FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 12: Managing Inventories

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 41

True/False

Review LaterAdd Note

Review Later

The Economic Order Quantity model (EOQ) allows for variable lead-time.

Correct Answer

verified

Show Answer

Question 42

Essay

Review LaterAdd Note

Review Later

Given the information below, conduct an ABC analysis and determine which items should be classified as A, B and c.

Correct Answer

verified

Based on this information, w...

View Answer

Show Answer

Question 43

Multiple Choice

Review LaterAdd Note

Inventory that acts as a buffer between workstations in flow shops or departments in job shops is called ____ inventory.

In general, total ordering costs are equal to total inventory holding cost for the optimal solution to the EOQ model.

Given the information below, conduct an ABC analysis and suggest which items should be classified as A, B and c.

RFID tags are often used to track stock keeping units in supply chains.

Provide some examples of when the single period inventory model is applicable.

Which of the following is not a key input to a single period inventory model?

Because the fixed quantity system orders the same amount each time, time between orders will be constant, even with variable demand.

A 4th of July celebration T-shirt for this year will cost festival organizers $12 each and will sell for $25 before and on July 4th.Any unsold T-shirts can usually be disposed of at a discount after the festival for $5 each.If demand is normally distributed with a mean of 1,800 T-shirts and a standard deviation of 75, how many T-shirts should be ordered?

Costs associated with backordering a product are called ____ costs.

Two fundamental inventory decisions are when to order and how much to order.Which of the following statement is true with respect to Fixed Quantity (FQS) and Fixed Period (FPS) inventory systems?

In ABC inventory analysis, which of the following is true for "C" items?

Dependent demand, unlike independent demand, needs to be forecasted.

Bishop Manufacturing is implementing an economic order quality (EOQ) inventory control system and needs a good estimate of the cost to process a purchase order (PO).It takes 5 total labor hours to process a PO.The average number of SKUs on a PO is 2.2.The average wage for people working in the purchasing department is $22 per hour plus employee benefits of $3 per hour.Fixed costs for the purchasing department are $250,000 per year assuming a 2,000 hour per employee per year work week.Given this information a good estimate of the cost to process one purchase order is

Demand that is stable over time is called ____.

An airline seat is an example of an asset held for future use or sale.

Alice opens an aquarium store in a lively shopping mall and finds business to be booming but she often stocks out of key items customers want.She decides to experiment with inventory control methods such as using a fixed order quantity (FQS) and/or fixed order period (FPS) systems.The FLUVAL 303 Pump, a high margin and profitable pump, is one of her best sellers but it stocks out frequently.You collect the following date with respect to this pump's sales. Demand = 5 units per week Store open 50 weeks/year Order cost = $40/order Lead-time = 3 weeks Item cost = $80/pump Inventory holding cost = 15% per year a.What is the Economic Order Quantity (EOQ) rounded to the next highest number? b.If the current order quantity used by Alice is 20 pumps per order, how much money can she save annually by adopting an EOQ ordering policy? c.If Alice decides to use a FPS, what is the economic fixed order interval?

Overnight shipping for emergency orders and compensation for overbooking at a hotel are examples of ordering costs.

"The inability to satisfy the demand for an item" is the definition of a