Buffer inventory is required as :

| March 29, 2017

Question
14

Buffer inventory is required as :

A)

One or more stages in the operation cannot supply all the items it produces simultaneously

B)

Material cannot be transported instantaneously between the point of supply and the point of demand

C)

Compensation for the uncertainties inherent in supply and demand

D)

Compensation for differences in the timing of supply and demand

15

At a strategic level, the essential role of inventory is to support :

A)

Quality, dependability, flexibility, cost and speed

B)

Flexibility, dependability and quality

C)

Cost and speed

D)

Range, speed, flexibility and dependability

16

Where demand is uncertain, a key purchasing objective will be :

A)

Fast delivery

B)

High quality

C)

Low price

D)

Dependable delivery

17

In the make-or-buy decision, one of the reasons for buying is

A)

To assure adequate supply

B)

To obtain desired quality

C)

To remove supplier collusion

D)

Inadequate capacity

18

In lean systems, if a defective product if found, which of the following is generally NOT done?

A)

The production line is stopped

B)

The defective unit is passed on to the next workstation

C)

The defective unit is returned to the worker responsible for creating the defect

D)

The production line is made aware of the problem without stopping the line

19

Which of the following illustrates an activity that does not add value?

A)

Training employees

B)

Ordering parts from a supplier

C)

Accumulating parts in front of the next work centre

D)

Delivering the product to the customer

20

Employee empowered companies have committed to all but one of the following

A)

Investment in people

B)

Use of information technology to support decision making

C)

Link compensation to short term performance

D)

Develop training programs for employees

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