Question 1

Choosing a larger order size may indicate an intuition that in the future,prices will fall.

Accepted Answer

A) True 
 B)False

Question 2

The most important requirement for EOQ and ELS is consistency of independent demand over time with relatively smooth and regular withdrawal patterns of units from stock.

Accepted Answer

A) True 
 B)False

Question 3

The equation for total variable cost is:

Accepted Answer

A)    
B)    
C)    
D)    
A)    
B)    
C)    
D)

Question 4

Lead times are usually _____.

Accepted Answer

A) fixed 
B) variable 
C) constant 
D) static 
A) fixed 
B) variable 
C) constant 
D) static

Question 5

_____ also include the expense of storing inventory.

Accepted Answer

A) Inventory carrying costs 
B) Set-up costs 
C) Diversification strategies 
D) both a and c 
A) Inventory carrying costs 
B) Set-up costs 
C) Diversification strategies 
D) both a and c

Question 6

Identify reasons that account for a producer storing output for batch delivery to certain customers at specific times.

Accepted Answer

A) lack of storage space at the buyer's site 
B) delivery economics 
C) JIT agreements between supplier and buyer. 
D) all of the above 
A) lack of storage space at the buyer's site 
B) delivery economics 
C) JIT agreements between supplier and buyer. 
D) all of the above

Question 7

What are EOQ and ELS? How are they different?

Accepted Answer

The EOQ or economic order quantity is a

Question 8

The two major types of applications of order point policies are the perpetual inventory system and the periodic inventory system.

Accepted Answer

A) True 
 B)False

Question 9

Expediting is the process of keeping track of the state of an order and doing what is necessary to facilitate keeping the delivery of that order on schedule.

Accepted Answer

A) True 
 B)False

Question 10

Which one choice is not part of the seven classes of inventory situations?

Accepted Answer

A) make or buy decisions 
B) order repetition 
C) inventory reduction decisions 
D) lead-time distributions 
A) make or buy decisions 
B) order repetition 
C) inventory reduction decisions 
D) lead-time distributions

Question 11

When do EOQ's square root models indicate the use of JIT? Discuss the conditions.

Accepted Answer

EOQ models,also called square root model

Question 12

_____ inventory systems were more popular than _____ inventory systems before inventory information was digitized and put online.

Accepted Answer

A) Periodic;physical 
B) Physical;periodic 
C) Periodic;perpetual 
D) Perpetual;periodic 
A) Periodic;physical 
B) Physical;periodic 
C) Periodic;perpetual 
D) Perpetual;periodic

Question 13

Just in time is the interval between reordering and receiving that order and readying the units for use.

Accepted Answer

A) True 
 B)False

Question 14

Continuing with the information about Enviroguard in another problem,the company could make this chemical in-house at the rate of 1/8 = 0.125 gallon per day,at a cost of $300 per gallon.The setup cost is $150.Using a 7-day week,the daily demand,d,is 1/21 = 0.0477.Compare using the EOQ and the ELS systems.What course of action do you recommend?

Accepted Answer

EOQ:
D = 1/3 gal/wk × 52 wks/yr = 17.33

Question 15

Explain the main difference between static and dynamic inventory models.

Accepted Answer

Order repetition is the key to the expla

Question 16

Explain vendor releasing agreements.

Accepted Answer

There is a loophole for JIT enthusiasts

Question 17

Order point policies define the stock level at which an order will be placed.

Accepted Answer

A) True 
 B)False

Question 18

When the supplier agrees to deliver small JIT quantities of the larger order on a specified schedule the agreement is called vendor releasing.The pricing schedule is based on the large order size.

Accepted Answer

A) True 
 B)False

Question 19

Expediting is used to control and improve lead times in

Accepted Answer

A) the plant. 
B) the office. 
C) with outside suppliers and shippers. 
D) all of the above 
A) the plant. 
B) the office. 
C) with outside suppliers and shippers. 
D) all of the above

Question 20

Lack of coordination diminishes buying power and loses the knowledge-based benefits of the centralized system.

Accepted Answer

A) True 
 B)False

Choosing a larger order size may indicate an intuition that in the future,prices will fall.

The most important requirement for EOQ and ELS is consistency of independent demand over time with relatively smooth and regular withdrawal patterns of units from stock.

