Exam 15: Managing Service Inventory

Which item below would not be a good candidate for a planned shortage model?

Which one of the following is the most important for a continuous review system?

Obsolescence is part of shortage costs.

ABC analysis is an application of the 80-20 rule.

In the annual cost curve for the EOQ model, the ordering cost ________ with the order quantity.

Service level influences ________.

Which of the following concepts is not associated with the 'news vendor problem'?

An inventory model with quantity discounts has all of the following features, except ________.

In retailing, profit is a function of mark-up multiplied by turnover.

Which one of the following is most affected by the bullwhip effect?

Radio Frequency Identification (RFID) is replacing bar coding.

Patients waiting for heart transplants are an example of an inventory model that has a backorder cost of zero.

In the ABC inventory classification, C items can best be described as ________.

The central idea in the retail discounting model is that ________.

POS scanning is used to initiate a purchase order to a pre-approved vendor automatically when the stock levels are depleted (or reach a reorder point).

Dependent demand is described by a probability distribution.

Equating the annual holding and ordering costs can be used to derive the EOQ formula.

The strategy of maintaining a speculative inventory is known as forward hedging.

Information management has been the key in allowing services to meet customer demands without incurring the expense of excess inventory.

For the planned shortage model, when the cost of backorders approaches zero, the order quantity becomes undefined.