Download APIC's CPIM Part 1 Practice Exams (with Accurate Answers) and more Exams Nursing in PDF only on Docsity!
APIC's CPIM Part 1 Practice Exams
(with Accurate Answers)
The ability of a company to address the needs of and inquiries and requests from customers refers to: on-time delivery. customer service. order fill rates. customer relationship management. correct answers customer service.: Customer service is the ability of a company to address the needs of and inquiries and requests from customers. Which of the following is included in the cost of goods sold? Standard cost General and administrative expenses Revenue Overhead correct answers Overhead: The cost of goods is classically defined as consisting of direct labor, direct material, and overhead. Which of the following warehouse activities involves bringing goods together and checking for omissions or errors in the order? Dispatching the shipment Picking goods Dispatching goods to storage Marshalling the shipment correct answers Marshalling the shipment: When marshalling a shipment, goods making up a single order are brought together and checked for omissions or errors, and order records are updated accordingly. Picking is the process of selecting items from storage and bringing them to a marshalling area. Dispatching goods to storage is the process of sorting goods upon receipt and placing them in a storage area. Dispatching the shipment is the process of order packing, preparing shipping documents, and loading items on the correct transport vehicles. When purchasing natural products like fruit, what should the supplier agreement specify? Allowable variation in quantity. Exact delivery dates. Discounts if paying late. Exact quantity per order. correct answers Allowable variation in quantity.: Specifying allowable variation in quantity for natural products is an example of the specificity needed in supplier agreements so as to avoid later confusion or disagreement. However, specifying exact delivery dates on products that depend on the weather may also not be possible. A company is experiencing a change in demand from steady to sporadic. It currently uses economic order quantity (EOQ) to determine purchase quantities for a key component. Which of the following models should it use in the future? Lean one-piece flow Period order quantity
Fixed order quantity EOQ correct answers Period order quantity: As a product moves from continuous to intermittent demand, a better inventory replenishment tool is a period order quantity, where inventory balances are reviewed periodically and quantity purchased up to a specific maximum quantity. In contrast, EOQ, lean one-piece flow, and fixed order quantity are all based on continuous demand characteristics. Based on the information below, in what week would a planned order release be generated to satisfy the net requirement? Lead time: 3 weeks Order quantity: 100 Net requirement exists in: week 6 Net requirement quantity: 150 Week 1 Week 2 Week 3 Week 6 correct answers Week 3: Because the net requirement exists in week 6, the planned order release is offset by the lead time of three weeks. Thus, the planned order release will be generated in week 6 - 3 weeks = week 3. In a planning bill for an updated configuration of a cellphone, the total percentages for the amounts required for the three possible memory chips used equal 115. What does this indicate? The manufacturer has received more orders for blue than other colors. The manufacturer is making a hedge against higher demand. There has been an error in the calculations. The manufacturer is making up for missed orders. correct answers The manufacturer is making a hedge against higher demand.: When a planning bill's percentage is higher than 100, it is a form of hedge against volatility in demand. It serves roughly the same purpose as safety stock. Because this is a planning bill, no orders have yet been received, and therefore it does not refer to received orders. Which of the following primarily focuses on ensuring that inventory records accurately represent the value of inventory? Audit Periodic inventory Cycle counting Perpetual inventory correct answers Periodic inventory: The main purpose of periodic inventory is to satisfy financial auditors that the inventory records represent the value of the inventory. A company adheres to a policy of level production for its product. What production rate will result in zero ending inventory after four periods? beginning inventory = 0 Period 1 Demand 60 Period 2 Demand 80 Period 3 Demand 40 Period 4 Demand 100
scheduling and managing operations that have an internal constraint or a capacity-constrained resource. What is the term for an array of inventory broken out into different categories based on Pareto's law? Group technology ABC classification Days of supply Value analysis correct answers ABC classification: An ABC classification of inventory represents a group of items in decreasing order of annual monetary volume (price multiplied by projected volume) or other criteria. This array is then split into three classes: A, B, and C. Which of the following is a means of replenishing inventory through a supplier's review and responsibility to maintain targeted inventory levels? Collaborative planning, forecasting, and replenishment Two-bin system Kanban Vendor-managed inventory correct answers Vendor-managed inventory: Vendor-managed inventory (VMI) is a means of optimizing supply chain performance in which the supplier has access to the customer's inventory data and is responsible for maintaining the inventory level required by the customer. The available capacity that exists on nonconstraint resources beyond the capacity required to support the constraint is: finite capacity. productive capacity. idle capacity. capacity management. correct answers idle capacity.: In the theory of constraints, activation of any nonconstraint resource beyond what is necessary to support the constraint only produces unwanted and unnecessary inventory. It is better from a cost and throughput perspective to leave the resource idle. In a market where customers accept a standardized product offering, which of the following situations is characteristic of the production environment? The master schedule typically is stated for the finished product level. Work centers are dedicated to producing a wide range of different products. Supplier partnering likely will be on a pull system. Work in process (WIP) represents the largest cost of inventory. correct answers The master schedule typically is stated for the finished product level.: Because products are standardized with no modification, planning at the master schedule level is performed for the finished good. Finished goods inventories, not WIP, represent the largest cost of inventory. Work centers used for make-to-stock products are dedicated to producing a limited range of similar products. Production planning and scheduling in an MTS environment uses an MRP push system where, in turn, demand from suppliers is also based on the MRP push.
