Question 1

Inventory is made internally or purchased externally.The decision is based on quality factors alone.

Accepted Answer

A) True 
 B)False

Question 2

What is the main difference between perpetual and periodic inventory system?

Accepted Answer

The perpetual inventory system continuou

Question 3

Static inventory models are best explained by

Accepted Answer

A) how much to order in a one-shot decision. 
B) how much to order in a fixed amount as required repetitively over a long time. 
C) maintaining stock on-hand for every practical reason that materials are needed. 
D) ordering additional stock to prevent outages arising from unexpected demands. 
A) how much to order in a one-shot decision. 
B) how much to order in a fixed amount as required repetitively over a long time. 
C) maintaining stock on-hand for every practical reason that materials are needed. 
D) ordering additional stock to prevent outages arising from unexpected demands.

Question 4

What professional society has played an influential role in the inventory management area?

Accepted Answer

A) APICS 
B) AMA 
C) ABPI 
D) ACDM 
A) APICS 
B) AMA 
C) ABPI 
D) ACDM

Question 5

Vendor releasing is where the buyer agrees to purchase large increments at one time.

Accepted Answer

A) True 
 B)False

Question 6

_____ costs are not changed by the order size or frequency of ordering,so they are not included in the inventory policy model.

Accepted Answer

A) Fixed 
B) Variable 
C) Overhead 
D) Order 
A) Fixed 
B) Variable 
C) Overhead 
D) Order

Question 7

Total inventory carrying costs are variable costs that depend upon the average number of units stocked   ,the cost per unit   ,and _____.

Accepted Answer

A) TC,total inventory costs 
B) Q,the number of units per order 
C)    ,the number of orders placed 
D) applicable carrying cost interest rate 
A) TC,total inventory costs 
B) Q,the number of units per order 
C)    ,the number of orders placed 
D) applicable carrying cost interest rate

Question 8

Can discounts have a cost? Discuss.

Accepted Answer

Accepting discounts by buying at least a

Question 9

Enviroguard Pest Control uses termite chemicals that cost $500 per gallon.Use is constant at 1/3 gallon per week.Carrying cost rate is considered to be 12 percent per year,and the cost of an order is $125.What is the optimal EOQ for the reagent?

Accepted Answer

D = 1/3 gal/wk × 52

Question 10

The _____ triangle of the ELS model (see Figure 14-6) represents demand per day.

Accepted Answer

A) downward sloping right side of the B 
B) upward sloping left side of the A 
C) upward sloping right side of the B 
D) downward sloping left side of the A 
A) downward sloping right side of the B 
B) upward sloping left side of the A 
C) upward sloping right side of the B 
D) downward sloping left side of the A

Question 11

The cost of ordering materials for the _____ is often higher than for the flow shop because of _____.

Accepted Answer

A) job shop;high variety and small quantities 
B) synchronized shop;JIT requirements 
C) project system;union relations 
D) custom shop;the vendor release arrangement 
A) job shop;high variety and small quantities 
B) synchronized shop;JIT requirements 
C) project system;union relations 
D) custom shop;the vendor release arrangement

Question 12

Extra expenses for taking a quantity discount should be compared to the savings obtained from the discount.Extra expenses include

Accepted Answer

A) carrying cost. 
B) storage space. 
C) both a and b 
D) neither a nor b 
A) carrying cost. 
B) storage space. 
C) both a and b 
D) neither a nor b

Question 13

Inventory management encompasses the widest spectrum of activities related to materials.

Accepted Answer

A) True 
 B)False

Question 14

Systems involving many stock-keeping units are dependent upon having an organized information system.

Accepted Answer

A) True 
 B)False

Question 15

Set-up costs are the cost of labor to do the set-up work for the new production run and the cost of lost production created by facility shut down during changeover.

Accepted Answer

A) True 
 B)False

Question 16

Flexible manufacturing systems (FMS) are notable for their ability to provide fast changeovers,but the expense of the _____ makes the costs of the changeovers high.

