Inventory Control and Replacement Analysis Priyanshu
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Companies are relocating manufacturing and sourcing to regions with lower labour costs to stay competitive. This affects the efficiency of warehousing and distribution. But which elements, in particular, will be strategically important in the next two years?
Markets are changing – as are customer and service requirements. You may have implemented a new manufacturing and supply chain setup, but customers are asking for more frequent and faster deliveries.
The key to staying competitive is how quickly you can get your products from the warehouse to your customers. This can challenge your operations and calls for a review of your warehouse and distribution setup.
We asked our international clients which themes, within warehousing and distribution, they believe will have the most strategic relevance within the next two years. Here are the top five.
A Cause-and-Effect Diagram is a tool that helps identify, sort, and display possible causes of a specific problem or quality characteristic. It graphically illustrates the relationship between a given outcome and all the factors that influence the outcome. This type of diagram is sometimes called an "Ishikawa diagram" because it was invented by Kaoru Ishikawa, or a "fishbone diagram" because of the way it looks.
Inventory Control and Replacement Analysis Priyanshu
Hello Everyone!
This is the best ppt on 'Inventory Control and Replacement Analysis' that you can ever find.
I tried to include all the topics that will make the reader to grasp everything quickly.
These notes are also helpful for students for their university exams.
Go through the entire ppt and let me know your feedback in the comment box.
Learn and Enjoy!
Thank You!
Companies are relocating manufacturing and sourcing to regions with lower labour costs to stay competitive. This affects the efficiency of warehousing and distribution. But which elements, in particular, will be strategically important in the next two years?
Markets are changing – as are customer and service requirements. You may have implemented a new manufacturing and supply chain setup, but customers are asking for more frequent and faster deliveries.
The key to staying competitive is how quickly you can get your products from the warehouse to your customers. This can challenge your operations and calls for a review of your warehouse and distribution setup.
We asked our international clients which themes, within warehousing and distribution, they believe will have the most strategic relevance within the next two years. Here are the top five.
A Cause-and-Effect Diagram is a tool that helps identify, sort, and display possible causes of a specific problem or quality characteristic. It graphically illustrates the relationship between a given outcome and all the factors that influence the outcome. This type of diagram is sometimes called an "Ishikawa diagram" because it was invented by Kaoru Ishikawa, or a "fishbone diagram" because of the way it looks.
1. What does the following formula compute Beginning Work I.docxpaynetawnya
1. What does the following formula compute?
Beginning Work In Process Inventory + Beginning Raw Materials Inventory + Purchases – Ending Raw Materials Inventory + Direct Labor + Factory Overhead – Ending Work In Process Inventory
a. Direct Materials Used
b. Total Manufacturing Costs for Current Period
c. Cost of Goods Manufactured
d. Cost of Goods Sold
2. Which of the following is constant within a relevant range?
a. Fixed Cost per Unit
b. Variable Cost per Unit
c. Mixed Cost per Unit
d. None of the above
3. As volume increases,
a. total fixed cost increases
b. total fixed cost decreases
c. total variable cost increases
d. total variable cost decreases
4. When using activity-based costing, what information do you need to compute the predetermined overhead rates?
I. expected overhead cost for each activity
II. expected level of the cost driver for each activity
III. actual level of the cost driver for each activity
a. III
b. I and II
c. I and III
d. I, II and III
5. If your company uses traditional costing to allocate overhead based on machine hours, then what do you need to do to allocate overhead?
a. identify the key activities involved in manufacturing your products
b. identify the cost pool associated with each activity
c. multiply your predetermined overhead rate by the actual number of machine hours
d. all of the above
6. Unlike financial accounting, managerial accounting is intended to help
a. employees improve their company’s performance
b. investors understand a company’s past performance
c. equity analysts predict a company’s future performance
d. all of the above
7. Prime costs include
a. all indirect manufacturing costs.
b. nonmanufacturing costs or operating expenses.
c. direct labor and factory overhead.
d. all costs that are easy to trace directly to a specific cost object.
8. Manufacturing costs include
a. costs associated with administrative tasks
b. costs associated with obtaining sales
c. costs associated with the delivery of the product
d. none of the above
9. Rent on a factory is an example of
a. Direct Labor
b. Direct Materials
c. Fixed Cost
d. General & Administrative Expenses
10. The lawyer’s salary is an example of
a. Direct Labor
b. Factory Overhead
c. Selling Expense
d. General & Administrative Expense
11. You would debit the Work in Process Inventory account when
a. you purchase raw materials
b. you incur labor costs
c. you sell your products to customers
d. all of the above
12. You would credit the Finished Goods Inventory account when
a. you purchase raw materials
b. you incur labor costs
c. you sell your products to customers
d. none of the above
13. Which of the following is not used to compute the cost of a manufactured product?
a. Direct Materials
b. Direct Labor
c. Applied Manufacturing Overhead
d. None of the Above
14. What does the following formula compute?
Sales – Variable Cost
a. Contribution Margin
b. Gross Margin
c. Net Income
d. Operating Income
15. Unlike a contribution mar ...
1. Which of the following is an advantage of corporations relative.docxjackiewalcutt
1. Which of the following is an advantage of corporations relative to partnerships and sole proprietorships?
a. Most common form of organization.
b. Reduced legal liability for investors.
c. Harder to transfer ownership.
d. Lower taxes.
2. The group of users of accounting information charged with achieving the goals of the business is its
a. Managers
b. auditors.
c. Investors
d. Creditors
3. Which of the following financial statements is concerned with the company at a point in time?
a. Retained Earnings statement.
b. Balance sheet.
c. Statement of cash flows.
d. Income statement.
4. An income statement
a. reports the changes in assets, liabilities, and stockholders’ equity over a period of time.
b. reports the assets, liabilities, and stockholders’ equity at a specific date.
c. presents the revenues and expenses for a specific period of time.
d. summarizes the changes in retained earnings for a specific period of time.
5. The most important information needed to determine if companies can pay their current obligations is the
a. relationship between current assets and current liabilities.
b. relationship between short-term and long-term liabilities.
c. net income for this year.
d. projected net income for next year.
6. A liquidity ratio measures the
a. percentage of total financing provided by creditors.
b. income or operating success of a company over a period of time.
c. short-term ability of a company to pay its maturing obligations and to meet unexpected needs for cash.
d. ability of a company to survive over a long period of time.
7. The convention of consistency refers to consistent use of accounting principles
a. within industries.
b. among firms.
c. among accounting periods.
d. throughout the accounting periods.
8. Horizontal analysis is also known as
a. trend analysis.
b. common size analysis.
c. linear analysis.
d. vertical analysis.
9. Horizontal analysis is a technique for evaluating a series of financial statement data over a period of time
a. that has been arranged from the lowest number to the highest number.
b. to determine the amount and/or percentage increase or decrease that has taken place.
c. that has been arranged from the highest number to the lowest number.
d. to determine which items are in error.
10. Vertical analysis is a technique that expresses each item in a financial statement
a. as a percent of a base amount.
b. in dollars and cents.
c. as a percent of the item in the previous year.
d. starting with the highest value down to the lowest value.
11. Process costing is used when
a. the production process is continuous.
b. production is aimed at filling a specific customer order.
c. dissimilar products are involved.
d. costs are to be assigned to specific jobs.
12. An important feature of a job order cost system is that each job
a. consists of one unit of output.
b. has its own distinguishing characteristics.
c. must be completed before a new job is a ...
Management Accounting Information for Managing and Creating Value 7th Edition...dunujycema
Full download : https://alibabadownload.com/product/management-accounting-information-for-managing-and-creating-value-7th-edition-smith-test-bank/
Management Accounting Information for Managing and Creating Value 7th Edition Smith Test Bank
Hello,these se are the questions! Let me know if you would be ab.docxCristieHolcomb793
Hello,
these se are the questions! Let me know if you would be able to help! Thanks
1
.
Accurate measurement of GDP is important to business decision-makers because this information will help them better determine the
a.
general happiness of a country's citizens.
b.
course of the economy and the direction of demand for their products.
c.
economic well-being of a particular group within a country.
d.
amount of leisure time available and the quality of life in a country.
2
.
Which of the following would increase U.S. GDP?
a.
Ford Motor Company begins to produce and sell cars in China.
b.
Mercedes-Benz begins to produce and sell cars in Mississippi.
c.
An American investor buys 100 shares of Ford stock.
d.
An American investor purchases 100 shares of Mercedes-Benz stock.
3
.
As per capita GDP has risen in the United States and other countries,
a.
life expectancy and leisure time have also risen and infant mortality and illiteracy have gone down..
b.
life expectancy has risen but leisure time has gone down, while infant mortality and illiteracy have remained the same.
c.
various quality of life variables have been unaffected.
d.
most quality of life variables such as life expectancy and expenditures on leisure time activities have fallen.
4
.
National income is
a.
personal income of individuals minus the taxes they pay.
b.
gross national product minus depreciation.
c.
employee compensation, self-employment income, interest, rents, plus corporate profits.
d.
consumption, investment, government expenditures, and net exports.
5
.
Per capita GDP is
a.
real GDP divided by the GDP deflator
b.
a measure of income per person
c.
a measure of resources available to each person
d.
an indicator of the overall production of a government
6.
Economists use the term "business cycle" to refer to
a.
the growth of small businesses into major corporations.
b.
changes in products that occur from improved technology.
c.
fluctuations in the level of real output and employment.
d.
periods of increases and decreases in the rate of inflation.
7.
The type of unemployment caused by changes in the business cycle is
a.
cyclical unemployment.
b.
natural unemployment.
c.
frictional unemployment.
d.
structural unemployment.
8.
Frictional unemployment is the result of
a.
not enough jobs for everyone to be employed.
b.
unemployed workers' skills not matching those needed for the available jobs.
c.
a decline in the demand for labor, such as during a recession.
d.
imperfect information and temporary periods of unemployment while workers are changing jobs.
9.
Economists use the phrase "business cycle" when referring to fluctuations in
a.
the rate of real output and employment.
b.
interest rates.
c.
the consumer price index.
d.
the general level of prices.
10.
Activists and nonactivists both believe that
a.
the self-corrective mechanism of a market economy works quite well.
b.
macro-policy should seek to minimize economic fluctuations, keep the inflation rat.
Q_FIN 571 Final Exam.docFinal ExamPlease provide your answ.docxcatheryncouper
Q_FIN 571 Final Exam.doc
Final Exam
Please provide your answers as follows in the Assignment newsgroup (Excel spreadsheet is preferred):
1. A
2. B
3. B, etc
Chapter 1 The Goals and Functions of Financial Management
Multiple Choice Questions
1. What is the primary goal of financial management?
A) Increased earnings
B) Maximizing cash flow
C) Maximizing shareholder wealth
D) Minimizing risk of the firm
2. The partnership form of organization
A) avoids the double taxation of earnings and dividends found in the corporate form of organization.
B) usually provides limited liability to the partners.
C) has unlimited life.
D) simplifies decision making.
3. Increased productivity due to technology has
A) increased corporations' reliance on debt for capital expansion needs.
B) created larger asset values on the firm's historical balance sheet.
C) made it cheaper (in terms of interest costs) for firms to borrow money.
D) helped to keep corporate costs in check.
4. Insider trading occurs when
A) someone has information not available to the public which they use to profit from trading in stocks.
B) corporate officers buy stock in their company.
C) lawyers, investment bankers, and others buy common stock in companies represented by their firms.
D) any stock transactions occur in violation of the Federal Trade Commissions restrictions on monopolies.
Chapter 2 Review of Accounting
5. When a firm's earnings are falling more rapidly than its stock price, its P/E ratio will:
A) remain the same
B) go up
C) go down
D) could go either up or down
6. The net worth of a firm
A) is usually the same as the firm's market value.
B) is based on current asset costs.
C) is based on current liabilities.
D) none of the above.
7. A statement of cash flows allows a financial analyst to determine
A) whether a cash dividend is affordable.
B) how increases in asset accounts have been financed.
C) whether long-term assets are being financed with long-term or short-term financing.
D) all of the above
8. A firm has $200,000 in current assets, $400,000 in long-term assets, $80,000 in current liabilities, and $200,000 in long-term liabilities. What is its net working capital?
A) $120,000
B) $320,000
C) $520,000
D) none of the above
Chapter 3 Financial Analysis
Multiple Choice Questions
9. The ______________ method of inventory costing is least likely to lead to inflation-induced profits.
A) FIFO
B) LIFO
C) Weighted average
D) Lower of cost or market
10. The Bubba Corp. had net income before taxes of $200,000 and sales of $2,000,000. If it is in the 50% tax bracket its after-tax profit margin is:
A) 5%
B) 12%
C) 20%
D) 25%
11. XYZ's receivables turnover is 10x. The accounts receivable at year-end are $600,000. The average collection period is 90 days (3 months). What was the sales figure for the year?
A) $60,000
B) $6,000,000
C) $24,000,000
D) none of the above
12. A firm ha ...
Week 5 Homework QuestionsQuestions 1 and 2 were taken directly f.docxco4spmeley
Week 5 Homework Questions
Questions 1 and 2 were taken directly from the text and I am aware that the answers are available through an internet search.
I want to remind you that searching the internet for the answers and using those answers is a violation of UMUC academic integrity policies.
In addition, using any outside source without citation is plagiarism.
However, just gaining access to the answers will not satisfy the homework assignment because I have added the requirement that you explain your answers, which cannot be found on the internet and needs to be reasoned out from the material in the chapter.
In grading, I will place more emphasis you explanation than your selection of the correct alternative.
1)
The following are several multiple choice questions adapted from the CPA exam that cover the concept and application of materiality.
For each question, selected the best answer and then explain why it is better than all the alternatives.
Your explanations should address all the possible alternatives presented in the question.
a)
Which one of the following statements is correct concerning the concept of materiality?
i)
Materiality is determined by reference to guidelines established by the AICPA.
ii)
Materiality depends only on the dollar amount of an item relative to other items in the financial statements.
iii)
Materiality depends on the nature of an item rather than the dollar amount.
iv)
Materiality is a matter of professional judgment.
Answer:
Explanation
:
b)
In considering materiality for planning purposes, an auditor believes that misstatements aggregating $10,000 will have a material effect on an entity's income statement, but that misstatements will have to aggregate $20,000 to materially affect the balance sheet.
Ordinarily, it is appropriate to design audit procedures that are expected to detect misstatements that aggregate to
i)
$10,000
ii)
$15,000
iii)
$20,000
iv)
$30,000
Answer:
Explanation
:
c)
A client decides not to record an auditor's proposed adjustments that collectively are not material and wants the auditor to issue the report based on the unadjusted numbers.
Which of the following statements is correct regarding the financial statement presentation?
i)
The financial statements are free from material misstatement, and no disclosure is required in the notes to the financial statements.
ii)
The financial statements do not conform with generally accepted accounting principles (GAAP).
iii)
The financial statements contain unadjusted misstatements that should result in a qualified opinion.
iv)
The financial statements are free from material misstatement, but disclosure of the proposed adjustment is required in the notes to the financial statements.
Answer:
Explanation
:
2)
The following are several multiple choice questions adapted from the CPA exam that cover audit risk.
For each question, selected the best answer and then explain why it is better than all the alternative.
PAGE 4Multiple-Choice Questions1. The difference betwee.docxalfred4lewis58146
PAGE
4
Multiple-Choice Questions
1. The difference between the short-run and the long-run production function is:
a. three months or one business quarter.
b. the time it takes for firms to change all production inputs.
c. the time it takes for firms to change only their variable inputs.
d. more information is required to answer this question.
2. Which of the following statements about the short-run production function is true?
a. MP always equals AP at the maximum point of MP.
b. MP always equals zero when TP is at its maximum.
c. TP starts to decline at the point of diminishing returns.
d. When MP diminishes, AP is at its minimum point.
e. None of the above is true.
3. Assume a firm employs 10 workers and pays each $15 per hour. Further assume that the MP of the 10th worker is 5 units of output and that the price of the output is $4. According to economic theory, in the short run
a. the firm should hire additional workers
b. the firm should reduce the number of workers employed
c. the firm should continue to employ 10 workers.
d. more information is required to answer this question.
4. A firm using two inputs, X and Y, is using them in the most efficient manner when
a. MPX = MPY
b. PX = PY and MPX = MPY
c. MPX/PY = MPY/PX
d. MPX/MPY = PX/PY
5. Average fixed cost is
a. AC minus AVC
b. TC divided by Q
c. AVC minus MC
d. TC minus TVC
6. Diseconomies of scale can be caused by
a. the law of diminishing returns.
b. bureaucratic inefficiencies.
c. increasing advertising and promotional costs.
d. all of the above.
7. Which of the following cost relationship is not true?
a. AFC = AC - MC
b. TVC = TC - TFC
c. the change in TVC divided by the change in Q = MC
d. the change in TC divided by the change in Q = MC
8. When a firm produces at the point where MR = MC, and the price of its product is higher that the cost per unit, the profit that it is earning is considered to be
a. maximum
b. normal
c. above normal
d. below normal
9. Which of the following is not characteristic of perfect competition?
a. A differentiated product
b. No barriers to entry
c. Large number of buyers
d. Complete knowledge of market price
10. Suppose a firm is currently maximizing its profits (i.e., following the MR = MC rule). Assuming that it wants to continue maximizing its profits, if its fixed costs increase, it should
a. maintain the same price
b. raise its price
c. lower its price
d. not enough information to answer this question
11. Which of the following is true about a monopoly?
a. Its demand curve is generally less elastic than in more competitive markets.
b. It will always earn economic profit.
c. It will charge the highest possible price.
d. It will always be subject to government regulations.
