Question 1

Discuss the activities involved in physical supply and distribution.

Accepted Answer

Physical supply and distribution includes all the activities involved in moving goods, from the supplier to the beginning of the production process, and from the end of the production process to the consumer. The activities involved are transportation, distribution inventory, warehousing, packaging, materials handling, and order entry.

Question 2

What factors or major challenges are currently shaping production control's demand environment?

Accepted Answer

The key factors are several. First, customers are never satisfied. Also supply chains are large and must be continually managed. Product life cycles are getting shorter and shorter. Production control requires a vast amount of data that must be managed. There is an emphasis on profit margins that are being continually squeezed. Finally, there are an increasing number of alternatives.

Question 3

Operations management works in a complex environment affected by:

Accepted Answer

Operations management is influenced by various external factors including the economy, competition, and government regulations, making all of the above choices correct.

Question 4

Why is materials management seen as a "balancing act"?

Accepted Answer

The answer of Why is materials management seen as a...

Question 5

Fill in the missing data in the profit and loss statement below. $\begin{array}{llcc}
&& \text { Dollars }& \text { Percent of Sales}\
  \text { Revenue } &&\$1,000,000&100\%\
 \text { Cost of Goods Sold } &\
 \text {Direct Material  } &\$500,000\
 \text {  Direct Labor} &\underline{\quad\quad}
&&20\%\
 \text {Factory Overhead  } &\$200,000&&20\%\
 \text {Total Cost of Goods  } &&\underline{\$900,000}&90\%\
 \text { Bold } &\
 \text {Gross Profit  } &&\$100,000&\underline{\quad\quad}\
\end{array}$

Accepted Answer

The answer of Fill in the missing data in the...

Question 6

____________means that the supplier manufacturers the goods and sells from finished goods inventory.

Accepted Answer

Make-to-stock means that the supplier manufactures goods in advance and sells them from finished goods inventory.

Question 7

____________means that the manufacturer does not start to make the product until a customer's order is received.

Accepted Answer

Make-to-order means that production begins only after a customer's order is received, ensuring customization and reducing inventory costs.

Question 8

____________usually flow from supplier to customers and design.

Accepted Answer

Products or services typically flow from suppliers to customers, as they are the end deliverables in a supply chain.

Question 9

Using the data below, if direct materials can be reduced by 10% and direct labor by 5%, the improvement in profit would be: $\begin{array}{llcc}
&& \text { Dollars }& \text { Percent of Sales}\
  \text { Revenue } &&\$1,000,000&100\%\
 \text { Cost of Goods Sold } &\
 \text {Direct Material  } &\$500,000&&50\%\
 \text {  Direct Labor} &\$200,000
&&20\%\
 \text {Factory Overhead  } &\$200,000&&20\%\
 \text {Total Cost of Goods  } &&\underline{\$900,000}&90\%\
\text { Sold }\
 \text {Gross Profit  } &&\$100,000&10\%\
\end{array}$

Accepted Answer

The answer of Using the data below, if direct materials...

Question 10

____________means that the product is made from standard components that the manufacturer can inventory and assemble according to a customer order.

Accepted Answer

Assemble-to-order means that the product is made from standard components that the manufacturer can inventory and assemble according to a customer order.

Question 11

Consider the following situation: If the cost of manufacturing which includes direct material and direct labor is 70% of sales and profit is 10% of sales, what would be the improvement in profit, if through your better planning and control, the cost of manufacturing was reduced from 70% of sales to 50% of sales? How much would sales have to increase to provide the same increase in profits?

Accepted Answer

The answer of Consider the following situation: If the cost...

Question 12

Demand information usually flows from:

Accepted Answer

Demand information typically flows from the customer to the supplier, as suppliers need to understand customer needs and preferences to provide the appropriate products or services.

Question 13

Identify the basic inputs to the manufacturing planning and control system.

Accepted Answer

The answer of Identify the basic inputs to the manufacturing...

Question 14

If the cost of manufacturing which includes direct material and direct labor is 70% of sales and profit is 10% of sales, what would be the improvement in profit, if through your better planning and control, the cost of manufacturing was reduced from 70% of sales to 50% of sales?

Accepted Answer

The answer of If the cost of manufacturing which includes...

