Question 1

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

Accepted Answer

A) To minimize setup and ordering cost 
B) To minimize customer service levels 
C) To maximize labor and equipment utilization 
D) To minimize transportation costs 
E) To minimize cost of materials 
A) To minimize setup and ordering cost 
B) To minimize customer service levels 
C) To maximize labor and equipment utilization 
D) To minimize transportation costs 
E) To minimize cost of materials

Question 2

Which of the following is an approach to inventory management that recognizes that different items have different values and levels of importance?

Accepted Answer

A) Bin system 
B) Can-order system 
C) RFID system 
D) ABC system 
E) One-for-one system 
A) Bin system 
B) Can-order system 
C) RFID system 
D) ABC system 
E) One-for-one system

Question 3

Describe a bin system.

Accepted Answer

A bin system uses either one or two bins

Question 4

An example of this is when an employee of Pepsi visits a grocery store and stocks the allotted shelf space with Pepsi products.

Accepted Answer

A) Contracted inventory 
B) Allotted inventory 
C) Controlled inventory 
D) Vendor-managed inventory 
E) Electronic data inventory 
A) Contracted inventory 
B) Allotted inventory 
C) Controlled inventory 
D) Vendor-managed inventory 
E) Electronic data inventory

Question 5

Identify six basic types of inventory.

Accepted Answer

Cycle Safety stock A

Question 6

The time between when an order is placed and when it is expected to arrive is the ____,when demand is certain.

Accepted Answer

A) Reorder point 
B) Schedule receipt 
C) Backorder 
D) Lead time 
E) On-hand time 
A) Reorder point 
B) Schedule receipt 
C) Backorder 
D) Lead time 
E) On-hand time

Question 7

Describe three ways to improve inventory accuracy.

Accepted Answer

First,companies often assign specific em

Question 8

Your on-hand inventory plus outstanding orders minus any backorder quantities is your ____.

Accepted Answer

A) Annual demand 
B) Order quantity 
C) Inventory position 
D) Ordering cost 
E) Holding cost 
A) Annual demand 
B) Order quantity 
C) Inventory position 
D) Ordering cost 
E) Holding cost

Question 9

Items that are considered end items that go directly to a customer are considered to have what kind of demand?

Accepted Answer

A) Independent 
B) Dependent 
C) Aggregate 
D) Correlated 
E) Intermittent 
A) Independent 
B) Dependent 
C) Aggregate 
D) Correlated 
E) Intermittent

Question 10

Which of the following types of inventory is used to improve customer service and reduce stockouts resulting from unpredictable changes in demand,lead time,or supply?

Accepted Answer

A) Cycle inventory 
B) Safety stock inventory 
C) Anticipation inventory 
D) Pipeline inventory 
E) Remanufactured inventory 
A) Cycle inventory 
B) Safety stock inventory 
C) Anticipation inventory 
D) Pipeline inventory 
E) Remanufactured inventory

Question 11

Eliminating inventory is feasible for most companies,in particular for companies that utilize lean production.

Accepted Answer

A) True 
 B)False

Question 12

Inventory systems specify what type of items should be ordered.

Accepted Answer

A) True 
 B)False

Question 13

What is the total inventory cost if annual demand is 75,000 units per year,the order quantity is 2,400 units,the holding cost is $0.375 per unit,and the ordering costs are $14.40?

Accepted Answer

IC = (D * S)/Q + (Q

Question 14

If a product has a lead time that is normally distributed,the mean of the product demand is 100 units,and the standard deviation is 40 units,what would the reorder point be to maintain a 97% service level?

Accepted Answer

100 + (1.8

Question 15

Holding inventory in stock for future use at a time when demand will exceed available capacity is pipeline inventory.

Accepted Answer

A) True 
 B)False

Question 16

Key decisions for a continuous review system relate to the order quantity and the reorder point.

Accepted Answer

A) True 
 B)False

Question 17

Classify each part as an A,B,or C inventory item on the basis of the annual dollar value.

Accepted Answer

The answer of Classify each part as an A,B,or C...

Question 18

Inventory position describes the location of any given inventory.

Accepted Answer

A) True 
 B)False

Question 19

Inventory systems are of no use to service organizations.

