Question 1

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 2

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

Accepted Answer

A) True 
 B)False

Question 3

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

Accepted Answer

A) True 
 B)False

Question 4

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?

Accepted Answer

A) When 0 lbs. are remaining 
B) When 240 lbs. are remaining 
C) When 375 lbs. are remaining 
D) When 1200 lbs. are remaining 
A) When 0 lbs. are remaining 
B) When 240 lbs. are remaining 
C) When 375 lbs. are remaining 
D) When 1200 lbs. are remaining

Question 5

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

Accepted Answer

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

Question 6

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) 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) 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 7

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

Accepted Answer

A) True 
 B)False

Question 8

Stock that is owned by the supplier but is in the physical possession of the buyer is known as ________.

Accepted Answer

consignmen

Question 9

The period between placing and receiving an order is known as ________.

Accepted Answer

The answer of The period between placing and receiving an...

Question 10

Best Home Cabinets orders wood,their main raw material,from their supplier once every week.The inventory model they are using is known as a ________ model.

Accepted Answer

The answer of Best Home Cabinets orders wood,their main raw...

Question 11

If a firm turns over inventory once a week,they would have ________ inventory turns per year.

Accepted Answer

The answer of If a firm turns over inventory once...

Question 12

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

Accepted Answer

how much to order an

Question 13

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...

Question 14

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

Accepted Answer

A) True 
 B)False

Question 15

Manufacturers of seasonal demand products who manufacture the product throughout the year,so as to build up an inventory buffer to be used during the high demand season are using a technique called

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 16

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 17

Building up inventory in anticipation of unforeseen global supply chain interruptions is known as ________.

Accepted Answer

The answer of Building up inventory in anticipation of unforeseen...

Question 18

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 19

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

Accepted Answer

economic o

Question 20

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

Accepted Answer

A) True 
 B)False

A repetitive procedure for counting inventory on a regular basis 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.

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

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

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

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

Stock that is owned by the supplier but is in the physical possession of the buyer is known as ________.

The period between placing and receiving an order is known as ________.

Best Home Cabinets orders wood,their main raw material,from their supplier once every week.The inventory model they are using is known as a ________ model.

If a firm turns over inventory once a week,they would have ________ inventory turns per year.

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

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

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

Manufacturers of seasonal demand products who manufacture the product throughout the year,so as to build up an inventory buffer to be used during the high demand season are using a technique called

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

Building up inventory in anticipation of unforeseen global supply chain interruptions is known as ________.

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

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.

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

A repetitive procedure for counting inventory on a regular basis 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.

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

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

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

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

Stock that is owned by the supplier but is in the physical possession of the buyer is known as ________.

The period between placing and receiving an order is known as ________.

Best Home Cabinets orders wood,their main raw material,from their supplier once every week.The inventory model they are using is known as a ________ model.

If a firm turns over inventory once a week,they would have ________ inventory turns per year.

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

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

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

Manufacturers of seasonal demand products who manufacture the product throughout the year,so as to build up an inventory buffer to be used during the high demand season are using a technique called

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

Building up inventory in anticipation of unforeseen global supply chain interruptions is known as ________.

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

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.

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