Exam 14: Inventory Management for Smooth and Continuous Demand Patterns

The status of work in process (WIP) can be monitored by means of _____,_____,and _____.

_____ inventory systems continuously record inventory received from suppliers and withdrawn by employees.

As lead times get _____,inventory systems become _____ sensitive to problems that can arise in the supply chain.

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

Water testing at the olympic-size city pool requires a chemical that costs $400 per gallon.Use is constant at 1/3 gallon per week.Carrying cost rate is considered to be 10 percent per year,and the cost of an order is $100.What is the optimal EOQ for the reagent?

Freshness dating puts pressure on operations to make and deliver products as much before the freshness date as possible.This results in a decrease in the amount of inventory being carried.

Backorder costs include the effects of word-of-mouth praise on obtaining new customers.

Web-based tools provide real-time tracking of shipments from the time of order to delivery.

Buffer stock is stock carried to prevent outages when supply exceeds expectations.

_____ is extra stock so that when demand is heavier than expected,orders can still be filled.

_____ models are also called square root models.

The push system of production does not allow deliveries to be made to a workstation until that workstation calls for one or more units of supplies.

Continuing with the information about the city pool chemical testing in another problem,the city could make this reagent at the rate of 1/4 gallon per day,at a cost of $500 per gallon.The setup cost is $125.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?

Because of the efficient serialized production of the job shop,ordering costs are low.

The importance of being on time with project completions has led to the development of

What are the six inventory costs discussed in this chapter.

In the IFS,the average number of units carried in stock is determined by the production rate,the run time,and the demand rate.

The ELS triangle is divided into two right triangles called A and B.The upward slope of the left side of the A triangle represents the net rate of accumulation of the stock on hand.

The minimum value of TVC can be obtained by _____ methods.

Inventory is comprised of those stocks of items,merchandise,articles,necessities,etc.used to support production and operations,as well as all activities that maintain the processes of the organization,and that provide customer services.