Exam 15: Independent Demand Inventory

Transit inventories are also referred to as pipeline inventories because they consist of materials that are on their way from one point to another point in the supply chain.

Safety stock inventory is:

A computerized inventory system checks inventory levels at the end of the week and produces suggested orders for the coming week.What kind of system is this?

The carrying cost for inventory consists of which cost components?

If the Economic Order Quantity for an item is 140,what is the average number of cycle inventory units?

Service levels is:

Given that unit cost = $25,annual carrying charge = 10%,annual demand = 4000 units and ordering cost = $15 per order,the EOQ is:

If the actual order quantity Q is much larger than the Economic Order Quantity:

At the Economic Order Quantity:

Transportation cost is an example of:

Of the cost elements making up total inventory cost,which is the most difficult to estimate?

A particular brand of soap has a lead time of three weeks to reorder,a weekly standard deviation of ten units and a weekly average usage of 30 units.The reorder point for this soap,assuming a 95% service level (z = 1.645),is:

Assuming that we are currently placing orders in EOQ amounts,an increase in the order quantity would increase annual ordering costs.

Which of the following is NOT a purpose of inventory?

The choice between P and Q systems should be based on:

Capacity,as opposed to inventory:

A paint supplier that places orders for different colors of paint for delivery at the same time should use a:

Dependent demand items are subject to market forces and often have predictable demand patterns.

Which of the following statements is NOT true about managing inventory in supply chains?

The total cost per year for question 9,assuming no stockouts,is approximately equal to: