Question 1

__________ manufacturers attempt to reduce incoming material inspection as much as possible. In order to eliminate the associated receiving inspection costs, a very high emphasis is placed on the quality of incoming materials under the _______ system.

Accepted Answer

The Japanese have pioneered the Just-in-Time (JIT) system, which aims to reduce waste and eliminate inefficiencies in the production process. JIT manufacturers attempt to reduce the need for incoming material inspection by sourcing high-quality materials and only ordering what is needed, when it is needed. This reduces inventory costs and eliminates the need for extensive receiving inspections.

Question 2

In order to obtain ________ lot sizes for production, the order quantity size needs to be _________ and corresponding delivery schedules need to be made more _________.

Accepted Answer

To obtain smaller lot sizes for production, the order quantity size needs to be reduced, and corresponding delivery schedules need to be made more frequent. This approach helps in reducing inventory costs and increasing flexibility in production.

Question 3

The reliability of supply is a critical consideration in the selection of _______ suppliers.

Accepted Answer

D

Question 4

The role of the purchasing function in a manufacturing organization has become increasingly important. The _____________ production control system focuses on reducing both raw materials and work-in-process inventories.

Accepted Answer

The just-in-time (JIT) production control system focuses on reducing both raw materials and work-in-process inventories, making it an important component of the purchasing function in a manufacturing organization. JIT aims to produce only what is needed, when it is needed, and in the quantity needed, which helps to minimize waste and improve efficiency. Therefore, the best choice is C.

Question 5

Thus, a kanban system is referred to as a __________ because the kanban is used to ______ parts to the next production stage only when they are needed.

Accepted Answer

A kanban system is a pull system because it focuses on producing items based on actual customer demand, rather than pushing items through the production process based on predicted demand. The kanban signals are used to signal when to pull parts to the next production stage only when they are needed.

Question 6

JIT emphasizes scheduling flexibility by aiming for __________________.

Accepted Answer

The answer of JIT emphasizes scheduling flexibility by aiming for...

Question 7

Supplier performance can be measured more accurately under the __________ purchasing approach compared to the traditional one.

Accepted Answer

Just-In-Time (JIT) purchasing approach focuses on having the right quantity of inventory at the right time, and this requires suppliers to be punctual and maintain high quality standards. Therefore, it creates an environment where supplier performance can be more accurately measured compared to traditional purchasing approaches. MBO (Management by Objectives) and ITS (Internet Trading Systems) are not purchasing approaches, whereas JOT and JOB are not commonly used terms in supply chain management.

Question 8

Lower levels of __________ contribute significantly to reduced working capital requirements for the firm.

Accepted Answer

The answer of Lower levels of __________ contribute significantly to...

Question 9

Rule Three (3) of the dual card kanban states: Containers for each specific part are ___________, and they are always filled with the same (ideally, small) quantity.

Accepted Answer

Rule Three states that the containers should be standardized, meaning that they should all be the same size and shape, regardless of the part being stored. This makes it easier to manage and maintain the inventory system. Additionally, the containers should always be filled with the same small quantity of the part, further simplifying the visual management of the kanban system.

Question 10

Since JIT purchasing has gained popularity within the United States, the purchasing function has been preoccupied with trimming the overall supplier base in quest of so called __________ suppliers.

Accepted Answer

The answer of Since JIT purchasing has gained popularity within...

Question 11

The JIT philosophy inherently attempts to reduce lead times for order completions. Under traditional purchasing practices, the lead time is made up of all the following components with one exception. Which one is the exception?

Accepted Answer

Time spent on unpacking and storing is not a component of lead time, as it refers to internal processes within the buyer's organization after the goods have been received. The other options, paperwork lead time, manufacturing time for supplier, transportation lead time, and time spent on receiving and inspection, all contribute to the overall lead time.

Question 12

One of the most crucial elements of the ____________ system is small lot sizes.

