5.5 to 5.6 Production review

What does SCM stand for?

• Super Chain Management

• Supply Control Management

• Supply Chain Management

• Stock Control Management

What is the primary goal of supply chain management?

• Maximizing stock levels

• Reducing quality control

• Achieving efficient and cost-effective logistics

• Expanding supplier networks

What is one of the key functions of supply chain management?

• Customer service

• Marketing strategy

• Financial planning

• Stock control

What is the primary focus of process innovation?

• Creating new products

• Changing the context of a product

• Improving the method of production and logistics

• Repositioning an established product

Which type of innovation tends to involve high risks and can be a major source of competitive advantage?

• Incremental innovation

• Adaptive creativity

• Radical innovation

• Innovative creativity

Just-in-time (JIT) is a stock control system that aims to:

• Maintain large buffer stocks

• Eliminate the need for storage

• Maximize stockpiling

• Increase lead time for orders

Just-in-case (JIC) stock control is characterized by:

• Maintaining a buffer stock

• Immediate dispatch of goods

• Low inventory levels

• No consideration of demand fluctuations

What is the main drawback of relying too heavily on just-in-case (JIC) stock control?

• Increased production efficiency

• Overestimation of product demand

• Reduced storage costs

• Risk of holding too much stock

Which of the following is NOT one of the categories of stocks or inventories mentioned?

• Raw materials

• Work-in-progress

• Semi-finished goods

• Finished goods

What is the formula for calculating capacity utilization?

• Capacity utilization = Total output / Productive capacity

• Capacity utilization = Total output x Productive capacity

• Capacity utilization = Actual output / Number of workers

• Capacity utilization = Actual output x Number of workers