Exam 11: Inventory Management

If annual demand is 50,000 units,the ordering cost is $25 per order,and the holding cost is $5 per unit per year,which of the following is the optimal order quantity using the fixed-order quantity model?

If annual demand is 35,000 units,the ordering cost is $50 per order,and the holding cost is $0.65 per unit per year,which of the following is the optimal order quantity using the fixed-order quantity model?

Using the fixed-order quantity model,which of the following is the total ordering cost of inventory given an annual demand of 36,000 units,a cost per order of $80,and a holding cost per unit per year of $4?

The fixed-order quantity inventory model requires more time to maintain because every addition or withdrawal is logged.

company has recorded the last five days of daily demand on their only product.Those values are 120,125,124,128,and 133.The time from when an order is placed to when it arrives at the company from its vendor is 5 days.Assuming the basic fixed-order quantity inventory model fits this situation and no safety stock is needed,which of the following is the reorder point (R)?

company wants to determine its reorder point (R).Demand is variable and they want to build a safety stock into R.The company wants to have a service probability coverage of 95 percent.If average daily demand is 8,lead time is 3 days,and the standard deviation of usage during lead time is 2,which of the following is the desired value of R?

Fixed-order quantity inventory systems determine the reorder point,R,and the order quantity,Q,values.

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

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

Using the ABC classification system for inventory,which of the following is a true statement?

What is the basic purpose of inventory analysis?

Cycle counting is a physical inventory-taking technique in which inventory is counted on a frequent basis rather than once or twice a year.

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?

Computer inventory systems are often programmed to produce a cycle count notice in which of the following case?

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

If it takes a supplier two days to deliver an order once it has been placed and the daily demand for three days has been 120,124,and 125,which of the following is the standard deviation of usage during lead time?

ABC inventory classification schemes divide inventory items into three groupings.What are these groupings usually based upon?

Which of the following is a perpetual system for inventory management?

You would like to use the fixed-time period inventory model to compute the desired order quantity for a company.You know that vendor lead time is 10 days and the number of days between reviews is 15.Which of the following is the standard deviation of demand over the review and lead time period if the standard deviation of daily demand is 10?

In the fixed-time period model it is necessary to determine the inventory currently on hand to calculate the size of the order to place with a vendor.