Exam 15: Managing Service Inventory

For seasonal items a ________ system could be used to manage inventory.

One role of holding inventory is to hedge against anticipated increases in the cost of the inventoried items.

Which of the following features is not associated with the periodic review system?

In the critical fractile ratio, the numerator refers to the cost of overestimating demand.

Forward buying is used to avoid expensive interruptions of service, as a stock out at any stage of the physical goods distribution system would have far-reaching consequences for the other stages.

A continuous review system is generally used for Class C items in the ABC system of classification.

Inventory management is concerned with two basic questions: how much to order and when to place an order.

Lead time inventories are stocks that have been ordered but not yet received.

When a quantity discount is offered, the first step should be to compute ________.

For an electronic super store using the ABC inventory classification system, ________ would fall in class A.

Which of the following is not a role that inventories play in a distribution system?

In the design of an inventory system all of the following is considered except ________.

Inventory management costs include all of the following, except ________.

The elimination of paper-based documents between organizations is made possible by ________.

'Shelf life' can be a constraint on the amount of inventory held.

Point-of-sale scanning became feasible only when industry agreed upon a universal system of bar coding.

In the 'news vendor problem', the underlying concept is that the news vendor should continue increasing the stock until the expected loss on the last sale ________ the expected revenue on the last unit stocked.

Penalties for late delivery or nondelivery are part of shortage costs.

The total inventory for a retailer is comprised of in-transit inventory, safety stock, and ________ inventory.

Taxes and insurance would fall under ________ costs.