Question 1

Cycle counting

Accepted Answer

A)  is used to determine average cycle service level 
B)  is used to identify shelves needing repair 
C)  has a lower tolerance level for slower-moving items 
D)  follows a schedule such that the quantity of every SKU in inventory is counted at least once a year 
A)  is used to determine average cycle service level 
B)  is used to identify shelves needing repair 
C)  has a lower tolerance level for slower-moving items 
D)  follows a schedule such that the quantity of every SKU in inventory is counted at least once a year

Question 2

_________ is an ordering policy that orders exactly as much as is required to replenish what has been used.

Accepted Answer

The answer of _________ is an ordering policy that orders...

Question 3

In a well-constructed paragraph or two, discuss the basic economic order quantity model. What are the assumptions of the EOQ model?

Accepted Answer

The Economic Order Quantity (EOQ) model

Question 4

The maximum point of the total inventory cost curve is where the EOQ value occurs.

Accepted Answer

A) True 
 B)False

Question 5

Which of the following is not one of the three main types of inventory?

Accepted Answer

A)  raw material inventory 
B)  work-in-process inventory 
C)  finished goods 
D)  All of these are main types of inventory. 
A)  raw material inventory 
B)  work-in-process inventory 
C)  finished goods 
D)  All of these are main types of inventory.

Question 6

Work-in-process inventory is inventory in various stages of completion and includes components and subassemblies.

Accepted Answer

A) True 
 B)False

Question 7

Phantom inventory is inventory that exists in the mind of the customer but not in the store.

Accepted Answer

A) True 
 B)False

Question 8

_________ and _________ costs are the two categories of direct costs of holding inventory.

Accepted Answer

The answer of _________ and _________ costs are the two...

Question 9

Physical inventory generally exists in two forms: raw materials and finished goods.

Accepted Answer

A) True 
 B)False

Question 10

Which of the following statements regarding inventory models is true?

Accepted Answer

A)  Models using normal distribution assumptions may not represent situations with highly variable daily demand. 
B)  Models do not have to be consistent with the operational realities of production line and resource constraints. 
C)  It is usually safe to assume the cost of capital is negligible. 
D)  Catastrophic events can be reasonably incorporated in working models by use of simulation. 
A)  Models using normal distribution assumptions may not represent situations with highly variable daily demand. 
B)  Models do not have to be consistent with the operational realities of production line and resource constraints. 
C)  It is usually safe to assume the cost of capital is negligible. 
D)  Catastrophic events can be reasonably incorporated in working models by use of simulation.

Question 11

The traditional EOQ model assumes known and stable holding and ordering costs and variable demand.

Accepted Answer

A) True 
 B)False

Question 12

The _________ system is a method for dividing on-hand inventory into three classifications based on total dollar sales.

Accepted Answer

The answer of The _________ system is a method for...

Question 13

Inventory models have to be consistent with the operational realities of capital and resource constraints, for example, in order to realize practical application.

Accepted Answer

A) True 
 B)False

Question 14

Supply management levers help reduce inventory through

Accepted Answer

A)  simplified supply chains 
B)  lead time length and variability reduction 
C)  quick decision making 
D)  all of the above 
A)  simplified supply chains 
B)  lead time length and variability reduction 
C)  quick decision making 
D)  all of the above

Question 15

_________ and _________ analysis are two other inventory management prioritization techniques in addition to the ABC classification system.

Accepted Answer

The answer of _________ and _________ analysis are two other...

Question 16

Tip Top Tailoring Company has compiled the following data on the small set of products that comprise its specialty clothing division. Perform an ABC analysis on the data. Which products do you suggest the firm keep the tightest control over? Explain.
 $$\begin{array} { | c | c | c | } 
\hline \text { SKU } & \text { Annual Demand } & \text { Unit Cost } \
\hline \text { A11 } & 1,200 & \$ 350 \
\hline \text { B22 } & 100 & \$ 80 \
\hline \text { C33 } & 4,500 & \$ 50 \
\hline \text { D44 } & 400 & \$ 160 \
\hline \text { E55 } & 35 & \$ 75 \
\hline \text { F66 } & 250 & \$ 70 \
\hline \text { G77 } & 1,000 & \$ 125 \
\hline \text { H88 } & 500 & \$ 25 \
\hline \text { I99 } & 200 & \$ 60 \
\hline
\end{array}$$

Accepted Answer

To perform an ABC analysis, we need to c

Question 17

Inventory management is a data-driven approach to improving product availability without other concerns.

