Question 1

Shortage costs are precise and easy to measure.

Accepted Answer

A) True 
 B)False

Question 2

Firms keep supplies of inventory for which of the following reasons?

Accepted Answer

A)  To maintain dependence of operations 
B)  To provide a feeling of security for the workforce 
C)  To meet variation in product demand 
D)  To hedge against wage increases 
E)  In case the supplier changes the design 
A)  To maintain dependence of operations 
B)  To provide a feeling of security for the workforce 
C)  To meet variation in product demand 
D)  To hedge against wage increases 
E)  In case the supplier changes the design

Question 3

If demand for an item is normally distributed, we plan for demand to be twice the average demand and carry 2 standard deviations worth of safety stock inventory.

Accepted Answer

A) True 
 B)False

Question 4

Which of the following is not one of the categories of manufacturing inventory?

Accepted Answer

A)  Raw materials 
B)  Finished products 
C)  Component parts 
D)  Just-in-time 
E)  Supplies 
A)  Raw materials 
B)  Finished products 
C)  Component parts 
D)  Just-in-time 
E)  Supplies

Shortage costs are precise and easy to measure.

Firms keep supplies of inventory for which of the following reasons?

If demand for an item is normally distributed, we plan for demand to be twice the average demand and carry 2 standard deviations worth of safety stock inventory.

Which of the following is not one of the categories of manufacturing inventory?

Introduction

Strategy

Design of Products and Services

Projects

Strategic Capacity Management

Learning Curves

Manufacturing Processes

Facility Layout

Service Processes

Waiting Line Analysis and Simulation

Process Design and Analysis

Six Sigma Quality

Statistical Quality Control

Lean Supply Chains

Logistics, Distribution, and Transportation

Global Sourcing and Procurement

The Internet of Things and Erp

Forecasting

Sales and Operations Planning

Material Requirements Planning

Workcenter Scheduling

Filters

Exam 20: Inventory Management

Shortage costs are precise and easy to measure.

Firms keep supplies of inventory for which of the following reasons?

If demand for an item is normally distributed, we plan for demand to be twice the average demand and carry 2 standard deviations worth of safety stock inventory.

Which of the following is not one of the categories of manufacturing inventory?

Introduction

Strategy

Design of Products and Services

Projects

Strategic Capacity Management

Learning Curves

Manufacturing Processes

Facility Layout

Service Processes

Waiting Line Analysis and Simulation

Process Design and Analysis

Six Sigma Quality

Statistical Quality Control

Lean Supply Chains

Logistics, Distribution, and Transportation

Global Sourcing and Procurement

The Internet of Things and Erp

Forecasting

Sales and Operations Planning

Material Requirements Planning

Workcenter Scheduling

Filters