Chapter 1 Questions
1. The wealth of a country is measured by its gross national product, the output of goods and
services produced by the nation in a given time. Wealth is measured by the amount of goods and
services produced. Wealth is created
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Assignment 2 LMGT 1321
Compare and contrast direct and indirect material as well as fixed and variable costs in the
firms. Explain the details with an example. Where does the "overhead" fall? Cite your sources.
Before goods and services can
Taken from Incoterms 2010, available at the ICC Bookstore
Main features of the Incoterms 2010 rules
1. Two new Incoterms rules DAT and DAP have replaced the Incoterms 2000 rules
DAF, DES, DEQ and DDU
The number of Incoterms rules has been red
1. Assume that you are Weiss. How many viable alternatives do you have to consider
regarding the initial shipment of 25 buses?
Although there is enough space in the vessels to fulfill the initial shipment of 25 busses to
Santos, some dates and cities do n
How do you think the next 50 years will shape materials management and to what
degree? How do you think these changes will be realized?
Investigate and present your findings by citing your resources. Explain your reasoning.
The different te
Chapter 11 Questions
1. Independent demand is not related to the demand for any other product.
Order point system.
Periodic review system.
Dependent demand is directly related to the demand for higher-level assemblies or products.
Chapter 10 Questions
1. The objectives of inventory management are to provide the required level of customer service
and to reduce the sum of all costs involved. To achieve these objectives, two basic questions
must be answered:
How much should
Chapter 9 Questions
1. Inventories are materials and supplies that a business or institution carries either for sale or to
provide inputs or supplies to the production process. All businesses and institutions require
inventories. Often they are
Chapter 8 Questions
1. The prime purpose of an organization is to serve the customer. Marketing focuses on meeting
customer needs, but operations, through materials management, must provide the resources. The
coordination of plans by these two p
Chapter 6 Questions
14. The load profile for a work center is constructed by calculating the standard hours of
operation for each order in each time period and adding them together by time period. This report
tells PAC what the load is on the wo
Chapter 5 Questions
1. Capacity management is responsible for determining the capacity needed to achieve the
priority plans as well as providing, monitoring, and controlling that capacity so the priority plan
can be met. The twelfth edition of t
Chapter 4 Questions
1. Materials requirement planning (MRP) is the system used to avoid missing parts. It establishes
a schedule (priority plan) showing the components required at each level of the assembly and,
based on lead times, calculates t
Chapter 3 Questions
1. The four functions the master production schedule performs in the production planning system
It forms the link between production planning and what manufacturing will actually
It forms the basis for calculating
Chapter 2 Questions
1. The four questions a good planning system must answer are
What are we going to make?
What does it take to make it?
What do we have?
What do we need?
2. Priority relates to what products are needed, how many are needed, and
Introduction to Materials Management Chapter 1
What is it? Where does it come from?
Designing the process
Managing the process
Shortages and surpluses