Exam 5: Inventory Management

____________ (statistical inventory control) techniques are based on the assumption of uniform requirements per unit time. If this assumption of the demands is unrealistic, these techniques can lead to inappropriate inventory decisions.

_______ can help improve the traditional non-time-phased order-point system because it allows the _____________ to plan requirements (raw material, component parts) to meet the final assembly schedule.

________ systems utilize substantially better information on future requirements than is possible by the traditional non-time-phased order-point system.

The purchasing manager must have a clear understanding of the role of inventory in the ________ management system.

The classical EOQ model is based, in part, on four of the following assumptions. One of the following in not one of the assumptions. Which one?

mong the better-known lot-sizing methods for the single item, non-discount, time-phased, certain-demand models are: (1) lot for lot, (2) economic order quantity, (3) periodic order quantity, (4) least unit cost, (5) McLaren's order moment, (6) Silver-Meal, and (7) the Wagner-Whitin dynamic programming algorithm.

Setting safety stock so as to achieve a pre-specified service level enables fair comparison of the standard lot-sizing procedures.

The production-inventory taxonomy is based on _____________ producing standardized products through an assembly line, while ____________ are used to produce non standardized products through a job shop.

In the case of a manufacturing firm, you must consider whether the production process is ____________, ___________, or some hybrid of the two.

ependent demand is indirectly derived from demand for another inventoried item demand.

___________ are extra inventory held to protect against randomness in demand or lead time.

The objective of an inventory system is the minimization of total operating costs. The unavoidable costs of operating pure inventory systems are ___________.

In order to manage the various types of inventory, attributes of the items first must be analyzed in terms of all the following with one exception. Which one is the exception?

The type of business a firm is in will usually determine how much of the firm's assets are invested in ___________.

The _________ function is taking on increasing importance in today's industrial economy.

In situations where discounts are not available, the price per unit is constant regardless of the number of units ordered.

_______ systems are helpful for companies with assembled products that have component requirements dependent on the final product.

Independent demand is related to the demand for other items. In other words, an independent item must be forecasted independently.

__________ inventory systems are distribution stocking points, such as warehouses or distributors.

ustomer demand is fairly uniform but, because of the build schedules, the requirements for the components are __________.