12. If an oligopolistic firm decides to raise its price,
a. other firms will automatically follow.
b. none of the other firms will follow.
c. other firms may follow if it is the price leader.
d. None of the above.
13.
Similar to Introduction to Materials Management 7th Edition Arnold Solutions Manual (20)
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how to sell pi coins on Bitmart crypto exchangeDOT TECH
Yes. Pi network coins can be exchanged but not on bitmart exchange. Because pi network is still in the enclosed mainnet. The only way pioneers are able to trade pi coins is by reselling the pi coins to pi verified merchants.
A verified merchant is someone who buys pi network coins and resell it to exchanges looking forward to hold till mainnet launch.
I will leave the telegram contact of my personal pi merchant to trade with.
@Pi_vendor_247
how to sell pi coins in South Korea profitably.DOT TECH
Yes. You can sell your pi network coins in South Korea or any other country, by finding a verified pi merchant
What is a verified pi merchant?
Since pi network is not launched yet on any exchange, the only way you can sell pi coins is by selling to a verified pi merchant, and this is because pi network is not launched yet on any exchange and no pre-sale or ico offerings Is done on pi.
Since there is no pre-sale, the only way exchanges can get pi is by buying from miners. So a pi merchant facilitates these transactions by acting as a bridge for both transactions.
How can i find a pi vendor/merchant?
Well for those who haven't traded with a pi merchant or who don't already have one. I will leave the telegram id of my personal pi merchant who i trade pi with.
Tele gram: @Pi_vendor_247
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USDA Loans in California: A Comprehensive Overview.pptxmarketing367770
USDA Loans in California: A Comprehensive Overview
If you're dreaming of owning a home in California's rural or suburban areas, a USDA loan might be the perfect solution. The U.S. Department of Agriculture (USDA) offers these loans to help low-to-moderate-income individuals and families achieve homeownership.
Key Features of USDA Loans:
Zero Down Payment: USDA loans require no down payment, making homeownership more accessible.
Competitive Interest Rates: These loans often come with lower interest rates compared to conventional loans.
Flexible Credit Requirements: USDA loans have more lenient credit score requirements, helping those with less-than-perfect credit.
Guaranteed Loan Program: The USDA guarantees a portion of the loan, reducing risk for lenders and expanding borrowing options.
Eligibility Criteria:
Location: The property must be located in a USDA-designated rural or suburban area. Many areas in California qualify.
Income Limits: Applicants must meet income guidelines, which vary by region and household size.
Primary Residence: The home must be used as the borrower's primary residence.
Application Process:
Find a USDA-Approved Lender: Not all lenders offer USDA loans, so it's essential to choose one approved by the USDA.
Pre-Qualification: Determine your eligibility and the amount you can borrow.
Property Search: Look for properties in eligible rural or suburban areas.
Loan Application: Submit your application, including financial and personal information.
Processing and Approval: The lender and USDA will review your application. If approved, you can proceed to closing.
USDA loans are an excellent option for those looking to buy a home in California's rural and suburban areas. With no down payment and flexible requirements, these loans make homeownership more attainable for many families. Explore your eligibility today and take the first step toward owning your dream home.
What price will pi network be listed on exchangesDOT TECH
The rate at which pi will be listed is practically unknown. But due to speculations surrounding it the predicted rate is tends to be from 30$ — 50$.
So if you are interested in selling your pi network coins at a high rate tho. Or you can't wait till the mainnet launch in 2026. You can easily trade your pi coins with a merchant.
A merchant is someone who buys pi coins from miners and resell them to Investors looking forward to hold massive quantities till mainnet launch.
I will leave the telegram contact of my personal pi vendor to trade with.
@Pi_vendor_247
If you are looking for a pi coin investor. Then look no further because I have the right one he is a pi vendor (he buy and resell to whales in China). I met him on a crypto conference and ever since I and my friends have sold more than 10k pi coins to him And he bought all and still want more. I will drop his telegram handle below just send him a message.
@Pi_vendor_247
What website can I sell pi coins securely.DOT TECH
Currently there are no website or exchange that allow buying or selling of pi coins..
But you can still easily sell pi coins, by reselling it to exchanges/crypto whales interested in holding thousands of pi coins before the mainnet launch.
Who is a pi merchant?
A pi merchant is someone who buys pi coins from miners and resell to these crypto whales and holders of pi..
This is because pi network is not doing any pre-sale. The only way exchanges can get pi is by buying from miners and pi merchants stands in between the miners and the exchanges.
How can I sell my pi coins?
Selling pi coins is really easy, but first you need to migrate to mainnet wallet before you can do that. I will leave the telegram contact of my personal pi merchant to trade with.
Tele-gram.
@Pi_vendor_247
Even tho Pi network is not listed on any exchange yet.
Buying/Selling or investing in pi network coins is highly possible through the help of vendors. You can buy from vendors[ buy directly from the pi network miners and resell it]. I will leave the telegram contact of my personal vendor.
@Pi_vendor_247
US Economic Outlook - Being Decided - M Capital Group August 2021.pdfpchutichetpong
The U.S. economy is continuing its impressive recovery from the COVID-19 pandemic and not slowing down despite re-occurring bumps. The U.S. savings rate reached its highest ever recorded level at 34% in April 2020 and Americans seem ready to spend. The sectors that had been hurt the most by the pandemic specifically reduced consumer spending, like retail, leisure, hospitality, and travel, are now experiencing massive growth in revenue and job openings.
