Which one of the following statements is TRUE regarding JIT inventory?
A) It exists just in case something goes wrong.
B) It is the minimum inventory necessary to keep a perfect system running.
C) It hides variability.
D) It is minimized with large lot production.
E) It increases if setup costs decrease.
Answer: B
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Management Chapter 16
- Excess bags of basic commodities such as flour and sugar that are stored in a restaurant's kitchen represent which of the following wastes?
- Which of the following is characteristic of lean operations?
- Lean operations are known for their:
- Which of the following is NOT an attribute of lean operations?
- Which of the following is not characteristic of a TPS employee?
- Which of the following is an illustration of employee empowerment?
- A manufacturer took the following actions to reduce inventory. Which of these is generally not accepted as a JIT action?
- Great Lakes Barge and Baggage Company makes, among other things, battery-operated bilge pumps. Which of the following activities is NOT part of JIT? They:
- JIT makes quality cheaper because:
- Which of the following is FALSE regarding the links between JIT and quality?
- A grocery store is attempting to implement a kanban system. Which of the following would not be an application of kanbans?
- Lead time for computers is 5 days with daily demand of 25 and safety stock of 5 computers. If management wants to use 10 kanbans how many computers should each one hold?
- Lead time for computers is 7 days with daily demand of 5 computers and a safety stock of 1 day. Each kanban holds 8 computers. What is the correct number of kanbans?
- The cook in a fast-food restaurant knows that 2 hamburger patties and an order of fries should be started for each car that is waiting in line. This is best an example of:
- Lead time for cakes is 2 days with daily demand of 10 cakes and a safety stock of ½ a day. Each container (kanban) holds 1 cake. What is the correct number of kanbans?
- The number of kanbans should be equal to which of the following?
- Which one of the following scenarios represents the use of a kanban to reduce inventories?
- What does the Japanese word "kanban" mean?
- Kanban is associated with all EXCEPT which of the following?
- Which one of the following statements is TRUE about the kanban system?
- If a factory wants to cut its current lot size in half, by what proportion must setup cost change?
- Which of the following is TRUE regarding the steps to reducing setup times?
- A product has annual demand of 100,000 units. The plant manager wants production to follow a four-hour cycle. Based on the following data, what setup cost will enable the desired production cycle?
- A firm wants to develop a level material use schedule based on the following data. What should be the setup cost?