Exam 17: Inventory Control

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?

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

The fixed-order quantity inventory model is more appropriate for important items such as critical repair parts because there is closer monitoring and therefore quicker response to a potential stockout.

Using the probability approach we assume that the demand for inventory over a period of time is normally distributed.

An inventory system is a set of policies and controls that monitors Levels of inventory and determines what Levels should be maintained,when stock should be replenished and how large orders should be.

Which of the following are fixed-order quantity inventory models?

When developing inventory cost models,which of the following are not included as costs to place an order?

In inventory models,high holding costs tend to favor low inventory Levels and frequent replenishment.

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?

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 5 days and the number of days between reviews is 7.Which of the following is the standard deviation of demand over the review and lead time if the standard deviation of daily demand is 8?

Using the fixed-time period inventory model and given an average daily demand of 200 units,4 days between inventory reviews,5 days for lead time,120 units of inventory on hand,a "z" of 1.96 and a standard deviation of demand over the review and lead time of 3 units,which of the following is the order quantity?

Which of the following is not necessary to compute the order quantity using the fixed-time period model with safety stock?

What is the name of a physical inventory-taking technique that focuses only on certain items and counts more often than once or twice a year?

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?

Which of the following values for "z" should we use in as safety stock calculation if we want a Service Probability of 98%?

Which of the following inventory systems forces a review of the inventory Level at a fixed frequency (such as weekly)and orders replacement supply if the Level has dropped below some amount?

Fixed-time period inventory models generate order quantities that vary from time period to time period,depending on the usage rate.

The optimal stocking decision in inventory management,when using marginal analysis,occurs at the point where the benefits derived from carrying the next unit are more than the costs for that unit.

Which of the following is the set of all cost components that make up the fixed-order quantity total cost (TC)function?

If a vendor has correctly used marginal analysis to select their stock Levels for the day (as in the newsperson problem)and the profit resulting from the last unit being sold (MP)is $120 and the loss resulting from that unit if it is not sold (ML)is $360,which of the following is the probability of the last unit being sold?