Could this growth lead to a “Roaring Twenties”? As quickly as the U.S. economy contracted, experiencing a 9.1% drop in economic output relative to the business cycle in Q2 2020, the largest in recorded history, it has rebounded beyond expectations. This surprising growth seems to be fueled by the U.S. government’s aggressive fiscal and monetary policies, and an increase in consumer spending as mobility restrictions are lifted. Unemployment rates between June 2020 and June 2021 decreased by 5.2%, while the demand for labor is increasing, coupled with increasing wages to incentivize Americans to rejoin the labor force. Schools and businesses are expected to fully reopen soon. In parallel, vaccination rates across the country and the world continue to rise, with full vaccination rates of 50% and 14.8% respectively.
However, it is not completely smooth sailing from here. According to M Capital Group, the main risks that threaten the continued growth of the U.S. economy are inflation, unsettled trade relations, and another wave of Covid-19 mutations that could shut down the world again. Have we learned from the past year of COVID-19 and adapted our economy accordingly?
“In order for the U.S. economy to continue growing, whether there is another wave or not, the U.S. needs to focus on diversifying supply chains, supporting business investment, and maintaining consumer spending,” says Grace Feeley, a research analyst at M Capital Group.
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Introduction to Materials Management 7th Edition Arnold Solutions Manual
1. iii
CONTENTS
Chapter 1: Introduction to Materials Management................................................................... 1
Chapter 2: Production Planning System ................................................................................... 9
Chapter 3: Master Scheduling................................................................................................... 21
Chapter 4: Material Requirements Planning............................................................................. 31
Chapter 5: Capacity Management............................................................................................. 57
Chapter 6: Production Activity Control.................................................................................... 65
Chapter 7: Purchasing............................................................................................................... 83
Chapter 8: Forecasting.............................................................................................................. 87
Chapter 9: Inventory Fundamentals........................................................................................ 112
Chapter 10: Order Quantities.................................................................................................. 123
Chapter 11: Independent Demand Ordering Systems............................................................. 136
Chapter 12: Physical Inventory and Warehouse Management............................................... 170
Chapter 13: Physical Distribution.............................................................................................181
Chapter 14: Products and Processes .........................................................................................192
Chapter 15: Lean Production ....................................................................................................202
Chapter 16: Total Quality Management ...................................................................................210
Introduction to Materials Management 7th Edition Arnold Solutions Manual
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2. 1
INTRODUCTION TO MATERIALS MANAGEMENT
CHAPTER 1
ANSWERS TO PROBLEMS
1.1 Sales 100% 100%
Cost of manufacturing 60% 50%
Other costs 30% 90% 30% 80%
Profit (percent of Sales) 10% 20%
Therefore a 10% reduction in the cost of manufacturing would produce a 100% increase
in profit.
1.2 Profit = Sales – (direct costs + overhead)
0.20 = Sales – (0.60 Sales + 0.30)
Sales = 0.5 = 1.25 = 125%
0.4
To increase profits from 10% to 20% takes a 25% increase in sales but only a 10%
decrease in costs. Good materials management can have a direct impact on profit. Note
the cost of overhead has been left unchanged in this problem.
1.3 a. Weekly cost of goods sold = $15,000,000 = $300,000
50
Value of 10 weeks’ WIP = 10 $300,000 = $3,000,000
b. Value of 7 weeks’ WIP = 7 $300,000 = $2,100,000
Reduction in WIP = $900,000
Annual saving = 20% $900,000 = $180,000
1.4 a. Weekly cost of goods sold = $40,000,000 = $800,000
50
Value of 12 weeks' WIP = 12 $800,000 = $9,600,000
b. Value of 5 weeks' WIP = 5 $800,000 = $4,000,000
Reduction in WIP = $5,600,000
Annual saving = 20% $5,600,000 = $1,120,000
3. 2
1.5 Using $1 million as the units:
As a % of sales
Sales $10.0 100%
Direct material $3.5 35%
Direct labor 2.5 25%
Overhead 3.5 9.5 35% 95%
Profit $.5 5%
a. From the above we can say: (in millions or M$)
Sales = direct material + direct labor + overhead + profit (now 1M$)
= .35(sales) + .25(sales) + 3.5 M$+ 1.0 M$
.40 (Sales) = 4.5 M$
Sales = 11.25 M$ = 11.25 $1,000,000 = $11,250,000
Therefore there must be a $1.25 million increase in sales.
b. To increase profit by $500,000 there must be a $500,000 reduction in cost. Therefore
direct material must be reduced by $500,000. It therefore takes 2 ½ times the sales
dollars to obtain the profit that would be realized in material reductions.
c. As for b. Direct labor would have to be reduced by $500,000.
4. 3
MULTIPLE CHOICE QUESTIONS
1. Select the best answer to the following:
a. traditionally the supply-production-distribution functions have reported to
different departments
b. the supply, production and distribution functions are part of a total system
c. materials flow into an organization, are processed in some way and distributed
to the consumer
d. all the above are correct
e. none of the above is correct
2. Manufacturing is important to the economy because:
a. it generates wealth
b. it supports service industries
c. it adds value to products
d. all of the above
e. none of the above
3. Which of the following is the best statement about the operating environment in which
operations management functions?
a. most organizations do not need to worry about competition
b. customers are more demanding
c. government regulation is not important for companies
d. price is more important than quality
e. none of the above is true
4. Which of the following statements is best regarding order winners?
a. they persuade a company's customers to choose its product
b. they are the same in every market
c. they are the same as order qualifiers, only better
d. they are present in every product
e. all the above are true
5. Which of the following strategies has the shortest delivery lead time and the least customer
input?
a. engineer-to-order
b. make-to-order
c. assemble-to-order
d. make-to-stock
5. 4
6. Which of the following statements is best?
a. the supply chain includes all activities and processes to provide a product or
service to a customer.
b. material in the supply chain usually flows from producer to customer.
c. the supply chain contains only one supplier.
d. all of the above are true.
e. a and b only are true.
7. Companies A and B supply company C, which supplies customers D and E. Which of the
following statements is best?
a. the supply chain for company A includes B, C, D, and E.
b. the supply chain for company B includes A, C, D and E.
c. the supply chain for company C includes A, B, D, and E.
d. all the above are true.
