Exam 11: Independent Demand Ordering Systems

Which of the following are basic systems for determining when to order INDEPENDENT demand items? I. Order point system II. Periodic review system III. Material Requirements Planning

The demand placed on a factory or a central warehouse by distribution centers is considered:

Using the periodic review system the target level is:

Management has carefully measured the standard deviation of the demand of a product and plans to use this to calculate the level of safety stock. If they keep one Standard Deviation of safety stock then The expected service level should be approximately:

An order system in which the order quantity is allowed to vary and the order cycle is fixed is called the:

A company that has regular replenishments of small value items such as a grocery store would use the system.

Which of the following statements is best?

For a given item the lead time is 1 week, the on hand inventory is 50 units, demand is 20 units per week, safety stock is set at 3 weeks supply and the item is ordered every 2 weeks. The order quantity should be:

Which of the following systems are used to determine when the order point is reached? I. Two-bin system. II. Perpetual inventory system. III. Periodic inventory system. IV. Safety stock system.

The average demand for an item is 1000 per month. The mean absolute deviation of monthly demand is 300 units. The MAD for yearly sales will be approximately:

Select the description which most closely fits the term ORDER POINT:

Which of the following is the best statement?

If the lead time is 1 week, the review period 1 week, the average demand 100 units per week and the safety stock is 50 units, the target level will be:

The distribution inventory management system which forecasts when the various demands will be made by the system on central supply is called:

A product has a standard deviation of demand of 15. The safety stock for a service level of 98% Would be approximately:

If the lead time is 1 week, the review period 4 weeks, the average demand 100 units per week and the safety stock is 50 units, the target level will be:

is an inventory record system that keeps a continuous account of transactions as they occur:

Which of the following statements is true about safety stock?

If the standard deviation of demand is 100 units and the average demand is 1000 units, then we can be 95% confident that actual sales will be 1000 units plus or minus about:

Which of the following is correct?