1.
A JIT inventory management system maintains which of thefollowing?
a.Goods should be pulled through the system by presentdemand.
b.Goods should be pushed through the system on a fixed schedulebased on anticipated demand.
c.Inventories are needed to avoid stock-out costs.
d.Total inventory costs are minimized by balancing setup andcarrying costs.
2.
The following information is given for a manufacturing firm:
| Year 1 | Year 2 | |
| Units produced | 1,000 | 2,000 |
| Materials used (lbs.) | 200 | 500 |
| Labor used (hours) | 2,000 | 2,500 |
Which of the following correctly describes the change inproductive efficiency from Year 1 to Year 2?
a.Material productivity decreased and labor productivityincreased.
b.Material and labor productivity both decreased.
c.Material productivity increased and labor productivitydecreased.
d.Material and labor productivity both increased.