8. Which of the following statements is best?
a. the basic elements of a supply chain are supply, production, and distribution
b. the elements of a supply chain are interdependent
c. design information generally flows from customer to supplier
d. all the above are true
9. Which of the following is the best statement about the environment in which operations
management functions?
a. most organizations do not need to worry about competition
b. world-wide competition is not significant for most companies
c. government regulation is not important for companies
d. customers are more demanding
e. none of the above is true
10. If a firm wishes to maximize profit, which of the following objectives are in conflict?
I. Maximize customer service.
II. Minimize production costs.
III. Minimize inventory costs.
IV. Minimize distribution costs.
a. all the above
b. none of the above
c. I and II only
d. I and III only
e. II and III only
6. 5
11. Which of the following statements is best?
I. The conflict between marketing, finance and production centers on customer
service, disruption to production, and inventory levels.
II. Marketing's objectives can be met with higher inventories.
III. Finance's objectives can be met with higher inventories.
IV. Production's objectives can be met with higher inventories.
a. all of the above are true
b. I and II only are true
c. I, II and III only are true
d. I, II and IV only are true
e. II, III and IV only are true
12. Which of the following is normally a major activity of materials management?
I. Manufacturing planning and control.
II. Physical supply/distribution.
a. both I and II
b. neither I nor II
c. I only
d. II only
13. The objective of materials management is to:
I. Provide the required level of customer service.
II. Maximize the use of the firm's resources.
a. I only
b. II only
c. I and II
d. neither I nor II
14. Which of the following is/are primary activities of manufacturing planning and control?
I. Production planning.
II. Implementation and control.
III. Inventory management.
a. I and II only
b. II and III only
c. I and III only
d. all the above are primary activities
15. Which of the following is (are) input(s) to manufacturing planning and control?
a. product description
b. process description
c. available facilities
d. quantities to be produced
e. all the above are inputs
7. 6
16. Which of the following is NOT an activity of physical supply/distribution?
a. transportation
b. factory inventory
c. warehousing
d. packaging
e. materials handling
17. Materials management can be considered a balancing act because:
I. There are trade-offs between customer service and the cost of providing the service.
II. Priority and capacity must be balanced.
a. neither I nor II
b. I only
c. II only
d. I and II
18. If the cost of manufacturing (direct labor and materials) is 50% of sales and profit is 15% of
sales, what would the profit percentage be if the direct costs of manufacturing was reduced
from 50% to 47%?
a. 3%
b. 6%
c. 12%
d. 15%
e. 18%
19. Which of the following are generally considered overall objectives of an organization?
I. Providing good customer service.
II. Maintaining low levels of inventory investment.
III. Optimizing use of resources.
IV. Providing sufficient return on investment.
a. I and II only
b. I, II and III only
c. I, III and IV only
d. all the above
8. 7
20. The purpose of the materials management concept is:
I. To manage materials in a production operation.
II. To have purchasing support the needs of production.
III. To have production support the needs of purchasing.
a. II and III only
b. I and II only
c. I, II and III
d. I and III only
21. Making a pizza at a fast-food restaurant would be considered a form of:
a. Engineer to order
b. Assemble to order
c. Make to stock
d. Make to order
e. None of the above
22. Metrics in a supply chain are:
a. Governed by the International Metric Commission
b. Measurements of performance
c. A charge passed on to customers
d. Not used on transportation
e. Do not apply to the supply chain
23. Performance measures in a supply:
a. Should be objective
b. Are viewed mostly by finance
c. Must be measurements of one parameter only
d. Concentrate on cost only
e. Are not used once a process is automated
24. Which statement is best?
a. Performance standards are set by the supplier
b. Performance standards set the goal
c. Performance measurements show how well you did
d. Both b and c are correct
e. None of the above applies to the supply chain
25. Savings in the supply chain mostly are the result of:
a. Members in the chain sharing information
b. Being able to ship in larger quantities
c. Members having clout with suppliers
d. Sticking with local competition
e. Cutting cost after the design phase
26. Postponement is best described as:
a. Delaying payment to a supplier until the goods have been sold
9. 8
b. Delaying the removal of inventory until the last possible moment
c. Reducing inventory from RM when the parent item is produced
d. Changing the BOM after the old components have been used up
27. Postponement is best used with items that:
a. Have a long lead time and many product configurations
b. Are standardized and have short lead times
c. Experience a yield that you won’t know until the product is complete
d. Suppliers with poor delivery performance
28. A channel master in a supply chain
a. Initiates integration of a supply chain
b. Is the final customer in a supply chain
c. Is the largest member of a supply chain
d. Controls the raw material supplies in a supply chain
29. The term that describes eliminating waste throughout a company is:
a. Kaizen
b. Lean Production
c. Theory of Constraints
d. Process Control
30. If the manufacturing lead time of an item is reduced by 50% the work in process inventory:
a. Does not change
b. Is reduced by approximately 70%
c. Is reduced by approximately 50%
d. More information is needed for this problem
Answers.