Accepted Answer

A) True 
 B)False

Question 18

Raw materials such as steel and car parts in an auto plant waiting to be turned into cars are inventory, but semi-finished cars are not inventory.

Accepted Answer

A) True 
 B)False

Question 19

Lead time for one of Bookworld Publishing's fastest-moving textbooks in the college bookstore is nine days. Demand during this period averages 50 textbooks per day. What would be an appropriate reorder point for your college's bookstore?

Accepted Answer

The reorder point is the level of invent

Question 20

Daily demand for a product is normally distributed with a mean of 1,200 units and a standard deviation of 120 units. The firm currently uses a reorder point system with a lead time of 8 days.
A) What safety stock provides a 49 percent service level?
B) What safety stock provides a 98 percent service level?
C) Does doubling the service level double the amount of safety stock required? Does it double the ROP?

Accepted Answer

A) To calculate the safety stock for a g

Cycle counting

_________ is an ordering policy that orders exactly as much as is required to replenish what has been used.

In a well-constructed paragraph or two, discuss the basic economic order quantity model. What are the assumptions of the EOQ model?

The maximum point of the total inventory cost curve is where the EOQ value occurs.

Which of the following is not one of the three main types of inventory?

Work-in-process inventory is inventory in various stages of completion and includes components and subassemblies.

Phantom inventory is inventory that exists in the mind of the customer but not in the store.

_ and _ costs are the two categories of direct costs of holding inventory.

Physical inventory generally exists in two forms: raw materials and finished goods.

Which of the following statements regarding inventory models is true?

The traditional EOQ model assumes known and stable holding and ordering costs and variable demand.

The _________ system is a method for dividing on-hand inventory into three classifications based on total dollar sales.

Inventory models have to be consistent with the operational realities of capital and resource constraints, for example, in order to realize practical application.

Supply management levers help reduce inventory through

_ and _ analysis are two other inventory management prioritization techniques in addition to the ABC classification system.

Inventory management is a data-driven approach to improving product availability without other concerns.

Raw materials such as steel and car parts in an auto plant waiting to be turned into cars are inventory, but semi-finished cars are not inventory.

Lead time for one of Bookworld Publishing's fastest-moving textbooks in the college bookstore is nine days. Demand during this period averages 50 textbooks per day. What would be an appropriate reorder point for your college's bookstore?

Operations Management and You

Designing Products and Processes

Process and Service Design

Managing Processes

Forecasting

Capacity Planning

Managing Capacity

Managing Quality

Supply Chain Design

Managing Supply Chains

Finding the Right Location

Working With Projects

Filters

Exam 8: Managing Inventory

Cycle counting

_________ is an ordering policy that orders exactly as much as is required to replenish what has been used.

In a well-constructed paragraph or two, discuss the basic economic order quantity model. What are the assumptions of the EOQ model?

The maximum point of the total inventory cost curve is where the EOQ value occurs.

Which of the following is not one of the three main types of inventory?

Work-in-process inventory is inventory in various stages of completion and includes components and subassemblies.

Phantom inventory is inventory that exists in the mind of the customer but not in the store.

_________ and _________ costs are the two categories of direct costs of holding inventory.

Physical inventory generally exists in two forms: raw materials and finished goods.

Which of the following statements regarding inventory models is true?

The traditional EOQ model assumes known and stable holding and ordering costs and variable demand.

The _________ system is a method for dividing on-hand inventory into three classifications based on total dollar sales.

Inventory models have to be consistent with the operational realities of capital and resource constraints, for example, in order to realize practical application.

Supply management levers help reduce inventory through

_________ and _________ analysis are two other inventory management prioritization techniques in addition to the ABC classification system.

Inventory management is a data-driven approach to improving product availability without other concerns.

Raw materials such as steel and car parts in an auto plant waiting to be turned into cars are inventory, but semi-finished cars are not inventory.

Lead time for one of Bookworld Publishing's fastest-moving textbooks in the college bookstore is nine days. Demand during this period averages 50 textbooks per day. What would be an appropriate reorder point for your college's bookstore?

Operations Management and You

Designing Products and Processes

Process and Service Design

Managing Processes

Forecasting

Capacity Planning

Managing Capacity

Managing Quality

Supply Chain Design

Managing Supply Chains

Finding the Right Location

Working With Projects

Filters

_ and _ costs are the two categories of direct costs of holding inventory.

_ and _ analysis are two other inventory management prioritization techniques in addition to the ABC classification system.