Question 1

What is the correct order for the four steps that must be followed to solve problems graphically?

Accepted Answer

The correct order to solve problems graphically is to first graph each constraint to visually represent the problem. Next, identify the feasible set of solutions where all constraints are satisfied. Then, identify all the corner-point values within this feasible set, as these points are potential solutions. Finally, select the corner point that yields the largest (or smallest, depending on the objective) value for the objective function, as this point is the optimal solution.

Question 2

One of the traditional reasons for holding inventory is to avoid shutdowns due to defective parts.What is the JIT solution meant to do?

Accepted Answer

The JIT (Just-In-Time) solution aims to use total quality control to ensure that defects are minimized, thereby reducing the need to hold inventory as a buffer against defective parts.

Question 3

How are finished goods inventories treated with JIT manufacturing?

Accepted Answer

Finished goods inventories are considered unnecessary in JIT manufacturing as the focus is on producing goods in response to customer demand. The principle of JIT is to produce goods only when they are needed, which makes it unnecessary to maintain finished goods inventories. Instead, JIT manufacturing relies on continuous production and delivery of small batches of goods as per customer orders to avoid overproduction and excess inventory. Therefore, finished goods inventories are considered insignificant in JIT manufacturing.

Question 4

Which of the following is a common reason for shutdowns?

Accepted Answer

Machine maintenance is a common reason for shutdowns because it is necessary to ensure that the machines are in good working condition and to prevent breakdowns.

Question 5

How does JIT prevent shutdowns due to materials shortage?

Accepted Answer

JIT works closely with suppliers to ensure that materials are readily available whenever needed. This helps to prevent shutdowns due to materials shortage. JIT does not hold inventory as this goes against the principle of reducing waste. While total quality control helps to reduce defects, it does not directly address the issue of materials shortage. Maintenance is also not directly related to preventing shutdowns due to materials shortage.

Question 6

One of the traditional reasons for holding finished goods inventories is to ensure a firm's ability to meet delivery dates.What is the JIT solution meant to do?

Accepted Answer

The JIT (Just-in-Time) solution is meant to reduce lead time, which means that products are manufactured and delivered at the exact time they are needed, reducing the need for finished goods inventories. The other options (A, C, D) are strategies that can be used to support JIT, but they are not the primary focus of the JIT philosophy.

Question 7

What makes JIT superior to the traditional approach of inventory management?

Accepted Answer

The traditional approach balances setup and carrying costs to determine optimal order quantity, while JIT aims to eliminate both by reducing inventory levels to zero.

Question 8

How is JIT purchasing done?

Accepted Answer

JIT (Just-In-Time) purchasing focuses on minimizing inventory and reducing costs by establishing long-term contracts with suppliers. These contracts emphasize quality, reliability, and price to ensure a steady, reliable flow of materials as needed, without the need for large inventories.

Question 9

What is the term for a marker or card that specifies the quantity that the preceding process should manufacture?

Accepted Answer

A production Kanban is a marker or card that specifies the quantity that the preceding process should manufacture. It is used in the pull system of production where inventory is only replenished when there is a demand for it. The production Kanban is sent from the downstream process to the upstream process to indicate that more material is needed to fulfill customer demand.

Question 10

What does a withdrawal Kanban specify?

Accepted Answer

A withdrawal Kanban specifies the quantity that a subsequent process should withdraw from the preceding process. It is a signal for the downstream process to pull the necessary parts or materials as required. The Kanban system relies on signals to prevent overproduction and to ensure that processes are producing only what is needed, when it is needed.

Question 11

The following information is available for Wilson Trailer Company, which sells two products:
$$\begin{array} { l c c } 
& \text { Trailer A } & \text { Trailer B } \
\text { Pracessing time } & 2 \text { hours } & 4 \text { hours } \
\text { Vinyl cover used } & 16 \text { s. metres } & 12 \text { sq. metres } \
\text { Selling price } & \$ 50.00 & \$ 80.00 \
\text { Variable cost } & \$ 35.00 & \$ 50.00 \
\text { Fixed cost } & \$ 10.00 & \$ 20.00
\end{array}$$ There are 100 hours available in the plant and 75 square metres of vinyl available per operating period.
-Refer to the figure.Which statement best describes the relationship between these products?

Accepted Answer

Trailer B requires less time to produce than Trailer A (70 hours vs 80 hours). However, Trailer B requires more vinyl than Trailer A (30 square metres vs 25 square metres). Since there are only 75 square metres of vinyl available per operating period, the material constraint (i.e. availability of vinyl) favours Trailer A over Trailer B. Therefore, the statement that best describes the relationship between these products is "The materials constraint favours Trailer A over Trailer B."

