Quiz_ Chapter 11 Quiz

Quiz_ Chapter 11 Quiz - Quiz: Chapter 11 Quiz

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Chapter 11 Quiz Submitted by cmd5150 on 3/26/2010 7:00:56 PM Points Awarded 19 Points Missed 0 Percentage 100% 1. (2 pts) List two cuases of excess (surplus)and obsolete material. (I am looking for the business factors or actions that result in the creation of excess or obsolete maerial). ONE CAUSE MUST BE PURCHASING RELATED. Points Earned: 2/2 Correct Answer: o Purchasing buys in quantities that are too large (JIT / Kanbans solve this) o Overoptimistic sales forecast o Customer cancels an order o Design changes to your product requires a specific component to be no longer needed Your Response: Errors in the purchased amount of materials and a customer cancels an order. 2. (2 pts) As the materials manager, what would you do with the excess or obsolete material? List 2 courses of action. Points Earned: 2/2 Correct Answer: Substitute for a similar component Transfer to another plant that needs the material Sell (maybe at a loss) Scrap - for obsolete material, not excess Store until required (this is a "do nothing" solution and should be the last resort) Your Response: If there is an excess, sell the material even if you have to incur a loss. If the material is obsolete, you can substitute for something similar. 3.
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Quiz_ Chapter 11 Quiz - Quiz: Chapter 11 Quiz

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