Accepted Answer

A) equipment 
B) inventory 
C) materials 
D) goods 
A) equipment 
B) inventory 
C) materials 
D) goods

Question 17

Expediting cannot control lead times.

Accepted Answer

A) True 
 B)False

Question 18

The success of _____ is dependent upon having trusted relations with few suppliers.

Accepted Answer

A) flow shop design 
B) just-in-time (JIT) 
C) job shop hopping 
D) vendor releasing 
A) flow shop design 
B) just-in-time (JIT) 
C) job shop hopping 
D) vendor releasing

Question 19

The ELS model gets its name from the fact that the production run quantity is called a _____.

Accepted Answer

A) batch 
B) lot 
C) rate 
D) economic shipping size 
A) batch 
B) lot 
C) rate 
D) economic shipping size

Question 20

Lead times are usually fixed.

Accepted Answer

A) True 
 B)False

Inventory is made internally or purchased externally.The decision is based on quality factors alone.

What is the main difference between perpetual and periodic inventory system?

Static inventory models are best explained by

What professional society has played an influential role in the inventory management area?

Vendor releasing is where the buyer agrees to purchase large increments at one time.

_____ costs are not changed by the order size or frequency of ordering,so they are not included in the inventory policy model.

Total inventory carrying costs are variable costs that depend upon the average number of units stocked ,the cost per unit ,and _____.

Can discounts have a cost? Discuss.

Enviroguard Pest Control uses termite chemicals that cost $500 per gallon.Use is constant at 1/3 gallon per week.Carrying cost rate is considered to be 12 percent per year,and the cost of an order is $125.What is the optimal EOQ for the reagent?

The _____ triangle of the ELS model (see Figure 14-6) represents demand per day.

The cost of ordering materials for the _ is often higher than for the flow shop because of _.

Extra expenses for taking a quantity discount should be compared to the savings obtained from the discount.Extra expenses include

Inventory management encompasses the widest spectrum of activities related to materials.

Systems involving many stock-keeping units are dependent upon having an organized information system.

Set-up costs are the cost of labor to do the set-up work for the new production run and the cost of lost production created by facility shut down during changeover.

Flexible manufacturing systems (FMS) are notable for their ability to provide fast changeovers,but the expense of the _____ makes the costs of the changeovers high.

Expediting cannot control lead times.

The success of _____ is dependent upon having trusted relations with few suppliers.

The ELS model gets its name from the fact that the production run quantity is called a _____.

Lead times are usually fixed.

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

Inventory is made internally or purchased externally.The decision is based on quality factors alone.

What is the main difference between perpetual and periodic inventory system?

Static inventory models are best explained by

What professional society has played an influential role in the inventory management area?

Vendor releasing is where the buyer agrees to purchase large increments at one time.

_____ costs are not changed by the order size or frequency of ordering,so they are not included in the inventory policy model.

Total inventory carrying costs are variable costs that depend upon the average number of units stocked ,the cost per unit ,and _____.

Can discounts have a cost? Discuss.

Enviroguard Pest Control uses termite chemicals that cost $500 per gallon.Use is constant at 1/3 gallon per week.Carrying cost rate is considered to be 12 percent per year,and the cost of an order is $125.What is the optimal EOQ for the reagent?

The _____ triangle of the ELS model (see Figure 14-6) represents demand per day.

The cost of ordering materials for the _____ is often higher than for the flow shop because of _____.

Extra expenses for taking a quantity discount should be compared to the savings obtained from the discount.Extra expenses include

Inventory management encompasses the widest spectrum of activities related to materials.

Systems involving many stock-keeping units are dependent upon having an organized information system.

Set-up costs are the cost of labor to do the set-up work for the new production run and the cost of lost production created by facility shut down during changeover.

Flexible manufacturing systems (FMS) are notable for their ability to provide fast changeovers,but the expense of the _____ makes the costs of the changeovers high.

Expediting cannot control lead times.

The success of _____ is dependent upon having trusted relations with few suppliers.

The ELS model gets its name from the fact that the production run quantity is called a _____.

Lead times are usually fixed.

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

The cost of ordering materials for the _ is often higher than for the flow shop because of _.