Materials Management Quiz
47 Questions
0 Views

Choose a study mode

Play Quiz
Study Flashcards
Spaced Repetition
Chat to lesson

Podcast

Play an AI-generated podcast conversation about this lesson

Questions and Answers

What type of materials includes raw materials and components used during production?

  • Office supplies
  • Finished goods
  • Waste materials
  • Purchased materials (correct)

    • Chemical properties can be observed without changing the material's composition.

    False

    What is considered a final product in a cotton mill?

    yarn or cloth sheets

    Materials' physical properties include color, hardness, and __________.

    <p>smell</p> Signup and view all the answers

    Match the following types of materials with their descriptions:

    <p>Purchased materials = Includes raw materials and components WIP materials = Semi-finished and finished parts on the shop floor Finished goods = Final products waiting to be sold Material resources = Naturally found materials with practical use</p> Signup and view all the answers

    Which of the following is considered a material resource?

    <p>Glass made from sand</p> Signup and view all the answers

    Composites are materials constructed from two or more combined materials.

    <p>True</p> Signup and view all the answers

    The cost associated with managing materials includes purchasing costs and __________.

    <p>transportation cost</p> Signup and view all the answers

    What is the main goal of standardization in materials management?

    <p>Produce maximum variety of products from minimum materials</p> Signup and view all the answers

    Simplification in materials management aims to increase the variety of products manufactured.

    <p>False</p> Signup and view all the answers

    What are the famous 5 Rs of Materials Management?

    <p>right quality, right quantity, right time, right source, right price</p> Signup and view all the answers

    Forecasting is the technique of estimating future events based on __________.

    <p>past and present behavior</p> Signup and view all the answers

    Match the following concepts with their descriptions:

    <p>Standardization = Producing maximum variety from minimum materials Simplification = Reducing the variety of products manufactured Specications = Formalizing customer requirements Value Analysis = Concerned with inefficient or unnecessary costs</p> Signup and view all the answers

    Which of the following is NOT one of the 5 Rs of Materials Management?

    <p>right location</p> Signup and view all the answers

    Ergonomics is concerned with the man-machine system in materials management.

    <p>True</p> Signup and view all the answers

    What is the purpose of forecasting according to Webster's new Collegiate Dictionary?

    <p>to calculate some future events or conditions</p> Signup and view all the answers

    What is the primary role of planning in an organization?

    <p>To forecast future events</p> Signup and view all the answers

    Planning can be effectively done without forecasting.

    <p>False</p> Signup and view all the answers

    What is the first step in the forecasting process?

    <p>Thorough preparation of foundation</p> Signup and view all the answers

    Forecasting is concerned with __________ events.

    <p>future</p> Signup and view all the answers

    Which of the following is a qualitative method of forecasting?

    <p>Expert opinion method</p> Signup and view all the answers

    Match the following forecasting methods with their descriptions:

    <p>Expert opinion method = Pooling views of experts for sales estimates Delphi method = Iterative process using questionnaires to gather expert opinions Statistical forecasting = Using historical data to predict future trends Qualitative forecasting = Based on judgment and intuition</p> Signup and view all the answers

    Which step involves comparing actual results with estimated results?

    <p>Comparison of results</p> Signup and view all the answers

    Effective control can be executed based on inadequate information from forecasting.

    <p>False</p> Signup and view all the answers

    Which variable represents the smoothing constant in the exponential smoothing method?

    <p>Alpha (α)</p> Signup and view all the answers

    The seasonal index is always greater than 1 during peak seasons.

    <p>False</p> Signup and view all the answers

    What is the formula for calculating the new forecast using the exponential smoothing method?

    <p>New forecast = α(Last period’s actual demand) + (1- α)(Last period’s forecast)</p> Signup and view all the answers

    The average monthly demand for swimsuits is 100 units, and in July it is 175. The seasonal index for July is __________.

    <p>1.75</p> Signup and view all the answers

    Match the following months with their seasonal indices based on the demand examples given.

    <p>July = 1.75 September = 0.35</p> Signup and view all the answers

    Using the exponential smoothing method, if the last period’s actual demand was 190 and the last forecasted demand was 220, with α=0.15, what is the forecast for the next period?

    <p>215.5</p> Signup and view all the answers

    The total of all seasonal indices equals the length of the season.

    <p>True</p> Signup and view all the answers

    What does deseasonalized demand refer to?

    <p>The average demand that averages out seasonal variation.</p> Signup and view all the answers

    What is the purpose of deseasonalizing demand?

    <p>To allow for a direct comparison of demand across seasons</p> Signup and view all the answers

    The seasonal index for a month is used to increase the average demand for that month.

    <p>True</p> Signup and view all the answers

    What is the formula to calculate deseasonalized demand?

    <p>Actual Demand / Seasonal Index</p> Signup and view all the answers

    In forecasting, the forecast for _______ demand is calculated from the average demand using the appropriate season index.

    <p>seasonal</p> Signup and view all the answers

    If the seasonal index for July is 2.5 and the actual demand is 24,000 units, what is the deseasonalized demand?

    <p>9,600 units</p> Signup and view all the answers

    Exponential smoothing requires previous forecasts to calculate future values.

