Ch. 8: Quantity and Inventory
CPFR stands for:
Collaborative Planning, Forecasting and Replenishment
When a carpet manufacturer predicts carpet sales by using building permits issued, mortgage rates, apartment vacancy rates, and so on, this is an example of:
a causal model.
On an annual requirement of 100 items spread evenly throughout the year, any purchaser has an opportunity of buying all 100 units at a price of $100 each, or buying 10 units at a time at a price of $150. If the inventory carrying cost is 20 percent per year and assuming no ordering costs:
buying 100 at a time will save the company $3,937.50 per year.
"C" items in ABC analysis are:
often managed by the supplier.
A material requirements planning (MRP) system:
requires explosion of the bill of material as the basis of planning.
A reduction in set-up costs and time impacts:
cycle inventories.
JIT requires:
frequent deliveries of relatively small quantities.
Capacity requirements planning (CRP):
performs for manufacturing resources what MRP does for materials.
The following cost is not a carrying, holding, or possession cost:
the purchase cost of the item.
Anticipation inventories are carried:
to cover a well-defined future need.