The use of standardized components typically results in:

• A.fewer inventory items and inventory levels.
• B.smaller bills of materials, fewer routings, and fewer manufacturing orders.
• C.more items, larger bills of material (BOMS), and increased material requirements planning (MRP) run time.
• D.increased planning and control efforts to avoid shortages.

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A product should be designed for a manufacturing process with the smallest number of:

• A.options to maximize cost savings.
• B.operations, motions, and parts.
• C.raw materials and purchase parts.
• D.operating supplies.

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Which of the following situations is an example of postponement?

• A.Production begins after a customer order is received.
• B.Partially assembled goods are assembled at a later stage.
• C.Shipments are consolidated immediately for reshipment.
• D.Shipments are broken down into small groups for reshipment.

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A supplier is offering a price discount if more is ordered at one time. The offer should be analyzed to determine if a larger order is appropriate considering: the impact of the

• A.the increase in transportation costs compared to the reduction in ordering cost.
• B.increase in average inventory levels on ABC designations.
• C.the impact of additional items on indirect costs,
• D.the reduction in material cost compared to the impact on total holding costs.

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Which of the following strategies would increase overall supply chain risk?

• A.Internally manufacturing a product that has a high level of technical intellectual property
• B.Single sourcing a product that makes the highest annual profit
• C.Identify multiple sources for a product that has a potential for supply chain disruption
• D.Outsourcing a product that is not well suited to your operations

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