    <p>True</p> Signup and view all the answers

    In associative forecasting, what statistical method is commonly used to relate variables?

    <p>Linear regression</p> Signup and view all the answers

    In the regression equation Y = a + bX, what does Y represent?

    <p>The quantity to be demanded</p> Signup and view all the answers

    Bias in forecasting means that actual demand consistently varies from forecast demand in an irregular manner.

    <p>False</p> Signup and view all the answers

    What does the acronym MAD stand for in the context of measuring forecast error?

    <p>Mean Absolute Deviation</p> Signup and view all the answers

    The difference between actual demand and forecast demand is known as the ______.

    <p>forecast error</p> Signup and view all the answers

    Match the following terms with their definitions:

    <p>Dependent Variable = Quantity that is affected by the independent variable Independent Variable = Factors that influence the dependent variable Forecast Error = Difference between actual demand and forecast demand Random Variation = Unpredictable fluctuations in demand</p> Signup and view all the answers

    What is one characteristic of systematic error in forecasting?

    <p>Cumulative variations are consistent</p> Signup and view all the answers

    Tracking the forecast helps in planning around forecast errors.

    <p>True</p> Signup and view all the answers

    What would indicate that a forecast should be evaluated or changed?

    <p>An unacceptably large error or bias.</p> Signup and view all the answers

    Study Notes

    Materials Management

    • Materials management encompasses the planning, organizing, and control of material flow from initial purchase to distribution points.
    • It includes raw materials, components, spare parts, oils, grease, cotton, waste, consumables, and tools among other items.
    • Work in progress (WIP) materials comprise semi-finished and finished components in the shop floor.
    • Finished goods are the final products, held in stock pending delivery or sale. Costs associated with finished goods include basic price, purchasing, inventory carrying, transportation, handling, office, packing, marketing, obsolescence, and wastage.

    6Ms in Operations Management

    • The 6Ms of production include: Measurement, Milieu, Material, Manpower, Method, and Machine.

    Definition of Materials

    • Materials are the matter or substance objects are made from.
    • Materials can be raw or semi-finished items used to create a final product.
    • Examples include cotton in a cotton mill, which is transformed into yarn or cloth, then to clothing.
    • Raw materials in one factory can be the raw material for another.

    Material Resources

    • Material resources are sourced from the natural world,
    • Useful for humans. This includes wood, glass (from sand), metals, edible plants, and plastics (from natural chemicals).

    Physical vs Chemical Properties

    • Physical properties are observed or measured without altering the material. Examples include color, hardness, smell, freezing, melting, and boiling points.
    • Chemical properties are determined through observing chemical reactions. Examples include combustion point, reactivity to acids, and toxicity.

    Scope of Materials Management

    • This area of study has four elements: Material planning and control, Purchasing, Stores management, and Inventory management.
    • Additional functions include standardization, simplification, specifications, value analysis, ergonomics, and just-in-time

    Forecasting Techniques

    • Forecasting is the systematic guessing of future events utilizing past and present data. It's fundamental to planning.
    • It analyzes past and current conditions.
    • Forecasts do not consider random variation, are made for average demand, and seasonal demand is calculated using the average demand and a seasonal index.
    • Qualitative forecasting methods are subjective, based on judgment/intuition, whereas quantitative methods utilize past patterns or data.

    Types of Forecasting

    • Qualitative methods include expert opinion and the Delphi Method.
    • Quantitative methods include time-series models (historical data) and associative models (casual variables). Time series methods include naïve, simple/moving averages, weighted moving averages, and exponential smoothing.

    Time Series Models

    • Naïve method simply repeats the previous period's value.
    • Simple mean (average) uses the average of all past data
    • Simple moving average uses the average of a specified number of past periods; each is weighted equally
    • Weighted moving average uses the average of a specified number of past periods; periods are weighted differently.
    • Exponential smoothing uses a weighted average with weights declining exponentially over time.
    • Trend projection identifies patterns and trends in data to forecast future values.
    • Seasonal indices help to adjust forecasts for seasonal patterns and variations.

    Measuring Forecast Accuracy

    • Tracking the forecast involves comparing actual demand with the forecast.
    • Forecast error is the difference between actual and forecasted demand.
    • Bias occurs when forecasts consistently overestimate or underestimate demand.
    • Random fluctuations occur when no pattern is evident in past demand.
    • Mean Absolute Deviation (MAD) measures the average forecast error; this involves summing the absolute forecast errors and dividing by the number of forecast periods.
    • These errors and biases can be used for contingency planning and setting safety stock levels.

    Objectives of Materials Management

    • This focuses on acquiring materials and services which are of the right quality, right quantity, at the right time, right source, and right price.

    Studying That Suits You

    Use AI to generate personalized quizzes and flashcards to suit your learning preferences.

    Quiz Team

    Related Documents

    Chapter 1 and 2 Materials Management PDF

    Description

    Test your knowledge on materials management, including types of materials, their properties, and concepts like the 5 Rs and standardization. This quiz covers fundamental topics essential for understanding production processes and resource management.

    More Like This

    Use Quizgecko on...
    Browser
    Open
    Browser
    Browser