Exam 14: Inventory Management for Smooth and Continuous Demand Patterns

ELS models can provide continuous delivery of product instead of delivery in batches.

Perpetual inventory systems continuously record inventory received from suppliers and withdrawn by employees.

Accept a quantity discount only when it _____ the total costs.

What is buffer stock?

Contingency planning for cancellations is better production management than reacting to cancellations after the fact.

Obsolescence may be the most important component of carrying cost because it happens so _____ and so _____.

The maximum total variable cost always occurs at the cross point of Lines A and B, e.g.,as shown in Figure 14-3.Line A is the variable carrying cost as a function of ordering quantity,Q.Line B is the variable ordering cost as a function of Q.

One of the major inventory costs for EOQ modeling is

Signing a contract to supply a given number of units converts _____ from a risk to a _____.

JIT has different meanings for job shops and flow shops.

Expanded production capacity and _____ are typical opportunities to make good investments with funds that might otherwise be put into carrying more stock on hand.

What factors below have a direct effect on carrying costs?

_____ methods are applicable when demand distributions are predictable.

Processing costs that are associated with running the inventory system are referred to as _____ costs.