Question 1

A push-through system that manufactures finished goods for inventory on the basis of demand forecasts and produces a master schedule for quantity and timing of units to be produced.
A)just-in-time purchasing
B)materials requirements planning
C)relevant total costs
D)economic order quantity

Accepted Answer

The push-through system that manufactures finished goods for inventory on the basis of demand forecasts and produces a master schedule for quantity and timing of units to be produced is known as materials requirements planning (MRP). MRP is a key inventory management and production planning technique that helps organizations optimize their production and inventory levels by ensuring that materials and finished goods are available when needed. Just-in-time purchasing is a different inventory management technique that focuses on minimizing inventory levels by only ordering materials and supplies when they are needed for production. Relevant total costs and economic order quantity are also important concepts in inventory management, but they do not directly relate to the push-through system described in the question.

Question 2

What is a supply chain,and what are the benefits of a supply chain analysis? Provide an example of these benefits.

Accepted Answer

The answer of What is a supply chain,and what are...

Question 3

A "push-through" system,often described as a materials requirement planning system,focuses first on the forecasted amount and timing of finished goods and then determines the demand for materials components and subassemblies at each of the prior stages of production.

Accepted Answer

The answer of A "push-through" system,often described as a materials...

Question 4

The supply chain describes the flow of goods,services,and information from the initial sources of materials and services to the delivery of products to consumers,regardless of whether those activities occur in the same company or in other companies.

Accepted Answer

The statement is true, as it accurately describes the definition of a supply chain.

Question 5

A system that emphasizes lean production techniques,low quantities of inventory,and close coordination among production workstations is called ________.
A)Economic order quantity production
B)Just-in-time production
C)Materials requirements planning production
D)Push-through system

Accepted Answer

Just-in-time production emphasizes lean production techniques, low quantities of inventory, and close coordination among production workstations. It focuses on producing the right product, at the right time, in the right quantity, and at the right cost. This system is also known as lean manufacturing or lean production.

Question 6

Kretzinger Company makes extensive use of financial performance reports for each of its departments.Although most departments have been reporting favorable cost variances with the company's current inventory system,management is concerned about the overall performance of the purchasing department.For example,the following information is for the purchasing of materials for a product the company has been manufacturing for several years:
  
Required:
a.Compute the inventory turnover for each year.Can any conclusions be drawn for a yearly comparison of the purchase price variance and the inventory turnover?
b.Identify problems likely to be caused by evaluating purchasing only on the basis of the purchase price variance.
c.What recommendations will improve the evaluation process?

Accepted Answer

The answer of Kretzinger Company makes extensive use of financial...

Question 7

The demand-pull feature of JIT production systems results in close coordination among workstations and smooths the flow of goods.

Accepted Answer

The demand-pull feature of JIT production systems is designed to respond to customer demand in a timely manner, which requires close coordination among workstations and smooth flow of goods. Therefore, the statement is true.

Question 8

Companies that implement JIT purchasing will emphasize developing short-term supplier relationships with many suppliers to attain flexibility.

Accepted Answer

Companies that implement JIT purchasing choose their suppliers carefully and develop long-term supplier relationships.

Question 9

Sharing sales information throughout the supply chain leads to which of the following?
A)larger stockouts
B)increased manufacturing of products not immediately needed by retailers
C)fewer manufacturing orders that had to be expedited
D)higher inventories held by each company in the supply chain

Accepted Answer

Sharing sales information throughout the supply chain enables companies to better forecast demand and plan production accordingly, reducing the need for expedited manufacturing orders.

Question 10

Just-in-Time (JIT)production systems are also referred to as lean production.

Accepted Answer

JIT production systems and lean production are both terms used to describe the same production methodology which aims to minimize waste and increase efficiency.

Question 11

The management accountant aids in MRP by ________.
A)doing journal entries as requested
B)preparing plant appropriation requests
C)maintaining accurate records of inventory and its costs
D)contacting vendors to make sure they can deliver the materials in time

Accepted Answer

The management accountant maintains accurate records of inventory and its costs, which is a crucial component of material requirements planning (MRP). This information is used to determine what materials are needed, in what quantities, and when they are needed to ensure that production runs smoothly. While journal entries, plant appropriation requests, and vendor communication may be related to MRP in some way, they are not as directly relevant as inventory management.

Question 12

A demand-pull system in which each component in a production line is produced immediately as needed by the next step in the production line is referred to as ________.
A)just-in-time production
B)materials requirements planning
C)relevant total costs
D)economic order quantity

Accepted Answer

This is the definition of just-in-time (JIT) production, which is a method of production where products are only produced as they are needed by the next step in the production line. This helps to reduce waste, improve efficiency, and lower inventory costs. Materials requirements planning (MRP) is a system for managing inventory and production planning, but it does not necessarily involve the immediate production of each component in the production line as needed. Relevant total costs and economic order quantity are both concepts related to inventory management, but are not related to the specific production system described in the question.

Question 13

JIT purchasing and production systems can be used in service industries as supplies and the labor to manage those supplies can be a significant cost element in some service organizations.

Accepted Answer

Materials requirements planning system uses a master production schedule.

Question 14

Which of the following term is defined as: "the flow of goods,services,and information from the initial sources of materials and services to the delivery of products to consumers"?
A)customer list
B)enterprise requirements plan (ERP)
C)material requirements plan (MRP)
D)supply chain

Accepted Answer

The definition provided is of supply chain, which involves the process of bringing products or services from their initial sources to the end consumers. Customer list refers to a roster of customers, ERP refers to a system used by businesses to manage their resources and processes, while MRP is a system used for managing the materials and inventory needed to manufacture a product.

