Inventory that represents partially completed products


1. Thinking in terms of the Theory of Constraints, Lumeris Inc., an automobile manufacturer, has an inflexible work schedule and requires its workers to work nine hours a day and six days a week. Its laborers do not have adequate skills to perform their job efficiently. The inflexible work schedule and inadequate labor skills are examples of ______.

a. physical constraints

b. nonphysical constraints

c. bottleneck activities

d. work orders

e. idle time

2. Under the Theory of Constraints, nonbottleneck management principles differ from bottleneck management principles because according to nonbottleneck management principles, ______.

a. idle time is acceptable if there is no work to do

b. an hour lost at a nonbottleneck resource is an hour lost for the entire process or factory output

c. the input should always exceed the capacity

d. An hour lost at a nonbottleneck resource is an hur gained at another nonbottleneck point in the factory output

e. large order sizes should be used to minimize setup time and maximize resource utilization

3. Inventory that represents partially completed products waiting further processing is called _____ inventory.

a. Raw materials

b. Work-in-process

c. Cycle

d. Safety stock

e. Perishable stocks in use

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Operation Management: Inventory that represents partially completed products
Reference No:- TGS02590521

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