The type of waste resulting from decisions leading to ineffective locations of s

Question

The type of waste resulting from decisions leading to ineffective locations of suppliers or warehouses is referred to as:

            A)         Waiting time waste

            B)         Information processing waste

            C)         Unnecessary motion waste

            D)        Product defect waste

            E)         Transportation waste

Transportation cost is an example of:

            A)         Item cost

            B)         Ordering cost

            C)         Carrying cost

            D)        Stockout cost

            E)         Storage cost

Which of the following statements is not true about excess inventory?

A)         Excess inventory can increase the time to market for a new product by forcing a delay in its introduction.

            B)         Excess inventory increases the cash-to-cash cycle.

            C)         Excess inventory has a negative effect on product quality

            D)        Excess inventory increases feedback delay

Maintenance, repair, and operating inventory can be best classified as:

            A)         Dependent demand inventory

            B)         Derived demand inventory

            C)         Independent demand inventory

            D)        Raw materials inventory

            E)         None of the above

One of the ways product quality and service quality differ is that

            A)         Service quality is difficult to measure before the customer receives it.

            B)         Services are generally higher quality than products.

            C)         Customers normally have higher expectations for service quality than product quality.

            D)        Service quality cannot be measure quantitatively

Explanation / Answer

1-E Transportation waste-definition

2-B Ordering cost

The ordering cost (also called setup costs, especially when producers are concerned), or cost of replenishing inventory, covers the friction created by orders themselves, that is, the costs incurred every time you place an order. which includes cost of ordering and logistic costs

3-C

Storing excess inventory can lead to quality problems such as degradation and potential obsolescence. Companies may stock high levels of inventory in anticipation of demand or for an existing order, but customers may change specifications or require different materials for future products.

4-E MRO Inventory is independent classification

5-A A service quality is diffcult to measure and depends on the perception of customer however with Product quality it is either accepted or rejected

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