Question 15

Just-in-time systems are similar to materials requirement planning systems as both systems are demand-pull systems.

Accepted Answer

Just-in-time systems are not similar to materials requirement planning systems as just-in-time production is a demand-pull system and materials requirements planning is a push-through approach.

Question 16

Which of the following statements best defines a materials requirements planning system?
A)a demand-pull system in which each component in a production line is produced immediately as needed by the next step in the production line
B)a push-through system that manufactures finished goods for inventory on the basis of demand forecasts
C)a demand-pull system that manufactures finished goods for inventory on the basis of demand forecasts
D)a push-through system in which each component in a production line is produced immediately as needed by the next step in the production line

Accepted Answer

A materials requirements planning (MRP) system is a push-through system that manufactures finished goods for inventory based on demand forecasts. It plans the manufacturing process by determining the quantity of materials and components needed to meet the forecasted demand.

Question 17

A company's inventory levels are dependent on a number of variables including the demand for the product,supplier relationships,and supplier relationships with their manufacturers.

Accepted Answer

This statement is true. Inventory levels are influenced by factors such as customer demand, supply chain efficiency, and relationships with suppliers and manufacturers.

Question 18

Which of the following statements best defines a just-in-time production system?
A)a push-through system that manufactures finished goods for inventory on the basis of demand forecasts
B)a push-through system in which each component in a production line is produced immediately as needed by the next step in the production line
C)a demand-pull system that manufactures finished goods for inventory on the basis of demand forecasts
D)a demand-pull system in which each component in a production line is produced immediately as needed by the next step in the production line

Accepted Answer

A just-in-time (JIT) production system is a demand-pull system in which each component in a production line is produced immediately as needed by the next step in the production line. This means that the production process is synchronized with demand, and inventory is minimized to reduce waste and costs. Choice A describes a traditional push-through system that produces finished goods for inventory, which is opposite to the JIT philosophy. Choice B is partially correct, but it does not mention the demand-pull aspect of a JIT system. Choice C describes a demand-pull system, but it implies that finished goods are produced for inventory, which is not consistent with a JIT approach.

Question 19

Just-in-time purchasing describes the flow of goods,services,and information from the initial sources of materials and services to the delivery of products to consumers,regardless of whether those activities occur in the same organization or in other organizations.

Accepted Answer

Supply chain describes the flow of goods,services,and information from the initial sources of materials and services to the delivery of products to consumers,regardless of whether those activities occur in the same organization or in other organizations.

Question 20

The manufacturing manager of New Technology Company is concerned about the company's newest plant.When the plant began operations three years ago,it had the best of everything.It had modern equipment,well-trained employees,engineered work and assembly stations,and a controlled environment.During the first two years,the evaluation results were very good with almost all cost variances being favorable.However,recently,things have turned negative.
In recent months,everything seems to be operating in a crisis management mode.Although most cost variances remain favorable,the plant's segment contribution is declining and customers are complaining about poor quality and slow delivery.Several customers have suggested that they may take their business elsewhere if things do not improve.
The shop floor is in continual turmoil.In-process inventory is everywhere,production employees have difficulty finding jobs that need to be worked on,and scheduling has requested a larger computer to keep track of work in process.
The vice president of sales does not know where to begin with solving the customers' problems.It seems that everyone is working very hard and the plant has the best facilities and trained employees in the industry.
Required:
What is the nature of the plant's problems? What recommendation would you make to help improve the situation?

Accepted Answer

The answer of The manufacturing manager of New Technology Company...

Quiz 20: Inventory Management, just-In-Time, and Simplified Costing Methods

A push-through system that manufactures finished goods for inventory on the basis of demand forecasts and produces a master schedule for quantity and timing of units to be produced.

What is a supply chain,and what are the benefits of a supply chain analysis? Provide an example of these benefits.

A "push-through" system,often described as a materials requirement planning system,focuses first on the forecasted amount and timing of finished goods and then determines the demand for materials components and subassemblies at each of the prior stages of production.

The supply chain describes the flow of goods,services,and information from the initial sources of materials and services to the delivery of products to consumers,regardless of whether those activities occur in the same company or in other companies.

A system that emphasizes lean production techniques,low quantities of inventory,and close coordination among production workstations is called ________.

The demand-pull feature of JIT production systems results in close coordination among workstations and smooths the flow of goods.

Companies that implement JIT purchasing will emphasize developing short-term supplier relationships with many suppliers to attain flexibility.

Sharing sales information throughout the supply chain leads to which of the following?

Just-in-Time (JIT)production systems are also referred to as lean production.

The management accountant aids in MRP by ________.

A demand-pull system in which each component in a production line is produced immediately as needed by the next step in the production line is referred to as ________.

JIT purchasing and production systems can be used in service industries as supplies and the labor to manage those supplies can be a significant cost element in some service organizations.

Which of the following term is defined as: "the flow of goods,services,and information from the initial sources of materials and services to the delivery of products to consumers"?

Just-in-time systems are similar to materials requirement planning systems as both systems are demand-pull systems.

Which of the following statements best defines a materials requirements planning system?

A company's inventory levels are dependent on a number of variables including the demand for the product,supplier relationships,and supplier relationships with their manufacturers.

Which of the following statements best defines a just-in-time production system?

Just-in-time purchasing describes the flow of goods,services,and information from the initial sources of materials and services to the delivery of products to consumers,regardless of whether those activities occur in the same organization or in other organizations.