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Introduction to Materials Management 8th Edition Chapman Test Bank

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ISBN-10 ‏ : ‎ 0134156323
ISBN-13 ‏ : ‎ 978-0134156323
Author: Stephen N. Chapman, Ann K. Gatewood

Introduction to Materials Managementcovers all the essentials of modern supply chain management, manufacturing planning and control systems, purchasing, and physical distribution. Clearly written and exceptionally user-friendly, it’s content, examples, questions, and problems lead students step-by-step to mastery. Widely adopted by colleges and universities worldwide, this is the only APICS-listed reference text for the Basics of Supply Chain Management (BSCM) CPIM certification examination.

Table of Content:

Chapter One Introduction to Materials Management
Introduction
Operating Environment
Order Qualifiers and Order Winners
Manufacturing Strategy
Delivery lead time
The Supply Chain Concept
Supply Chain Concepts
Historical perspective
The growth of the supply chain concept
Supply Chain Metrics
Conflicts in Traditional Systems
What is Materials Management?
Example Problem
Work-in-Process
Example Problem
Manufacturing Planning and Control
Inputs to the manufacturing planning and control system
Physical Supply/Distribution
Summary
Key Terms
Questions
Problems
Chapter Two Production Planning System
Introduction
Manufacturing Planning and Control System
The Strategic Plan
The Strategic Business Plan (Business Plan)
The Production Plan
The Master Production Schedule
The Material Requirements Plan
Purchasing and Production Activity Control
Capacity Management
Sales and Operations Planning
Manufacturing Resource Planning
Enterprise Resource Planning
Making the Production Plan
Establishing Product Groups
Basic Strategies
Chase (demand matching) strategy
Production leveling
Example Problem
Subcontracting
Hybrid strategy
Developing a Make-to-Stock Production Plan
Level production plan
Example Problem
Chase strategy
Developing a Make-to-Order Production Plan
Assemble-to-order
Backlog
Level production plan
Example Problem
Resource Planning
Summary
Key Terms
Questions
Problems
Chapter Three Master Scheduling
Introduction
Summary
Key Terms
Questions
Problems
Chapter Four Material Requirements Planning
Introduction
Nature of Demand
Objectives of MRP
Determine requirements
Keep priorities current
Linkages to Other Manufacturing Planning and Control Functions
MRP Software
Inputs to the Material Requirements Planning System
Bills of Material
Bills of Material Structure
Product tree
Parent–component relationship
Multilevel bill
Multiple bill
Single-level bill
Example Problem
Indented bill
Summarized parts list
Planning bill
Where-Used and Pegging Reports
Where-used report
Pegging report
Uses for Bills of Material
Material Requirements Planning Process
Exploding and Offsetting
Lead time
Exploding the requirements
Offsetting
Planned orders
Example Problem
Gross and Net Requirements
Example Problem
Releasing Orders
Scheduled receipts
Open orders
Net requirements
Example Problem
Basic MRP Record
Capacity Requirements Planning
Low-Level Coding and Netting
Multiple Bills of Material
Using the Material Requirements Plan
Managing the Material Requirements Plan
Priority
Bottom-up replanning
Reducing system nervousness
Example Problem
Summary
Key Terms
Questions
Problems
Chapter Five Capacity Management
Introduction
Definition of Capacity
Capacity Planning
Planning Levels
Capacity Requirements Planning
Inputs
Open orders
Planned order releases
Routings
Work centers
Shop calendar
Capacity Available
Measuring Capacity
Units of output
Standard time
Levels of Capacity
Determining Capacity Available
Available time
Example Problem
Utilization
Example Problem
Efficiency
Example problem
Productivity
Rated capacity
Example Problem
Demonstrated Capacity
Example Problem
Example Problem
Safety capacity
Capacity Required (Load)
Time Needed for Each Order
Example Problem
Example Problem
Load
Example Problems