Question 15

Using the data below, to achieve a $60,000 increase in revenue, how much would sales have to increase? $\begin{array}{llcc}
&& \text { Dollars }& \text { Percent of Sales}\
  \text { Revenue } &&\$1,000,000&100\%\
 \text { Cost of Goods Sold } &\
 \text {Direct Material  } &\$500,000&&50\%\
 \text {  Direct Labor} &\underline{\quad\quad}
&&20\%\
 \text {Factory Overhead  } &\$200,000&&20\%\
 \text {Total Cost of Goods  } &&\underline{\$900,000}&90\%\
 \text {Gross Profit  } &&\$100,000&10\%\
\end{array}$

Accepted Answer

The answer of Using the data below, to achieve a...

Question 16

For the products or services they buy, customers expect:

Accepted Answer

Customers generally expect a fair price for the products or services they purchase, reflecting the value and quality they receive.

Question 17

A ____________ function is needed to transform our resources into useful goods.

Accepted Answer

A production function is needed to transform our resources into useful goods.

Question 18

Generally a supplier must meet set minimum requirements to be considered a viable competitor in the marketplace. Customer requirements may be based on price, quality, delivery, and so forth and are called____________ .

Accepted Answer

The answer of Generally a supplier must meet set minimum...

Question 19

Since it is virtually impossible to be the best in every dimension of competition, firms should in general strive to provide a____________ level of acceptance for each of the order qualifiers but____________ try to be the best in the market for the order winners).

Accepted Answer

The answer of Since it is virtually impossible to be...

Question 20

Identify and briefly describe the primary activities carried out in manufacturing planning and control.

Accepted Answer

The answer of Identify and briefly describe the primary activities...

Quiz 1: Introduction to Materials Management

Discuss the activities involved in physical supply and distribution.

What factors or major challenges are currently shaping production control's demand environment?

Operations management works in a complex environment affected by:

Why is materials management seen as a "balancing act"?

____________means that the supplier manufacturers the goods and sells from finished goods inventory.

____________means that the manufacturer does not start to make the product until a customer's order is received.

____________usually flow from supplier to customers and design.

____________means that the product is made from standard components that the manufacturer can inventory and assemble according to a customer order.

Demand information usually flows from:

Identify the basic inputs to the manufacturing planning and control system.

If the cost of manufacturing which includes direct material and direct labor is 70% of sales and profit is 10% of sales, what would be the improvement in profit, if through your better planning and control, the cost of manufacturing was reduced from 70% of sales to 50% of sales?

For the products or services they buy, customers expect:

A ____________ function is needed to transform our resources into useful goods.

Generally a supplier must meet set minimum requirements to be considered a viable competitor in the marketplace. Customer requirements may be based on price, quality, delivery, and so forth and are called____________ .

Since it is virtually impossible to be the best in every dimension of competition, firms should in general strive to provide a level of acceptance for each of the order qualifiers but try to be the best in the market for the order winners) .

Identify and briefly describe the primary activities carried out in manufacturing planning and control.

Quiz 1: Introduction to Materials Management

Discuss the activities involved in physical supply and distribution.

What factors or major challenges are currently shaping production control's demand environment?

Operations management works in a complex environment affected by:

Why is materials management seen as a "balancing act"?

____________means that the supplier manufacturers the goods and sells from finished goods inventory.

____________means that the manufacturer does not start to make the product until a customer's order is received.

____________usually flow from supplier to customers and design.

____________means that the product is made from standard components that the manufacturer can inventory and assemble according to a customer order.

Demand information usually flows from:

Identify the basic inputs to the manufacturing planning and control system.

If the cost of manufacturing which includes direct material and direct labor is 70% of sales and profit is 10% of sales, what would be the improvement in profit, if through your better planning and control, the cost of manufacturing was reduced from 70% of sales to 50% of sales?

For the products or services they buy, customers expect:

A ____________ function is needed to transform our resources into useful goods.

Generally a supplier must meet set minimum requirements to be considered a viable competitor in the marketplace. Customer requirements may be based on price, quality, delivery, and so forth and are called____________ .

Since it is virtually impossible to be the best in every dimension of competition, firms should in general strive to provide a____________ level of acceptance for each of the order qualifiers but____________ try to be the best in the market for the order winners) .

Identify and briefly describe the primary activities carried out in manufacturing planning and control.

Since it is virtually impossible to be the best in every dimension of competition, firms should in general strive to provide a level of acceptance for each of the order qualifiers but try to be the best in the market for the order winners) .