Which technology would be best used to automatically update machinery use in order to better plan maintenance routines before breakdowns can occur? Artificial intelligence Blockchain Robotic process automation Internet of Things correct answers Internet of Things: The Internet of Things enables equipment and other devices to update their status and location, which can be helpful for automatically tracking machine use and status in order to plan and execute maintenance routines. Which of the following considerations is primary when contracting with a supplier in a lean environment? Order cost Product quality Quantity discounts Transportation costs correct answers Product quality: In a lean environment, it is expected above all else that materials and components will be delivered with perfect quality and will be ready for the production floor without further quality testing. The other answers may be considerations, but they are not primary considerations, especially in a lean environment. A dispute arises over damage to goods shipped between two entities in different countries. Which international standards, if applied at the time of the shipment, would clearly resolve the dispute? UN Global Compact Omnibus Foreign Trade and Competitiveness Act Export Trading Company Act Incoterms correct answers Incoterms: When goods are moved between two entities, it is imperative that clarity exists as to who is responsible for what. Incoterms, developed by the International Chamber of Commerce, are specifically designed to address this need. Based on the following demand history, what is the moving three-month forecast for August? April: 67 units May: 63 units June: 80 units July: 70 units 70 71 75 93 correct answers 71: The calculation is as follows: 63 + 80 + 70 = 213/3 = 71 units. Although data was given for April, the question asks for a three-month forecast for August, so this data is not used. Which of the following benefits of setup reduction is most immediate? Reduced work in process Reduced queue time Reduced product cost
Function of planning, scheduling, and controlling activities related to mode, vendor, and movement of inventories into and out of an organization Distribution network that deals with change of ownership of goods and services, including the activities of negotiation, selling, and contracting Items returned to the manufacturer as defective, obsolete, overages, etc. correct answers Complete supply chain dedicated to the reverse flow of products and materials for the purpose of returns, repair, remanufacture, and/or recycling: Reverse logistics is a complete supply chain dedicated to the reverse flow of products and materials for the purpose of returns, repair, remanufacture, and/or recycling. In production and inventory control, it is important to know whether demand is independent or dependent because the distinction: conveys what materials are unique or common to products. determines the selection of appropriate replenishment methods. defines the content of products. determines needed product quantities. correct answers determines the selection of appropriate replenishment methods.: For the most part, products subject to independent demand are driven by a forecast and will use either a reorder point or ERP master scheduling for planning and replenishment. Normally, production inventories that should be planned in an MRP system are subject to dependent demand. What is the next step in the purchasing cycle after a requisition is generated? Issue purchase order. Approve payment. Follow up. Receive goods. correct answers Issue purchase order.: Once the requisition is generated by the end user, the next step is for purchasing to issue a PO. Answers a, b, and c occur later in the cycle. (The purchasing cycle stages are, in order, generate requisition, issue PO, follow up, receive goods, and approve payment. A cleaning compound used to clean manufacturing equipment would be classified as which of the following types of inventory? Finished goods Maintenance, repair, and operating supplies Work in process (WIP) Raw materials correct answers Maintenance, repair, and operating supplies: Maintenance, repair, and operating supplies (MROs) support general operations and maintenance but do not become part of the product. They include maintenance supplies, spare parts, and consumables such as cleaning compounds, lubricants, pencils, and erasers. Raw materials are purchased items or extracted materials that are converted via the manufacturing process into components and products. A finished good is a product sold as a completed item or repair part or any item subject to a customer order or sales forecast. Work in process (WIP) is defined as a good or goods in various stages of completion throughout the plant. These stages include all materials, from raw material that has been released for initial processing up to completely processed material awaiting final inspection and acceptance as finished goods inventory.
