Question 1
aq.inv.man.003_1809
All of the following are limitations of outsourcing except:
Significantly more costs are incurred if the vendor is international.
The vendor having access to sensitive proprietary information.
The vendor lacking transparency about the handling of the outsourced process.
The vendor going out of business or having legal problems.
You Answered Correctly!
Correct. While outsourcing internationally may sometimes be more expensive, more
often outsourcing to international vendors can provide significant cost reductions and tax
breaks for the organization.
Question 2
1D4-AT11
A push system that manufactures finished goods for inventory on the basis of
demand forecasts is referred to as:
economic order quantity.
just-in-time purchasing.
relevant total cots.
materials requirements planning
(MRP).
This Answer is Correct
MRP is an integrated production and control system that has three objectives:
1. Ensuring materials are available for production and products are available
for customers at the proper time and in the right quantities;
2. Maintaining the lowest possible levels of inventory; and
3. planning manufacturing activities, delivery schedules, and purchasing
activities.
Question 3
aq.inv.man.004_1809
Which of the following most accurately defines lean manufacturing?
Lean manufacturing has a perspective that is “vertical” and focused on individual departments
and business units rather than a “horizontal” perspective that is targeted on end results.
Lean manufacturing changes the focus of management from optimizing the flow of products
and services through the entire organization to optimizing separate technologies, processes,
and assets.
The core idea of lean manufacturing is to maximize value to the company while minimizing
waste.
Lean manufacturing means creating more value for customers using fewer resources.
This Answer is Correct
Correct. The term “Lean” was coined to describe Toyota's business during the
late 1980s by a U.S. research team. The core idea of Lean is to maximize
, customer value while minimizing waste. Hence, Lean simply means creating
more value for customers using fewer resources.
Lean changes the focus of management from optimizing separate
technologies, process, and assets to optimizing the flow of products and
services through the entire organization with a perspective that is
“horizontal” and targeted on end results rather than “vertical” and focused on
individual departments and business units.
Question 4
1D4-AT07
Which of the following is a benefit of a materials requirement planning (MRP)
system?
Predictable raw materials needs and the ability to take advantage of bulk purchasing and other
price breaks
Potential inventory accumulations
More coordination required between functional areas, which will increase interaction and
communication
Possibility that manufacturing cells may receive parts they are not ready to process
This Answer is Correct
MRP is used to set production and purchasing schedules. It facilitates the
coordination of purchasing activities to take advantage of bulk purchasing
and quantity discounts.
Question 5
aq.inv.man.005_1809
All of the following are operational benefits of implementing lean
manufacturing except:
Unnecessary movement of inventory and people is reduced.
Waste in the production process is eliminated.
Time spent waiting on the production process is reduced.
Processing that is not desired by the customer is reduced.
This Answer is Correct
Correct. In many manufacturing processes it is impossible to completely
eliminate waste. However, lean manufacturing focuses on eliminating as
much waste as possible.
Question 6
aq.inv.man.001_1809
What is the purpose of supply chain management (SCM) systems?
To computerize inventory control
To automate customer service and support
Production planning
To organize activities between a company and its suppliers, distributors, and customers
This Answer is Correct
Correct. Supply Chain Management strives to maximize the efficiency of
purchasing raw materials from suppliers and entering the raw materials into
production.
Question 7
1D4-AT03
aq.inv.man.003_1809
All of the following are limitations of outsourcing except:
Significantly more costs are incurred if the vendor is international.
The vendor having access to sensitive proprietary information.
The vendor lacking transparency about the handling of the outsourced process.
The vendor going out of business or having legal problems.
You Answered Correctly!
Correct. While outsourcing internationally may sometimes be more expensive, more
often outsourcing to international vendors can provide significant cost reductions and tax
breaks for the organization.
Question 2
1D4-AT11
A push system that manufactures finished goods for inventory on the basis of
demand forecasts is referred to as:
economic order quantity.
just-in-time purchasing.
relevant total cots.
materials requirements planning
(MRP).
This Answer is Correct
MRP is an integrated production and control system that has three objectives:
1. Ensuring materials are available for production and products are available
for customers at the proper time and in the right quantities;
2. Maintaining the lowest possible levels of inventory; and
3. planning manufacturing activities, delivery schedules, and purchasing
activities.
Question 3
aq.inv.man.004_1809
Which of the following most accurately defines lean manufacturing?
Lean manufacturing has a perspective that is “vertical” and focused on individual departments
and business units rather than a “horizontal” perspective that is targeted on end results.
Lean manufacturing changes the focus of management from optimizing the flow of products
and services through the entire organization to optimizing separate technologies, processes,
and assets.
The core idea of lean manufacturing is to maximize value to the company while minimizing
waste.
Lean manufacturing means creating more value for customers using fewer resources.
This Answer is Correct
Correct. The term “Lean” was coined to describe Toyota's business during the
late 1980s by a U.S. research team. The core idea of Lean is to maximize
, customer value while minimizing waste. Hence, Lean simply means creating
more value for customers using fewer resources.
Lean changes the focus of management from optimizing separate
technologies, process, and assets to optimizing the flow of products and
services through the entire organization with a perspective that is
“horizontal” and targeted on end results rather than “vertical” and focused on
individual departments and business units.
Question 4
1D4-AT07
Which of the following is a benefit of a materials requirement planning (MRP)
system?
Predictable raw materials needs and the ability to take advantage of bulk purchasing and other
price breaks
Potential inventory accumulations
More coordination required between functional areas, which will increase interaction and
communication
Possibility that manufacturing cells may receive parts they are not ready to process
This Answer is Correct
MRP is used to set production and purchasing schedules. It facilitates the
coordination of purchasing activities to take advantage of bulk purchasing
and quantity discounts.
Question 5
aq.inv.man.005_1809
All of the following are operational benefits of implementing lean
manufacturing except:
Unnecessary movement of inventory and people is reduced.
Waste in the production process is eliminated.
Time spent waiting on the production process is reduced.
Processing that is not desired by the customer is reduced.
This Answer is Correct
Correct. In many manufacturing processes it is impossible to completely
eliminate waste. However, lean manufacturing focuses on eliminating as
much waste as possible.
Question 6
aq.inv.man.001_1809
What is the purpose of supply chain management (SCM) systems?
To computerize inventory control
To automate customer service and support
Production planning
To organize activities between a company and its suppliers, distributors, and customers
This Answer is Correct
Correct. Supply Chain Management strives to maximize the efficiency of
purchasing raw materials from suppliers and entering the raw materials into
production.
Question 7
1D4-AT03
