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