A firm's marketing strategy directly impacts the production plan by which of the following actions? Answers Increasing after-sale service options Increased customer service functions Changing capacity Increasing demand correct answers Increasing demand: By increasing demand from the customer base, marketing will directly impact the existing production schedule created by production management. A production process is an I-type process from a VATI analysis where operations 1, 2, 3, and 4 operate sequentially and operations 1 through 3 require one unit as input for each one unit of output, but operation 4 requires two units as input to produce one unit of output. Unit processing times are 200 per hour for operation 1, 220 per hour for operation 2, 180 per hour for operation 3, and 100 per hour for operation 4. If demand is 110 per hour, which is true? Operation 4 is the constraint. The market is the constraint. Operation 3 is the constraint. Operation 4 is the capacity constrained resource. correct answers Operation 3 is the constraint.: Operation 3 is the constraint because operation 4 requires two units from it to make one unit of output. Therefore, operations 1 through 3 need to operate at twice the rate of operation 4 to match its production, but it operates at only 1.8 times the rate of operation 4. The market is also not the constraint because demand is higher than the output of operation 4. Which of the following situations will best enable a company to react swiftly to changes in the volume and mix of its products? Quick changeover of equipment Continuous production Decreased safety stock Increased forecast accuracy correct answers Quick changeover of equipment: A manufacturing environment that is characterized by agility and nimbleness has the best chance of responding to changes in the volume and mix of products. Decreased safety stock levels inhibit quick production changeovers. Better forecasting is too long-range to impact very short-term schedule change requirements. Continuous production is normally focused on producing large lot quantities; these large quantities are produced in a very narrow range of highly standardized products, where shop floor setup cannot be easily changed economically to accommodate abrupt changes in the schedule. Which of the following statements is true for a company that uses the first-in, first-out method of evaluating inventory in a market where prices are decreasing? The replacement value of products will be understated. The difference between the old and the new will be stated as a variance. The cost reported will be an average of the old and the new. The replacement value of products will be overstated. correct answers The replacement value of products will be overstated.: In a period of rising prices, replacement is at a higher price than the assumed cost. This method does not reflect current prices, and replacement will be understated.
Which is an objective of purchasing? To control budgetary expenditures of all employees through sound purchase order control. To obtain goods and services of the required quality at the right cost. To keep many sources of supply available to ensure competitive pricing. To ensure that goods are always purchased at the lowest possible price. correct answers To obtain goods and services of the required quality at the right cost.: The objectives of purchasing are to obtain goods and services of the quality and quantity needed at the right cost, to provide customer service, and to identify qualified suppliers and maintain good relations. The other answers are correct because many sources of a supply may not be available; purchasing does not control or approve the budgetary expenditures; and the lowest price is not necessarily the right price. A manufacturing cell is characterized by: a process layout. production of similar items. specialization of labor. large production runs. correct answers production of similar items.: A manufacturing cell is defined as a manufacturing process that produces families of parts within a single line or cell of machines controlled by operators who work only within the line or cell. Which managed inventory strategy would best suit a lean manufacturer that is unable to provide consistent order sizes due to fluctuations in demand for the various products it produces? Consignment Vendor-managed inventory Continuous replenishment Lot for lot correct answers Continuous replenishment: Continuous replenishment uses actual sales or warehouse shipments without stockouts, resulting in lower associated costs and improved inventory turnover. It would be best suited for the manufacturer due to the manufacturer's inability to provide consistent order information and its preference to reduce waste, which would include extra inventory storage in the form of consignment or VMI. Which are costs of carrying inventory? Storage costs and purchasing costs Production control costs and purchasing costs Capital costs and production control costs Capital costs and storage costs correct answers Capital costs and storage costs: Capital and storage costs are two of the three main components of inventory carrying costs, along with risk costs. The other options include either production control or purchasing costs, neither of which is a component of inventory carrying cost. Which of the following outcomes is the primary objective of total quality management (TQM)? Achieving customer satisfaction Reducing product defects Increasing employee involvement
Improving equipment utilization correct answers Achieving customer satisfaction: The ultimate goal and singular objective of TQM is to produce products that achieve the highest levels of customer satisfaction. Reducing product defects, increasing employee involvement, and improving equipment utilization are not in themselves primary goals, although they can all help to further the main objective of achieving maximum customer satisfaction. Which tool is best suited to tracking the business activities associated with satisfying a customer's demand, from a supply chain management perspective? UNGC SCOR United Nations Global Compact Management Model Performance Standards correct answers SCOR: The SCOR model describes the business activities associated with satisfying a customer's demand, which include plan, source, make, deliver, return, and enable. A manufacturer has a seven-day workweek. Using a periodic review system, multiple orders are placed every Tuesday, with a lead time of two days. For one item, the manufacturer maintains a safety stock level of 50 and has an average daily demand of 25. What would be the target (maximum) inventory level? 