Chapter 16 Final

Chapter 16 Final - TEST BANK Sourcing and Supply Chain...

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TEST BANK Sourcing and Supply Chain Management – 4th edition Handfield, Monczka, Giunipero, and Patterson Chapter 16 True or False 1. Lean is a philosophy that seeks to shorten the time between when the customer order and the shipment to the customer by eliminating waste. a. True (p. 586) b. False 2. In a pull system, an upstream work center or operation will create output regardless whether a downstream center directly requests that output. a. True b. False (p. 586) 3. Anything less than perfect quality leads to waste. a. True (p. 586) b. False 4. WIP is incomplete inventory – it has not yet been transformed to a saleable finished good. a. True (p. 587) b. False 5. If WIP builds up at a workstation, a production scheduler should not have to reroute the flow of material to another work center. a. True b. False (p. 587) 6. A lower-than-anticipated finished-goods inventory level may indicate that customer demand is decreasing. a. True b. False (p. 588) 7. The most basic and the easiest inventory-related cost to quantify and track is unit cost. a. True (p. 588) b. False This edition is intended for use outside of the U.S. only, with content that may be different from the U.S. Edition. This may not be resold, copied, or distributed without the prior consent of the publisher.
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8. Ordering costs are a composite of the costs associated with the release of a material order. a. True (p. 588) b. False 9. Carrying costs do not vary with the level of inventory, which makes these costs fixed. a. True b. False (p. 589) 10. It is often difficult to quantify the total costs associated with ordering and carrying physical inventory. a. True (p. 589) b. False 11. All cost accounting systems are capable of identifying and assigning the true costs related to maintaining physical inventory. a. True b. False (p. 590) 12. From the financial accounting perspective, inventory has historically been considered a current asset. a. True (p. 590) b. False 13. Even in an era of just-in-time production, almost all firms hold some level of preproduction inventory. a. True (p. 593) b. False 14. Production inventory consumes a minor portion of inventory investment. a. True b. False (p. 594) 15. The true cost of MRO inventory often goes unnoticed because firms fail to track these items with the same intensity as production inventory. a. True (p. 594) b. False This edition is intended for use outside of the U.S. only, with content that may be different from the U.S. Edition. This may not be resold, copied, or distributed without the prior consent of the publisher.
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16. Supply chains are sensitive to changes in markets, including changes in the availability of material supply as well as price changes. a.
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This note was uploaded on 04/21/2011 for the course MGT 01 taught by Professor Gad during the Spring '11 term at Tanta University.

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Chapter 16 Final - TEST BANK Sourcing and Supply Chain...

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