WGU 215 Ch 12 rated A+ to pass

WGU 215 Ch 12 rated A+ to passRaw Materials Inventory Items or extracted materials that are transformed into components or products. For example, gold is a raw material that is transformed into jewelry. Components Parts or subassemblies used in building the final product. For example, a transformer is a component in an electronic product. 00:21 01:24 Work-in-process (WIP) Refers to all items still in process throughout the plant. Finished goods inventory Manufactured items that are completed and ready for sale Distribution inventory Consists of finished goods and spare parts at various points in the distribution system—for example, stored in warehouses or in transit between warehouses and consumers. Maintenance, repair, and operational (MRO) inventory Are supplies that are used in manufacturing but do not become part of the finished product. Examples of MRO are hand tools, lubricants, and cleaning supplies. What are purchased items or extracted materials that will be transformed into components or products called? raw materials inventory finished goods inventory work-in-process inventory distribution inventory MRO inventory raw materials inventory Anticipation Inventory or Seasonal Inventory Items built in anticipation of future demand, planned promotional programs, seasonal fluctuations, plant shutdowns, and vacations. Companies build anticipation inventory to maintain level production throughout the year. For example, the toy industry builds toys throughout the year in anticipation of high seasonal sales in December. Fluctuation Inventory or Safety Stock Is carried as a cushion to protect against possible demand variation, "just in case" of unexpected demand. For example, you might keep extra food in the freezer just in case unexpected company drops in. Lot-size Inventory or Cycle Stock Happens when a company buys or produces more than is immediately needed. They are held in inventory and used as customers place order. You do not normally drink all 24 cans at once. Instead, what you do not need right away, you store for future consumption. Transportation or Pipeline Inventory Is inventory in transit between the manufacturing plant and the distribution warehouse. These are items that are not available for satisfying customer demand until they reach the distribution warehouse, so the company needs to decide between using slower, inexpensive transportation or faster, more expensive transportation. Speculative or Hedge Inventory Extra inventory built up to protect against some future event such as a strike at your supplier, a price increase, or the scarcity of a product that may or may not happen.