Question 1

Which of the following is an assumption of the basic fixed-order-quantity inventory model?

Accepted Answer

A) Lead times are averaged. 
B) Ordering costs are variable. 
C) Price per unit of product is constant. 
D) Back-orders are allowed. 
E) Stock-out costs are high. 
A) Lead times are averaged. 
B) Ordering costs are variable. 
C) Price per unit of product is constant. 
D) Back-orders are allowed. 
E) Stock-out costs are high.

Question 2

Which of the following is the symbol used in the textbook for the cost of placing an order in the fixed-order-quantity inventory model?

Accepted Answer

A) C 
B) TC 
C) H 
D) Q 
E) S 
A) C 
B) TC 
C) H 
D) Q 
E) S

Question 3

Using the fixed-time-period inventory model, and given an average daily demand of 15 units, 3 days between inventory reviews, 1 day for lead time, 30 units of inventory on hand, a service probability of 98 percent, and a standard deviation of daily demand is 3 units, which of the following is the order quantity?

Accepted Answer

A) About 30.4 
B) About 36.3 
C) About 42.3 
D) About 56.8 
E) About 59.8 
A) About 30.4 
B) About 36.3 
C) About 42.3 
D) About 56.8 
E) About 59.8

Question 4

To take into consideration demand uncertainty in reorder point (R) calculations, what do we add to the product of the average daily demand and lead time in days when calculating the value of R?

Accepted Answer

A) The product of average daily demand times a standard deviation of lead time 
B) A z value times the lead time in days 
C) The standard deviation of vendor lead time times the standard deviation of demand 
D) The product of lead time in days times the standard deviation of lead time 
E) The product of the standard deviation of demand variability and a z score relating to a specific service probability 
A) The product of average daily demand times a standard deviation of lead time 
B) A z value times the lead time in days 
C) The standard deviation of vendor lead time times the standard deviation of demand 
D) The product of lead time in days times the standard deviation of lead time 
E) The product of the standard deviation of demand variability and a z score relating to a specific service probability

Question 5

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.

Accepted Answer

A) True 
 B)False

Question 6

One of the basic purposes of inventory analysis in manufacturing and stock keeping services is to specify when items should be ordered.

Accepted Answer

A) True 
 B)False

Question 7

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

Accepted Answer

A) True 
 B)False

Question 8

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

Accepted Answer

A) True 
 B)False

Which of the following is an assumption of the basic fixed-order-quantity inventory model?

Which of the following is the symbol used in the textbook for the cost of placing an order in the fixed-order-quantity inventory model?

To take into consideration demand uncertainty in reorder point (R) calculations, what do we add to the product of the average daily demand and lead time in days when calculating the value of R?

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.

One of the basic purposes of inventory analysis in manufacturing and stock keeping services is to specify when items should be ordered.

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

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

Introduction

Strategy

Design of Products and Services

Project Management

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

Enterprise Resource Planning Systems

Forecasting

Sales and Operations Planning

Material Requirements Planning

Workcenter Scheduling

Theory of Constraints

Health Care

Operations Consulting

Filters

Exam 20: Inventory Management

Which of the following is an assumption of the basic fixed-order-quantity inventory model?

Which of the following is the symbol used in the textbook for the cost of placing an order in the fixed-order-quantity inventory model?

To take into consideration demand uncertainty in reorder point (R) calculations, what do we add to the product of the average daily demand and lead time in days when calculating the value of R?

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.

One of the basic purposes of inventory analysis in manufacturing and stock keeping services is to specify when items should be ordered.

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

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

Introduction

Strategy

Design of Products and Services

Project Management

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

Enterprise Resource Planning Systems

Forecasting

Sales and Operations Planning

Material Requirements Planning

Workcenter Scheduling

Theory of Constraints

Health Care

Operations Consulting

Filters