order
Days-of-supply - Correct Answers -A measure of the number of days of supply of an
item.
Little's law - Correct Answers -Mathematically relates inventory, throughput, and flow
time.
Throughput - Correct Answers -The average rate (e.g., units/day) that items flow
through a process.
Make-to-order - Correct Answers -A production environment where the product is built
directly from raw materials and components in response to a specific customer order.
Engineer-to-order - Correct Answers -Here the firm works with the customer to design
the product, which is then made from purchased material, parts, and components.
Lean manufacturing - Correct Answers -To achieve high customer service with
minimum levels of inventory investment
The total average value of inventory - Correct Answers -The total investment in
inventory at the firm, which includes raw material, work-in-process, and finished goods.
Inventory turn - Correct Answers -An efficiency measure where the cost of goods sold is
divided by the total average value of inventory
Flow time - Correct Answers -The time it takes one unit to completely flow through a
process.
