4
Which of the following is NOT one of the four reasons to hold inventory? a) To decouple dependencies in the supply chain b) To avoid obsolescence c) To decouple supply from demand d) To buffer against uncertainty in demand and/or supply
b) To avoid obsolescence
Which inventory system classifies inventory based on the degree of importance in order to determine which inventories should be counted and managed more closely? a) ABC System b) Bin System c) Base Stock Level System d) Single-Period Inventory Model
a) ABC System
Costs for physically having inventory on-site, and for maintaining the infrastructure needed to store the inventory and to secure and insure it over time are referred to it as? a) Carrying costs b) Variable costs c) Fixed costs d) Order costs
a) Carrying costs
Which of the following inventory types is characterized as "inventory used for a very specific purpose or future event, and for a defined period of time?" a) Cycle stock b) Safety stock c) Strategic stock d) Pipeline inventory
c) Strategic stock
To calculate the Economic Order Quantity, you need all of the following elements, EXCEPT? a) Carrying Cost b) Order Cost c) Annual Demand Volume d) Reorder Point
d) Reorder Point
Which of the following is NOT one of the constraints on the practical use of EOQ? a) Unitization b) Obsolescence c) Production Lot Size d) Safety Stock
d) Safety Stock
One of the main differences between Barcodes and RFID is that Barcodes require direct line of sight to read the information, and RFID does not. True or False
True
The lowest inventory level at which a new order must be placed to avoid a stock out is known as? a) Safety stock b) Reorder point c) Periodic review system d) Cycle stock
b) Reorder point
Which of the following is NOT one of the ways that carrying too much inventory can become a significant liability? a) More inventory means more space is needed to hold it, and more space costs money b) Holding inventory too long can cause it to be unusable due to expiration, obsolescence, damage or spoilage c) Too much inventory ties up capital d) Holding more inventory usually means a company can provide a higher level of customer service
d) Holding more inventory usually means a company can provide a higher level of customer service