SCMT 364 chapter 20 part 1

Which of the following is/are components of total costs in a fixed-quantity inventory system? Multiple select question. Annual purchase costs Annual production labor costs Annual ordering costs Annual holding costs Annual marketing costs

Annual purchase costs Annual ordering costs Annual holding costs

Which of the following is/are manufacturing inventory items? Multiple select question. In-transit supplies Component parts in manufacturing Work-in-process Finished products

Component parts in manufacturing Work-in-process Finished products

Which of the following are inventory ordering costs? Check all that apply. Multiple select question. Counting items Calculating order quantities Deciding which vendor to use Costs associated with maintaining the tracking system

Counting items Calculating order quantities Costs associated with maintaining the tracking system

What is the portion of the EOQ equation represents annual purchase price? Multiple choice question. Q2�2H DC TC DQ��H

DC

True or false: Inventory is not an issue for services because services do not carry inventory. True false question.TrueFalse

False

Which of the following is considered to be warehouse inventory? Multiple choice question. Inventory at a vendor's facility awaiting shipment Finished goods inventory in a distribution center Work-in-process inventory Raw material inventory awaiting a machining operation

Finished goods inventory in a distribution center

Which of the following is also called a periodic review system or fixed-order interval system or P-model? Multiple choice question. Single-period Fixed-time period Perpetual Fixed-order quantity

Fixed-time period

The basic purpose of inventory analysis, whether in manufacturing, distribution, retail, or services, is to specify which of the following? Multiple select question. How large the order should be Who items should be acquired from How items should be delivered When items should be ordered

How large the order should be When items should be ordered

The stock of any item or resource used in an organization is called? Multiple choice question. Work in process Inventory Inputs Raw materials

Inventory

High holding costs tend to favor what? Check all that apply. Multiple select question. Infrequent replenishment High inventory levels Low inventory levels Frequent replenishment

Low inventory levels Frequent replenishment

If there were no costs or loss of time in changing from one product to another, what would the impact be? Check all that apply. Multiple select question. Many small lots would be produced Costs would be lower Costs would be higher Increased inventory levels Reduced inventory levels

Many small lots would be produced Costs would be lower Reduced inventory levels

What is the portion of the EOQ equation represents annual holding cost? Multiple choice question. DC TC Q2�2H DQ��H

Q/2 H

Which of the following indicates when the inventory position drops to the reorder level, as per a fixed-order quantity model? Multiple choice question. N R Q T

R

Which of the following represents the review period for a fixed-time period model? Multiple choice question. R A Q T

T

Which of the following highlights a dependent demand scenario? Multiple choice question. Gallons of milk purchased at a grocery store Smart phones purchased at retailer Flowers purchased at a garden center The four tires needed to complete a car

The four tires needed to complete a car

What is Qopt? Multiple choice question. The order quantity that minimizes total annual cost. Average inventory The order quantity that maximizes total annual cost. An inventory level that signals it is time to reorder.

The order quantity that minimizes total annual cost.

This model is used in situations like selling T-shirts at a one-time sporting event. Multiple choice question. Fixed-time period model Fixed-order quantity model The single-period model The cost plus model The short-perion model

The single-period model

An inventory control system is responsible for which of the following? Multiple select question. Timing the order placement Keeping track of what has been ordered Finding the best price for goods Receiving goods Ordering goods Selecting new vendors

Timing the order placement Keeping track of what has been ordered Receiving goods Ordering goods

Which of the following is a reason for keeping a supply of inventory? Multiple choice question. To meet variation in product demand To improve suppliers' cash flow To improve cash flow To build a bank of inventory needed for lean manufacturing

To meet variation in product demand

True or false: One purpose of holding inventory is to meet variation of product demand. True false question.TrueFalse

True

Which of the following is a policy and control of an inventory system? Multiple choice question. How one will finance the stock The payment terms associated with buying the stock from vendors Who should order the stock When stock should be replenished

When stock should be replenished

The two critical components of ALL reorder point calculation scenarios are: Multiple choice question. average product costs and average daily lead time. annual demand and lead time in days. order cycle time and transportation costs. average daily demand and lead time in days.

average daily demand and lead time in days.

A ( ) is when the order is held and filled at a later date when the inventory for the item is replenished.

backorder

Setup costs are also known as production ( ) costs.

change

Many firms are tending to enter into longer-term relationships with vendors to supply their needs for perhaps the entire year. This changes the how many to order to how many to ( )

deliver

In ( ), inventory is classified as in-transit, meaning that it is being moved in the system, and warehouse, which is inventory in a warehouse or distribution center.

distribution

The amount of safety stock is: Multiple choice question. ZL R d�L zσL

d�L

True or false: Dependent demand items are items purchased from a vendor. True false question.TrueFalse

false

For this model, inventory for the item is monitored until it gets down to a level where the risk of stocking out is great enough that we are compelled to order. Multiple choice question. The short-perion model Fixed-order quantity model The single-period model The cost plus model Fixed-time period model

fixed-order quantity model

Campbell's Soup makes product for Kroger and other grocery stores based on sales to the final consumer. This inventory management environment is characterized as ________ demand. Multiple choice question. dependent forecasted marketing independent

independent

( )is the stock of any item or resource used in an organization.

inventory

A single period ( ) model helps in situations where a company is trying to produce the optimal quantity of inventory for a single event minimizing overproduction costs and potential lost revenues.

inventory

The set of policies and controls that monitor levels of inventory and determine what levels should be maintained, when stock should be replenished, and how large orders should be is called a(n) ( ) system

inventory

An ( ) ( ) system provides the organizational structure and the operating policies for maintaining and controlling goods to be stocked.

inventory control

According to the inventory control system matrix, if a company has highly independent products, but high transaction costs, it is likely to deploy what type inventory control process? Multiple choice question. Manual two-bin Rate-based synchronous systems Materials requirements planning Reorder point

manual two-bin

Work-in-process is considered ( ) inventory.

manufacturing

The single-period problem is also known as the ( ) problem.

newsperson

As it relates to inventory, a buyer's time expended to prepare the purchase order for more material is considered a(n) ____ cost. Multiple choice question. holding execution ordering buffer

ordering

The managerial and clerical costs to prepare purchase or production orders are called: Multiple choice question. shortage costs logistics costs ordering costs holding costs

ordering costs

In a fixed-time inventory ( ) model, the interval of time between orders is fixed and order quantity varies.

period

In companies using fixed-order quantity inventory systems, a consistent inventory level is used as a trigger to order more product. This inventory level is called: Multiple choice question. reorder point execution threshold point of entry ordering guideline

reorder point

Delta Company uses special equipment and personnel to changeover production runs quickly. The costs associated with this changeover approach are considered Multiple choice question. Carrying costs Setup costs Rapid stock costs Purchasing costs

setup costs

Which order cost is frequently little more than a guess? Multiple choice question. Ordering Shortage Setup Holding

shortage

If a company is trying to find the optimal amount of inventory to produce for a single event, it is likely to deploy which type of inventory model? Multiple choice question. LIFO Single-period Fixed-order quantity Periodic

single-period

Southern Printing Corp. produces high-end booklets for university graduations listing all the participating students at a given university. What inventory model would Southern use to optimize the amount of booklet inventory produced for each graduation? Multiple choice question. Economic order quantity Fixed-order quantity Single-period Fixed-time period

single-period

Fixed-time-period models are ( ) triggered.

time

Which of the following is not a cost associated with inventory management? Multiple choice question. Holding costs Shortage costs Setup costs Transportation costs Ordering costs

transportation costs