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| The first step of the purchasing process is to select the supplier |
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| All information systems are computer-based |
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| The ratio of earning to sales for a given time period is a firm's profit margin. |
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| MRP uses backward scheduling |
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| Packaging is a logistic activity. |
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| The BullWhip effect says that a small change in demand downstream in the supply chain causes a large change in demand upstream. |
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| Between any two locations, a less than truckload shipment probably experiences fewer stops and handling than a direct truck shipment. |
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| Internal supply chain management is used to link higher level planning and location decision-,aking with lower level activities within the same supply chain. |
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| Inventory pooling occurs when a warehouse operator fails to complete shipments and is left with inventory that should be elsewhere. |
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| A decrease in the safety factor results in an increase in the amount of inventory in the system |
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| Some companies have found it beneficial to combine the planning capabilities of kanban with the control capabilites of MRP. |
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| Just-in-time production is not the same thing as lean production. |
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| AN INCREASE in inventory levels forces a company to improve manufacturing practices. |
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| The forcast for next month is 200 units so the manufacturer gathers materials for this anticipated level of production activity. This is an example of pull productions. |
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| The cards employed in a two card kanban system are the production care and the move card. |
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| The difference between a contract carrier and a common carrier is that the common carrier handles shipments on a case-by-case basis while the contract carrier handle shipments based on long term contracts. |
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| The landed cost is the sum of all of the logistics activities from packaging at the producer's site through transportation, handling, customs, and any other logistics feees to the point of sale. |
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| In order for the weighted center of gravity method to yeild an optimal solution all of the transportation costs in the area must be identical |
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| The solution obtained from an assignment problem is an optimal answer to the problem of shipping goods from mulitple sources to mulitple destinations. |
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| Maverick spending is often promoted by top management as a way to improve the botoom line and break out of a purchasing cycle. |
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| When a preferred supplier does not exist, competitive bidding and negotiation are two methods commonly used for final supplier selection. |
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| In a cost-baed contract, the stated price does not change, reguardless of fluctuation in the general overall economic coniditons. |
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| In order for the assignment problem method to yield an optimal solution all of the transportation costs in the arera must be identical |
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| The net result of the renaissance in logistics is that logisistics costs are expected to decline. |
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| Sales and operations planning indiciates how the organization will use its tactical capacity resources to meet expected customer demand. |
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| Detailed planning and control offers the greatest ability to adjust capacity |
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| At the beginnig of the semester, you decide to devote 12 hours a week outside of class time to your opeations management studies, reguardless of scheduled test, assignments, or project due dates. This is a level plan approach to your favorite course. |
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| Sales and operation planning is a neccessary task for all companies, but is never a source of competitive advantage. |
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| Dependent demand inventory never needs hedge inventory |
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| If a job has a negative critical ratio then it must be early |
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| In order for the economic order quantity model to work, demand must be known and constant. |
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| In order to find the lowest cost ordering policy in a quantity discount model, you must compare the holding cost, ordering cost, and the cost of good for various order quantities. |
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| A target service level is the point where the expected cost of a shortage equals the expected cost of having units. |
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| For the average manufacturer, over 50 percent of the value of shipments comes from materials. |
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| a home improvement store addes serveral workers to the garden center in the summer in order to meet the demands of do-it-yourselvfers for the dazzling array of plants. Once gardening season is over, noth the worker's job (AND THE PLANTS THEY SOLD) will perish. The home improvement store is following offloading strategy. |
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| Available to promise inventory is always zero for the first week in the master schedile record |
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| The longer the production and supplier lead times, the longer the MRP record's planning horizon needs to be. |
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| Planning values are used in bottom-up planning, but cannot be used in top-down planning. |
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| Accracy is a key performance dimension for strategic decision making information flows. |
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| The purpose of the execution and transaction processing supply chain activities is to record and retrieve data and execute and control physcial and monetary flows |
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