FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 12: Managing Inventories in Supply Chains

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 21

Multiple Choice

Review LaterAdd Note

Review Later

In the context of ABC inventory analysis,which of the following statements is true of class A items?

A) They require close control by operations managers.
B) They comprise less than 30 percent of the total dollar usage.
C) They can be managed using automated computer systems.
D) They account for more than 50 percent of inventory items.

Correct Answer

verified

Show Answer

Question 22

Multiple Choice

Review LaterAdd Note

Review Later

_____ inventory consists of partially completed products in various stages of completion that are awaiting further processing.

A) Raw materials
B) Work-in-process
C) Finished-goods
D) Safety stock

Correct Answer

verified

Show Answer

Question 23

Multiple Choice

Review LaterAdd Note

_____ applies to inventory situations in which one order is placed for a good in anticipation of a future selling season where demand is uncertain.

In the context of inventory costs,_____ costs can reflect backorders or service interruptions for external customers.

_____ inventory is inventory that results from purchasing or producing in larger lots than are needed for immediate consumption or sale.

Which of the following statements is true of the independent demand for a stock-keeping unit (SKU) ?

Based on the constant demand assumption in the economic order quantity (EOQ) model,the average cycle inventory is:

Which of the following statements is true of a fixed-period system (FPS) ?

Jae's Shoes is considering a change of their current inventory control system for sneakers.The information regarding the neckties is: Demand = 1000 pairs/week; Lead time = 3 weeks; Order cost = $20/order; Holding cost = $10.00/pair/yr; Cycle service level = 95%; Standard deviation of weekly demand = 48; and Number of weeks per year = 52.To calculate the relative frequency use the following values: _____.

Jae's Shoes is considering a change of their current inventory control system for sneakers.The information regarding the neckties is: Demand = 1000 pairs/week; Lead time = 3 weeks; Order cost = $20/order; Holding cost = $10.00/pair/yr; Cycle service level = 95%; Standard deviation of weekly demand = 48; and Number of weeks per year = 52.To calculate the relative frequency use the following values: _____.

Setup costs include costs associated with maintaining storage facilities,such as gas and electricity,taxes,and insurance.

In the context of ABC inventory analysis,which of the following statements is true of class C items?

A buyer for a department store orders sweaters about 6 months before the winter season.The store plans to hold a March clearance sale to sell any surplus goods by February 29.Each piece costs $100 per pair and sells for $120 per pair.At the sale price of $60 per pair,it is expected that any remaining stock can be sold during the March sale.Assume that a uniform probability distribution ranging from 250 to 450 items describes the demand.The expected demand is 300.In the context of the single period inventory system,the optimal order size Q must satisfy the condition _____.

In the context of fixed-quantity systems,_____ is defined as the on-hand quantity (OH) plus any orders placed but which have not arrived minus any backorders (BO) .