The vendor selection stage that requires the development of evaluation criteria

The vendor selection stage that requires the

This preview shows page 3 - 4 out of 4 pages.

The vendor selection stage that requires the development of evaluation criteria and the importance of each is vendor evaluation. A producer decides to implement new quality procedures and send their engineers and production personnel to a supplier's plant in order to train them on these new procedures. This activity takes place in the development stage of vendor selection.
Image of page 3

Subscribe to view the full document.

An unfilled order with a vendor that is a contract to purchase items but not an authorization to ship anything is known as a blanket order. A lawnmower assembly plant uses a variety of nuts, bolts, screws, and other fasteners in their operation. Their supplier delivers these items directly to the point of use on the assembly line and ensures that there are always sufficient quantities of fasteners to maintain the production schedule. This is an example of vendor-managed inventory CHAPTER 12 One use of inventory is to provide a hedge against inflation. ABC analysis divides an organization's on-hand inventory into three classes based upon annual dollar volume. Cycle counting is a process by which inventory records are verified. The difference(s) between the basic EOQ model and the production order quantity model is (are) that the production order quantity model does not require the assumption of instantaneous delivery. Extra units that are held in inventory to reduce stockouts are called safety stock. Inventory record accuracy would be decreased by increasing stockroom accessibility. The two most important inventory-based questions answered by the typical inventory model are when to place an order and how many of an item to order. The appropriate level of safety stock is typically determined by choosing the level of safety stock that assures a given service level. Which of the following is NOT a type of inventory? MRP In the probabilistic model, increasing the service level will increase the cost of the inventory policy. A system that triggers ordering on a uniform time basis is called a fixed-period system Policies based on ABC analysis might include investing more in supplier development for A items A system that keeps track of each withdrawal or addition to inventory continuously is a perpetual inventory system .
Image of page 4
  • Fall '19
  • none

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern

Ask Expert Tutors You can ask You can ask ( soon) You can ask (will expire )
Answers in as fast as 15 minutes