1.The JIT solution

a.requires carrying materials inventory in order to lower the cost of inventory without production delays.

b.requires a solid forecast to push production.

c.requires selection of vendors based on lowest cost alone.

d.exploits supplier linkages by negotiating long-term contracts with a few chosen suppliers located closest to the production facility and establishing more supplier involvement.

2. Which of the following statements is true about the box scorecard?

a.Operational, non-financial measures are used at the cell level.

b.The expectation to achieve desired future state provides motivation towards constant performance improvement.

c.There is a comparison between prior week metrics, current week metrics, and desired future state metrics.

d.All of these choices are correct.

3. The cost of acquiring inventory includes

a.setup costs for goods produced internally.

b.cost of insurance on the warehouse for inventory.

c.cost of obsolescence.

d.cost of not having a product when a customer wants one.