Question 1

Materials stored to support the functioning of the business are known as ________.

Accepted Answer

supplies

Question 2

What will be the effect on total ordering costs (calculated over multiple orders)in an inventory system as the size of each order increases?

Accepted Answer

A) It will increase 
B) It will decrease 
C) It will remain unchanged 
D) Order size has no effect on ordering costs. 
A) It will increase 
B) It will decrease 
C) It will remain unchanged 
D) Order size has no effect on ordering costs. B

Question 3

Demand that is calculated from a parent item is called independent demand.

Accepted Answer

A) True 
 B)False  False

Question 4

Manufacturers that order supplies from their vendors every Monday in order to stabilize purchasing and shipping schedules are using a

Accepted Answer

A) fixed time period model. 
B) continuous review model. 
C) Monday ordering model. 
D) inventory buffer model. 
A) fixed time period model. 
B) continuous review model. 
C) Monday ordering model. 
D) inventory buffer model.

Question 5

In setting the reorder point for an item with variable demand,a service level of 95% will imply which of the following?

Accepted Answer

A) Stockouts may occur only 5 times during the phase of 100 inventory cycles. 
B) Five percent (5%)of the supplier shipments will be late. 
C) There is a 0.05 probability that the forecasted demand is not accurate. 
D) The forecast demand will be accurate 95% of the time. 
A) Stockouts may occur only 5 times during the phase of 100 inventory cycles. 
B) Five percent (5%)of the supplier shipments will be late. 
C) There is a 0.05 probability that the forecasted demand is not accurate. 
D) The forecast demand will be accurate 95% of the time.

Question 6

Products that are waiting to be sold to customers are known as ________ inventory.

Accepted Answer

The answer of Products that are waiting to be sold...

Question 7

The rate at which firms use up their inventory is known as ________.

Accepted Answer

The answer of The rate at which firms use up...

Question 8

Products sent directly to customers and not placed in finished goods inventory are known as

Accepted Answer

A) finished goods inventory. 
B) work-in-process inventory. 
C) make-to-stock inventory. 
D) make-to-order inventory. 
A) finished goods inventory. 
B) work-in-process inventory. 
C) make-to-stock inventory. 
D) make-to-order inventory.

Question 9

When determining the Economic Order Quantity (EOQ)with quantity discounts,which cost is included in addition to the costs considered in the basic EOQ formulation?

Accepted Answer

A) Cost of packing the item 
B) Safety stock cost 
C) Per-unit cost of the item 
D) Inventory cycle count cost 
A) Cost of packing the item 
B) Safety stock cost 
C) Per-unit cost of the item 
D) Inventory cycle count cost

Question 10

Inventory systems in which inventory levels are continuously monitored to determine placement of an order are known as ________ systems.

Accepted Answer

continuous

Question 11

In the Economic Order Quantity (EOQ)model,if lead time increases from five to ten days,what will be the impact on the EOQ?

Accepted Answer

A) It will double 
B) It will increase,but not double 
C) It will decrease by a factor of two. 
D) It will remain unchanged 
A) It will double 
B) It will increase,but not double 
C) It will decrease by a factor of two. 
D) It will remain unchanged

Question 12

Pareto's law suggests that

Accepted Answer

A) 80% of customers account for 20% of revenue. 
B) 80% of customers account for 80% of revenue. 
C) 20% of customers account for 80% of revenue. 
D) 20% of revenue comes from 80% of customers. 
A) 80% of customers account for 20% of revenue. 
B) 80% of customers account for 80% of revenue. 
C) 20% of customers account for 80% of revenue. 
D) 20% of revenue comes from 80% of customers.

Question 13

A supermarket orders inventory every Friday afternoon.What type of inventory systems is the supermarket using?

Accepted Answer

A) Continuous review 
B) Periodic review 
C) Continuous replenishment 
D) ABC 
A) Continuous review 
B) Periodic review 
C) Continuous replenishment 
D) ABC

Question 14

Best Tools maintains an average finished goods inventory of $15 million and its annual cost of goods sold is $180 million.How many times per year do they turn over their inventory?

Accepted Answer

A) 8.33 
B) 12 
C) 10 
D) 15 
A) 8.33 
B) 12 
C) 10 
D) 15

Question 15

Service level is the probability that an item will be available in stock for order fulfillment.

Accepted Answer

A) True 
 B)False

Question 16

Inventory systems in which orders are placed at regular intervals such as weekly or monthly are known as ________ systems.

Accepted Answer

periodic r

Question 17

As the variability of demand during lead time increases,required safety stock for the same service level will ________.

Accepted Answer

The answer of As the variability of demand during lead...

