Question 1

Consider the material structure tree for item A.If 20 units of A are needed, how many units of D are needed?

Accepted Answer

A) 30 
B) 160 
C) 60 
D) 220 
A) 30 
B) 160 
C) 60 
D) 220

Question 2

Which of the following is not considered a significant inventory cost?

Accepted Answer

A) cost of production labor 
B) purchase cost 
C) cost of stockouts 
D) cost of carrying an item 
A) cost of production labor 
B) purchase cost 
C) cost of stockouts 
D) cost of carrying an item

Question 3

Which of the following uses of inventory is used to make sure that when a customer places an order it can be filled immediately?

Accepted Answer

A) the decoupling function 
B) quantity discounts 
C) irregular supply and demand 
D) avoiding stockouts and shortages 
A) the decoupling function 
B) quantity discounts 
C) irregular supply and demand 
D) avoiding stockouts and shortages

Question 4

The campus bookstore knows from the past several semesters that a certain elementary statistics book has a demand that is approximated by a normal distribution with a mean of 250 and a standard deviation of 40.They buy these books for $105 each and sell them to unsuspecting undergraduates at $222 each.All demand for this book is realized by the middle of the semester, at which point the bookstore bundles them up and sells them to a vendor in another country for $40 each.How many elementary statistics books should the campus bookstore stock for sale to students?

Accepted Answer

A) 210 
B) 224 
C) 250 
D) 264 
A) 210 
B) 224 
C) 250 
D) 264

Question 5

Inventory is any stored resource that is used to satisfy a current or future need.

Accepted Answer

A) True 
 B)False

Question 6

Purinnerds Dog Food is a very popular product at Kay Gnein's corner grocery.Demand for this is relatively constant, and the total demand for the year is 1,200 bags.The cost of placing an order is $50, while the holding cost is $3 per unit per year.The store is open 300 days per year.Lead-time for this is 8 days.
(a)If Kay places 50 orders per year, what would her annual ordering and holding costs be?
(b)If Kay wishes to minimize her total inventory cost, how many units should she order each time an order is placed?
(c)What is the reorder point?

Accepted Answer

(a)With 50 orders per year, Q

Question 7

Fresh First grocery store purchases bread at $1 per loaf and sells it at $1.50 a loaf.Any unsold bread is fed to the geese at a local pond.What is the decision rule?

Accepted Answer

A) Stock an additional unit if P ≥ 0.33. 
B) Stock an additional unit if P ≥ 0.4. 
C) Stock an additional unit if P ≥ 0.5. 
D) Stock an additional unit if P ≥ 0.67. 
A) Stock an additional unit if P ≥ 0.33. 
B) Stock an additional unit if P ≥ 0.4. 
C) Stock an additional unit if P ≥ 0.5. 
D) Stock an additional unit if P ≥ 0.67.

Question 8

The annual demand for a product has been projected at 2,000 units.This demand is assumed to be constant throughout the year.The ordering cost is $20 per order, and the holding cost is 20 percent of the purchase cost.Currently, the purchase cost is $40 per unit.There are 250 working days per year.Whenever an order is placed, it is known that the entire order will arrive on a truck in 6 days.Currently, the company is ordering 250 units each time an order is placed.What is the total holding cost for the year using this policy?

Accepted Answer

A) $400 
B) $1,000 
C) $1,400 
D) $2,000 
A) $400 
B) $1,000 
C) $1,400 
D) $2,000

Question 9

Purchasing department supplies comprise one of the "carrying cost factors."

Accepted Answer

A) True 
 B)False

Question 10

Which of the following is not a use of inventory?

Accepted Answer

A) the decoupling function 
B) quantity discounts 
C) irregular supply and demand 
D) the translucent function 
A) the decoupling function 
B) quantity discounts 
C) irregular supply and demand 
D) the translucent function

Question 11

List three general categories of inventory.

Accepted Answer

raw material, work-i

Question 12

The reorder point occurs during a stockout.

Accepted Answer

A) True 
 B)False

Question 13

Hertz Donuts sells artisanal donuts for $25 per dozen to unsuspecting hipsters.It costs them $8 per dozen to make donuts and any unsold donuts are sold as "Oldies But Goodies" for $5 per dozen the next day (or two, no one really pays attention to the sell-by dates).The demand pattern's probability distribution is displayed in the table.   How many donuts should they make each day to maximize profit?

Accepted Answer

A) 4 dozen 
B) 5 dozen 
C) 6 dozen 
D) 7 dozen 
A) 4 dozen 
B) 5 dozen 
C) 6 dozen 
D) 7 dozen

Question 14

In making inventory decisions, the purpose of the basic EOQ model is to

Accepted Answer

A) minimize carrying costs. 
B) minimize ordering costs. 
C) minimize the sum of carrying costs and ordering costs. 
D) minimize customer dissatisfaction. 
A) minimize carrying costs. 
B) minimize ordering costs. 
C) minimize the sum of carrying costs and ordering costs. 
D) minimize customer dissatisfaction.

Question 15

Subcomponent J has a one week lead time and a gross requirement of 57 units in Week 6 to fill order 123.There are already 15 J's in stock at the beginning of the planning period and these are not needed for any other order other than 123.What should the planned order release for J's be in Week 5?

Accepted Answer

A) 0 
B) 42 
C) 57 
D) 72 
A) 0 
B) 42 
C) 57 
D) 72

Question 16

What shows how many units are needed at every level of production?

Accepted Answer

A) production level tree 
B) material requirements tree 
C) decision tree 
D) material structure tree 
A) production level tree 
B) material requirements tree 
C) decision tree 
D) material structure tree

Question 17

Subcomponent J has a one week lead time and a gross requirement of 57 units in Week 6 to fill order 123.There are already 15 J's in stock at the beginning of the planning period and these are not needed for any other order other than 123.What are the gross requirements for J's in week 6?

