Samuel Pyo Test #27 final

Samuel Pyo Test #27 final - Sam Pyo Test #27 final...

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Sam Pyo Test #27 final exmaination 21. Four functions of inventory are meeting the demand of the customers, smoothing out the production, using the inventory as a buffer, and quantity discounts. We need to have the inventory so that we can have no dissatisfied customers. When we smooth out the production, this basically means we are stocking up on inventory because of the seasonality of some products. When I say using inventory as a buffer, it can be used as a way to help a process that is failing. Finally, for quantity discounts, if we have a lot of inventory, we may get a discount for the amount it will cost because there is so much 23. The three principal documents that serve as input to an MRP system are master schedule, inventory records, and bill of materials. Master schedule contains the amount and timing of end products. Inventory records holds information about the inventories that we are dealing with. Bill of materials lists everything that makes up the product we are looking at. 25. The overall goal of having lean operations is to have a balanced system, where the flow of materials is seamless up and down the system. However, the overall goal is nothing without its supporting goals. The supporting goals include eliminating disruptions, flexibility, and eliminating waste. When we try to eliminate disruptions, we are trying our best to make the process go as smooth as possible. Without any disruptions, the process can go as smooth as possible. For flexibility, we want to be able to produce a wide variety of products, not just one type. Finally, for eliminating waste, it does us no good to have waste around and possibly process it, so to get rid of it would be in the best interest of the company. 26. MRP stands for materials requirements planning. This is made up of three parts: bill of materials, master schedule, and inventory records. Master schedule has the quantity and timing of the end products. Inventory records contain information about the respective items we are talking about. The bill of materials name off everything that we need for these products. MRP II, which stands for manufacturing resource planning, deals with the more broad aspects of the organization. It was made right after the first MRP and It involves the firm more so than the first MRP does. It deals with short term capacity planning. It also can run tests and simulations. 30. The seven primary wastes targeted in reengineering of organizations to develop “lean” processes are inventory, overproduction, waiting lines, unnecessary transporting, processing waste, inefficient processes, and product defects. When we are dealing with inventory, we don’t want to spend any extra money on inventory we don’t need, or doesn’t even apply to what we are trying to do. We want to get rid of the excess amount of inventory so we are fully 1
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This note was uploaded on 09/02/2011 for the course MGT 3305 taught by Professor Reed during the Spring '08 term at Baylor.

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Samuel Pyo Test #27 final - Sam Pyo Test #27 final...

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