Work Center Load Report
Scheduling Orders
Making the Plan
Summary
Key Terms
Questions
Problems
Chapter Six Production Activity Control
Introduction
Planning
Implementation
Control
Manufacturing Systems
Flow manufacturing
Intermittent manufacturing
Project manufacturing
Data Requirements
Planning Information
Item master
Product structure (bill of material)
Routing
Work center master
Control Information
Shop order master
Order Preparation
Scheduling
Manufacturing Lead Time
Example Problem
Scheduling Techniques
Example Problem
Operation Overlapping
Example Problem
Operation Splitting
Example Problem
Load Leveling
Scheduling in a Nonmanufacturing Setting
Scheduling Bottlenecks
Theory of Constraints and Drum-Buffer-Rope
Manage the Constraint
Improve the Process
Scheduling with the Theory of Constraints
Example Problem
Example Problem
Implementation
Control
Input/Output Control
Input/output report
Example Problem
Operation Sequencing
Dispatching
Dispatching rules
Example Problem
Production Reporting
Product Tracking
Measurement Systems
Summary
Key Terms
Questions
Problems
Chapter Seven Purchasing
Introduction
Purchasing and Profit Leverage
Purchasing Objectives
Outsourcing
Purchasing Cycle
Receiving and analyzing purchase requisitions
Selecting suppliers
Requesting quotations
Determining the right price
Issuing a purchase order
Following up and delivery
Receiving and accepting goods
Approving supplier’s invoice for payment
Establishing Specifications
Quantity Requirements
Price Requirements
Functional Requirements
Functional specifications and quality
Value analysis
Functional Specification Description
Description by Brand
Description by Specification
Standard specifications
Engineering Drawings
Miscellaneous Attributes
Selecting Suppliers
Sourcing
Factors in Selecting Suppliers
Technical ability
Manufacturing capability
Reliability
After-sales service
Supplier location
Lean capabilities
Other considerations
Price
Identifying Suppliers
Final Selection of Supplier
Price Determination
Basis for Pricing
Example Problem
Competitive Bidding
Price Negotiation
Impact of Material Requirements Planning on Purchasing
Environmentally Responsible Purchasing
Reduce
Reuse
Recycle
Expansion of Purchasing into Supply Chain Management
Some Organizational Implications of Supply Chain Management
Savings Can Be Substantial
Summary
Key Terms
Questions
Problems
Chapter Eight Forecasting and Demand Management
Introduction
Demand Management
Demand Forecasting
Characteristics of Demand
Demand Patterns
Trend
Seasonality
Random variation
Cycle
Stable Versus Dynamic
Dependent Versus Independent Demand
Principles of Forecasting
Collection and Preparation of Data
Forecasting Techniques
Qualitative Techniques
Quantitative Techniques
Extrinsic Techniques
Intrinsic Techniques
Some Important Intrinsic Techniques
Moving Averages
Example Problem
Exponential Smoothing
Example Problem
Seasonality
Seasonal Index
Example Problem
Seasonal Forecasts
Example Problem
Deseasonalized Demand
Example Problem
Example Problem
Tracking the Forecast
Forecast Error
Bias
Random variation
Mean Absolute Deviation
Example Problem
Normal distribution
Uses of mean absolute deviation
Tracking signal
Example Problem
Example Problem
Contingency planning
Safety stock
P/D Ratio
Summary
Key Terms
Questions
Problems
The Current Situation
Past Demand
Assignment
Assignment
Chapter Nine Inventory Fundamentals
Introduction
Aggregate Inventory Management
Item Inventory Management
Inventory and the Flow of Material
Supply and Demand Patterns
Functions of Inventories
Anticipation Inventory
Fluctuation Inventory (Safety Stock)
Lot-Size Inventory
Transportation Inventory
Example Problem
Hedge Inventory
Maintenance, Repair, and Operating (MRO) Supplies
Objectives of Inventory Management
Customer Service
Operating Efficiency
Inventory Costs
Item Cost
Carrying Costs
Example Problem
Ordering Costs
Example Problem
Stockout Costs
Capacity-Associated Costs
Example Problem
Financial Statements and Inventory
Balance Sheet
