Ch 32 HL Quiz Section 5

What is one advantage of JIT related to inventory costs?

• Inventory costs increase

• Inventory costs are reduced or eliminated

• Inventory costs remain the same

• Inventory costs are unpredictable

How do administrative costs change under JIT?

• They decrease

• They remain constant

• They may increase

• They are eliminated

Which of the following is NOT an advantage of JIT?

• Reduced inventory costs

• Increased cash flow

• Dependence on suppliers

• Alignment with supply chain management

Which of the following is a potential risk of JIT?

• Excess inventory

• Supplier delays

• Increased storage space

• Reduced cash flow

What is lead time?

• The time between the repurchase of stock and when the stock arrives

• The time taken to produce goods

• The time taken to sell all inventory

• The time taken to deliver goods to customers

In the example, how many items are ordered?

• 100 items

• 200 items

• 300 items

• 500 items

What does the re-order level indicate?

• The maximum stock level

• The level at which new stock is ordered

• The level at which stock is sold

• The level at which stock is discarded

Which term refers to the minimum stock level that triggers new stock purchase?

• Buffer stock

• Re-order level

• Safety stock

• Maximum stock

What is the main function of a re-order level?

• To sell stock

• To discard stock

• To trigger new stock purchase

• To increase stock levels

What is the main focus of Kaizen and TQM in manufacturing?

• Improving the present status quo

• Increasing stock levels

• Reducing employee numbers

• Maximizing profit margins