Question 18

Demand that is calculated from a parent item is called ________.

Accepted Answer

The answer of Demand that is calculated from a parent...

Question 19

What is the Total Cost (TC)at the EOQ?

Accepted Answer

A) $3000 
B) $7300 
C) $9000 
D) $12700 
A) $3000 
B) $7300 
C) $9000 
D) $12700

Question 20

In ABC inventory analysis,items that account for eighty percent of the revenue but account for only few inventory items are classified as

Accepted Answer

A) A items. 
B) B items. 
C) C items. 
D) None of the above 
A) A items. 
B) B items. 
C) C items. 
D) None of the above

Materials stored to support the functioning of the business are known as ________.

What will be the effect on total ordering costs (calculated over multiple orders)in an inventory system as the size of each order increases?

Demand that is calculated from a parent item is called independent demand.

Manufacturers that order supplies from their vendors every Monday in order to stabilize purchasing and shipping schedules are using a

In setting the reorder point for an item with variable demand,a service level of 95% will imply which of the following?

Products that are waiting to be sold to customers are known as ________ inventory.

The rate at which firms use up their inventory is known as ________.

Products sent directly to customers and not placed in finished goods inventory are known as

When determining the Economic Order Quantity (EOQ)with quantity discounts,which cost is included in addition to the costs considered in the basic EOQ formulation?

Inventory systems in which inventory levels are continuously monitored to determine placement of an order are known as ________ systems.

In the Economic Order Quantity (EOQ)model,if lead time increases from five to ten days,what will be the impact on the EOQ?

Pareto's law suggests that

A supermarket orders inventory every Friday afternoon.What type of inventory systems is the supermarket using?

Best Tools maintains an average finished goods inventory of $15 million and its annual cost of goods sold is $180 million.How many times per year do they turn over their inventory?

Service level is the probability that an item will be available in stock for order fulfillment.

Inventory systems in which orders are placed at regular intervals such as weekly or monthly are known as ________ systems.

As the variability of demand during lead time increases,required safety stock for the same service level will ________.

Demand that is calculated from a parent item is called ________.

What is the Total Cost (TC)at the EOQ?

In ABC inventory analysis,items that account for eighty percent of the revenue but account for only few inventory items are classified as

Introduction to Supply Chain and Operations Management

Supply Chain and Operations Strategy

Product and Process Design and Mapping

Service Design

Customer Relationship Management

Strategic Sourcing

Supplier Management

Demand Management and Forecasting

Sales and Operations Planning and Enterprise Resource Planning

Logistics

Project Management

Supply Chain Quality Management

Statistical Process Control

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Exam 9: Inventory Management Fundamentals and Independent Demand

Materials stored to support the functioning of the business are known as ________.

What will be the effect on total ordering costs (calculated over multiple orders)in an inventory system as the size of each order increases?

Demand that is calculated from a parent item is called independent demand.

Manufacturers that order supplies from their vendors every Monday in order to stabilize purchasing and shipping schedules are using a

In setting the reorder point for an item with variable demand,a service level of 95% will imply which of the following?

Products that are waiting to be sold to customers are known as ________ inventory.

The rate at which firms use up their inventory is known as ________.

Products sent directly to customers and not placed in finished goods inventory are known as

When determining the Economic Order Quantity (EOQ)with quantity discounts,which cost is included in addition to the costs considered in the basic EOQ formulation?

Inventory systems in which inventory levels are continuously monitored to determine placement of an order are known as ________ systems.

In the Economic Order Quantity (EOQ)model,if lead time increases from five to ten days,what will be the impact on the EOQ?

Pareto's law suggests that

A supermarket orders inventory every Friday afternoon.What type of inventory systems is the supermarket using?

Best Tools maintains an average finished goods inventory of $15 million and its annual cost of goods sold is $180 million.How many times per year do they turn over their inventory?

Service level is the probability that an item will be available in stock for order fulfillment.

Inventory systems in which orders are placed at regular intervals such as weekly or monthly are known as ________ systems.

As the variability of demand during lead time increases,required safety stock for the same service level will ________.

Demand that is calculated from a parent item is called ________.

What is the Total Cost (TC)at the EOQ?

In ABC inventory analysis,items that account for eighty percent of the revenue but account for only few inventory items are classified as

Introduction to Supply Chain and Operations Management

Supply Chain and Operations Strategy

Product and Process Design and Mapping

Service Design

Customer Relationship Management

Strategic Sourcing

Supplier Management

Demand Management and Forecasting

Sales and Operations Planning and Enterprise Resource Planning

Logistics

Project Management

Supply Chain Quality Management

Statistical Process Control

New Section

Filters