Example Problem
Balance sheet
Income Statement
Income (profit)
Example Problem
Cash Flow Analysis
Return on Investment
Financial Inventory Performance Measures
Inventory turns
Example Problem
Days of supply
Example Problem
Methods of Evaluating Inventory
First in first out (FIFO)
Last in first out (LIFO)
Average cost
Standard cost
ABC Inventory Control
Steps in Making an ABC Analysis
Example Problem
Control Based on ABC Classification
Summary
Key Terms
Questions
Problems
Assignment
Chapter Ten Order Quantities
Introduction
Stockkeeping Unit (SKU)
Lot-Size Decision Rules
Lot-for-lot
Fixed order quantity
Period order quantity
Costs
Economic Order Quantity
Assumptions
Development of the EOQ Formula
Example Problem
Relevant costs
Example Problem
Trial-and-Error Method
Economic Order Quantity Formula
How to Reduce Lot Size
Variations of the EOQ Model
Monetary Unit Lot Size
Example Problem
Noninstantaneous Receipt Model
Example Problem
Quantity Discounts
Example Problem
Order Quantities for Families of Product When Costs are Not Known
Example Problem
Period Order Quantity
Example Problem
Example Problem
Practical Considerations When Using the EOQ
Lumpy demand
Anticipation inventory
Minimum order
Transportation inventory
Multiples
Order quantities and lean production
Summary
Key Terms
Questions
Problems
Chapter Eleven Independent Demand Ordering Systems
Introduction
Order Point System
Example Problem
Example Problem
Determining Safety Stock
Variation in Demand During Lead Time
Variation in Demand About the Average
Normal distribution
Average or mean
Example Problem
Dispersion
Standard Deviation (?)
Example Problem
Determining the Safety Stock and Order Point
Example Problem
Safety factor
Example Problem
Determining Service Levels
Example Problem
Different Forecast And Lead-Time Intervals
Example Problem
Example Problem
Determining When The Order Point Is Reached
Two-Bin System
Kanbans
Perpetual Inventory Record System
Periodic Review System
Target-Level or Maximum-Level Inventory
Example Problem
Distribution Inventory
Decentralized System
Centralized System
Distribution Requirements Planning
Example Problem
Summary
Key Terms
Questions
Problems
The Current Situation
Assignment
Chapter Twelve Physical Inventory and Warehouse Management
Introduction
Warehousing Management
Warehouse Activities
Cube Utilization and Accessibility
Pallet positions
Example Problem
Accessibility
Cube utilization
Example Problem
Stock Location
Fixed location
Random location (sometimes called floating location)
Zone random storage
Point-of-use storage
Central storage
Order Picking and Assembly
Working stock and reserve stock
Physical Control and Security
Inventory Record Accuracy
Causes of Inventory Record Errors
Measuring Inventory Record Accuracy
Tolerance
Example Problem
Auditing Inventory Records
Periodic (annual) inventory
Housekeeping
Identification
Training
Process
Cycle counting
Count frequency
Example Problem
When to count
Consignment Inventory and Vendor-Managed Inventory (VMI)
Technology Applications
Inventory Traceability
Summary
Key Terms
Questions
Problems
Chapter Thirteen Physical Distribution
Introduction
Channels of Distribution
Reverse Logistics
Physical Distribution
Activities in Physical Distribution
Total Cost Concept
Example Problem
Global Distribution
3PLs: Third Party Logistics Providers
4PLs: Fourth Party Logistics Providers
Physical Distribution Interfaces
Marketing
Production
Transportation
Costs of Carriage
Rail
Road
Air
Water
Pipelines
Intermodal
Transportation Scheduling
Legal Types of Carriage
For Hire
Private
Service Capability
Other Transportation Agencies
Transportation Cost Elements
Line Haul Costs
Example Problem
Volume
Example Problem
Physical Distribution
Pickup and Delivery Costs
Terminal-Handling Costs
Billing and Collecting Costs
Total Transportation Costs
Transportation Terms
Incoterms
Warehousing
Role of Warehouses
Transportation consolidation
Product mixing
Service
Warehousing and Transportation Costs
Example Problem
