Question 1

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

Accepted Answer

A) True 
 B)False

Question 2

In a continuous review inventory system,if daily usage is 20 units and lead-time is 5 days,the reorder point will be when on-hand inventory is

Accepted Answer

A) 100 units. 
B) 4 units. 
C) 5 units. 
D) 25 units. 
A) 100 units. 
B) 4 units. 
C) 5 units. 
D) 25 units.

Question 3

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

Accepted Answer

A) production smoothing. 
B) production hedging. 
C) production buffering. 
D) production stocking. 
A) production smoothing. 
B) production hedging. 
C) production buffering. 
D) production stocking.

Question 4

An inventory model that is used when product cannot be received at the full order quantity is known as the ________ inventory model.

Accepted Answer

finite rep

Question 5

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

Accepted Answer

A) raw material inventory. 
B) work-in-process inventory. 
C) make-to-stock inventory. 
D) make-to-order inventory. 
A) raw material inventory. 
B) work-in-process inventory. 
C) make-to-stock inventory. 
D) make-to-order inventory.

Question 6

Because price isn't a factor in the EOQ formula,quantity discounts won't affect EOQ calculations.

Accepted Answer

A) True 
 B)False

Question 7

Inventory that is completed and placed into inventory for sale at a later date is known as ________ inventory.

Accepted Answer

The answer of Inventory that is completed and placed into...

Question 8

Production smoothing is balancing the cost of set-ups with inventory carrying costs.

Accepted Answer

A) True 
 B)False

Question 9

The order quantity at which total annualized inventory-related costs are minimized is known as the ________.

Accepted Answer

economic o

Question 10

In fixed time period inventory models,inventory is reordered when it reaches a predetermined stock level.

Accepted Answer

A) True 
 B)False

Question 11

Inventory turnover is the average inventory divided by total sales.

Accepted Answer

A) True 
 B)False

Question 12

In ABC inventory analysis,items that account for only up to 10% of the revenue but for a majority of the 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

Question 13

A repetitive procedure for counting inventory on a regular basis is known as ________.

Accepted Answer

The answer of A repetitive procedure for counting inventory on...

Question 14

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

Accepted Answer

The answer of Products sent directly to customers and not...

Question 15

Use the information below to answer the following question(s):
The materials manager for a billiard ball maker must periodically place orders for resin,one of the raw materials used in producing billiard balls.She knows that manufacturing uses resin at a rate of 50 kilograms each day,and that it costs $.04 per day to carry a kilogram of resin in inventory.She also knows that the order costs for resin are $100 per order,and that the lead time for delivery is four (4)days.Assume 365 days in a year.
-At what point should resin be reordered?

Accepted Answer

A) 0 kilograms remaining 
B) 50 kilograms remaining 
C) 200 kilograms remaining 
D) 400 kilograms remaining 
A) 0 kilograms remaining 
B) 50 kilograms remaining 
C) 200 kilograms remaining 
D) 400 kilograms remaining

Question 16

In managing inventory for independent demand items,the phrase "timing" refers to the decision query "when to place an order."

Accepted Answer

A) True 
 B)False

Question 17

Inventory that is kept at the intersection of differing stages of production to maintain continuity of processing is called hedge inventory.

Accepted Answer

A) True 
 B)False

Question 18

The EOQ inventory model helps determine the quantity to order to minimize costs.

Accepted Answer

A) True 
 B)False

Question 19

Inventory models that order in regular weekly or monthly time intervals are known as ________ models.

Accepted Answer

The answer of Inventory models that order in regular weekly...

Question 20

Inputs to production that take the form of either fundamental supplies or subassemblies and components received from suppliers are known as ________.

Accepted Answer

The answer of Inputs to production that take the form...

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

In a continuous review inventory system,if daily usage is 20 units and lead-time is 5 days,the reorder point will be when on-hand inventory is

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

An inventory model that is used when product cannot be received at the full order quantity is known as the ________ inventory model.

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

Because price isn't a factor in the EOQ formula,quantity discounts won't affect EOQ calculations.

Inventory that is completed and placed into inventory for sale at a later date is known as ________ inventory.

Production smoothing is balancing the cost of set-ups with inventory carrying costs.

The order quantity at which total annualized inventory-related costs are minimized is known as the ________.

In fixed time period inventory models,inventory is reordered when it reaches a predetermined stock level.

Inventory turnover is the average inventory divided by total sales.

In ABC inventory analysis,items that account for only up to 10% of the revenue but for a majority of the inventory items are classified as

A repetitive procedure for counting inventory on a regular basis is known as ________.

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

In managing inventory for independent demand items,the phrase "timing" refers to the decision query "when to place an order."

Inventory that is kept at the intersection of differing stages of production to maintain continuity of processing is called hedge inventory.

The EOQ inventory model helps determine the quantity to order to minimize costs.

Inventory models that order in regular weekly or monthly time intervals are known as ________ models.

Inputs to production that take the form of either fundamental supplies or subassemblies and components received from suppliers are known 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

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

In a continuous review inventory system,if daily usage is 20 units and lead-time is 5 days,the reorder point will be when on-hand inventory is

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

An inventory model that is used when product cannot be received at the full order quantity is known as the ________ inventory model.

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

Because price isn't a factor in the EOQ formula,quantity discounts won't affect EOQ calculations.

Inventory that is completed and placed into inventory for sale at a later date is known as ________ inventory.

Production smoothing is balancing the cost of set-ups with inventory carrying costs.

The order quantity at which total annualized inventory-related costs are minimized is known as the ________.

In fixed time period inventory models,inventory is reordered when it reaches a predetermined stock level.

Inventory turnover is the average inventory divided by total sales.

In ABC inventory analysis,items that account for only up to 10% of the revenue but for a majority of the inventory items are classified as

A repetitive procedure for counting inventory on a regular basis is known as ________.

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

In managing inventory for independent demand items,the phrase "timing" refers to the decision query "when to place an order."

Inventory that is kept at the intersection of differing stages of production to maintain continuity of processing is called hedge inventory.

The EOQ inventory model helps determine the quantity to order to minimize costs.

Inventory models that order in regular weekly or monthly time intervals are known as ________ models.

Inputs to production that take the form of either fundamental supplies or subassemblies and components received from suppliers are known 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