WorksheetsPOM - Unit 4
Total questions: 21
Worksheet time: 12mins
The objectives of internal control for an inventory management process are to provide assurance that transactions are properly executed and recorded and that
Independent internal verification of activity reports is established.
Transfers to the finished goods department are documented by a
completed production report and a quality control report.
Production orders are prenumbered and signed by a supervisor.
Custody of work in process and finished goods is properly maintained.
It is a coordinating function responsible for planning and
controlling materials flow.
Material Management
Production Planning
Purchasing
Logistics
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 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
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.
Process descriptions
Process specifications
Bill of materials
Product specifications
To get the most profit, a company must have at least four main objectives. Which of these is NOT included?
Provide the best customer service.
Provide the lowest production costs.
Provide the highest inventory investment.
Provide the lowest distribution costs.
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.
1 and 3 only
1 and 2 only
2, 3, and 4 only
1, 2, and 4 only
Material is the biggest input factor in the production
True
False
Material management is a scientific ....... , concerned with Planning, Organizing & Control of flow of materials, from their initial purchase to destination.
theory
technique
management
method
Good supplier relations is the primary material management objectives
True
False
to identified and eliminated the unnecessary expenditure is one of the benefits of value analysis.
True
False
The questions that can applied when do the value analysis
What does it cost?
what must I do?
What will be alternative costs?
all is correct
The objective of inventory management is to minimize holding stock.
TRUE
FALSE
This is the level of stocks that will trigger a new order to be sent to a supplier
buffer stock
re-order inventory level
re-order quantity
maximum inventory level
If inventories are not managed effectively, there will be sufficient stock to changing demand
TRUE
FALSE
Which of the following is NOT a form of inventory?
raw materials
work in progress
finished goods
goods with supplier
Inventory is another word for:
cost
staff
stock
manager
In ABC Analysis, Items are classified based on
Consumption/ usage value
Availability of the resource
Value of the item in store
Cost of the item
In ABC Analysis , C Class items have Consumption Value of what percentage?
10%
20%
70%
30%