Market Boundaries
Example Problem
Market boundary
Example Problem
Effect on Transportation Costs of Adding More Warehouses
Packaging
Unitization
Material Handling
Multi-Warehouse Systems
Transportation Costs
Inventory Carrying Cost
Warehousing Costs
Material Handling Costs
Packaging Costs
Total Cost
System Service Capability
Summary
Key Terms
Questions
Problems
Chapter Fourteen Products and Processes
Introduction
Need for New Products
Product Development Principles
Simplification
Standardization
Modularization
Specialization
Product and market focus
Process focus
Focused factory
Product Specification and Design
Simultaneous Engineering
Supply Chain Collaboration
Process Design
Factors Influencing Process Design
Processing Equipment
Process Systems
Flow Processes
Intermittent Processes
Project Processes
Process Costing
Selecting the Process
Cost Equalization Point
Increasing Volume
Continuous Process Improvement
The Six Steps in Continuous Process Improvement
Select the Process
Observe
Select
Economic considerations
The human factor
Pareto diagrams
Example Problem
Cause-and-effect diagram
Record
Classes of activity
Operations process charts
Process flow diagram
Analyze
Find the root cause
Example Problem
Develop
Principles of motion economy
Human and environmental factors
Implement
Learning curve
Maintain
Summary
Key Terms
Questions
Problems
Assignment
Chapter Fifteen Lean Production
Introduction
Lean Production
Adding Value
Waste
Waste Caused by Poor Product Specification and Design
Component standardization
Waste Caused in Manufacturing
Poka-Yoke (Fail Safe)
The Lean Production Environment
Flow Manufacturing
Work cells
Process Flexibility
Machine flexibility
Quick changeover
Operator flexibility
Standardized work
Quality Management
Quality at the source
Total Productive Maintenance
Uninterrupted Flow
Uniform plant loading
Valid schedules
Linearity
Continuous Process Improvement
Supplier Partnerships
Partnering
Supplier selection
Supplier certification
Total Employee Involvement
Manufacturing Planning and Control in a Lean Production EnvironmenT
Forecasting
Sales and Operations Planning/Production Planning
Master Production Scheduling
Material Requirements Planning
Capacity Management
Inventory Management
The Push System
The Pull System
The downside of the change
The Kanban System
How it works
Kanban “rules”
Card alternatives
Using the Kanban System for Process Improvement
Some Additional Lean Production Tools and Concepts
Value stream mapping
Kaizen
Takt time
Example
Available work time
Customer demand
Takt time
5S approach
Visual management
Lean accounting
Comparing ERP, KANBAN, And THEORY Of CONSTRAINTS
Enterprise Resource Planning (ERP)
Advantages
Disadvantages
Lean Production (Kanban)
Advantages
Disadvantages
Theory of Constraints (Drum-Buffer-Rope)
Advantages
Disadvantages
Hybrid Systems
Kanban and MRP
Lean production and theory of constraints
CONWIP
Summary
Key Terms
Questions
Problems
Chapter Sixteen Total Quality Management
Introduction
What Is Quality?
Total Quality Management
Management Commitment
Customer Focus
Employee Involvement
Teams
Communication
Continuous Process Improvement
Supplier Partnerships
Performance Measures
Quality Cost Concepts
Costs of Failure
Costs of Controlling Quality
Variation as a Way of Life
Patterns of Variability
Shape
Center
Spread
Process Capability
Process Capability Index, Cp
Example Problem
Cpk Index
Example Problem
Example Problem
Process Control
Control Charts
Run charts
X¯ (X bar) and R chart
Control Limits
Control Charts for Attributes
Other Quality Control Tools
Sample Inspection
Sampling Plans
Consumer’s risk
Producer’s risk
Cost
Example
ISO 9000:2015
Documentation
ISO 26000:2010
ISO 14001:2015
Benchmarking
Six Sigma
Quality Function Deployment
The Relationship of Lean Production, TQM, and ERP
Summary
Key Terms
Questions
Problems
Inspection Report—Spindle
Assignment
Readings
Index
A
B
C
D
E
F
G
H
I
J
K
L
M
N
O
P
Q
R
S
T
U
V
W
X
Z

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