L4M7 Exam Dumps : Whole Life Asset Management

The purchasing of parts in bulk at lower prices covers the costs of delivery and storage required for JIT

Parts must arrive where they are needed, when they are needed, and in the exact quantity needed

All parts arriving must be of a quality standard which is usable and free from defects

The cost of carrying increased parts inventory to meet customer demand is transferred to the customer

Suppliers must hold a buffer stock of components to ensure that they are able to meet JIT demand

Predicted cash flow forecast levels used by the organisation

Method of calculating the price in detail within the supply chain

Qualitative, informal, experience-based, or intuitive method

Quantitative, explicit, statistical, or formal method

Rise as the average stock level rises

Equal the number of orders placed times the cost of placing an order

Rise as the order quantity rises

Fall with the per period usage rate