Supply Chain Management Ch 14 MBA 6040

Pataasin ang iyong marka sa homework at exams ngayon gamit ang Quizwiz!

All of the following are types of costs related to the inventory cost structure, except ______.

shipping cost

Which of the following inventories have independent demand?

Spare parts for replacement

Given: carrying rate = 20%/year; unit cost = $28; lot size = 500 units. Calculate the annual carrying cost.

$1,400

Given: demand rate = 12,000 units/year; cost per order = $1,200; lot size = 1,000 units. Calculate the annual ordering cost.

$14,400

The famous economic order quantity (EOQ) formula was developed in ______.

1915

What is typical proportion of items and dollar usage in class A?

20% of the items and 80% of the dollar usage.

Given: lead time = 6 days (to receive order from suppliers) and standard deviation of daily demand (σdaily) = 100 items. Calculate standard deviation of demand during the lead time (σ). Round your result to the whole number.

245 items

Given: lead time = 9 days (to receive order from suppliers); standard deviation of daily demand (σdaily) = 80 items; safety factor (z) = 1.65. Calculate safety stock (s).

396 items

ABC analysis of inventory is also called the ______ rule.

80-20

An inventory turnover can be calculated for the overall stock of inventory as ______.

Annualcostofgoodssold/Averageinventorylevel

Which of the following includes insurance cost?

Cost of storage

_____ cost includes variable space cost, insurance and taxes.

Cost of storage

True or false: Bar coding does not reduce hand counting and recording of inventory data.

False

True or false: If the final products are build from components, the demand of those components is independent on the demand for the final product.

False

Which of the following products have a high risk of becoming obsolete? Select all that apply.

Fashion items Technology items Food items

If the hybrid inventory management system is used (a mixture of Q and P systems), and periodic review is performed, which of the following statements is correct. Select all that apply.

If the stock position is below the reorder point, an order is placed to raise the stock position to the target level. If the stock position is above the reorder point, no order is placed.

______ demand is influenced by market conditions outside the company.

Independent

What defines the stock position?

On-hand and on-order inventories.

The periodic review system is also known as ______.

P system

Which inventory management system does not have reorder point?

P system

Which inventory management system should be used for inexpensive items whose inventory level is monitored only at specific intervals?

P system

In which inventory management system the order can be placed whenever inventory is needed?

Q

The continuous review system is also known as ______.

Q system

Which inventory management system requires smaller safety stock?

Q system

What technology is used for tracking the movement of goods?

Radio-frequency identification

Which inventory type is waiting to enter the production process?

Raw materials inventory

Which inventory management approach is appropriate for independent demand?

Replenishment philosophy

What is another term for the ordering cost?

Setup cost

Which of the following assumptions is incorrect for the EOQ model?

The demand has random variations.

Which of the following should be constant for the use of EOQ? Select all that apply.

The lead time The demand rate The unit item cost

What is the reason behind carrying cycle inventory?

To allow economic production and purchase.

True or false: The service-level probability is 100% minus the stockout probability.

True

Is it possible to define the service level as the percentage of time the system has stock on hand?

Yes

VMI is best suited to which of the following types of supply chain relationships?

close trading partners

The inventory resulting from the purchase or production of materials in lots is called ______ inventory.

cycle

If the ordered lot size increases, the ordering frequency will ______ the average inventory level will ______.

decrease, increase

A requirements philosophy is used for ______ demand.

dependent

In practice, carrying costs often range ______ per year.

from 15% to 30%

If the inventory turnover os low, it could be explained by ______. Select all that apply.

higher service levels different ordering and holding costs

___ is a stock of materials used to facilitate production or satisfy customer demands.

inventory

A vendor under VMI is given access to the firm's ______. Select all that apply.

inventory records demand forecast

As the service level approaches 100%, ______ inventories are required.

larger

The relationship between service level and inventory level is ______.

nonlinear

Bar coding enables the use of ______ data collected as items are scanned and sold.

point of sale

The inventory that is maintained to protect against uncertainties is called a ______

safety stock

To estimate the reorder point, management must determine the

service level

The inventory acts as a buffer between ______.

supply rate and demand rate

The ___ of 1 inventory level in the P system is set to cover demand until the next periodic review plus the delivery lead time.

target

The protection interval is defined as ______.

the lead time (L) plus the periodic review interval (P)

Inventories that are moving from one point to another in supply chain are called ______ inventories. Select all that apply.

transit pipeline

Inventory ___ indicates the number of times (during a year) the inventory in stock is completely renewed.

turnover

The continuous review system (Q system) is completely determined by ______.

two parameters, order size (Q) and reorder point (R)

VMI stands for

vendor managed inventory.


Kaugnay na mga set ng pag-aaral

EMT Chapter 17: quizzes and tests

View Set

ECON139 Chapter 11, E-commerce (Chapters Vary)

View Set

Chapter 9 Minerals Nutrition test 5

View Set

Chapter 13: Endocrine System (Objectives) - A&PII

View Set

Chemistry Chapter 1: Homework Helpers

View Set