A supplier invites you to attend a professional football game at his expense. You have no intention of letting this affect the amount of business you do with this supplier. According to the ISM Code of Ethics, this might give the appearance of compromising practice and you should not accept the gift.

Traditional purchasing focuses on initial cost while Supply Chain Management focuses on the total cost of ownership.

Traditional purchasing focuses on the flow of goods and information from the immediate supplier to the ultimate customer.

One of the ethical standards of SCM is to promote positive supplier relationships through solicitation, credits and preferential discounts.

It is the total volume of production through a facility per unit of time.

It is the length of time that starts when a material enters a facility and ends when it exits.

Specialized equipment and labor are established to produce the product in large quantities. This is defined as _____.

In ___________, the equipment is organized and sequenced according to the steps involved in producing the products, and the material flow is continuous during the production process.

Purchased items or extracted materials that are converted via the manufacturing process into components and/or products.

Products in various stages of completion throughout the plant, including all material from raw material that has been released for initial processing up to completely processed material waiting for inspection and acceptance as finished goods.

Items used in support of general operations and maintenance such as maintenance supplies, spare parts, and consumables used in the manufacturing process and supporting operations.

An additional quantity of stock kept in inventory to protect against unexpected fluctuations in demands and/or supply.

It de-couples facilities to prevent the disparity in production rates at different facilities from interfering with anyone facility's production.

Inventory held to protect against future fluctuations due to a dramatic change in prices, strikes, war, unsettled government, etc.

It is the ratio of the actual output of a work center, department, or plant to the planned or standard output.

These are the costs associated with placing an order with the factory or a supplier.

An item at a particular geographic location is called a/n ______.

A type of fixed order system in which inventory is carried in two bins.

A type of order point replenishment system where the “min” is the order point, and the “max” is the “order-up-to” inventory level.

A lot-sizing technique that generates planned orders in quantities equal to the net requirements in each period.

A lot-sizing technique under which the lot size is equal to the net requirements for a given number of periods as decided by EOQ.

The consideration of safety is crucial to reduce the influences of the manufacturing environment’s uncertainties. Which of the following is NOT included in the safety considerations?

A lot-sizing technique that will always cause planned or actual orders to be generated for a predetermined fixed quantity, or multiples, if net requirements for the period exceed the fixed order quantity.

A dynamic lot-sizing technique that chooses the lot size with the lowest unit cost by adding ordering cost and inventory carrying cost for each trial lot size and dividing by the number of units in lot size.