Question 1

One advantage of vendor managed inventory is that the vendor has more control over its products.

Accepted Answer

A) True 
 B)False  True

Question 2

The _______ inventory classification model allows a company to classify inventory based on degree of importance.

Accepted Answer

A)  VMI 
B)  EOQ 
C)  ABC 
D)  MRP 
E)  ROP 
A)  VMI 
B)  EOQ 
C)  ABC 
D)  MRP 
E)  ROP C

Question 3

Taxes and opportunity costs of capital are examples of:

Accepted Answer

A)  Fixed costs 
B)  Ordering costs 
C)  Holding costs 
D)  Shortage costs 
E)  None of the above 
A)  Fixed costs 
B)  Ordering costs 
C)  Holding costs 
D)  Shortage costs 
E)  None of the above C

Question 4

__________ inventory must be accounted for even though it might not be in transit and not in stock.

Accepted Answer

A)  Cycle stock 
B)  Anticipation inventory 
C)  MRO 
D)  Safety stock 
E)  Pipeline inventory 
A)  Cycle stock 
B)  Anticipation inventory 
C)  MRO 
D)  Safety stock 
E)  Pipeline inventory

Question 5

Products that are used indirectly are known as ____________ inventory:

Accepted Answer

A)  Cycle stock 
B)  Anticipation inventory 
C)  MRO 
D)  Safety stock 
E)  Pipeline inventory 
A)  Cycle stock 
B)  Anticipation inventory 
C)  MRO 
D)  Safety stock 
E)  Pipeline inventory

Question 6

The EOQ should minimize the sum of ordering and shortage costs.

Accepted Answer

A) True 
 B)False

Question 7

Briefly define holding costs and inventory costs, and explain the relationship between the two when defining an inventory policy

Accepted Answer

Holding costs are variable and include a

Question 8

________ inventory represents all activities carried out in advance of a customer's arrival.

Accepted Answer

A)  Finished goods 
B)  Raw materials 
C)  Buffer 
D)  Components 
E)  Service 
A)  Finished goods 
B)  Raw materials 
C)  Buffer 
D)  Components 
E)  Service

Question 9

Order quantities are fixed in the fixed-time period inventory system.

Accepted Answer

A) True 
 B)False

Question 10

A key aspect of the fixed-order quantity inventory system is defining a reorder point.

Accepted Answer

A) True 
 B)False

Question 11

The quantities of all products or materials in stock are known as ___________.

Accepted Answer

A)  Finished goods 
B)  Raw materials 
C)  Inventory 
D)  Components 
E)  Buffer 
A)  Finished goods 
B)  Raw materials 
C)  Inventory 
D)  Components 
E)  Buffer

Question 12

The fixed-period inventory system requires holding more __________ inventory:

Accepted Answer

A)  Cycle 
B)  Safety stock 
C)  Pipeline 
D)  Anticipation 
E)  MRO 
A)  Cycle 
B)  Safety stock 
C)  Pipeline 
D)  Anticipation 
E)  MRO

Question 13

It is necessary to carry inventory to cover the time between order of product and delivery.

Accepted Answer

A) True 
 B)False

Question 14

The optimal inventory system for high value items is the fixed-time period system.

Accepted Answer

A) True 
 B)False

Question 15

ABC analysis is useful to different varying service levels to different products.

Accepted Answer

A) True 
 B)False

Question 16

A distinction of the _____________ inventory system is that inventory is monitored on a continual basis.

Accepted Answer

A)  Fixed-time period 
B)  EOQ 
C)  Periodic 
D)  Fixed-order quantity 
E)  None of the above 
A)  Fixed-time period 
B)  EOQ 
C)  Periodic 
D)  Fixed-order quantity 
E)  None of the above

Question 17

Inventory policy addresses the basic questions of _____ and _____ to order:

Accepted Answer

A)  Where and how much 
B)  Which supplier and how much 
C)  How many suppliers and how much 
D)  When to order and how much 
E)  None of the above 
A)  Where and how much 
B)  Which supplier and how much 
C)  How many suppliers and how much 
D)  When to order and how much 
E)  None of the above

Question 18

A form of manufacturing inventory is:

Accepted Answer

A)  Skills 
B)  Office space 
C)  Work-in-process 
D)  Raw materials 
E)  c and d 
A)  Skills 
B)  Office space 
C)  Work-in-process 
D)  Raw materials 
E)  c and d

Question 19

The fixed-order quantity inventory system is optimal for ____________ products:

Accepted Answer

A)  Commodity 
B)  Functional 
C)  High-value 
D)  End of life 
E)  All of the above 
A)  Commodity 
B)  Functional 
C)  High-value 
D)  End of life 
E)  All of the above

Question 20

An example of an item at an automobile manufacturer that would call for independent demand analysis is:

Accepted Answer

A)  Automobile 
B)  Engine 
C)  Windshield 
D)  Tires 
E)  Steel 
A)  Automobile 
B)  Engine 
C)  Windshield 
D)  Tires 
E)  Steel

One advantage of vendor managed inventory is that the vendor has more control over its products.

The _______ inventory classification model allows a company to classify inventory based on degree of importance.

Taxes and opportunity costs of capital are examples of:

__________ inventory must be accounted for even though it might not be in transit and not in stock.

Products that are used indirectly are known as ____________ inventory:

The EOQ should minimize the sum of ordering and shortage costs.

Briefly define holding costs and inventory costs, and explain the relationship between the two when defining an inventory policy

________ inventory represents all activities carried out in advance of a customer's arrival.

Order quantities are fixed in the fixed-time period inventory system.

A key aspect of the fixed-order quantity inventory system is defining a reorder point.

The quantities of all products or materials in stock are known as ___________.

The fixed-period inventory system requires holding more __________ inventory:

It is necessary to carry inventory to cover the time between order of product and delivery.

The optimal inventory system for high value items is the fixed-time period system.

ABC analysis is useful to different varying service levels to different products.

A distinction of the _____________ inventory system is that inventory is monitored on a continual basis.

Inventory policy addresses the basic questions of _ and _ to order:

A form of manufacturing inventory is:

The fixed-order quantity inventory system is optimal for ____________ products:

An example of an item at an automobile manufacturer that would call for independent demand analysis is:

Introduction to Supply Chain Management

Supply Chain Strategy

Network and System Design

Marketing

Operations Management

Sourcing

Logistics

Forecasting Demand Planning

Lean Systems and Six-Sigma Quality

Supply Chain Relationship Management

Global Supply Chain Management

Sustainable Supply Chain Management

Filters

Exam 9: Inventory Management

One advantage of vendor managed inventory is that the vendor has more control over its products.

The _______ inventory classification model allows a company to classify inventory based on degree of importance.

Taxes and opportunity costs of capital are examples of:

__________ inventory must be accounted for even though it might not be in transit and not in stock.

Products that are used indirectly are known as ____________ inventory:

The EOQ should minimize the sum of ordering and shortage costs.

Briefly define holding costs and inventory costs, and explain the relationship between the two when defining an inventory policy

________ inventory represents all activities carried out in advance of a customer's arrival.

Order quantities are fixed in the fixed-time period inventory system.

A key aspect of the fixed-order quantity inventory system is defining a reorder point.

The quantities of all products or materials in stock are known as ___________.

The fixed-period inventory system requires holding more __________ inventory:

It is necessary to carry inventory to cover the time between order of product and delivery.

The optimal inventory system for high value items is the fixed-time period system.

ABC analysis is useful to different varying service levels to different products.

A distinction of the _____________ inventory system is that inventory is monitored on a continual basis.

Inventory policy addresses the basic questions of _____ and _____ to order:

A form of manufacturing inventory is:

The fixed-order quantity inventory system is optimal for ____________ products:

An example of an item at an automobile manufacturer that would call for independent demand analysis is:

Introduction to Supply Chain Management

Supply Chain Strategy

Network and System Design

Marketing

Operations Management

Sourcing

Logistics

Forecasting Demand Planning

Lean Systems and Six-Sigma Quality

Supply Chain Relationship Management

Global Supply Chain Management

Sustainable Supply Chain Management

Filters

Inventory policy addresses the basic questions of _ and _ to order: