Q1. What are the two major objectives of mate- rials control?
Q3. What factors should management consider when determining the amount of invest- ment in materials?
Q4. What is the meaning of the term order point?
Q5. What kind of information and data are needed to calculate an order point?
Q6. How would you define the term economic order quantity?
Q7. What kind of information and data are needed to calculate the economic order quantity?
Q8. What factors should be considered when determining the cost of placing an order?
Q9. What are the costs associated with carrying materials in stock?
Q10. What is a supply chain and what problems are created if there are “kinks” in it?
Q11. Briefly, what are the duties of the following employees?
- Purchasing agent
- Receiving clerk
- Storeroom keeper
- Production supervisor
Q12. Proper authorization is required before orders for new materials can be placed. What is the difference between a purchase requisition and a purchase order?
Q17. What is a bill of materials and how is it used?
Q19. A company may select an inventory cost- ing method from a number of commonly used procedures. Briefly, how would you describe each of the following methods?
- First-in, first-out
- Last-in, first-out
- Weighted average
Q20. Why do companies adopt the LIFO method of inventory costing? Your discussion should include the effects on the income statement and balance sheet
Q22. How does the just-in-time approach to pro- duction differ from the traditional approach?
Q23. Explain the meaning of the terms push manufacturing and pull manufacturing.
Q24. List three disadvantages of the push manufacturing approach to production.
Q25. What is the difference between throughput time and velocity?
Q27. What are the arguments for and against backflush costing?
Q28. What is Six Sigma and why is it important?
Q29. A manufacturing process may produce a considerable quantity of scrap material because of the nature of the product. What methods can be used to account for the sales value of scrap material?
Q30. After a product is inspected, some units may be classified as spoiled and others as defective. What distinguishes a product as being spoiled or defective?