Accepted Answer

A) True 
 B)False

Question 20

The time during which safety stock must protect against running out of stock is known as the ____.

Accepted Answer

A) Protection interval 
B) Cycle-service interval 
C) Demand interval 
D) Confidence interval 
E) Prediction interval 
A) Protection interval 
B) Cycle-service interval 
C) Demand interval 
D) Confidence interval 
E) Prediction interval

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

Which of the following is an approach to inventory management that recognizes that different items have different values and levels of importance?

Describe a bin system.

An example of this is when an employee of Pepsi visits a grocery store and stocks the allotted shelf space with Pepsi products.

Identify six basic types of inventory.

The time between when an order is placed and when it is expected to arrive is the ____,when demand is certain.

Describe three ways to improve inventory accuracy.

Your on-hand inventory plus outstanding orders minus any backorder quantities is your ____.

Items that are considered end items that go directly to a customer are considered to have what kind of demand?

Which of the following types of inventory is used to improve customer service and reduce stockouts resulting from unpredictable changes in demand,lead time,or supply?

Eliminating inventory is feasible for most companies,in particular for companies that utilize lean production.

Inventory systems specify what type of items should be ordered.

What is the total inventory cost if annual demand is 75,000 units per year,the order quantity is 2,400 units,the holding cost is $0.375 per unit,and the ordering costs are $14.40?

If a product has a lead time that is normally distributed,the mean of the product demand is 100 units,and the standard deviation is 40 units,what would the reorder point be to maintain a 97% service level?

Holding inventory in stock for future use at a time when demand will exceed available capacity is pipeline inventory.

Key decisions for a continuous review system relate to the order quantity and the reorder point.

Classify each part as an A,B,or C inventory item on the basis of the annual dollar value.

Inventory position describes the location of any given inventory.

Inventory systems are of no use to service organizations.

The time during which safety stock must protect against running out of stock is known as the ____.

Operations and Supply Chain Strategy

Quality Management

New Product Development

Process Design and Analysis

Forecasting

Dependent Demand Inventory

Project Management

Optimization and Simulation Modeling

Capacity Planning

Quality Improvement Methods

Lean Enterprise

Technology and Integrated Supply Management

Global Supply Chain and Service Integration

Filters

Exam 6: Independent Demand Inventory

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

Which of the following is an approach to inventory management that recognizes that different items have different values and levels of importance?

Describe a bin system.

An example of this is when an employee of Pepsi visits a grocery store and stocks the allotted shelf space with Pepsi products.

Identify six basic types of inventory.

The time between when an order is placed and when it is expected to arrive is the ____,when demand is certain.

Describe three ways to improve inventory accuracy.

Your on-hand inventory plus outstanding orders minus any backorder quantities is your ____.

Items that are considered end items that go directly to a customer are considered to have what kind of demand?

Which of the following types of inventory is used to improve customer service and reduce stockouts resulting from unpredictable changes in demand,lead time,or supply?

Eliminating inventory is feasible for most companies,in particular for companies that utilize lean production.

Inventory systems specify what type of items should be ordered.

What is the total inventory cost if annual demand is 75,000 units per year,the order quantity is 2,400 units,the holding cost is $0.375 per unit,and the ordering costs are $14.40?

If a product has a lead time that is normally distributed,the mean of the product demand is 100 units,and the standard deviation is 40 units,what would the reorder point be to maintain a 97% service level?

Holding inventory in stock for future use at a time when demand will exceed available capacity is pipeline inventory.

Key decisions for a continuous review system relate to the order quantity and the reorder point.

Classify each part as an A,B,or C inventory item on the basis of the annual dollar value.

Inventory position describes the location of any given inventory.

Inventory systems are of no use to service organizations.

The time during which safety stock must protect against running out of stock is known as the ____.

Operations and Supply Chain Strategy

Quality Management

New Product Development

Process Design and Analysis

Forecasting

Dependent Demand Inventory

Project Management

Optimization and Simulation Modeling

Capacity Planning

Quality Improvement Methods

Lean Enterprise

Technology and Integrated Supply Management

Global Supply Chain and Service Integration

Filters