Accepted Answer

One of the key principles of the just-in-time system is to produce and deliver products as they are needed, in small lot sizes. This helps to minimize inventory and reduce waste in the manufacturing process. Therefore, option A is the correct answer. The other options do not accurately describe the principles of the just-in-time system.

Question 13

Rule Two (2) of the dual card kanban is: There as many kanbans per container as needed.

Accepted Answer

Rule Two of the dual card kanban system specifies that there should be exactly one production kanban (P-kanban) and one withdrawal kanban (W-kanban) for each container of parts, not multiple kanbans per container.

Question 14

Implementation of just-in-time (Lean) purchasing assists the purchasing function in its major objective(s) of ___________________________.

Accepted Answer

Just-in-time (Lean) purchasing helps the purchasing function in achieving its major objectives of improving the quality of incoming materials and supplier delivery performance as well as reducing lead times and the cost of materials. Therefore, options A and B are correct. However, there is no evidence that implementing just-in-time purchasing would necessarily improve supplier relationships or reduce waste, so option C is incorrect. Ultimately, option D is the best choice as it accurately reflects the two significant objectives addressed by the implementation of just-in-time purchasing.

Question 15

ompared to traditional purchasing approaches, delivery lead times under the ________ system are considerably shorter. Lead-time reliability is usually much better for ___________ systems.

Accepted Answer

JIT (just-in-time) systems are known for their ability to reduce lead times by keeping inventory levels low and delivering products as soon as they are needed. This approach minimizes waste and improves efficiency, leading to faster and more reliable deliveries compared to traditional purchasing approaches. JOB and JOT are not commonly used in supply chain management, while MBO is a management philosophy and not a purchasing system. Computerized systems could refer to a variety of different systems and are not necessarily synonymous with JIT.

Question 16

JIT purchasing facilitates reduction in _____________ and the associated _____________ costs.

Accepted Answer

JIT (Just-In-Time) purchasing aims to minimize inventory levels and the costs associated with holding inventory, such as storage, insurance, and obsolescence.

Question 17

The ____________ is to provide a firm with component parts and raw materials. ____________ also must ensure that high-quality products are provided on time, at a reasonable price.

Accepted Answer

The function of purchasing is responsible for acquiring component parts and raw materials to support a firm's operations. This function is also tasked with ensuring that products are of high quality, delivered on time, and at a reasonable price. The other options are not as accurate or comprehensive in their descriptions of the tasks and responsibilities of purchasing.

Question 18

Traditionally, long and infrequent production runs have in the past been considered beneficial for the overall productivity of a manufacturing organization.However, long production runs usually lead to ____________ of raw-material and finished-goods inventories.

Accepted Answer

Long production runs often require higher levels of raw materials to be stored in inventory to sustain the extended period of production. Additionally, long production runs can result in excessive finished goods inventory if demand does not continually match the rate of production. Therefore, high levels of inventory are the likely outcome of long production runs.

Question 19

The cost of raw materials has traditionally, been a serious concern of top management. Over the years, material cost as a proportion of total cost of the end product has risen sharply and is as high as ______ percent in some instances.

Accepted Answer

The question asks for the highest percentage, and the only option that meets that criteria is D) 80. Therefore, D is the best choice.

Question 20

Rule One (1) of the dual card kanban is: No parts are made unless there is a production kanban to authorize production. If no production kanban are in the "in box" at a work center, the process remains idle, and workers perform other assigned activities. This rule enforces the "pull" nature of the process control.

Accepted Answer

Rule One of the dual card kanban system states that no parts should be made without a production kanban to authorize production. This helps to enforce the "pull" nature of the process control and ensures that work centers only produce what is needed.

Quiz 6: Just-In-Time Lean Purchasing

____ manufacturers attempt to reduce incoming material inspection as much as possible. In order to eliminate the associated receiving inspection costs, a very high emphasis is placed on the quality of incoming materials under the _ system.

In order to obtain ____ lot sizes for production, the order quantity size needs to be _ and corresponding delivery schedules need to be made more _____.