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OM 300 Exam 3 Questions And Answers Rated A+
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OM 300 Exam 3 Questions And Answers Rated A+raw material inventory ANS materials that are usually purchased but have yet to enter the manufacturing process
Work-in-process (WIP) inventory ANS products or components that are no longer raw materials but have yet to
become finished products
finished goods inventory ANS an end item ready to be sold, but still an asset on the company's books
ABC analysis ANS a method for dividing on-hand inventory into 3 classifications based on annual dollar
volume
shrinkage ANS retail inventory that is unaccounted for between receipt and sale
pilferage ANS a small amount of theft
holding cost ANS the cost to keep or carry inventory in stock
ordering cost ANS the cost of the ordering process
setup cost ANS the cost to prepare a machine or process for production
setup time ANS the time required to prepare a machine or process for production
economic order quantity (EOQ) model ANS an inventory-control technique that minimizes the total of ordering
and holding costs
robust ANS giving satisfactory answers even with substantial variation in the parameters
lead time ANS in purchasing systems, the time between placing an order and receiving it; in production systems,
the wait, move, queue, setup, and run times for each component produced
, reorder point (ROP) ANS the inventory level (point) at which action is taken to replenish the stocked item
safety stock (ss) ANS extra stock to allow for uneven demand; a buffer
production order quantity model ANS an economic order quantity technique applied to production orders
quantity discount ANS a reduced price for items purchased in large quantities
probabilistic model ANS a statistical model applicable when product demand or any other variable is not known
but can be specified by means of a probability distribution
service level ANS the probability that demand will not be greater than supply during lead time; it is the
complement of the probability of a stockout
single-period inventory model ANS a system for ordering items that have little or no value at the end of a sales
period (perishables)
fixed quantity system (Q) ANS an ordering system with the same order amount each time
perpetual inventory system ANS a system that keeps track of each withdrawal or addition to inventory
continuously, so records are always current
sales/operations planning ANS a process of balancing resources and forecasted demand, aligning an
organization's competing demands from supply chain to final customer, while linking strategic planning with
operations over all planning horizons
aggregate plan ANS a plan that includes forecast levels for families of products of finished goods, inventory,
shortages, and changes in the workforce
disaggregation ANS the process of breaking an aggregate plan into greater detail
master production schedule ANS a timetable that specifies what is to be made and when
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