Accepted Answer

A) 42 units 
B) 15 units 
C) 57 units 
D) 72 units 
A) 42 units 
B) 15 units 
C) 57 units 
D) 72 units

Question 18

R.C.Barker makes purchasing decisions for his company.One product that he buys costs $50 per unit when the order quantity is less than 500.When the quantity ordered is 500 or more, the price per unit drops to $48.The ordering cost is $30 per order and the annual demand is 7,500 units.The holding cost is 10 percent of the purchase cost.If R.C.orders 500 units each time he places an order, what would the total annual holding cost be?

Accepted Answer

A) $450 
B) $1,200 
C) $1,250 
D) $2,400 
A) $450 
B) $1,200 
C) $1,250 
D) $2,400

Question 19

The H.A.L.Computer Store sells a printer for $400.Demand for this is constant during the year, and annual demand is forecasted to be 1350 units.The holding cost is $20 per unit per year, while the cost of ordering is $90 per order.Currently, the company is ordering 12 times per year (92 units each time).There are 270 working days per year and the lead-time is 8 days.What should be the reorder point?

Accepted Answer

(1350/270)

Question 20

Which of the following statements about the kanban system is false?

Accepted Answer

A) Kanban in Japanese means "card." 
B) More than two containers can be used. 
C) The kanban system is most commonly executed manually. 
D) One typical kanban rule is that no containers are filled without the appropriate C-kanban. 
A) Kanban in Japanese means "card." 
B) More than two containers can be used. 
C) The kanban system is most commonly executed manually. 
D) One typical kanban rule is that no containers are filled without the appropriate C-kanban.

Consider the material structure tree for item A.If 20 units of A are needed, how many units of D are needed?

Which of the following is not considered a significant inventory cost?

Which of the following uses of inventory is used to make sure that when a customer places an order it can be filled immediately?

Inventory is any stored resource that is used to satisfy a current or future need.

Fresh First grocery store purchases bread at $1 per loaf and sells it at $1.50 a loaf.Any unsold bread is fed to the geese at a local pond.What is the decision rule?

Purchasing department supplies comprise one of the "carrying cost factors."

Which of the following is not a use of inventory?

List three general categories of inventory.

The reorder point occurs during a stockout.

In making inventory decisions, the purpose of the basic EOQ model is to

Subcomponent J has a one week lead time and a gross requirement of 57 units in Week 6 to fill order 123.There are already 15 J's in stock at the beginning of the planning period and these are not needed for any other order other than 123.What should the planned order release for J's be in Week 5?

What shows how many units are needed at every level of production?

Subcomponent J has a one week lead time and a gross requirement of 57 units in Week 6 to fill order 123.There are already 15 J's in stock at the beginning of the planning period and these are not needed for any other order other than 123.What are the gross requirements for J's in week 6?

Which of the following statements about the kanban system is false?

Introduction to Quantitative Analysis

Probability Concepts and Applications

Decision Analysis

Regression Models

Forecasting

Linear Programming Models: Graphical and Computer Methods

Linear Programming Applications

Transportation, Assignment, and Network Models

Integer Programming, Goal Programming, and Nonlinear Programming

Project Management

Waiting Lines and Queuing Theory Models

Simulation Modeling

Markov Analysis

Statistical Quality Control

Analytic Hierarchy Process

Dynamic Programming

Decision Theory and the Normal Distribution

Game Theory

Mathematical Tools: Determinants and Matrices

Calculus-Based Optimization

Linear Programming: The Simplex Method

Transportation, Assignment, and Network Algorithms

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Exam 6: Inventory Control Models

Consider the material structure tree for item A.If 20 units of A are needed, how many units of D are needed?

Which of the following is not considered a significant inventory cost?

Which of the following uses of inventory is used to make sure that when a customer places an order it can be filled immediately?

Inventory is any stored resource that is used to satisfy a current or future need.

Fresh First grocery store purchases bread at $1 per loaf and sells it at $1.50 a loaf.Any unsold bread is fed to the geese at a local pond.What is the decision rule?

Purchasing department supplies comprise one of the "carrying cost factors."

Which of the following is not a use of inventory?

List three general categories of inventory.

The reorder point occurs during a stockout.

In making inventory decisions, the purpose of the basic EOQ model is to

Subcomponent J has a one week lead time and a gross requirement of 57 units in Week 6 to fill order 123.There are already 15 J's in stock at the beginning of the planning period and these are not needed for any other order other than 123.What should the planned order release for J's be in Week 5?

What shows how many units are needed at every level of production?

Subcomponent J has a one week lead time and a gross requirement of 57 units in Week 6 to fill order 123.There are already 15 J's in stock at the beginning of the planning period and these are not needed for any other order other than 123.What are the gross requirements for J's in week 6?

Which of the following statements about the kanban system is false?

Introduction to Quantitative Analysis

Probability Concepts and Applications

Decision Analysis

Regression Models

Forecasting

Linear Programming Models: Graphical and Computer Methods

Linear Programming Applications

Transportation, Assignment, and Network Models

Integer Programming, Goal Programming, and Nonlinear Programming

Project Management

Waiting Lines and Queuing Theory Models

Simulation Modeling

Markov Analysis

Statistical Quality Control

Analytic Hierarchy Process

Dynamic Programming

Decision Theory and the Normal Distribution

Game Theory

Mathematical Tools: Determinants and Matrices

Calculus-Based Optimization

Linear Programming: The Simplex Method

Transportation, Assignment, and Network Algorithms

Filters