Question 1

The number of orders can be calculated by dividing the daily demand rate,d,by the order quantity,

Accepted Answer

A) True 
 B)False

Question 2

The order quantity for a periodic inventory system remains constant.

Accepted Answer

A) True 
 B)False

Question 3

The economic order quantity is most widely used for determining how much to order in

Accepted Answer

A) a periodic inventory system. 
B) a continuous inventory system. 
C) an on-demand inventory system. 
D) None of these answer choices is correct. 
A) a periodic inventory system. 
B) a continuous inventory system. 
C) an on-demand inventory system. 
D) None of these answer choices is correct.

Question 4

Product deterioration,spoilage,breakage,and obsolescence are examples of shortage costs.

Accepted Answer

A) True 
 B)False

Question 5

The time between orders is variable and the order quantity is constant in the periodic inventory system.

Accepted Answer

A) True 
 B)False

Question 6

Dependent demand items consist of component parts or materials used in the production process to produce a final product.

Accepted Answer

A) True 
 B)False

Question 7

Carry costs and ordering costs are inversely related.

Accepted Answer

A) True 
 B)False

Question 8

The ability to effectively satisfy internal or external demand in a timely,efficient manner is referred to as the level of customer service.

Accepted Answer

A) True 
 B)False

Question 9

Annual demand for a product is 40,000 units.The product is used at a constant rate over the 365 days the company is open every year.The annual holding cost for the product is estimated to be $2.50 per unit,and the cost of placing each order is $125.00.If the company orders according to the economic order quantity (EOQ)formula,then the time between orders (order cycle time)is

Accepted Answer

A) 18.25 days. 
B) 24.33 days. 
C) 36.5 days. 
D) 73 days. 
A) 18.25 days. 
B) 24.33 days. 
C) 36.5 days. 
D) 73 days.

Question 10

A periodic inventory system is also known as a

Accepted Answer

A) fixed-time period system. 
B) fixed-order quantity system. 
C) fixed-lead time system. 
D) fixed-amount system. 
A) fixed-time period system. 
B) fixed-order quantity system. 
C) fixed-lead time system. 
D) fixed-amount system.

Question 11

Hedging involves buying larger amounts of inventory in anticipation of future price increases.

Accepted Answer

A) True 
 B)False

Question 12

What is the carrying cost using the economic order quantity?

Accepted Answer

A) $750 
B) $866 
C) $1,500 
D) $3,750 
A) $750 
B) $866 
C) $1,500 
D) $3,750

Question 13

With the economic order quantity (EOQ)model,the number of orders increases as the order size decreases.

Accepted Answer

A) True 
 B)False

The number of orders can be calculated by dividing the daily demand rate,d,by the order quantity,

The order quantity for a periodic inventory system remains constant.

The economic order quantity is most widely used for determining how much to order in

Product deterioration,spoilage,breakage,and obsolescence are examples of shortage costs.

The time between orders is variable and the order quantity is constant in the periodic inventory system.

Dependent demand items consist of component parts or materials used in the production process to produce a final product.

Carry costs and ordering costs are inversely related.

The ability to effectively satisfy internal or external demand in a timely,efficient manner is referred to as the level of customer service.

A periodic inventory system is also known as a

Hedging involves buying larger amounts of inventory in anticipation of future price increases.

What is the carrying cost using the economic order quantity?

With the economic order quantity (EOQ)model,the number of orders increases as the order size decreases.

Introduction to Operations and Supply Chain Management

Supplement Operational Decision-Making Tools: Decision Analysis

Quality Management

Statistical Process Control

Supplement Operational Decision-Making Tools: Acceptance Sampling

Product Design

Service Design

Processes and Technology

Capacity and Facilities

Supplement Operational Decision-Making Tools: Facility Location Models

Human Resources

Supplement Operational Decision-Making Tools: Work Measurement

Project Management

Supply Chain Management Strategy and Design

Global Supply Chain Procurement and Distribution

Supplement Operational Decision-Making Tools: Transportation and Transshipment Models

Forecasting

Supplement Operational Decision-Making Tools: Simulation

Sales and Operations Planning

Supplement Operational Decision-Making Tools: Linear Programming

Enterprise Resource Planning

Lean Systems

Scheduling

Filters

Exam 18: Inventory Management

The number of orders can be calculated by dividing the daily demand rate,d,by the order quantity,

The order quantity for a periodic inventory system remains constant.

The economic order quantity is most widely used for determining how much to order in

Product deterioration,spoilage,breakage,and obsolescence are examples of shortage costs.

The time between orders is variable and the order quantity is constant in the periodic inventory system.

Dependent demand items consist of component parts or materials used in the production process to produce a final product.

Carry costs and ordering costs are inversely related.

The ability to effectively satisfy internal or external demand in a timely,efficient manner is referred to as the level of customer service.

A periodic inventory system is also known as a

Hedging involves buying larger amounts of inventory in anticipation of future price increases.

What is the carrying cost using the economic order quantity?

With the economic order quantity (EOQ)model,the number of orders increases as the order size decreases.

Introduction to Operations and Supply Chain Management

Supplement Operational Decision-Making Tools: Decision Analysis

Quality Management

Statistical Process Control

Supplement Operational Decision-Making Tools: Acceptance Sampling

Product Design

Service Design

Processes and Technology

Capacity and Facilities

Supplement Operational Decision-Making Tools: Facility Location Models

Human Resources

Supplement Operational Decision-Making Tools: Work Measurement

Project Management

Supply Chain Management Strategy and Design

Global Supply Chain Procurement and Distribution

Supplement Operational Decision-Making Tools: Transportation and Transshipment Models

Forecasting

Supplement Operational Decision-Making Tools: Simulation

Sales and Operations Planning

Supplement Operational Decision-Making Tools: Linear Programming

Enterprise Resource Planning

Lean Systems

Scheduling

Filters