Exam 9: Managing Inventory in the Supply Chain

A reason to hold inventory arises when an organization anticipates that an unusual event might occur that will negatively impact its source of supply.

JIT was developed in the U.S. and copied by the Japanese.

Many companies can make a case for using a formal logistics organization to help resolve inventory objective conflicts.

The reorder point depends on the orders in-house at that time.

Inventory and the GDP grew at the same rate from 1994 through 2010.

What are push and pull systems, and name at least one inventory management system that is a push or pull system.

Discuss dependent versus independent demand as it is related to inventory.

In the event of a "stockout" one of the things that could happen is

Capital cost focuses on the cost of capital tied up in ________and the resulting lost opportunity from investing that capital elsewhere.

Inventory plays a dual role in organizations. Inventory impacts the cost of goods sold as well as supporting the balance sheet, a new concept only recently receiving attention.

Capital cost is also called interest or opportunity cost.

Batching economies or cycle stocks usually arise from three sources. Name them, and discuss one of them in detail.

Define and discuss Materials Requirements Planning.

JIT is a _______ system.

Inventory management is not as important as it once was due to other factors that have come into play.

Describe the ABC Analysis inventory technique.

In comparison with the basic EOQ approach, the fixed interval model does not require close surveillance of inventory levels.

Purchase economies and transportation economies are not complementary.

MRP has been known for some time but lacked interest until recently.

Define and discuss the Just-In-Time approach, and include the four elements necessary for it to be successful.