The equation for total variable cost is:

Lead times are usually _____.

_____ also include the expense of storing inventory.

Identify reasons that account for a producer storing output for batch delivery to certain customers at specific times.

What are EOQ and ELS? How are they different?

The two major types of applications of order point policies are the perpetual inventory system and the periodic inventory system.

Expediting is the process of keeping track of the state of an order and doing what is necessary to facilitate keeping the delivery of that order on schedule.

Which one choice is not part of the seven classes of inventory situations?

When do EOQ's square root models indicate the use of JIT? Discuss the conditions.

_ inventory systems were more popular than _ inventory systems before inventory information was digitized and put online.

Just in time is the interval between reordering and receiving that order and readying the units for use.

Explain the main difference between static and dynamic inventory models.

Explain vendor releasing agreements.

Order point policies define the stock level at which an order will be placed.

When the supplier agrees to deliver small JIT quantities of the larger order on a specified schedule the agreement is called vendor releasing.The pricing schedule is based on the large order size.

Expediting is used to control and improve lead times in

Lack of coordination diminishes buying power and loses the knowledge-based benefits of the centralized system.

Product Line Planning and the Systems Approach

Productivity and Strategic Planning

Demand Creation and Predictive Planning

Understanding Quality: ITS Management and Strategic Importance

Process Configuration Strategies

Process Analysis and Redesign

Quality Assurance

Management of Technology Mot

Teamwork Planning Requires Job Design

Supply Chain Capacity Planning

Facilities Planning: Location and Layout

Materials Management Impacts All Supply Chain Participants

Aggregate Planning to Balance Supply and Demand

Material Requirements Planning Mrp for Sporadic Demand Patterns

Production Scheduling for Manufacturing and Service Operations

Cycle-Time Management Increases Productivity

Project Management for New Products and Processes

Change Management With Faster Project Completions

Sustainability Issues: Environment, Ethics, and Security

Filters

Exam 14: Inventory Management for Smooth and Continuous Demand Patterns

Choosing a larger order size may indicate an intuition that in the future,prices will fall.

The most important requirement for EOQ and ELS is consistency of independent demand over time with relatively smooth and regular withdrawal patterns of units from stock.

The equation for total variable cost is:

Lead times are usually _____.

_____ also include the expense of storing inventory.

Identify reasons that account for a producer storing output for batch delivery to certain customers at specific times.

What are EOQ and ELS? How are they different?

The two major types of applications of order point policies are the perpetual inventory system and the periodic inventory system.

Expediting is the process of keeping track of the state of an order and doing what is necessary to facilitate keeping the delivery of that order on schedule.

Which one choice is not part of the seven classes of inventory situations?

When do EOQ's square root models indicate the use of JIT? Discuss the conditions.

_____ inventory systems were more popular than _____ inventory systems before inventory information was digitized and put online.

Just in time is the interval between reordering and receiving that order and readying the units for use.

Explain the main difference between static and dynamic inventory models.

Explain vendor releasing agreements.

Order point policies define the stock level at which an order will be placed.

When the supplier agrees to deliver small JIT quantities of the larger order on a specified schedule the agreement is called vendor releasing.The pricing schedule is based on the large order size.

Expediting is used to control and improve lead times in

Lack of coordination diminishes buying power and loses the knowledge-based benefits of the centralized system.

Product Line Planning and the Systems Approach

Productivity and Strategic Planning

Demand Creation and Predictive Planning

Understanding Quality: ITS Management and Strategic Importance

Process Configuration Strategies

Process Analysis and Redesign

Quality Assurance

Management of Technology Mot

Teamwork Planning Requires Job Design

Supply Chain Capacity Planning

Facilities Planning: Location and Layout

Materials Management Impacts All Supply Chain Participants

Aggregate Planning to Balance Supply and Demand

Material Requirements Planning Mrp for Sporadic Demand Patterns

Production Scheduling for Manufacturing and Service Operations

Cycle-Time Management Increases Productivity

Project Management for New Products and Processes

Change Management With Faster Project Completions

Sustainability Issues: Environment, Ethics, and Security

Filters

_ inventory systems were more popular than _ inventory systems before inventory information was digitized and put online.