Exam 17: Inventory Control

If annual demand is 12,000 units, the ordering cost is $6 per order and the holding cost is $2.50 per unit per year, which of the following is the optimal order quantity using the fixed-order quantity model?

Which of the following is not a reason to carry inventory?

Which of the following is fixed-time period inventory model?

Assuming no safety stock, what is the re-order point (R) given an average daily demand of 50 units, a lead time of 10 days and 625 units on hand?

The standard fixed-time period model assumes that inventory is never counted but determined by EOQ measures.

Which of the following is one of the categories of manufacturing inventory?

The optimal stocking decision in inventory management, when using marginal analysis, occurs at the point where the benefits derived from carrying the next unit are more than the costs for that unit.

Safety stock can be computed when using the fixed-order quantity inventory model by multiplying a "z" value representing the number of standard deviations to achieve a service level or probability by the standard deviation of periodic demand.

Assuming no safety stock, what is the reorder point (R) given an average daily demand of 78 units and a lead time of 3 days?

One of the basic purposes of inventory analysis in manufacturing and stockkeeping services is to determine the level of quality to specify.

One of the drivers of the direct-to-store (direct distribution) approach is the decrease in trucking industry regulation.

Fixed-order quantity inventory models are "time triggered."

Fixed-time period inventory models are "event triggered."

Savings from reduced inventory results in increased profit.

Inventory is defined as the stock of any item or resource used in an organization.

You should visualize inventory as stacks of money sitting on forklifts, on shelves, and in trucks and planes while in transit.

One of the daily, delicate balancing acts that Logistics managers have to perform involves the trade-off between inventory costs and the cost of stock-outs.

The computation of a firm's inventory position is found by taking the inventory on hand and adding it to the on-order inventory, and then subtracting back-ordered inventory.

Which of the following is the set of all cost components that make up the fixed-order quantity total annual cost (TC) function?

One of the daily, delicate balancing acts that Logistics managers have to perform involves the trade-off between transportation costs and fulfillment speed.