What is the core philosophy behind lean?
Lean simply means just-in-time
Lean deals with the speedy production and delivery of good and services
Lean is concerned with the elimination of waste
Lean views inventory as useful
Which of these is not an inventory type?
Work in process (WIP)
Components
Raw materials
Economic order quantity
Using lean principles will typically not reduced a company's lead time.
According to the lecture videos, the company will usually define value.
Which of these is not a tool used to achieve a lean workplace?
VSM
5S
Kanban
Kuflow
Kaizen
In a traditional push system, throughput time will usually increase as work-in-process increases.
Which of the following is one of the differences between a push and a pull system?
A push system keeps operators and materials busy, while a pull system keeps operators unbusy and materials busy
A push system keeps operators and materials unbusy, while a pull system keeps operators busy and materials unbusy
A push system keeps operators unbusy and materials busy, while a pull system keeps operators and materials busy
A push system keeps operators busy and materials unbusy, while a pull system keeps operators and materials unbusy
Which tool is used in lean systems to establish pull?
When conducting production planning, which of the following is considered internal to the company?
Competitor's behaviour
Market demand
Inventory levels
Raw material availability
Economic conditions
Which of these is not an internal strategy used by companies to match supply with demand?
Hire and fire
Subcontracting
Changing production rates
Using excess inventory
Offering promotions
Which of the following is not a cost associated with inventory?
Ordering costs
Obsolescence costs
Shrinkage costs
Economic costs
Opportunity costs
Which of the following is not a reason companies keep inventories?
To hedge against uncertain demand
To hedge against uncertain supply
To economize on ordering costs
To economize on holding costs
For smoothening production
In inventory management it is important to know how much to order and when to order. These two concepts are referred to as?
Economic Reorder Quantity and Order Point
Economic Reorder Point and Order Quantity
Economic Order Quantity and Reorder Point
Economic Order Point and Reorder Quantity
In deriving the formula which calcuates Q*: Q* = sqrt(2 * D * S / H) which of the following is not an assumption we make?
Demand is known
Replenishment is immediate or at least known
The only relevant costs are ordering costs, demand costs and holding costs
Demand is constant
Rob, a car salesman, sold 8,000 cars last year and typically buys his cars from auto auctions. Getting new cars from an auto auction takes 12 days to arrive at a cost of $20,000 per shipment. If it costs Rob $700 per car per year to keep a car in his shop, calculate his EOQ and ROP respectively. (Assume there are 366 days per year)
677 cars and 263 cars
8 cars and 263 cars
8 cars and 4167 cars
677 cars and 4167 cars
Alicia's used clothes store wants to know the best order size when replenishing. She has estimated that the annual demand for their used clothes is 5000 units. The total cost to hold all of the annual demand is $60,000 and she estimates that each order costs $30 to replace. Using EOQ, how many units of used clothes should Alicia order each time?
3 units
159 units
50 units
30 units
Bob is a truck retailer based in Spain. His annual demand is 500 trucks. As an enthusiastic supply chain manager, he found after a series of calculations that his reorder point is 145 units of trucks. What does this mean?
(Assume there are 365 days in a year)
Bob will order for more trucks when he has 355 trucks in his inventory
Bob will order for more trucks when he has 145 trucks in his inventory
Bob will order for more trucks on the 106th day of the year
Bob will order for more trucks before 106 days
Which lean tool is used to seek perfection?
In a pull system the production line is controlled by the first operation.
Reorder point is typically defined in terms of quantity, and sometimes in terms of time.
