Exam 9: Managing Inventory in the Supply Chain

This type of inventory is influenced by the reliability of demand and lead time.

Compare and contrast the fixed quantity version of EOQ with the fixed interval version. In which situations would each be used?

How can inventory carrying cost be calculated for a specific product? What suggestions would you offer for determining the measure of product value to be used in this calculation?

Storage space costs are not variable.

ABC analysis uses a single criterion to classify SKUs from most important to least important.

JIT is often used to force inventory back up the pipeline and therefore does not reduce inventory.

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

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

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

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

Inventory as an asset on the balance sheet and a _____ on the income statement.

Discuss capital cost and include both the hurdle rate and WACC in your answer.

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

The fixed order interval EOQ model is best used for SKUs with:

Dependent demand relates to:

WIP inventories:

EOQ can only be used for "push" inventory.