Deck 1: Introduction to Materials Management

Question 1

Discuss the activities involved in physical supply and distribution.

Answer 1

Physical supply and distribution includes all the activities involved in moving goods, from the supplier to the beginning of the production process, and from the end of the production process to the consumer. The activities involved are transportation, distribution inventory, warehousing, packaging, materials handling, and order entry.

Question 2

What factors or major challenges are currently shaping production control's demand environment?

Answer 2

The key factors are several. First, customers are never satisfied. Also supply chains are large and must be continually managed. Product life cycles are getting shorter and shorter. Production control requires a vast amount of data that must be managed. There is an emphasis on profit margins that are being continually squeezed. Finally, there are an increasing number of alternatives.

Question 3

Operations management works in a complex environment affected by:

A) the economy
B) competition
C) government regulations
D) all of the above

Answer 3

D

Question 4

Why is materials management seen as a "balancing act"?

Question 5

Fill in the missing data in the profit and loss statement below.

Question 6

____________means that the supplier manufacturers the goods and sells from finished goods inventory.

A) Assembly- to- order
B) Engineer- to- order
C) Make- to- stock
D) Make- to- order

Question 7

____________means that the manufacturer does not start to make the product until a customer's order is received.

A) Make- to- stock
B) Make- to- order
C) Engineer- to- order
D) Assembly- to- order

Question 8

____________usually flow from supplier to customers and design.

A) Demand information
B) Services
C) Product or services
D) Product

Question 9

Using the data below, if direct materials can be reduced by 10% and direct labor by 5%, the improvement in profit would be:

Question 10

____________means that the product is made from standard components that the manufacturer can inventory and assemble according to a customer order.

A) Make- to- stock
B) Make- to- order
C) Engineer- to- order
D) Assemble- to- order

Question 11

Consider the following situation: If the cost of manufacturing which includes direct material and direct labor is 70% of sales and profit is 10% of sales, what would be the improvement in profit, if through your better planning and control, the cost of manufacturing was reduced from 70% of sales to 50% of sales? How much would sales have to increase to provide the same increase in profits?

Question 12

Demand information usually flows from:

A) supplier to customer
B) customer to products
C) product to supplier
D) customer to supplier

Question 13

Identify the basic inputs to the manufacturing planning and control system.

Question 14

If the cost of manufacturing which includes direct material and direct labor is 70% of sales and profit is 10% of sales, what would be the improvement in profit, if through your better planning and control, the cost of manufacturing was reduced from 70% of sales to 50% of sales?

Question 15

Using the data below, to achieve a $60,000 increase in revenue, how much would sales have to increase?

Question 16

For the products or services they buy, customers expect:

A) no pre- sale service
B) lower quality
C) a fair price
D) no after- sale service

Question 17

A ____________ function is needed to transform our resources into useful goods.

A) service
B) production
C) resource material
D) extraction

Question 18

Generally a supplier must meet set minimum requirements to be considered a viable competitor in the marketplace. Customer requirements may be based on price, quality, delivery, and so forth and are called____________ .

A) order price
B) order flexibility
C) order winners
D) order qualifiers

Question 19

Since it is virtually impossible to be the best in every dimension of competition, firms should in general strive to provide a____________ level of acceptance for each of the order qualifiers but____________ try to be the best in the market for the order winners).

A) maximum, should
B) maximum, should not
C) minimal, should
D) minimal, should not

Question 20

Identify and briefly describe the primary activities carried out in manufacturing planning and control.

Question 21

Regulation of business by the various levels of government is extensive.

Question 22

In recent years attention has moved away from the concept of supply chain management SCM).

Question 23

More and more companies are subcontracting some of their work to suppliers, keeping only their most important core competencies as internal activities.

Question 24

Just- in- time JIT) concepts were originally developed by Motorola and other American companies in the 1970s.

Question 25

General economic conditions seldom influence the demand for a company's products or services and the availability of inputs.

Question 26

Order winners and qualifiers for any product or market combinations are static.

Question 27

Services are physical objects, something we can touch, feel, or see.

Question 28

Assembly- to- order means that the customer's specifications require unique engineering design or significant customization.

Question 29

Since competition is international and aggressive, successful companies provide quality that not only meets customers' high expectations but exceeds them.

Question 30

Service companies are in the business of converting raw materials to a form that is of far more value and use to the consumer than the original raw materials.