Question 1

One of the basic purposes of inventory analysis in manufacturing and stockkeeping services is to determine how large the orders to vendors should be.

Accepted Answer

A) True 
 B)False  True

Question 2

When stocked items are sold,the optimal inventory decision using marginal analysis is to stock that quantity where the probable profit from the sale or use of the last unit is equal to or greater than the probable losses if the last unit remains unsold.

Accepted Answer

A) True 
 B)False  True

Question 3

One of the drivers of the direct-to-store (direct distribution)approach is the decrease in trucking industry regulation.

Accepted Answer

A) True 
 B)False  False

Question 4

What is the name of a physical inventory-taking technique that focuses only on certain items and counts more often than once or twice a year? ______________________________________

Accepted Answer

Cycle counting
Explanation: Cy

Question 5

Shortage costs are precise and easy to measure.

Accepted Answer

A) True 
 B)False

Question 6

Using the fixed-time period inventory model,and given an average daily demand of 15 units,3 days between inventory reviews,1 day for lead time,30 units of inventory on hand,a service probability of 98 percent,and a standard deviation of daily demand is 3 units,which of the following is the order quantity?

Accepted Answer

A)  About 30.4 
B)  About 36.3 
C)  About 42.3 
D)  About 56.8 
E)  About 59.8 
A)  About 30.4 
B)  About 36.3 
C)  About 42.3 
D)  About 56.8 
E)  About 59.8

Question 7

Fixed-order quantity inventory models are "event triggered."

Accepted Answer

A) True 
 B)False

Question 8

In a price break model of lot sizing,to find the lowest-cost order quantity,it is sometimes necessary to calculate the economic order quantity for each possible price and to check to see whether the lowest cost quantity is feasible.

Accepted Answer

A) True 
 B)False

Question 9

One of the daily,delicate balancing acts that Logistics managers have to perform involves the trade-off between customer satisfaction and cost to serve.

Accepted Answer

A) True 
 B)False

Question 10

What is the term for there being no relationship between demands for various items? _____________________________________

Accepted Answer

Independent demand
Explanation

Question 11

The computation of a firm's inventory position is found by taking the inventory on hand and adding it to the on-order inventory,and then subtracting back-ordered inventory.

Accepted Answer

A) True 
 B)False

Question 12

One of the drivers of the direct-to-store (direct distribution)approach is the increase in global sourcing.

Accepted Answer

A) True 
 B)False

Question 13

Fixed-time period inventory models generate order quantities that vary from time period to time period,depending on the usage rate.

Accepted Answer

A) True 
 B)False

Question 14

In the fixed-time period model it is necessary to determine the inventory currently on hand to calculate the size of the order to place with a vendor.

Accepted Answer

A) True 
 B)False

Question 15

Which of the following is an assumption of the basic fixed-order quantity inventory model?

Accepted Answer

A)  Lead times are averaged 
B)  Ordering costs are variable 
C)  Price per unit of product is constant 
D)  Back orders are allowed 
E)  Stock-out costs are high 
A)  Lead times are averaged 
B)  Ordering costs are variable 
C)  Price per unit of product is constant 
D)  Back orders are allowed 
E)  Stock-out costs are high

Question 16

Some inventory situations involve placing orders to cover only one demand period or to cover short-lived items at frequent intervals.

Accepted Answer

A) True 
 B)False

Question 17

One of the basic purposes of inventory analysis in manufacturing and stockkeeping services is to determine the level of quality to specify.

Accepted Answer

A) True 
 B)False

Question 18

An inventory system is a set of policies and controls that monitors levels of inventory and determines what levels should be maintained,when stock should be replenished,and how large orders should be.

Accepted Answer

A) True 
 B)False

Question 19

Inventory is defined as the stock of any item or resource used in an organization.

Accepted Answer

A) True 
 B)False

Question 20

Price-break models deal with discrete or step changes in price as order size changes rather than a per-unit change.

Accepted Answer

A) True 
 B)False

One of the basic purposes of inventory analysis in manufacturing and stockkeeping services is to determine how large the orders to vendors should be.

When stocked items are sold,the optimal inventory decision using marginal analysis is to stock that quantity where the probable profit from the sale or use of the last unit is equal to or greater than the probable losses if the last unit remains unsold.

One of the drivers of the direct-to-store (direct distribution)approach is the decrease in trucking industry regulation.

What is the name of a physical inventory-taking technique that focuses only on certain items and counts more often than once or twice a year? ______________________________________

Shortage costs are precise and easy to measure.

Fixed-order quantity inventory models are "event triggered."

In a price break model of lot sizing,to find the lowest-cost order quantity,it is sometimes necessary to calculate the economic order quantity for each possible price and to check to see whether the lowest cost quantity is feasible.

One of the daily,delicate balancing acts that Logistics managers have to perform involves the trade-off between customer satisfaction and cost to serve.

What is the term for there being no relationship between demands for various items? _____________________________________

The computation of a firm's inventory position is found by taking the inventory on hand and adding it to the on-order inventory,and then subtracting back-ordered inventory.

One of the drivers of the direct-to-store (direct distribution)approach is the increase in global sourcing.

Fixed-time period inventory models generate order quantities that vary from time period to time period,depending on the usage rate.

In the fixed-time period model it is necessary to determine the inventory currently on hand to calculate the size of the order to place with a vendor.

Which of the following is an assumption of the basic fixed-order quantity inventory model?

Some inventory situations involve placing orders to cover only one demand period or to cover short-lived items at frequent intervals.

One of the basic purposes of inventory analysis in manufacturing and stockkeeping services is to determine the level of quality to specify.

An inventory system is a set of policies and controls that monitors levels of inventory and determines what levels should be maintained,when stock should be replenished,and how large orders should be.

Inventory is defined as the stock of any item or resource used in an organization.

Price-break models deal with discrete or step changes in price as order size changes rather than a per-unit change.

Operations and Supply Chain Management

Strategy and Sustainability

Forecasting

Strategic Capacity Management

Projects

Manufacturing and Service Processes

Service Processes

Sales and Operations Planning

Material Requirements Planning

Quality Management and Six Sigma

Lean Supply Chains

Global Sourcing and Procurement

Location, Logistics, and Distribution

Filters

Exam 11: Inventory Management

One of the basic purposes of inventory analysis in manufacturing and stockkeeping services is to determine how large the orders to vendors should be.

When stocked items are sold,the optimal inventory decision using marginal analysis is to stock that quantity where the probable profit from the sale or use of the last unit is equal to or greater than the probable losses if the last unit remains unsold.

One of the drivers of the direct-to-store (direct distribution)approach is the decrease in trucking industry regulation.

What is the name of a physical inventory-taking technique that focuses only on certain items and counts more often than once or twice a year? ______________________________________

Shortage costs are precise and easy to measure.

Fixed-order quantity inventory models are "event triggered."

In a price break model of lot sizing,to find the lowest-cost order quantity,it is sometimes necessary to calculate the economic order quantity for each possible price and to check to see whether the lowest cost quantity is feasible.

One of the daily,delicate balancing acts that Logistics managers have to perform involves the trade-off between customer satisfaction and cost to serve.

What is the term for there being no relationship between demands for various items? _____________________________________

The computation of a firm's inventory position is found by taking the inventory on hand and adding it to the on-order inventory,and then subtracting back-ordered inventory.

One of the drivers of the direct-to-store (direct distribution)approach is the increase in global sourcing.

Fixed-time period inventory models generate order quantities that vary from time period to time period,depending on the usage rate.

In the fixed-time period model it is necessary to determine the inventory currently on hand to calculate the size of the order to place with a vendor.

Which of the following is an assumption of the basic fixed-order quantity inventory model?

Some inventory situations involve placing orders to cover only one demand period or to cover short-lived items at frequent intervals.

One of the basic purposes of inventory analysis in manufacturing and stockkeeping services is to determine the level of quality to specify.

An inventory system is a set of policies and controls that monitors levels of inventory and determines what levels should be maintained,when stock should be replenished,and how large orders should be.

Inventory is defined as the stock of any item or resource used in an organization.

Price-break models deal with discrete or step changes in price as order size changes rather than a per-unit change.

Operations and Supply Chain Management

Strategy and Sustainability

Forecasting

Strategic Capacity Management

Projects

Manufacturing and Service Processes

Service Processes

Sales and Operations Planning

Material Requirements Planning

Quality Management and Six Sigma

Lean Supply Chains

Global Sourcing and Procurement

Location, Logistics, and Distribution

Filters