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Material accumulated for a well-defined future need is called
Material accumulated for a well-defined future need is calledA . buffer stockB . continuous inventoryC . anticipation inventoryD . safety stockView AnswerAnswer: C Explanation: Anticipation inventory refers to stock that is accumulated in advance of expected demand increases, such as seasonal spikes or promotions. This type of inventory helps companies...
A firm hires a new staff member in its warehousing department. As a FIRST step in the training of this employee, the warehouse manager should
A firm hires a new staff member in its warehousing department. As a FIRST step in the training of this employee, the warehouse manager shouldA . verify that the employee knows how to operate the warehouse equipment and tools correctlyB . demonstrate how to package products in the correct manner,...
Which of the following will be the BEST way for GHTs supply manager to demonstrate that supply management skills can obtain better value in shipping?
In an effort to cut expenses, GHI, Inc. moves responsibility for logistics to the supply management department. Some officers in the firm are skeptical that this move will be beneficial, since most shipping providers use published rates, and there will be little room for cost improvement. Which of the following...
How should this value be categorized in the asset management system?
A utility installation company conducts an annual review of its assets. Included with its equipment are several trenching machines that were purchased three years ago at a cost of $85,000 each. How should this value be categorized in the asset management system?A . EquityB . BookC . MarketD . HistoricView...
Based on this information, how should the four options be ranked?
A manufacturing firm redesigns its premier product to benefit from material standardization. The change will entail re-tooling costs. The firm conducts a cost benefit analysis on four possible options. Option 1 is to make no change at all. Options 2, 3, and 4 represent different re-tooling configurations involving different materials:...
Which of the following is the BEST course of action for supply management to undertake in order to initiate improvements?
A manufacturer must work to reduce cost of goods sold (COGS) to achieve profit objectives and remain competitive in a tight market. The manufacturer has long standing relationships with its main suppliers and a strong supply management department that conducts periodic reviews with the suppliers. Nevertheless, the manufacturer is not...
During which phase of the system development process should the supply manager communicate with end users to review their business environments?
A supply manager wishes to implement an enterprise resource planning (ERP) system. During which phase of the system development process should the supply manager communicate with end users to review their business environments?A . TestingB . MaintenanceC . DesignD . AnalysisView AnswerAnswer: D Explanation: During the analysis phase of an...
In order to maximize recovery of its investment, which of the following is the BEST order for the application of these steps (from first to last)?
A company that manufactures rubber balls wishes to discontinue production and move into the golf ball industry. Consider the following steps in the disposition of the current inventory of rubber balls: I. Dispose of the rubber balls per local regulations II. Sell the rubber balls on the open market III....
To avoid this situation, which of the following should the organization have considered?
A home goods manufacturer runs an annual sales promotion, and the promotion achieves success beyond the firm's expectations. As a result, the firm runs short of a critical material. The firm purchases additional material, only to be left with excess inventory once the promotion runs its course. To avoid this...
Which of the following is the BEST way for MNO to generate better information about demand and improve forecast accuracy?
MNO, Inc. operates within a volatile industry in which unforeseen demand and events often result in unreliable forecasts. Which of the following is the BEST way for MNO to generate better information about demand and improve forecast accuracy?A . Improve fill rateB . Increase collaboration with downstream customersC . Focus...