Question 12

One of the traditional reasons for holding inventory is to avoid shutdowns due to unavailability of materials.What is the JIT solution meant to do?

Accepted Answer

The answer of One of the traditional reasons for holding...

Question 13

One of the traditional reasons for holding inventory is to avoid a shutdown due to machine failure.What is the JIT solution meant to do?

Accepted Answer

JIT (Just-In-Time) manufacturing aims to minimize inventory and increase efficiency. One of its strategies to avoid shutdowns due to machine failure is to use total preventive maintenance. This approach ensures that machines are regularly and proactively maintained to prevent breakdowns, rather than reacting to failures after they occur.

Question 14

What is the definition of a loose constraint?

Accepted Answer

A loose constraint is a constraint whose limited resources are not fully used by a product mix. This means that there is an excess capacity or unused resources in the constraint, which results in a lower level of production.

Question 15

What is the term for a marker or card that signals to a supplier the quantity of materials that need to be delivered and the time of delivery?

Accepted Answer

A vendor Kanban signals to a supplier the quantity of materials that need to be delivered and the time of delivery. A production Kanban signals to the production process when it is time to replenish a certain item, while a withdrawal Kanban signals to the preceding process when it is time to produce more of a certain item. A deposit Kanban is not a recognized term in lean manufacturing.

Question 16

Heft Company produces A and B with contribution margins per unit of $40 and $30,respectively.Only 500 labour hours and 300 machine hours are available for production. Time requirements to produce one unit of A and B are as follows:
$\begin{array}{lcc}
&\text {Product A }&\text {Product E}\
  \text { Labour hours per unit } &5&2\
 \text { Machine hours per unit } &1&4\
\end{array}$
 What is the constraint on machine hours for Heft Company?

Accepted Answer

The constraint on machine hours is represented by the formula 1A + 4B ≤ 300, where 1 and 4 are the machine hours required to produce one unit of A and B, respectively, and 300 is the total available machine hours.

Question 17

What is the purpose of the Kanban system?

Accepted Answer

The purpose of the Kanban system is to ensure that parts or materials are available when needed. It is a system of signals used in lean manufacturing to manage the flow of materials in a just-in-time (JIT) production system. It helps to minimize waste, reduce inventory levels, and streamline production processes. The other options (B, C, D) are not the primary purposes of the Kanban system.

Question 18

One of the traditional reasons for holding inventory is to take advantage of quantity discounts and hedge against future price increases.What is the JIT solution meant to do?

Accepted Answer

The answer of One of the traditional reasons for holding...

Question 19

What is the term for a marker or card that specifies the quantity that a subsequent process should take from a preceding process?

Accepted Answer

The term for a marker or card that specifies the quantity that a subsequent process should take from a preceding process is called a withdrawal Kanban. It is a lean manufacturing tool that is used to signal the need for production or movement of materials between processes.

Question 20

If the objective is to maximize profits in a linear programming problem,what should be the coefficients of the variables in the objective function?

Accepted Answer

The contribution margin per unit (selling price per unit minus variable costs per unit) is the correct coefficient for variables in the objective function when maximizing profits in a linear programming problem, as it directly relates to how each unit contributes to covering fixed costs and generating profit.

Quiz 18: Inventory Management: Economic Order Quantity,jit,and the Theory of Constraints

What is the correct order for the four steps that must be followed to solve problems graphically?

One of the traditional reasons for holding inventory is to avoid shutdowns due to defective parts.What is the JIT solution meant to do?

How are finished goods inventories treated with JIT manufacturing?

Which of the following is a common reason for shutdowns?

How does JIT prevent shutdowns due to materials shortage?

One of the traditional reasons for holding finished goods inventories is to ensure a firm's ability to meet delivery dates.What is the JIT solution meant to do?

What makes JIT superior to the traditional approach of inventory management?

How is JIT purchasing done?

What is the term for a marker or card that specifies the quantity that the preceding process should manufacture?

What does a withdrawal Kanban specify?

One of the traditional reasons for holding inventory is to avoid shutdowns due to unavailability of materials.What is the JIT solution meant to do?

One of the traditional reasons for holding inventory is to avoid a shutdown due to machine failure.What is the JIT solution meant to do?

What is the definition of a loose constraint?

What is the term for a marker or card that signals to a supplier the quantity of materials that need to be delivered and the time of delivery?

What is the purpose of the Kanban system?

One of the traditional reasons for holding inventory is to take advantage of quantity discounts and hedge against future price increases.What is the JIT solution meant to do?

What is the term for a marker or card that specifies the quantity that a subsequent process should take from a preceding process?

If the objective is to maximize profits in a linear programming problem,what should be the coefficients of the variables in the objective function?