Exam 9: Inventory Management Fundamentals and Independent Demand

In managing inventory for independent demand items,the two important decision queries that need to be answered are ________.

What would be the length of an order cycle - i.e.the time between successive orders using the EOQ?

In inventory models,a quantity discount will lower the reorder point.

The two important inventory decisions in managing inventory for independent demand items are how much to order and which vendor to use.

In ABC inventory analysis,the typical percentage for the total dollar volume of C items is

If a firm turns over inventory once a week,they would have 7 days' worth of inventory on hand.

In a continuous review inventory system,the order size is the same for each order.

Producing extra inventory during periods of low demand,which is then consumed during periods of high demand,is known as ________.

In inventory models,the rate of demand is an important factor in determining the reorder point.

Products that are waiting to be sold to customers are known as

In ABC analysis,inventory items are classified by unit cost,with expensive items being classified as A items,and inexpensive items being classified as C items.

If a firm has annual cost of goods sold of $100 million and turn over inventory twice a month,the average inventory they carry would be

Extra stock held in anticipation of variable demand is known as ________.

In ABC inventory analysis,C items typically represent about 15 percent of the number of items but 80 percent of the usage.

Inventory that has been received and is in the production phase is known as ________ inventory.

Classic Car Dealers has an average of 150 cars in inventory.They sold 3000 cars this past year.Assuming 365 days in a work year,how many days' worth of inventory do they carry on average?

Compute the reorder point when weekly demand is 100 units,lead time is 2 weeks,the desired service level is 98% (which corresponds to 2.06 standard deviations from the mean)and the standard deviation of demand during lead time is 30 units.

Hallmark manufactures greeting cards throughout the year,building up inventory during lean periods to be utilized during the holiday period.They are using a technique known as ________.

The materials manager for a tire manufacturer must periodically place orders for a key chemical,one of the raw materials used in producing tires.The manager knows that manufacturing uses the chemical at a rate of 300 lbs.each week,and the lead time for delivery is 4 days.Assume that the manufacturing operation runs 5 days a week.At what point should the chemical be reordered?

Classic Kitchen cabinets has forecasted demand for 200 cabinets for the upcoming month.Based on this information and knowing that each cabinet requires two knobs,they have forecasted that 400 knobs will be required.What term can be used to describe the demand for the knobs?