SOLVED

41) The cook in a fast-food restaurant knows that 2 hamburger patties and an order of fries should be started for each car that is waiting in line. This is best an example of: A) keiretsu. B) kanban. C) push production. D) kaizen. E) EOQ. 42) Lead time for computers is 7 days with daily demand of 5 computers and a safety stock of 1 day. Each kanban holds 8 computers. What is the correct number of kanbans? A) 4.5 B) 1 C) 5 D) 7 E) 8 43) Lead time for computers is 5 days with daily demand of 25 and safety stock of 5 computers. If management wants to use 10 kanbans how many computers should each one hold? A) 25 B) 1 C) 5 D) 10 E) 13 44) A grocery store is attempting to implement a kanban system. Which of the following would not be an application of kanbans? A) An empty doughnut tray signaling the bakery to produce 2 dozen glazed doughnuts. B) A line of 5 people in the Chinese department signaling the department to heat 5 Crab Rangoon. C) A red light on top of the cashier’s lane signals that the cashier needs additional change replenished. D) The meat department stocking up on turkeys before Thanksgiving. E) All of the above are kanban applications. 45) Which of the following is FALSE regarding the links between JIT and quality? A) Inventory hides bad quality; JIT immediately exposes it. B) JIT reduces the number of potential sources of error by shrinking queues and lead times. C) As quality improves, fewer inventory buffers are needed; in turn, JIT performs better. D) If consistent quality exists, JIT allows firms to reduce all costs associated with inventory. E) JIT increases the cost of obtaining good quality. 46) JIT makes quality cheaper because: A) the cost of low quality can be hidden as inventory cost. B) JIT adds more buffers to the system. C) JIT prevents long runs of defects. D) B and C E) A, B and C 47) Great Lakes Barge and Baggage Company makes, among other things, battery-operated bilge pumps. Which of the following activities is NOT part of JIT? They: A) communicate their schedules to suppliers. B) produce in long production runs to reduce the impact of setup costs. C) use a pull system to move inventory. D) continuously work on reducing setup time. E) produce in small lots. 48) A manufacturer took the following actions to reduce inventory. Which of these is generally not accepted as a JIT action? A) It used a pull system to move inventory. B) It produced in ever smaller lots. C) It required deliveries directly to the point of use. D) It picked the supplier that offered the lowest price based on quantity discounts. E) It worked to reduce the company’s in-transit inventory. 49) ________ is the minimum inventory necessary to keep a perfect system running. 50) ________ is the Japanese word for card that has come to mean “signal.” 51) When suppliers are encouraged to locate near manufacturing plants, the goal of the JIT partnership is to reduce ________ inventory. 52) ________ allows manufacturing work cells and offices to be easily rearranged. 53) ________ involve scheduling products so that each day’s production meets the demand for that day.