Exam 18: Inventory Management: Economic Order Quantity,jit,and the Theory of Constraints
Exam 1: A: Basic Cost Management Concepts239 Questions
Exam 1: B: Basic Cost Management Concepts32 Questions
Exam 2: Cost Behaviour122 Questions
Exam 3: Cost-Volume-Profit Analysis107 Questions
Exam 4: Job-Order Costing Systems102 Questions
Exam 5: Process Costing132 Questions
Exam 6: Activity-Based Costing164 Questions
Exam 7: Allocating Costs of Support Departments and Joint Products137 Questions
Exam 8: Budgeting for Planning and Control154 Questions
Exam 9: Standard Costing: a Functional-Based Control Approach86 Questions
Exam 10: Responsibility Accounting,performance Evaluation,and Transfer Pricing110 Questions
Exam 11: Tactical Decision Making100 Questions
Exam 12: Pricing and Profitability Analysis102 Questions
Exam 13: Strategic Cost Management120 Questions
Exam 14: Activity-Based Management116 Questions
Exam 15: The Balanced Scorecard: Strategic-Based Control94 Questions
Exam 16: Quality and Environmental Cost Management157 Questions
Exam 17: Lean Accounting and Productivity Measurement138 Questions
Exam 18: Inventory Management: Economic Order Quantity,jit,and the Theory of Constraints97 Questions
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The following information is available for Wilson Trailer Company, which sells two products:
Trailer A Trailer B Processing time 2 hours 4 hours Vinyl cover used 16\cdot. 12.. Selling price \ 50.00 \ 80.00 Variable cost \ 35.00 \ 50.00 Fixerl cost \ 10.00 \ 20.00 There are 100 hours available in the plant and 75 square metres of vinyl available per operating period.
-Refer to the figure.What is the constraint equation representing the materials available for the production processes?
(Multiple Choice)
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Air Frame Corporation increased the size of several inventory order quantities that had previously been determined using the EOQ model.What is the impact on the total annual ordering costs?
(Multiple Choice)
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Burley Company has the following information available concerning one of its inventory items:
Cost of placing an order \ 50.00 Unit carrying cost per year \ 2.00 Annual unit demand 3,200 Safety stock 80 Average daily demand 10 Normal lead time in days 12
-Refer to the figure.What is the cost of placing an order?
(Multiple Choice)
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Burley Company has the following information available concerning one of its inventory items:
Cost of placing an order \ 50.00 Unit carrying cost per year \ 2.00 Annual unit demand 3,200 Safety stock 80 Average daily demand 10 Normal lead time in days 12
-Refer to the figure.The company operates 200 days a year,the lead time for the item is 10 days,and the safety stock is 100 units.What is the reorder point?
(Multiple Choice)
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Waterhouse Company decreased the size of inventory order quantities that had previously been determined using the EOQ model.If demand remains the same,what is the impact on the number of orders made during the year?
(Multiple Choice)
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Smith Products Corporation produces two products.The manufacture of these products is partially automated.Total available labour hours are 400,and the total available machine hours are 600.Time requirements and contribution margins per unit for each product are as follows:
Praduct X Praduct Y Labour hours 2 3 Machine hours 4 2 Contribution margin per unit \ 5 \ 4
a.What is the equation to be maximized?
b.What are the equations that express the constraints?
c.What is the greatest number of units of A that can be produced given the constraints?
d.What is the optimal solution?
(Essay)
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A linear programming problem has an objective function of 10X + 12Y.If the optimal solution provided by the model is to produce and sell 400 units of X and 1,000 units of Y,what is the expected return?
(Multiple Choice)
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Hassel Company manufactures two different products, X and Y. The company has 100 kilograms of materials and 300 direct labour hours available for production.
The time requirements and contribution margins per unit are as follows:
Product X Product Y Contribution margin per unit \ 4 \ 5 Materials per unit (kg) 1 2 Direct labour hours per unit 4 2
-Refer to the figure.What is the objective function for maximizing profits?
(Multiple Choice)
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One of the traditional reasons for holding inventory is to take advantage of quantity discounts and hedge against future price increases.What is the JIT solution meant to do?
(Multiple Choice)
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Burley Company has the following information available concerning one of its inventory items:
Cost of placing an order \ 50.00 Unit carrying cost per year \ 2.00 Annual unit demand 3,200 Safety stock 80 Average daily demand 10 Normal lead time in days 12
-Refer to the figure.If there is a delay in shipping the item,approximately how many days can be covered by the safety stock?
(Multiple Choice)
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Heft Company produces A and B with contribution margins per unit of $40 and $30, respectively. Only 500 labour hours and 300 machine hours are available for production.
Time requirements to produce one unit of A and B are as follows:
Product A Praduct B Labour hours per unit 5 2 Machine hours per unit 1 4
-Refer to the figure.What is the constraint on labour hours for Heft Company?
(Multiple Choice)
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Which of the following is not a cost readily identified with inventory management?
(Multiple Choice)
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Which of the following would be included in a linear programming model?
(Multiple Choice)
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Which of the following is NOT a step in the methodology for improving performance under the theory of constraints?
(Multiple Choice)
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What is the term for a marker or card that specifies the quantity that the preceding process should manufacture?
(Multiple Choice)
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