Exam 9: Managing Inventory in the Supply Chain

Ordering cost refers to the expense of placing an order and

MRPII will not allow an organization to integrate financial planning and operations/logistics.

Inventory and the GDP grew at the same rate from 1990 through 2006.

Many companies can make a case for using a formal logistics organization to help resolve inventory objective conflicts.

Discuss how seasonality can affect inventory.

Inventory plays a dual role in organizations.Inventory impacts the cost of goods sold as well as supporting the balance sheet,a new concept only recently receiving attention.

A reason to hold inventory arises when an organization anticipates that an unusual event might occur that will negatively impact its source of supply.

Ordering cost refers to the expense of placing an order for additional inventory and does not include the cost or expense of the product itself.

Capital cost is also called interest or opportunity cost.

Purchase economies and transportation economies are not complementary.

Define and discuss the JIT system,and include the four elements necessary for it to be successful.

Discuss dependent versus independent demand as it is related to inventory.

Define and discuss MRP.

Inventory and the GDP grew by ____ amounts between 1990 and 2006.

EOQ can only be used for "push" inventory.

JIT,MRP,MRP II,and DRP,incorporate some version of the basic EOQ model into their philosophies.

Storage costs are not variable.

WIP inventories are

Capital cost can focuses on the cost capital tied up in ____ and the resulting lost opportunity from investing elsewhere.

MRP has been known for some time but lacked interest until recently.