A traditional reorder point operation is also known as a _______, because it all
ID: 374679 • Letter: A
Question
A traditional reorder point operation is also known as a _______, because it allows demand to consume existing inventory and then reacts to the lower stock level by ordering replacements.
a. pull system
b. push system
c. mixed-model assembly
d. level production strategy
2. Which of the following mechanical principles must be adopted by organizations creating a lean production system?
a. Planning larger lot sizes to support higher inventory levels.
b. Implementing smooth production to support efficient operation.
c. Avoiding the use of signaling as a means to replenish stock.
d. Acquiring a large stock of inventory to avoid stock out.
Explanation / Answer
A pull system is a lean manufacturing strategy used in inventory ato reduce waste in the production process. In this type of system, components used in the manufacturing process are only replaced once they have been consumed so companies only make enough products to meet customer demand.
A traditional Reorder system also follows the same principle and thus can be termed as Pully system
ANSWER : a) PULL SYSTEM
One of the key aspects of lean production system is use of Kanban system in the shop flooEANSr. Kanban system is run by using Kanban cards which eliminates the need for signalling for stock replenishment. There will be fixed number of containers each containing a Kanban card which will be used in shop floor for stock management. Whenever a container carrying Kanban is found emplty stock is replenished automatically and thus introduction of Kanban card avoids use of signalling system.
ANSWER: C) AVOIDING USE OF SIGNALLING AS MEANS TO REPLENISH STOCK
ANSWER : a) PULL SYSTEM
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