1 d 2 d 3 b 4 a 5 d 6 e 7 c 8 d 9 e
10 a 11 d 12 a 13 c 14 d 15 e 16 b 17 d 18 e
19 d 20 b 21 b 22 b 23 a 24 d 25 a 26 c 27 b
28 a 29 b 30 c
10. 9
PRODUCTION PLANNING SYSTEM
CHAPTER 2
ANSWERS TO PROBLEMS
2.1 Ending inventory = opening inventory + production – demand
= 400 + 700 – 900 = 200 units
2.2 Total working days = 19 + 20 + 21 = 60
Average daily production = 500 60 = 8.3 units
2.3 Total working days = 22 + 21 + 20 = 63
Average daily production = 25,000 63= 396.8 units
2.4 Month 1 production = 19 8.3 = 157.7 units
Month 2 production = 20 8.3 = 166 units
Month 3 production = 21 8.3 = 1174.3 units
2.5 Month 1 production = 22 396.8 = 8729.6 units
Month 2 production = 21 396.8 = 8332.8 units
Month 3 production = 20 396.8 = 7936 units
2.6
Period 1 2 3 4 5 6
Forecast 750 700 1050 1600 1000 850
Planned production 1000 1000 1000 1000 1000 1000
Planned
inventory
600 850 1150 1100 500 500 650
2.7
Period 1 2 3 4 5 6 Total
Forecast demand 100 120 125 130 115 110 700
Planned
production
125 125 125 125 125 125 750
Planned
inventory
100 125 130 130 125 135 150
Total production = 700 + 100 – 150 = 750 units
Period production = 750 6 = 125 units
11. 10
2.8
Period 1 2 3 4 5 6 Total
Forecast demand 1300 1200 800 600 800 900 5600
Planned
production
892 892 892 892 892 892 5500
Planned
inventory
450 42 266 174 118 210 202
Total production = 5600 + 200 –450 = 5350 units
Period production = 5350 6 = 892 units
2.9
Period 1 2 3 4 Total
Forecast demand 9 5 9 9 32
Planned
production
8 8 8 8 32
Planned
inventory
0 1 2 1 0
a. 8 units
b. period 1, minus 1
c. 9 units, ending inventory = 4 units
2.10 a. There is a stockout of 1 unit in period one.
The cost will be:
Stockout cost: 1 $500 = $500
Carrying cost: 3 $50 = 150
Total cost: = $650
c. Total period inventory = 0 + 5 + 3 + 4 = 12 units
The cost will be = $50 12 = $600
Since there are no stockouts this will be the total cost of the plan.
12. 11
2.11 a. Total production = 530 + 130 – 100 = 560
b. Daily production = 560/70 = 8 units
c. The monthly production for May = 168 units
d. The ending inventory for May = 153 units
Month May Jun Jul Aug Total
Working days 21 19 20 10 70
Forecast demand 115 125 140 150 530
Planned
production
168 152 160 80 560
Planned
inventory
100 153 180 200 130
2.12
Month Jan Feb Mar Apr May Jun Total
Working days 20 22 20 20 18 19 119
Forecast demand 1300 1200 800 700 700 900 5600
Planned
production
874 961 874 874 787 830 5200
Planned
inventory
500 74 165 -91 83 170 100
Total production = 5600 + 100 – 500 = 5200
Daily production = 5200 119 = 43.7 units per day
There will be a stockout of 165 units in February and 91 units in March.
13. 12
2.13 Total production = 300 + 1080 – 200 = 1180 units
Number of weeks available for production = 5.5
Average weekly level production = 1180 = 214.5 units
5.5
The nearest quantity that can be produced is 200 units on two shifts. In the second week
there is a shutdown so production in that week that will be only 100 units.
Total production so far = 5 200 + 100 = 1100 units
The balance of 80 units can be made in week four when extra help is available.
Opening inventory = 200 units
Week 1 2 3 4 5 6 Total
Forecast demand 120 160 240 240 160 160 1080
Planned
production
200 100 200 280 200 200 1180
Planned
inventory
200 280 220 180 220 260 300
2.14 Ending backlog= demand + opening backlog – production
= 700 + 500 800 = 400 units
2.15 Total production = demand + opening backlog – ending backlog
= 3800 + 900 – 200 = 4500 units
Weekly production = 4500 6 = 750 units
Week 1 2 3 4 5 6 Total
Forecast demand 750 700 550 700 600 500 3800
Planned
production
750 750 750 750 750 750 4500
Planned backlog 800 800 750 550 500 350 100
14. 13
2.16 Desired ending backlog = 1200
Note: All weekly production amounts determined using standard rounding rules.
Total production = demand + opening backlog – ending backlog
= 6800 + 1100 – 1200 = 6700 units
Weekly production = 6700 6 = 1117 units
Week 1 2 3 4 5 6 Total
Forecast demand 1200 1100 1200 1200 1100 1000 7300
Planned
production
1117 1117 1117 1117 1117 1117 7200
Planned backlog 1100 1183 1166 1249 1332 1315 1198
2.17 Total production = 112,500 + 9000 – 11,250 = 110,250 units
Daily production = 110,000 75 = 1470 units
Number of workers required = 1470/15 = 98
Actual daily production = 98 15 = 1470 units
Month 1 2 3 4 Total
Working days 20 24 12 19 75
Forecast demand 28000 27500 28500 28500 112500
Planned
production
29400 35280 17640 27930 110250
Planned
inventory
11250 12650 20430 9750 9180
15. 14
2.18 Total production = 17900 + 800 – 1000 = 17700
Daily production = 17700/117 = 151.28 units
Number of workers required = 151.28/9 = 16.81 17 workers
Actual daily production = 17 9 = 153 units
Month 1 2 3 4 5 6 Total
Working days 20 24 12 22 20 19 117
Forecast demand 2800 3000 2700 3300 2900 3200 17900
Planned
production
3060 3672 1836 3366 3060 2907 17901
Planned
inventory
1000 1260 1932 1068 1134 1294 1001
It is not possible to meet the ending inventory target because of the extra fraction of a
worker needed. The only way to do it would be to reduce the number of workers to 16 at some
point.
