ABC analysis divides on-hand inventory into three classes,
based on:
a)
b)
c)
d)
Question 2
a)
b)
c)
d)
unit price.
the number of units on hand.
annual demand.
annual dollar values.
Cycle counting:
means that we count all articles after a specified time period
leads us to count A items more frequent then B items
require all A items to be counted the same day
is a legal requirement
Question 3
The two most important inventory-based questions answered by the typical inventory model are:
a)when to place an order and the cost of the order.
b)when to place an order and how much of an item
to order.
c)how much of an item to order and the cost of the order.
d)how much of an item to order and with whom the order
should be placed.
Question 4
Extra units in inventory to help reduce stockouts are called:
a)reorder point.
b)safety stock.
c)just-in-time inventory.
d)all of the above.
Question 5
The difference(s) between the basic EOQ model and the production order quantity model is (are) that:
a)the production order quantity model does not require the assumption of known, constant demand.
b)the EOQ model does not require the assumption of negligible lead time.
c)the production order quantity model does not require the assumption of instantaneous delivery.
d)all of the above.
Question 6
The EOQ model is
a)not very useful in practice since the assumptions are
unrealistic
b)finds the optimal safety stock
c)is quite useful, due to the fact that the optimum is quite flat
d)depending on the standard deviation of the demand
e)has an impact of the re-order-point