Material Management Final Exam

It is a coordinating function responsible for planning and

controlling materials flow.

• Material Management

• Production Planning

• Purchasing

• Logistics

Inventory not only makes up a portion of the cost of goods sold but has to be purchased at the beginning of production to be processed into finished goods. This type of inventory is called _______.

• Work-in-process

• Safety stock

• Lot-size inventory

• De-coupling stock

Customer requirements may be based on price, quality, delivery, and so forth and are called _______.

• Order winners

• Order qualifiers

• Engineer-to-order

• Assemble-to-order

Those competitive characteristics or combination of characteristics, that persuade a company’s customers to choose its products or services are called

• Order qualifiers

• Order winners

• Order champions

• Engineer's orders

From the supplier’s perspective, this is the time from receipt of an order to the delivery of the product.

• Make-to-stock

• Order winner

• After-sale service

• Delivery lead time

It means that the customer’s specifications require unique

engineering design or significant customization.

• Engineer-to-order

• Make-to-stock

• Make-to-order

• Assemble-to-order

It means that the product is made from standard components that the manufacturer can inventory and assemble according to customer order.

• Assemble-to-order

• Engineer-to-order

• Make-to-order

• Safety stock

It means that the manufacturer does not start to make the product until a customer’s order is received.

• Make-to-stock

• Make-to-order

• Order request

• Assemble-to-order

Product or services usually flow from supplier to customer and design, and demand information usually flows from manufacturer to customer.

• True

• False

A customer can be a supplier to another customer so the total chain can have a number of supplier/customer relationships.

• True

• False