16. 15
MULTIPLE CHOICE QUESTIONS
1. The ability of manufacturing to produce goods and services is called:
a. scheduling
b. production planning
c. capacity
d. routing
e. none of the above
2. Priority in production planning relates to:
a. what should come first
b. how much of what is needed and when
c. capacity
d. an objective of the firm
e. none of the above
3. Which of the following is an input to the production plan?
a. strategic business plan
b. financial plan
c. market plan
d. engineering plan
e. all of the above are inputs
4. Which of the following plans has the longest planning horizon and the least level of detail?
a. strategic business plan
b. production plan
c. master production schedule
d. all of the above have the same level of detail
e. none of the above
5. In terms of INCREASING level of detail, which is the best sequence of activities?
I. Material requirements planning.
II. Master production scheduling.
III. Production planning.
a. I, II and III
b. I, III, and II
c. II, III, and I
d. II, I, and III
e. III, II, and I
17. 16
6. Over the time span of the production plan, which of the following can usually be varied to
change capacity?
a. work force
b. inventories
c. plant and equipment
d. all of the above
e. a and b above
7. Which of the following is a characteristic of a production plan?
a. time horizons are five years
b. the production plan is for individual items
c. the only objective is to have an efficient plant
d. all of the above are characteristics of a production plan
e. none of the above is characteristic of a production plan
8. Determining the need for labor, machines, physical resources to meet the production
objectives of the firm is called:
a. production control
b. production planning
c. capacity planning
d. all of the above
e. none of the above
9. The function of setting the limits or levels of manufacturing operations based on the market
plan and resource availability is called:
a. production planning
b. production activity level
c. capacity planning
d. all of the above
e. none of the above
10. A statement of a schedule of requirements for individual end items is called:
a. a master production schedule
b. a material requirements plan
c. a production plan
d. a capacity plan
e. none of the above
11. Which of the following statements is most appropriate regarding production planning?
a. a high level of detail is not needed
b. a translation must be made from product demand to capacity demand
c. product groups based on similarity of manufacturing process should be used in
planning
d. all of the above are true
e. none of the above is true
18. 17
12. Which of the following statements is best about sales and operations planning?
a. it provides an means of updating the material requirements plan
b. it includes only the marketing and production plans
c. it is usually updated on a monthly basis
d. it has no effect on inventory levels
13. Which of the following are characteristics of an MRPII system?
I. It incorporates the plans of marketing, production and finance.
II. It is a fully integrated planning and control system.
III. It has feedback from the bottom up.
a. I only
b. II only
c. III only
d. I, II and III
14. For the purposes of production planning, product groups should be established on the basis
of:
a. market segments
b. similarity of manufacturing process
c. the availability of materials
d. the availability of machinery
e. all of the above
15. Which of the following is a basic strategy in developing a production plan?
a. hybrid strategy
b. production leveling
c. chase strategy
d. a and b above
e. b and c above
16. A production planning strategy which turns away extra demand is called:
a. production leveling
b. demand matching
c. hybrid strategy
d. all of the above
e. none of the above
17. Which basic production planning strategy will build inventory and avoid the costs of excess
capacity?
a. demand matching (chase)
b. production leveling
c. subcontracting
d. all the above
e. none of the above
19. 18
18. Which basic production planning strategy avoids hiring and layoff costs and the costs of
excess capacity?
a. demand matching
b. operation smoothing
c. subcontracting
d. all the above
e. none of the above
19. If the opening inventory is 100 units, the sales are 500 units and the ending inventory is 200
units, then manufacturing must produce:
a. 300 units
b. 400 units
c. 500 units
d. 600 units
e. none of the above
20. Over a 10-week period the cumulative sales are forecast at 10,000 units, the opening
inventory is 200 units and the closing inventory is to be 100 units. What should be the
weekly planned production for level production?
a. 990
b. 1000
c. 1010
d. 1030
e. none of the above
21. Firms will generally make-to-stock when:
a. demand is unpredictable
b. there are many product options
c. delivery lead times are long
d. all of the above
e. none of the above
22. Firms will generally make-to-order when:
a. products are produced to customer specifications
b. there are many product options
c. product is expensive to make and store
d. all of the above
e. none of the above
20. 19
23. Which of the following information is needed to develop a make-to-stock production plan?
I. Forecast by time period for the production plan.
II. Opening inventory.
III. Opening backlog of customer orders.
IV. Desired ending inventory.
a. I, II and III
b. I, II and IV
c. 1, III and IV
d. II, III and IV
e. none of the above
24. If the old backlog was 200 units, the forecast for the next period is 500 units, and
production for the next period is 600 units, what will be the backlog at the end of the next
period?
a. 100 units
b. 200 units
c. 300 units
d. 700 units
e. 800 units
25. ____________ is concerned with long-term planning of manufacturing activity:
a. Sales and operations planning
b. Master production scheduling
c. MRP
d. Production activity control
e. Master planning
26. Which of the following is NOT a rule of Sales and Operations Planning?
a. Product Groups need not be decided
b. Planning units of measure need to be decided
c. A planning horizon must include new product development time
d. Performance review periods to be compared should be decided
27. Which of the following is a complete closed loop planning system that develops plans for
all materials and operations?
a. Capacity requirements planning
b. Enterprise resource planning
c. Supply chain management
d. Material requirements planning
21. iii
CONTENTS
Chapter 1: Introduction to Materials Management................................................................... 1
Chapter 2: Production Planning System ................................................................................... 9
Chapter 3: Master Scheduling................................................................................................... 21
Chapter 4: Material Requirements Planning............................................................................. 31
Chapter 5: Capacity Management............................................................................................. 57
Chapter 6: Production Activity Control.................................................................................... 65
Chapter 7: Purchasing............................................................................................................... 83
Chapter 8: Forecasting.............................................................................................................. 87
Chapter 9: Inventory Fundamentals........................................................................................ 112
Chapter 10: Order Quantities.................................................................................................. 123
Chapter 11: Independent Demand Ordering Systems............................................................. 136
Chapter 12: Physical Inventory and Warehouse Management............................................... 170
Chapter 13: Physical Distribution.............................................................................................181
Chapter 14: Products and Processes .........................................................................................192
Chapter 15: Lean Production ....................................................................................................202
Chapter 16: Total Quality Management ...................................................................................210
Introduction to Materials Management 7th Edition Arnold Solutions Manual
Full Download: http://alibabadownload.com/product/introduction-to-materials-management-7th-edition-arnold-solutions-manual/
This sample only, Download all chapters at: alibabadownload.com
