Exam 14: Inventory Management for Smooth and Continuous Demand Patterns

Accepting discounts by buying at least a certain amount of material involves _____ costs that may make taking the discount _____.The analysis of total costs with and without the discount is essential.

In an intermittent flow shop the run time is called _____ and non-run time is called _____.

Total carrying costs for the job shop may tend to be higher than those of the flow shop because costs of materials are greater since they are purchased in smaller quantities.

EOQ calls for JIT order quantities when there is extreme reduction of the cost of ordering,extreme reduction of the cost of setting up jobs,and very low costs of carrying inventory.

Minimum total variable cost is associated with an order quantity Q = where is referred to as .

Each unhappy customer represents a loss of goodwill,defined as the termination of the revenue generation of that customer.

Good inventory policy maintains the _____ necessary stock on-hand.

Activity-based costing can help to ascertain an optimal size for the order department

Deterioration affects the carrying cost of a broad range of products including

Sensitivity analysis is defined as

One or more components of lead time is(are) the _____.

The economic lot size is the fixed amount to order,whereas the economic order quantity is the fixed amount to produce whenever the order point is reached.

One of the seven classes of inventory situations is order repetition (e.g.,static vs.dynamic) situations.

Which considerations play a major role in deciding whether to make or buy inventory?

Daisy's dog supply sells popular dog vitamins which have an expected demand of 15,000 jars per year (or 60 bottles per day with 250 sales days per year).Lead time from the distributor is three days.It has been determined that demand in any 3-day period exceeds 200 bottles only once out of every 100 three-day periods.This outage level (of 1 in 100 LT periods) is considered acceptable by Daisy as well as production and marketing VPs.The economic order quantity has been derived as 2,820 jars.Set up the perpetual inventory system.

Lead time is the interval that elapses between recognition that an order should be placed and _____.

There are two parts in the construction of the reorder point.From zero stock to the mean of the lead time distribution is the left hand side of the normal distribution of demand in the lead time period.The right hand side of the lead time bell shape curve is the buffer stock.

Accept a quantity discount _____.

Lead time is the interval between order placement and receipt.

The _____ model involves more than one total cost equation,but only one line segment is applicable in each cost break's range.