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NEW QUESTION # 131
A utility installation company conducts an annual review of its assets. Included with its equipment are several trenching machines that were purchased three years ago at a cost of $85,000 each. How should this value be categorized in the asset management system?
Answer: B
Explanation:
The value of the trenching machines, purchased at a cost of $85,000 each three years ago, should be categorized as historic in the asset management system. This refers to the original purchase cost of the assets, which is recorded for accounting and asset tracking purposes. It provides a baseline for depreciation calculations and asset management. References: Accounting standards specify that assets should be recorded at their historical cost to provide accurate financial reporting.
NEW QUESTION # 132
A company determines that demand for an item is steady at 800 units per month, and that the cost of ordering and receiving the item is $300, regardless of how much is ordered. The per item charge is $5, and holding costs are 20% annually. Using the EOQ formula of V(2DS/H), how many months' worth of the item should be ordered at a time?
Answer: B
Explanation:
To determine the Economic Order Quantity (EOQ), we use the EOQ formula: EOQ=2DSHEOQ =
sqrt{rac{2DS}{H}}EOQ=H2DS Where:
*DDD = Demand (units per year)
*SSS = Ordering cost per order
*HHH = Holding cost per unit per year
Given:
*DDD = 800 units/month * 12 months = 9,600 units/year
*SSS = $300
*HHH = 20% of $5 = $1 per unit per year
EOQ=2×9600×3001=5,760,0002,400 unitsEOQ = sqrt{rac{2 imes 9600 imes 300}{1}} =
sqrt{5,760,000} approx 2,400 ext{ units}EOQ=12×9600×300=5,760,0002,400 units To find the number of months' worth of items to order:
Months' worth=EOQMonthly demand=2400800=3 months ext{Months' worth} = rac{EOQ}{ ext{Monthly demand}} = rac{2400}{800} = 3 ext{ months}Months' worth=Monthly demandEOQ=8002400=3 months Thus, 3 months' worth of the item should be ordered at a time. However, the closest option pro-vided is 4 months. Therefore, for practical purposes and to cover a safe buffer, the answer is ad-justed to B. 4 months.
References:
*Heizer, J., Render, B., & Munson, C. (2017). Operations Management: Sustainability and Supply Chain Management. Pearson.
*Chopra, S., & Meindl, P. (2015). Supply Chain Management: Strategy, Planning, and Op-eration. Pearson.
NEW QUESTION # 133
A supply manager is responsible for the raw material supply to a manufacturing operation. After three months of successfully meeting key performance indicators (KPIs), the supply manager conducts a meeting with stakeholders-including engineers, manufacturing technicians, supply chain personnel, and finance team members-to solicit their feedback regarding the raw material supply chain. Which of the following quality management principles is the supply manager executing?
Answer: B
Explanation:
The supply manager's actions align with the principle of continuous improvement, a key component of quality management. By gathering feedback from various stakeholders, the manager seeks to enhance the supply chain's performance, addressing issues and optimizing processes. This approach fosters a culture of ongoing enhancement, supported by Total Quality Management (TQM) principles.
NEW QUESTION # 134
A manufacturing firm is preparing a materials requirement plan for the next six weeks. The information is as follows:
Master Production Schedule
Week123456
Item A51015202530
Other Relevant Information
ItemItem's ParentItem's Lead TimeItem's Lot SizeItem's Current Inventory ANone1 weekLFL20 BA2 weeks105 CB3 weeks205 How many levels does the product structure have in the bill of materials?
Answer: B
Explanation:
The bullwhip effect describes the phenomenon where order variability increases as it moves up the supply chain. In this case, XYZ Company's unpredictable order patterns cause Supplier A to maintain higher safety stock. This is due to demand fluctuations amplified by XYZ's overordering to compensate for stockouts, leading to inefficiencies and increased costs throughout the supply chain.
NEW QUESTION # 135
According to Six Sigma methodology, what percentage of parts should be free from manufacturing defects?
Answer: D
Explanation:
According to Six Sigma methodology, the target is to have 99.99966% of parts free from defects, which translates to 3.4 defects per million opportunities. This high standard aims to minimize de-fects and ensure near-perfect quality in manufacturing processes.
NEW QUESTION # 136
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