Business Process Performance Paper 1


Companies that adopt just-in-time purchasing systems often experience


The benefits of a just-in-time system for raw materials usually include


Bell Co. changed from a traditional manufacturing philosophy to a just-in-time philosophy. What are the expected effects of this change on Bell’s inventory turnover and inventory as a percentage of total assets reported on Bell’s balance sheet?
Inventory Turnover
Inventory Percentage


Which changes in costs are most conducive to switching from a traditional inventory ordering system to a just-in-time ordering system?
Cost per Purchase Order
Inventory Unit Carrying Costs


A manufacturing company is attempting to implement a just-in-time (JIT) purchase policy system by negotiating with its primary suppliers to accept long-term purchase orders which result in more frequent deliveries of smaller quantities of raw materials. If the JIT purchase policy is successful in reducing the total inventory costs of the manufacturing company, which of the following combinations of cost changes would be most likely to occur?
Cost Category to Increase
Cost Category to Decrease


In Belk Co.’s just-in-time production system, costs per setup were reduced from $28 to $2. In the process of reducing inventory levels, Belk found that there were fixed facility and administrative costs that previously had not been included in the carrying cost calculation. The result was an increase from $8 to $32 per unit per year. What were the effects of these changes on Belk’s economic lot size and relevant costs?
Lot Size... Relevant Costs


The effectiveness of a JIT system is often facilitated by the elimination of some common forms of internal control. The elimination of which internal control is usually acceptable with a JIT system?


Just-in-time manufacturing practices are based in part on the belief that


If a worker encounters a production kanban at his or her workstation, the worker should


A firm that is deploying just-in-time manufacturing for the first time will


Total Questions:
Correct Answers:
Wrong Answers: