Question 1

Describe an ABC inventory system.

Accepted Answer

ABC systems take advantage of the 80/20

Question 2

What is the inventory position if 5000 units are physically available,1000 units have been ordered but are in transit,no units are on backorder,and forecasted demand for the next period is 7000 units?

Accepted Answer

IP = 5000

Question 3

Describe a base stock system.

Accepted Answer

In a base stock system,an order is issue

Question 4

Cycle counting is used to ensure ____.

Accepted Answer

A) Depreciation 
B) Shortage costs 
C) Inventory accuracy 
D) Order quantities 
E) Overtime 
A) Depreciation 
B) Shortage costs 
C) Inventory accuracy 
D) Order quantities 
E) Overtime

Question 5

A program to reduce transportation costs for a manufacturer by requiring shipments of full trucks would probably have little effect on inventory levels.

Accepted Answer

A) True 
 B)False

Question 6

Describe the objective of the newsvendor problem.

Accepted Answer

The objective of the newsvendor problem

Question 7

In cycle inventory,larger orders result in higher cycle inventory,whereas smaller orders result in lower cycle inventory.

Accepted Answer

A) True 
 B)False

Question 8

Cycle inventory varies in proportion to the time of the order.

Accepted Answer

A) True 
 B)False

Question 9

What kind of demand can be derived from a "parent" item or can be a component part?

Accepted Answer

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

Question 10

A components manufacturer uses approximately 20,000 units annually of an item.They are used at a steady rate during the 250 workdays that the plant operates.The price of each item is $7.00,and the annual carrying cost is $0.50 per unit per year.The ordering cost is $50.What is the economic order quantity?

Accepted Answer

EOQ = squa

Question 11

Continuous review inventory systems are often called economic order quantity systems or Q-systems.

Accepted Answer

A) True 
 B)False

Question 12

Which of the following is not a component of total inventory cost?

Accepted Answer

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

Question 13

Which of the following types of inventory consists of products that have been used by a customer and then reacquired by a company for resale?

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 14

Inventory shrinkage occurs when products in inventory become physically smaller.

Accepted Answer

A) True 
 B)False

Question 15

The newsvendor problem helps to model inventory for what type of products?

Accepted Answer

A) Expensive items 
B) Important items 
C) Inexpensive items 
D) Perishable items 
E) Any type of item 
A) Expensive items 
B) Important items 
C) Inexpensive items 
D) Perishable items 
E) Any type of item

Question 16

The primary objective of an inventory system is to determine

Accepted Answer

A) When items should be ordered and how they should be shipped. 
B) What products will sell and what quantity is required. 
C) When items should be ordered and what quantity should be ordered. 
D) Who an order should be placed with and how many are needed. 
E) What quantity is required and where the order should be stored. 
A) When items should be ordered and how they should be shipped. 
B) What products will sell and what quantity is required. 
C) When items should be ordered and what quantity should be ordered. 
D) Who an order should be placed with and how many are needed. 
E) What quantity is required and where the order should be stored.

Question 17

A components manufacturer uses approximately 20,000 units annually of an item.They are used at a steady rate during the 250 workdays that the plant operates.The price of each item is $7.00,and the annual carrying cost is $0.50 per unit per year.The ordering cost is $50.What is the annual ordering costs?

Accepted Answer

Annual ordering cost

Question 18

When does a base stock system issue an order for inventory?

Accepted Answer

A) At the end of the period 
B) Whenever a withdrawal is made 
C) When a bin is empty 
D) When the amount in inventory reaches amount "x" 
E) When the purchasing agent notices it needs to be 
A) At the end of the period 
B) Whenever a withdrawal is made 
C) When a bin is empty 
D) When the amount in inventory reaches amount "x" 
E) When the purchasing agent notices it needs to be

Question 19

The EOQ minimizes the total annual cost of ordering and holding inventory for a particular item.

Accepted Answer

A) True 
 B)False

Question 20

Which is the information system used for minimizing inventory cost?

Accepted Answer

A) ERP system 
B) RFID system 
C) EDI system 
D) VMI system 
E) EOQ system 
A) ERP system 
B) RFID system 
C) EDI system 
D) VMI system 
E) EOQ system

Describe an ABC inventory system.

What is the inventory position if 5000 units are physically available,1000 units have been ordered but are in transit,no units are on backorder,and forecasted demand for the next period is 7000 units?

Describe a base stock system.

Cycle counting is used to ensure ____.

A program to reduce transportation costs for a manufacturer by requiring shipments of full trucks would probably have little effect on inventory levels.

Describe the objective of the newsvendor problem.

In cycle inventory,larger orders result in higher cycle inventory,whereas smaller orders result in lower cycle inventory.

Cycle inventory varies in proportion to the time of the order.

What kind of demand can be derived from a "parent" item or can be a component part?

Continuous review inventory systems are often called economic order quantity systems or Q-systems.

Which of the following is not a component of total inventory cost?

Which of the following types of inventory consists of products that have been used by a customer and then reacquired by a company for resale?

Inventory shrinkage occurs when products in inventory become physically smaller.

The newsvendor problem helps to model inventory for what type of products?

The primary objective of an inventory system is to determine

When does a base stock system issue an order for inventory?

The EOQ minimizes the total annual cost of ordering and holding inventory for a particular item.

Which is the information system used for minimizing inventory cost?

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

Describe an ABC inventory system.

What is the inventory position if 5000 units are physically available,1000 units have been ordered but are in transit,no units are on backorder,and forecasted demand for the next period is 7000 units?

Describe a base stock system.

Cycle counting is used to ensure ____.

A program to reduce transportation costs for a manufacturer by requiring shipments of full trucks would probably have little effect on inventory levels.

Describe the objective of the newsvendor problem.

In cycle inventory,larger orders result in higher cycle inventory,whereas smaller orders result in lower cycle inventory.

Cycle inventory varies in proportion to the time of the order.

What kind of demand can be derived from a "parent" item or can be a component part?

Continuous review inventory systems are often called economic order quantity systems or Q-systems.

Which of the following is not a component of total inventory cost?

Which of the following types of inventory consists of products that have been used by a customer and then reacquired by a company for resale?

Inventory shrinkage occurs when products in inventory become physically smaller.

The newsvendor problem helps to model inventory for what type of products?

The primary objective of an inventory system is to determine

When does a base stock system issue an order for inventory?

The EOQ minimizes the total annual cost of ordering and holding inventory for a particular item.

Which is the information system used for minimizing inventory cost?

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