Question 1

The Delphi technique is a method of quantitative forecasting.

Accepted Answer

A) True 
 B)False

Question 2

Which statement is most accurate when deciding how much and when to buy?

Accepted Answer

A) Balance price,volume,carrying cost,and the cost of stock-outs. 
B) Use the forecast future demand,lead times,and prices to determine optimal order volume. 
C) Determine the price premium to attain the desired order quantity. 
D) Managers seldom make purchase decisions until they are absolutely sure of the volume required. 
E) The costs of placing orders and holding inventory are so low they do not significantly affect the decision of how much to buy. 
A) Balance price,volume,carrying cost,and the cost of stock-outs. 
B) Use the forecast future demand,lead times,and prices to determine optimal order volume. 
C) Determine the price premium to attain the desired order quantity. 
D) Managers seldom make purchase decisions until they are absolutely sure of the volume required. 
E) The costs of placing orders and holding inventory are so low they do not significantly affect the decision of how much to buy.

Question 3

Any cost associated with having,as opposed to not having,inventory is included in inventory carrying costs,including (1)capital costs, (2)inventory service costs, (3)storage space costs,and (4)inventory risk costs.

Accepted Answer

A) True 
 B)False

Question 4

Decoupling inventories are used to:

Accepted Answer

A) avoid an anticipated change in supply,demand,or price. 
B) protect against disruptions due to unplanned events. 
C) reduce the number of setups. 
D) accommodate different rates or patterns of demand. 
E) avoid an anticipated change in supply,demand,or price,and to reduce the number of setups. 
A) avoid an anticipated change in supply,demand,or price. 
B) protect against disruptions due to unplanned events. 
C) reduce the number of setups. 
D) accommodate different rates or patterns of demand. 
E) avoid an anticipated change in supply,demand,or price,and to reduce the number of setups.

Question 5

Kanban systems are most useful for low-volume parts used on an infrequent basis.

Accepted Answer

A) True 
 B)False

Question 6

In fixed-period inventory models,a fixed economic order quantity is ordered when the reorder point is reached.

Accepted Answer

A) True 
 B)False

Question 7

When the carrying cost of inventory is expressed as a percentage:

Accepted Answer

A) the lower it is,the lower the economic order quantity. 
B) it is usually the same as the borrowing cost of the organization. 
C) it is multiplied by the unit variable manufacturing cost to calculate the per unit carrying cost. 
D) it is multiplied by the total unit cost,including allocated fixed costs,to calculate the per unit carrying cost. 
E) it is multiplied by the labor and material cost to calculate the per unit carrying cost. 
A) the lower it is,the lower the economic order quantity. 
B) it is usually the same as the borrowing cost of the organization. 
C) it is multiplied by the unit variable manufacturing cost to calculate the per unit carrying cost. 
D) it is multiplied by the total unit cost,including allocated fixed costs,to calculate the per unit carrying cost. 
E) it is multiplied by the labor and material cost to calculate the per unit carrying cost.

Question 8

On an annual requirement of 100 items spread evenly throughout the year,a purchaser has an opportunity of buying all 100 units at a price of $100 each,or buying 10 units at a time at a price of $130.If the inventory carrying cost is 20 percent per year and assuming no ordering costs:

Accepted Answer

A) buying 100 at a time will save the company $2,130 per year. 
B) buying 100 at a time will save the company $2,260 per year. 
C) buying 100 at a time will save the company $3,000 per year. 
D) buying 10 at a time will save the company $1,000 per year. 
E) buying 10 at a time will save the company $870 per year. 
A) buying 100 at a time will save the company $2,130 per year. 
B) buying 100 at a time will save the company $2,260 per year. 
C) buying 100 at a time will save the company $3,000 per year. 
D) buying 10 at a time will save the company $1,000 per year. 
E) buying 10 at a time will save the company $870 per year.

Question 9

Supply chain inventory management involves establishing operational design of the physical flow of goods and services,and managing information flows.

Accepted Answer

A) True 
 B)False

Question 10

Strategies for managing "C" items in ABC analysis are:

Accepted Answer

A) review inventory levels frequently. 
B) carrying inventories. 
C) concentrating requirements with one or a few suppliers. 
D) review inventory levels frequently and carrying inventories. 
E) carrying inventories and concentrating requirements with one or a few suppliers. 
A) review inventory levels frequently. 
B) carrying inventories. 
C) concentrating requirements with one or a few suppliers. 
D) review inventory levels frequently and carrying inventories. 
E) carrying inventories and concentrating requirements with one or a few suppliers.

The Delphi technique is a method of quantitative forecasting.

Which statement is most accurate when deciding how much and when to buy?

Any cost associated with having,as opposed to not having,inventory is included in inventory carrying costs,including (1)capital costs, (2)inventory service costs, (3)storage space costs,and (4)inventory risk costs.

Decoupling inventories are used to:

Kanban systems are most useful for low-volume parts used on an infrequent basis.

In fixed-period inventory models,a fixed economic order quantity is ordered when the reorder point is reached.

When the carrying cost of inventory is expressed as a percentage:

On an annual requirement of 100 items spread evenly throughout the year,a purchaser has an opportunity of buying all 100 units at a price of $100 each,or buying 10 units at a time at a price of $130.If the inventory carrying cost is 20 percent per year and assuming no ordering costs:

Supply chain inventory management involves establishing operational design of the physical flow of goods and services,and managing information flows.

Strategies for managing "C" items in ABC analysis are:

Purchasing and Supply Management

Supply Strategy

Supply Organization

Supply Processes and Technology

Make or Buy,insourcing and Outsourcing

Need Identification and Specification

Quality

Delivery

Price

Cost Management

Supplier Selection

Supplier Evaluation and Supplier Relationships

Global Supply Management

Legal and Ethics

Other Supply Responsibilities

Supply Function Evaluation and Trends

Filters

Exam 8: Quantity and Inventory

The Delphi technique is a method of quantitative forecasting.

Which statement is most accurate when deciding how much and when to buy?

Any cost associated with having,as opposed to not having,inventory is included in inventory carrying costs,including (1)capital costs, (2)inventory service costs, (3)storage space costs,and (4)inventory risk costs.

Decoupling inventories are used to:

Kanban systems are most useful for low-volume parts used on an infrequent basis.

In fixed-period inventory models,a fixed economic order quantity is ordered when the reorder point is reached.

When the carrying cost of inventory is expressed as a percentage:

On an annual requirement of 100 items spread evenly throughout the year,a purchaser has an opportunity of buying all 100 units at a price of $100 each,or buying 10 units at a time at a price of $130.If the inventory carrying cost is 20 percent per year and assuming no ordering costs:

Supply chain inventory management involves establishing operational design of the physical flow of goods and services,and managing information flows.

Strategies for managing "C" items in ABC analysis are:

Purchasing and Supply Management

Supply Strategy

Supply Organization

Supply Processes and Technology

Make or Buy,insourcing and Outsourcing

Need Identification and Specification

Quality

Delivery

Price

Cost Management

Supplier Selection

Supplier Evaluation and Supplier Relationships

Global Supply Management

Legal and Ethics

Other Supply Responsibilities

Supply Function Evaluation and Trends

Filters