Operations Management
17th Edition
ISBN: 9781259142208
Author: CACHON, Gérard, Terwiesch, Christian
Publisher: Mcgraw-hill Education,
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Chapter 12, Problem 3CQ
Summary Introduction
To identify: The impact on the frequency of the orders.
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Which of the following is not a fixed order cost?
( ) Administrative costs incurred to place an order
( ) Shipping cost incurred to ship an order
( ) Labor cost incurred to receive an order
( ) Supplier's packaging cost
( ) none above
It is costly to hold inventory, but inventory can also be useful in a process because:a. adding inventory to a process will shorten the average time a unit spends in a process.b. adding inventory to a process can help reduce situations in which sales are lost due touncertain demand.c. adding inventory to a process is likely to increase quality.d. adding inventory to a process will increase the profit margin of the item.
Among the following firm types, which one has the customer order decoupling point closest to the source?
A. Make to stock
B. Make to order
C. Engineer to order
D. Assemble to order
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Operations Management
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Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, operations-management and related others by exploring similar questions and additional content below.Similar questions
- Which of the following does NOT belong to ordering costs? A. interest payments B. clerical support C. cost of supplies D. order processingarrow_forwardA retailer currently places orders with its suppliers on a weekly basis. It is considering a switch to a routine in which it places orders on a daily basis. No change is expectedin the retailer’s demand. This change will have what effect on the volatility of its orders?a. It will decrease because its orders will better match its demand.b. It will stay the same because the retailer’s demand remains the same.c. It will increase because the more frequent orders will lead to more fickle decisionsarrow_forwardThe definition of work-in-process (WIP) inventory is: Select one: a. An end item ready to be sold, but still an asset on the company's books. b. Products or components that are no longer raw materials but have not yet become finished products. c. Materials for maintenance, repair and operation. d. Materials that are normally purchased but have not yet entered the manufacturing process. and. Additional stock to allow for uneven demand; a buffer.arrow_forward
- “As soon as the customer places an Order, it is received by the Sales department and a Sales Order is created. The Sales Order is sent to the Finance Department to check if the customer has any outstanding balance for more than 60 days. The AR Clerk at the Finance Department checks and sends the results back to the Sales Department. If there is an outstanding balance for more than 60 days, the Sales Department puts the Order on hold and notifies the customer. Otherwise, the Order Entry Clerk creates an Order Confirmation and sends it to the customer. Simultaneously a Picking List is generated and sent to the Order Fulfilment Department who picks up the next set of process steps. The Order Fulfilment Department receives the Picking List and determines which Warehouse is closest to the Customer location. The Picking List is sent to that Warehouse location. There, the items from the Picking List are picked. An Invoice is generated and printed. The items are packed along with the printed…arrow_forwardIf the cost of goods manufactured is higher than the cost of goods sold, which of the following is correct? A. Finished Goods Inventory has decreased. B. Work in Process Inventory has decreased C. Finished Goods Inventory has increased. D. Work in Process Inventory has increased.arrow_forward13.2 Match the terms in the left coluran with their appropriate definition in the right column. Terms Definitions 1. Economic order quantity (EOQ) a. A document that creates a legal obligation to buy and pay for goods or services 2. Materials requirements planning (MRP) b. The method used to maintain the cash balance in the petty cash accountarrow_forward
- There is high utilization of inventory in chase approach O a. True O b. Falsearrow_forwardSelect the best answer. a. Servicces are produced and consumed nearly simultaneously. b. It is nott possible to inventory service outputs. c. Servicess are delivered when customers are in close proximity to the service provider. d. All of the abovve (i.e., choices a, b and c are always true). e. Each of the chooices a, b and c is "sometimes" true and "sometimes" false.arrow_forwardAn order which is being processed on the shop floor but is not yet finished is called open order. Select one: a. False b. Truearrow_forward
- Refers to the range of the number of items produced by the operation over a given period of time.(1) Volume of output.(2) Variation of output.(3) Variety of output.(4) Transformation process.(5) Transmission procesarrow_forward31- Which one of the statements is relevant to the services? a. Services are perishable b. Services can be measured c. Services can be stored d. Services can be warehousedarrow_forwardWhich of the following are the basic requirements of any business? O a. Needs b. Pricing O C. Planning O d. Exchangearrow_forward
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