Question 1

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. D

Question 2

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. D

Question 3

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 4

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

Accepted Answer

A) True 
 B)False

Question 5

Pareto's law suggests that 80% of the customers will account for 20% of the revenue.

Accepted Answer

A) True 
 B)False

Question 6

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 7

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 8

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 9

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

Accepted Answer

A) True 
 B)False

Question 10

In fixed time period inventory models,inventory is reordered

Accepted Answer

A) as required. 
B) when stock reaches a predetermined level. 
C) at regular time intervals. 
D) at midnight-when time is fixed. 
A) as required. 
B) when stock reaches a predetermined level. 
C) at regular time intervals. 
D) at midnight-when time is fixed.

Question 11

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 12

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 13

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.

Accepted Answer

A) 125 units 
B) 262 units 
C) 75 units 
D) 187 units 
A) 125 units 
B) 262 units 
C) 75 units 
D) 187 units

Question 14

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 15

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

Accepted Answer

A) True 
 B)False

Question 16

The probability that an item will be available in stock for order fulfillment when it is needed is known as ________.

Accepted Answer

The answer of The probability that an item will be...

Question 17

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?

Accepted Answer

A) 10 days 
B) 15 days 
C) 18 days 
D) 25 days 
A) 10 days 
B) 15 days 
C) 18 days 
D) 25 days

Question 18

Vendor-managed inventory is always consignment inventory.

Accepted Answer

A) True 
 B)False

Question 19

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 20

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

Accepted Answer

periodic r

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

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

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

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

Pareto's law suggests that 80% of the customers will account for 20% of the revenue.

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

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

Pareto's law suggests that

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

In fixed time period inventory models,inventory is reordered

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

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?

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.

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

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

The probability that an item will be available in stock for order fulfillment when it is needed is known as ________.

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?

Vendor-managed inventory is always consignment inventory.

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

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

Lean and Six Sigma Management and Leading Change

Filters

Exam 9: Inventory Management Fundamentals and Independent Demand

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

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

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

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

Pareto's law suggests that 80% of the customers will account for 20% of the revenue.

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

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

Pareto's law suggests that

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

In fixed time period inventory models,inventory is reordered

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

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?

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.

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

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

The probability that an item will be available in stock for order fulfillment when it is needed is known as ________.

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?

Vendor-managed inventory is always consignment inventory.

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

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

Lean and Six Sigma Management and Leading Change

Filters