Deck 6: Managing Materials and Inventory Performa

Question 1

Any quantifiable item that is stored and used in an operation is called ____________________?

A) Work in Process
B) Inventory
C) Finished goods
D) Raw materials

Answer 1

B

Question 2

Partially processed product awaiting further operations is called ______________ inventory?

A) Raw material
B) Cycle
C) Work in Process
D) Buffer

Answer 2

C

Question 3

When goods have to travel between factories or distribution centres over large distances this is known as _____________________?

A) Anticipation inventory
B) Cycle inventory
C) Buffer inventory
D) Pipeline inventory

Answer 3

D

Question 4

Which of these is not a reason to keep inventory?

A) Can reduce costs by buying in bulk
B) Can increase dependability by having a constant supply
C) Can become obsolete if not ordered
D) Can increase flexibility to cover short term demands

Question 5

The inventory management system that looks at inventory in terms of quantity of demand and value is called __________________?

A) The ABC classification
B) The XYZ classification
C) Pareto analysis
D) Asset management

Question 6

Which of these inventory order models would be used for dependent demand systems such as MRP systems?

A) Fixed order quantity
B) Lot for lot
C) Fixed order period
D) Economic order quantity

Question 7

The total cost of inventory is the sum of the ______________ cost and the _______________ cost

A) Fixed cost and ordering cost
B) Holding cost and variable cost
C) Ordering cost and holding cost
D) Ordering cost and variable cost

Question 8

The most cost effective quantity of a material to purchase is calculated by which method?

A) Reorder point model
B) Economic Order model
C) Fixed order period model
D) Lot for Lot model

Question 9

What is the bullwhip effect?

A) A fluctuation in demand downstream from a number of suppliers to a customer
B) A fluctuation in demand upstream to a number of suppliers following a small change in demand from the customer
C) A variable inventory cost fluctuation throughout the supply chain
D) A variable inventory quality fluctuation throughout the supply chain

Question 10

A measure of supply chain efficiency which is calculated by dividing the total cost of goods sold over a period by the average aggregate inventory value over that period is called _________?

A) Stock holding
B) Stock taking
C) Stock adjustment
D) Stock turn