Exam 7: Inventory Management

The cost of a widget is $5,and the carrying rate is 40%; cost of processing an order is $25,annual demand is for 400 widgets,and supply and usage patterns are stable.What is the economic order quantity (EOQ)?

Which of the following is not an example of an ordering cost for products purchased from a supplier?

The optimal order quantity for the quantity discount model may exist at a price breakpoint.

Describe the ABC inventory matrix,and how is it used to manage inventory.

Which one of the following statements regarding the economic order quantity is true?

ABC Inventory Matrix Use the graph below to answer the question(s). -In the ABC Inventory Matrix,inventory in area Z suggests

An RFID reader does not require direct line of sight to read the information stored in an RFID tag.

What inventory factor may be omitted from the basic EOQ derivation because it is a constant?

The periodic inventory review system reviews physical inventory at specific points in time.

Relaxing the instantaneous replenishment assumption of the EOQ model results in the Economic Manufacturing Quantity model.

Figure 7-1 Use the graph below to answer the question(s). -The UNLV Bookstore sells a unique calculator to college students.The demand for this calculator has a normal distribution with an average daily demand of 20 units and a standard deviation of 4 units per day.The lead time for this calculator is very stable at 9 days.Compute the statistical reorder point that results in a 95 percent in-stock probability (Z = 1.65).

Inventory turnover ratio shows how many times a firm turns over its inventory in an accounting period.Faster turnovers are generally viewed as negative because it indicates instability in the firm's inventory level.