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27. The learning index ( or rate ) can be identified under both the natural loga

ID: 447387 • Letter: 2

Question

27. The learning index ( or rate ) can be identified under both the natural               logarithm and ‘base 10’ logarithm calculations:
                                                      TRUE          FALSE
     28. In learning curve models, a production unit may be one (1) bolt, screw,            fastener, or component.                                                                   TRUE          FALSE     29. The “pull” system is employed by both the parent firm and its external

             suppliers.

                                                       TRUE          FALSE
     30. The number of authorized trays/bins for each part, subassembly, or material,             might be based on several end product’s daily demands.
                                                        TRUE       FALSE

-3-
31. Under the kanban version of assembly line balancing, the line is balanced       once or twice per day.
                                          TRUE          FALSE
32. When a user center has received all of its parts, assemblies, or materials        to meet current needs, it returns the empty tray(s) to its provider center        with a move or production card attached.
                                          TRUE          FALSE
33. In the “ pull “ system, there is a delicate balance between market        demand, production scheduling, and vendor resupply activity.
                                          TRUE         FALSE
34. Keiretsu calls for horizontal and vertical integration within a       particular industry, by one or several Japanese firms working       together.
                                          TRUE         FALSE
35. Daily demand for a particular product’s sub-assembly is 30 units,       and its lead time is one (1) hour. The number of authorized com-       partments for its kanban tray is four (4). Safety stock for this       subassembly has been set at five (5) units. The authorized number       of trays for this item will be:

a. 0b. 3c. 5d. 7

                 36.   Kanban trays/bins/totes are custom designed to carry a particular part,                     assembly, or material.

                                               TRUE          FALSE
37. In JIT systems, safety stocks are designed to meet unexpected increases       in market demand.                                        TRUE          FALSE

                                                                         -4-

     38. In JIT systems, all of the original inventory accounts are eliminated over               time.                                                       TRUE          FALSE
     39. Setup times and setup costs are critical inputs for development of cycle            times between pairs of work centers.                                                       TRUE          FALSE       40. In Kanban systems, the assembly line is rebalanced each time another             product’s production is started.                                                       TRUE          FALSE
                           41. Short-term surges in product demand can be temporarily met by        ‘abandoning’ JIT.                                                  TRUE         FALSE
42. Firms should have comprehensive plans for addressing operational       problems, as inventories are systematically reduced.                                                   TRUE         FALSE
43. Small batch sizes help achieve a uniform distribution of work-in-process          inventory among the work and supply centers.                                                  TRUE         FALSE
44. If setup times are reduced, smaller batch sizes will automatically be       achieved at all work and supply centers.                                                  TRUE         FALSE
45. Standard task times must be developed under the Kanban system.                                                  TRUE         FALSE

                                                                -5-
46. Small batch sizes increase the number of setups as well as total setup       costs and time.                                            TRUE           FALSE
47. At the global market level, individual product demand is essentially       unchanged on a day to day basis.                                            TRUE           FALSE
48. JIT systems employ rigidly defined job descriptions.                                            TRUE          FALSE
49. JIT suppliers may be involved in product design.                                            TRUE         FALSE
50. Machine design in JIT systems should be kept as simple as possible       for easier maintenance and higher reliability.                                           TRUE          FALSE

Explanation / Answer

For Question 9. Answer is B. Entails systematically reducing work-in-process inventories and focusing on operational problem areas

JIT is inventory strategy companies employ to increase effiency and decrease waste by receiving goods as needed in production process. It is better done by reducing work in process inventories and focusing on operational problem area where there is gap and needs inventories. Material will be available as it needed so that the cost to company will decrease by maintaining inventories at different levels.

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