Question 1

Figure 7-1
Use the graph below to answer the question(s). 
-Which of the following is TRUE in relation to Figure 7-1?

Accepted Answer

The answer of Figure 7-1
Use the graph below to answer...

Question 2

List four assumptions of the EOQ model.

Accepted Answer

The answer of List four assumptions of the EOQ model....

Question 3

The UNLV Bookstore sells a unique calculator to college students.The demand for this calculator has a normal distribution with an average daily demand of 20 units and a standard deviation of 4 units per day.The lead time for this calculator is very stable at 9 days.Compute the statistical reorder point that results in a 95 percent in-stock probability (Z = 1.65).

Accepted Answer

The statistical reorder point formula is:

Statistical Reorder Point = Average Daily Demand x Lead Time + Safety Stock

First, we need to calculate the safety stock using the following formula:

Safety Stock = Z x Standard Deviation of Demand x Square Root of Lead Time

Substituting the given values:

Safety Stock = 1.65 x 4 x Square Root of 9
Safety Stock = 9.24

Now, substituting the given values into the statistical reorder point formula:

Statistical Reorder Point = 20 x 9 + 9.24
Statistical Reorder Point = 199.24

Therefore, the statistical reorder point that results in a 95 percent in-stock probability is 199.8 units (rounded up to the nearest whole number), which corresponds to choice (D).

Question 4

Use the graph below to answer the questions that follow.  
a.Identify the Annual Holding Cost curve. Provide a brief description of what the Annual Holding Cost curve represents.
b.Identify the Annual Ordering Cost curve. Provide a brief description of what the Annual Ordering Cost curve represents.
c.Identify the Annual Total Cost Curve. Provide a brief description of what the Annual Total Cost curve represents.
d.Identify the Economic Order Quantity. Provide a brief description of what the Economic Order Quantity represents.

Accepted Answer

The answer of Use the graph below to answer the...

Question 5

Figure 7-1
Use the graph below to answer the question(s). 
-Which of the following is true under the Periodic Review System:

Accepted Answer

Under the Periodic Review System, a higher level of safety stock is needed to buffer against uncertainty in demand over a longer planning horizon, as shown by the higher safety stock level in the graph at the longer review period.

Question 6

When demand and delivery lead time are known and constant,reorder point is the ____.

Accepted Answer

The reorder point is the level of inventory at which a new order needs to be placed. When demand and delivery lead time are constant and known, the reorder point can be calculated by multiplying the demand during lead time with the lead time. Therefore, the correct answer is A.

Question 7

Name and briefly describe the four basic types of inventory.

Accepted Answer

The answer of Name and briefly describe the four basic...

Question 8

Describe the ABC inventory matrix,and how is it used to manage inventory.

Accepted Answer

The answer of Describe the ABC inventory matrix,and how is...

Question 9

What is Radio Frequency Identification (RFID)? Provide four examples or scenarios of how RFID can be used to aid in supply chain management.

Accepted Answer

The answer of What is Radio Frequency Identification (RFID)? Provide...

Question 10

When demand and delivery lead time are known and constant,and demand is eight per day,and purchase lead time is four days,the reorder point is:

Accepted Answer

Reorder point = (Demand per day x Purchase lead time) + Safety stock
Since demand is 8 per day and purchase lead time is 4 days, reorder point = (8 x 4) + Safety stock
To calculate safety stock, we need to know the variability in demand and the desired service level. Since this information is not provided, we cannot calculate the exact safety stock. Therefore, we cannot choose options A, B, D, or E. 
The only choice left is C, which gives the formula for calculating the reorder point based on the known variables of demand and purchase lead time.

Question 11

Briefly describe the differences between dependent and independent demand.Provide examples of dependent and independent demand items for each of the following industries: automotive industry,personal computer industry,bicycle industry

Accepted Answer

The answer of Briefly describe the differences between dependent and...

Question 12

The manager at Robert's Cigars wants to determine the lowest cost order policy given the following purchase discounts offered: cigar costs are $4 each for orders less than 500; $3.50 each for orders of 500 - 1000; and $3.25 each for orders greater than 1000.The order cost = $75,annual demand forecast = 5500 cigars,inventory carrying cost = 30% per year.

Accepted Answer

The answer of The manager at Robert's Cigars wants to...

Quiz 7: Inventory Management

Figure 7-1 Use the graph below to answer the question(s) . -Which of the following is TRUE in relation to Figure 7-1?