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 _______.

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

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

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

It means that the customer’s specifications require unique

engineering design or significant customization.

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

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

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

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

Production must be able to meet the demand of the marketplace. It must establish correct priorities (what is needed and when) and make certain that capacity is available to meet those priorities. Which of the following is NOT part of production planning?

These are responsible for putting into action and achieving the plans made by production planning.

These describe the steps necessary to make the end product. They are a step-by-step set of instructions describing how the product is made.

It includes all the activities involved in moving goods, from the supplier to the beginning of the production process, and from the end of the production process to the consumer.

To get the most profit, a company must have at least four main objectives. Which of these is NOT included?

Marketing’s objective is to maintain and increase revenue; therefore, it must provide the best customer service possible. The best way to do this includes:

1. Maintain high inventories so goods are always available for the customer.

2. Interrupt production runs so that a non-inventoried item can be manufactured quickly.

3. Create an extensive and costly distribution system so goods can be shipped to the customer rapidly.

4. Produce large quantities using long production runs.

Finance must keep investment and costs low. This can be done in which of the following ways:

1. Maintain high inventories so goods are always available for the customer.

2. Reduce inventory so inventory investment is at a minimum.

3. Decrease in the number of plants and warehouses.

4. Manufacture only to customer order.

To result in optimal performance for customer service and cost, it is felt that the supply chain of activities should be managed as an extension of the partnership. This implies many issues, but critical ones include:

1. Flow of materials

2. Flow of information and sharing of information

3. Fund transfers

4. Production plan

Production must keep its operating costs as low as possible. This can be done in which of the following ways:

1. Make long production runs of relatively few products.

2. Reduce inventory so inventory investment is at a minimum.

3. Maintain high inventories of raw materials and work-in-process.

Which of the following are inputs to the manufacturing planning and control system?

1. Product description

2. Process specification

3. Time needed to perform operations

4. Number of suppliers and customers

5. Available facilities

Which of the following challenges affect the work of production control? Select multiple answers.