Exam 19: Inventory management with uncertain demand

A multiechelon inventory system is a system with multiple echelons of inventory where each echelon is used to replenish the inventories at the various sites of the next lower echelon

Which one of the following is not generally a determinant of the reorder point?

The EOQ and (R,Q)models are appropriate if unused items can be carried over into subsequent time periods

The goal of the perishable product model is to identify the order quantity that will minimize the shortage costs

The need for safety stocks can be reduced by an operation strategy which:

The reorder point equals the average sales during lead time plus the number of backlogged items

When the item is offered for resale,shortage costs in the perishable product model can include a charge for loss of customer goodwill

To provide satisfactory levels of customer service while keeping inventory costs within reasonable bounds,two fundamental decisions must be made about inventory: the timing and size of orders

Which of the following is not an assumption of the perishable product model?

A company's supply chain consists of the flow of materials and information from suppliers,through production,to the end users

Holding backorders when shortages occur and then filling them when inventory is replenished is referred to as shortordering

In the ABC control method,items that have high unit costs are always classified as A items

The ABC control method involves classifying items by unit cost

If average demand for an inventory item is 200 units per day,lead time is three days,and safety stock is 100 units,the reorder point is:

Which inventory model is most appropriate if unused or unsold items cannot be carried over to subsequent periods?

In a perishable products model,if shortage and excess costs are equal,then the optimum service level is:

If,in a perishable product inventory situation,the probabilities of demand being 1,2,3,or 4 units are 0 3,0 3,0 2,and 0 2 respectively,what is the service level if two units are stocked?

The service level in a perishable product model is the probability that no shortage will occur

One consequence of uncertain demand is the risk of incurring shortages

The choice of the distribution to use as the demand distribution has little effect on the reorder point