Question : 121._____ refers to a logistics system designed to deliver parts to : 1299490

121._____ refers to a logistics system designed to deliver parts to a production process as they are needed, not before.  

A. Inventory information system

B. Basket trading system

C. Buffer stock system

D. Just-in-time inventory system

E. Real-time processing system

122.The basic philosophy behind just-in-time (JIT) inventory systems is to:   

A. economize on inventory holding costs.

B. reduce inventory turnover.

C. create a buffer stock of inventory.

D. reduce costs by reducing quality.

E. increase the total working capital requirement.

123.Which of the following is true about firms using just-in-time (JIT) inventory system?   

A. A company is more likely to have excess unsold inventory that it has to write off against earnings.

B. Parts enter the manufacturing process immediately; they are not warehoused.

C. It is difficult to spot and fix defective inputs.

D. The amount of working capital a company needs to finance inventory increases.

E. A firm has ample buffer stock of inventory.

124.Which of the following increase(s) under just-in-time (JIT) inventory system?  

A. Amount of working capital for inventory

B. Inventory turnover

C. Number of defective parts

D. Inventory holding costs

E. Storage costs

125.A major cost saving from just-in-time inventory systems comes from:   

A. a shift in focus away from quality.

B. increasing productivity of workers.

C. speeding up inventory turnover.

D. creating a buffer stock of inventory.

E. writing off excess unsold inventory against earnings.

126.Under a more traditional system as opposed to a just-in-time inventory system, warehousing parts for weeks before they are used:  

A. reduces the total working capital required by a firm.

B. allows many defective parts to be produced before a problem is recognized.

C. results in a near error-free production process.

D. reduces the costs related to inventory holding.

E. reduces the need to write off excess unsold inventory against earnings.

127.The drawback of a just-in-time inventory system is that it:   

A. increases the total capital required by a firm.

B. leaves a firm without a buffer stock of inventory.

C. increases inventory holding costs, such as warehousing and storage costs.

D. is less efficient than traditional system in spotting and fixing defective inputs.

E. lowers a company’s profitability as measured by return on capital invested.

128.Which of the following is a consequence of using just-in-time inventory systems?  

A. It slows down inventory turnover.

B. It increases inventory holding costs.

C. It increases the amount of working capital a firm needs.

D. It can help firms improve product quality.

E. It does not allow defective inputs to be spotted immediately.

129.One way to reduce the risks associated with a global supply chain that operates on just-in-time principles is to:  

A. depend on one supplier for an important input.

B. outsource the production of inputs only to advanced countries.

C. hold an excess buffer stock of inventory.

D. source inputs from several suppliers located in different countries.

E. avoid using electronic data interchange.

130.Firms now typically use _____ via the Internet to coordinate the flow of materials into manufacturing, through manufacturing, and out to customers.  

A. flexible manufacturing technology

B. lean production

C. computer-aided manufacturing

D. electronic data interchange

E. just-in-time inventory systems