Question 1

The help or FAQ section of any website can be considered as service inventory.

Accepted Answer

A) True 
 B)False

Question 2

High stock-out costs relative to holding costs should lead to recommendations for larger orders.

Accepted Answer

A) True 
 B)False

Question 3

The ROP (reorder point) model is also known as the continuous review system, and it is used to determine when to place orders.

Accepted Answer

A) True 
 B)False

Question 4

Inventory management is important because it can contribute substantially to corporate performance and profits.

Accepted Answer

A) True 
 B)False

Question 5

Inventory management making data driven-decisions on what is to be stored, how much is to be stored, and when to replenish inventory stock.

Accepted Answer

A) True 
 B)False

Question 6

Inventory decisions only affect accounting and operations functions in an organization.

Accepted Answer

A) True 
 B)False

Question 7

Higher levels of inventory would lead to higher CSLs and fill rates.

Accepted Answer

A) True 
 B)False

Question 8

Inventory is a product or service that we could make or provide after the customer asks for it, but we choose to make and store now.

Accepted Answer

A) True 
 B)False

Question 9

Holding inventory is an important strategy to decrease waste and improve motivation.

Accepted Answer

A) True 
 B)False

Question 10

The EOQ model recommends a maximum order quantity that minimizes the ordering costs.

Accepted Answer

A) True 
 B)False

Question 11

Depreciation of capital equipment is a major contributor to inventory holding cost.

Accepted Answer

A) True 
 B)False

Question 12

Effective inventory management targets reducing inventory levels through the application of inventory models.

Accepted Answer

A) True 
 B)False

Question 13

The EOQ (economic order quantity) model results in a variable order quantity because it considers the cost of placing orders and the cost of carrying inventory.

Accepted Answer

A) True 
 B)False

Question 14

_________ is a product or service that can be made or provided and stored in advanced of anticipated customer demand.

Accepted Answer

The answer of _________ is a product or service that...

Question 15

Big Ike Wheels stocks high-demand cycle rims that have a normally distributed demand during the reorder period. The average daily demand is 75 rims. If the lead time is 4 days and the standard deviation of demand during the reorder period is 15, what is
A) the amount of safety stock needed to provide a 95 percent service level to their customers
B) the reorder point

Accepted Answer

A) To calculate the amount of safety sto

Question 16

Phantom inventory is created when

Accepted Answer

A)  Actual physical stock is zero because of RFID technologies. 
B)  Physical stock does not match computer stock. 
C)  Physical stock is greater than computer stock. 
D)  All of the above cause phantom inventory. 
A)  Actual physical stock is zero because of RFID technologies. 
B)  Physical stock does not match computer stock. 
C)  Physical stock is greater than computer stock. 
D)  All of the above cause phantom inventory.

Question 17

_________ is an analytical approach to making intelligent cost and customer service driven decisions.

Accepted Answer

The answer of _________ is an analytical approach to making...

Question 18

Identify and briefly describe the three types of inventory.

Accepted Answer

The three types of inventory typically r

The help or FAQ section of any website can be considered as service inventory.

High stock-out costs relative to holding costs should lead to recommendations for larger orders.

The ROP (reorder point) model is also known as the continuous review system, and it is used to determine when to place orders.

Inventory management is important because it can contribute substantially to corporate performance and profits.

Inventory management making data driven-decisions on what is to be stored, how much is to be stored, and when to replenish inventory stock.

Inventory decisions only affect accounting and operations functions in an organization.

Higher levels of inventory would lead to higher CSLs and fill rates.

Inventory is a product or service that we could make or provide after the customer asks for it, but we choose to make and store now.

Holding inventory is an important strategy to decrease waste and improve motivation.

The EOQ model recommends a maximum order quantity that minimizes the ordering costs.

Depreciation of capital equipment is a major contributor to inventory holding cost.

Effective inventory management targets reducing inventory levels through the application of inventory models.

The EOQ (economic order quantity) model results in a variable order quantity because it considers the cost of placing orders and the cost of carrying inventory.

_________ is a product or service that can be made or provided and stored in advanced of anticipated customer demand.

Phantom inventory is created when

_________ is an analytical approach to making intelligent cost and customer service driven decisions.

Identify and briefly describe the three types of inventory.

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

The help or FAQ section of any website can be considered as service inventory.

High stock-out costs relative to holding costs should lead to recommendations for larger orders.

The ROP (reorder point) model is also known as the continuous review system, and it is used to determine when to place orders.

Inventory management is important because it can contribute substantially to corporate performance and profits.

Inventory management making data driven-decisions on what is to be stored, how much is to be stored, and when to replenish inventory stock.

Inventory decisions only affect accounting and operations functions in an organization.

Higher levels of inventory would lead to higher CSLs and fill rates.

Inventory is a product or service that we could make or provide after the customer asks for it, but we choose to make and store now.

Holding inventory is an important strategy to decrease waste and improve motivation.

The EOQ model recommends a maximum order quantity that minimizes the ordering costs.

Depreciation of capital equipment is a major contributor to inventory holding cost.

Effective inventory management targets reducing inventory levels through the application of inventory models.

The EOQ (economic order quantity) model results in a variable order quantity because it considers the cost of placing orders and the cost of carrying inventory.

_________ is a product or service that can be made or provided and stored in advanced of anticipated customer demand.

Phantom inventory is created when

_________ is an analytical approach to making intelligent cost and customer service driven decisions.

Identify and briefly describe the three types of inventory.

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