175 225 275 475 correct answers 275: T = D x (R + L) + SS; in this case, 25 x (7 + 2) + 50 = 275 Which of the following techniques deals with the analysis and planning of logistics and manufacturing during short-, intermediate-, and long-term periods? Advanced planning and scheduling Distribution requirements planning Transportation management system Materials requirements planning correct answers Advanced planning and scheduling: Advanced planning and scheduling (APS) techniques deal with the analysis and planning of logistics and manufacturing during short-, intermediate-, and long-term time periods. The five main components of APS systems are demand planning, production planning, production scheduling, distribution planning, and transportation planning. Which of the following inventory evaluation methods best measures falling costs? Average cost Last-in, first-out First-in, first-out Standard cost correct answers Standard cost: The standard cost consists of direct material, direct labor, and overhead. This cost remains fixed until a decision is made to update it as time passes to arrive at a new standard. Any variance between the standard and actual costs can be quantified to show how much actual costs have fallen or risen since the last standard cost update. The problem with the average cost method in changing processes (rising or falling) is that the cost used is not related to the actual cost. The last-in, first-out method assumes that the newest (last) item received into stock is the first sold. Given rising prices, replacement can be made at the
reviewed for idle capacity. If idle capacity exists at a resource, then work should be routed to fill the open capacity. This will increase total utilization. Excess capacity describes a situation where output capabilities at a nonconstraint resource exceed the amount of productive and protective capacity required to achieve a given level of throughput at the constraint. Protective capacity describes a situation where a given amount of extra capacity at nonconstraints above the system constraint's capacity is maintained. It is used to protect against statistical fluctuations. Productive capacity describes the maximum output capabilities of a resource (or series of resources), or the market demand for that output for a given period of time. What is the main insight that the total cost of ownership (TCO) offers to the supply chain manager? TCO is a great concept, but it is nearly impossible to calculate. TCO does not include the cost of poor quality. The acquisition cost is often a very small portion of the total cost of raw materials and components. Vertical integration of the supply chain is the best way to reduce overall costs. correct answers The acquisition cost is often a very small portion of the total cost of raw materials and components.: TCO is the sum of all the costs associated with every activity of the supply stream, of which the acquisition costs are just a small portion. For example, TCO would include the cost of poor quality (rejects, scrap, rework, inspections, etc.) and possibly the cost of end-of-life disposal. Vertical integration has more impact on control of the supply than the costs associated with the supply chain and will sometimes trade off control for increased costs. Which of the following definitions best describes capacity planning? Process of determining the amount of capacity required for production in the future Ability to do rough-cut capacity planning using a simulated master production schedule Resources needed to produce the projected level of work over a time horizon Extra capacity that is added to a system after capacity for expected demand is calculated correct answers Process of determining the amount of capacity required for production in the future: The goal of capacity planning is to determine how much capacity is going to be required to execute the firm's production plans. What is the term for a continual process of reviewing the strategic business plan and revising and coordinating the plans of various departments? Business planning Sales and operations planning Strategic planning Groupthink correct answers Sales and operations planning: Sales and operations planning is the process by which an organization reviews its strategic plan and revises and coordinates plans between its various departments. Strategic planning is a statement of how the organization is to determine and assemble the resources and perform the actions necessary to support the business plan. Groupthink is when a team seizes on one solution to a problem and does not consider other viable solutions. The business plan sets the long-range strategy and revenue, cost, and profit objectives; it is normally set once a year. A written inquiry sent to suppliers to obtain competitive and reliable pricing is known as a:
bid proposal. purchase order. sales order. request for quotation. correct answers request for quotation.: The request for quotation (RFQ) asks suppliers for information on price, compliance with specifications, terms and conditions of sale, delivery, and payment terms. An RFQ is an inquiry, not an order. The term genchi genbutsu is synonymous with: production planning. management by objectives. management by walking around. production capacity. correct answers management by walking around.: Genchi genbutsu is the Japanese term for managing the production floor by physically walking around and viewing operations. The other options do not fit the definition of genchi genbutsu. Which type of purchase process signal is used in lean production systems? Kanban Buffer replenishment Conventional requisitions Planned order releases correct answers Kanban: Lean production systems use kanban signals to trigger replenishment need, often without use of a purchase order or requisition. Which of the following quantitative techniques responds the quickest to trends? High alpha factor exponential smoothing Moving average Expert opinion Seasonal index correct answers High alpha factor exponential smoothing: High alpha factor exponential smoothing responds the quickest to trends. A moving average does not respond well to trends. Expert opinion is a qualitative technique that does not determine trends well, and seasonal indexes are not used for trend calculations. What is a characteristic of a dynamic demand pattern? There is an upward or downward trend. There are regular peaks and valleys. The demand can be calculated. The pattern changes over time. correct answers The pattern changes over time.: A dynamic demand pattern is one where demand patterns for products and services change over time and the pattern is not stable. The peaks and valleys are irregular, rather than regular, and the trend is not stable and may go upward and downward at times. The calculation of demand is not a characteristic of a dynamic demand pattern. The United Nations Global Compact Management Model defines a: corporate certification. risk management plan. set of regulations.
What happens when work centers before a bottleneck produce materials at a rate faster than the bottleneck can handle? The constraint buffer grows in duration. Overall system throughput increases, up to a limit. There is a reduction in work-in-process inventory. Overall system throughput increases indefinitely. correct answers The constraint buffer grows in duration.: It doesn't make sense for work centers in front of the bottleneck to produce output at a rate faster than the bottleneck can handle because it only leads to a buildup of WIP inventory, specifically a buildup in the form of an increasing constraint buffer. Which of the following factors has the greatest impact on reducing transportation inventory? Shipment size Safety stock Transit time Fuel surcharges correct answers Transit time: The average amount of inventory that is in transit at any given time is a function of the average transit time in days. Reducing the average transit time in days is the only way to reduce transportation inventory levels. This can be done by using faster modes of transport or by selecting suppliers that are closer to the organization. This reduces both cost and lead times. If faster transport is used, its increased cost may offset any cost savings. The other answers are less significant given shorter transit times. When using throughput (theory of constraints) accounting, what is an important question to ask marketing and/or production professionals related to the throughput component of the analysis? How will inventory costs be impacted by the proposed change? Will we need to hire additional workers or buy auxiliary equipment? Will higher output be converted to cash quickly or sit in inventory? How quickly will the new capacity be depreciated? correct answers Will higher output be converted to cash quickly or sit in inventory?: While all of the questions are good questions to ask when considering whether to make a new investment in capacity, only the question about higher output being converted to cash or adding to inventory levels is related to the throughput component of the analysis. Questions about inventory costs relate to the investment component of the analysis, while the need to hire more workers or make side investments and questions related to depreciation relate to the operating expense component of the analysis. Based on the information below, what is the number of days of supply for this item closest to? On-hand inventory: 9,600 units Annual usage: 130, Reorder point: 1,200 units Reorder quantity: 3,600 units Working days per year: 260 7 10 19
27 correct answers 19: Days of supply equals inventory on hand divided by the average daily usage. The average daily usage is the annual usage divided by the working days per year. For this problem, average daily usage is calculated as 130,000/260 = 500. Days of supply is calculated as 9,600/500 = 19.2, rounded here to 19. What is typically prepared after receipt of a customer order to schedule the operations required to complete the product? Level schedule Drum Shipping schedule Final assembly schedule correct answers Final assembly schedule: The final assembly schedule (FAS) is typically prepared after receipt of a customer order, and it schedules the operations required to complete the product from the level where it is stocked (or master-scheduled) to the end-item level. Which of the following statements is true about inventory in an engineer-to-order (ETO) environment? Buffer inventory should be held closer to the raw material stage. Customer influence on the product design should not affect inventory levels. Large safety stocks must be maintained. Lot-size inventory increases to the finished goods level. correct answers Buffer inventory should be held closer to the raw material stage.: In an ETO environment, most inventory needed for production is ordered after authorization of the customer order. The reason for this is that the product being built is almost always unique. However, the manufacturer may have raw material and component inventories that are common to all of the possible configurations it can make. As such, the producer might have buffers for these types of inventory. Because they are usually unique, ETO orders are rarely, if ever, built to a lot size. An ETO producer will not purchase inventories until the customer order configuration has been authorized for production. The finalized customer product design for an ETO product has a very high impact on an ETO producer's inventories. What would likely be the result if an organization wanted to reduce material prices for material requirements planning (MRP) ordered materials that are commodities by requiring use of the standard purchasing cycle rather than relying on contract buying? Need for fewer purchase orders Much higher ordering cost Greater ability to implement supplier scheduling Lower total cost of ownership correct answers Much higher ordering cost: Contract buying is the authorization of material releases against a long-term contract. It is used for high-volume and/or high-frequency purchases such as for MRP. Rather than generating a purchase order, purchasing will release orders against the schedule or in lots as specified in the blanket purchase order or other long-term contract. If the purchasing cycle is instead used, many more purchase orders will need to be released, which will increase ordering cost. The change would not necessarily result in lower prices for goods. Supplier scheduling depends on contract buying being in place
It prevents unplanned idleness in the constrained work center. It processes jobs at a lower rate than demand. It identifies the root cause of the constraint. It opens an opportunity to exploit the system. correct answers It prevents unplanned idleness in the constrained work center.: The purpose of the TOC buffer placed in front of a constrained work center is to provide adequate material to protect the constraint from the longest reasonably foreseeable downtime. How can lead time offset be described? Scheduling material to be delivered earlier than the required date Establishing planned order release dates by the duration of the lead time Compensating for the difference between actual and planned lead times Adding safety lead time to offset unforeseen manufacturing problems correct answers Establishing planned order release dates by the duration of the lead time: Lead time offset is the process of back scheduling from the need date by the item lead time to establish an order release date. Which of the following factors are believed to have the most strategic impact on a business's operating environment? Government, economy, competition, customer expectations, quality Government, competition, quality, anti-corruption, raw material supply Government, competition, customer expectations, quality, energy Competition, customer expectations, quality, economy, taxes correct answers Government, economy, competition, customer expectations, quality: The question is asking which factors have the most strategic impact on a business. Taxes are only one aspect of government, which has an overall impact on an organization's operations. Energy is a tactical issue and does not impact a business as much as the economy. Anti-corruption is not considered to be of major strategic consideration. Which cost will decrease if order quantity decreases? Cost of manufacturing operations Cost of customer service Cost of ordering Annual cost of carrying inventory correct answers Annual cost of carrying inventory: The annual cost of carrying inventory will decrease as the order quantity decreases because the average inventory level will fall. Cost of ordering will increase as more orders are placed in the same time period. Costs of manufacturing and customer service are not affected by the order quantity. Forecasts are more accurate for: nearer time periods. smaller time periods. larger time periods. further time periods. correct answers nearer time periods.: The near future holds less uncertainty than a time in the distant future.
On the balance sheet, if owners' equity is $5,000 and liabilities are $3,000, what are the assets? $2, $3, $5, $8,000 correct answers $8,000: Assets = Liabilities + Owners' Equity; $3,000 + $5,000 = $8, Which is a major objective of distribution inventory management? To always have enough of everything on hand so there are no stockouts To minimize the cost of warehouse space To provide the required level of customer service To minimize labor costs correct answers To provide the required level of customer service: Customer service is a major objective of distribution inventory management; other objectives include minimizing the cost of transportation and handling and interacting with the factory to minimize scheduling problems. The other answers are worthy goals, but not major objectives of distribution inventory management. Which type of specification requirement for supplier selection includes quality requirements? Quantity Performance Functional Price correct answers Functional: Quality requirements are a form of functional requirement, which indicate the form, fit, and function of the material or service being purchased. Which of the following manufacturing processes would most likely be characterized by a narrow range of standard products, low direct labor costs, and a high level of technical support for manufacturing? Project Job shop Batch Line correct answers Line: Line is a type of manufacturing process used to produce a narrow range of standard items with identical or highly similar designs. Production volumes are high, production and material-handling equipment is specialized, and all products typically pass through the same sequence of operations. What three pieces of information should agree before payment is made on a supplier's invoice? Purchase order, receiving report, and invoice Purchase order, receiving report, and product specification Purchase requisition, purchase order, and invoice Purchase requisition, receiving report, and invoice correct answers Purchase order, receiving report, and invoice: Approving a supplier's invoice for payment is preceded by the three-way match process of reconciling the purchase order, the receiving report, and the invoice. A stockkeeping unit in a distribution system describes: the pack size or type of bin location.
