SCM chapter 4 - clicker questions and quiz STUDY
A type of inventory system that issues an order whenever a withdrawal is made from inventory, is known as?
Base Stock Level System
The lowest inventory level at which a new order must be placed to avoid a stockout is known as the Replenishment Threshold
False
There are no inventories in the service industry.
False
Inventory costs which are independent of the output quantity are called?
Fixed Costs
Which inventory stock level is generally used for a very specific purpose or future event, and for a defined period of time?
Strategic Stock
Which of the following is NOT an example of an ordering cost for products purchased from a supplier?
The opportunity cost of not ordering from a least cost supplier
The primary purpose of the basic economic order quantity model is
To minimize the sum of ordering cost and holding cost
The primary purpose of the basic economic order quantity model is?
To minimize the sum of ordering cost and holding cost
The Economic Order Quantity (EOQ) is the optimal order size because it minimizes the annual total inventory cost.
True
The four broad categories of inventory are raw materials, work-in-process, MRO, and finished goods
True
The top 2 primary functions of inventory are (1) Buffer against uncertainty in the marketplace (2) Decouple dependencies in the supply chain.
True