Question 1

List the four types of inventory.

Accepted Answer

The answer of List the four types of inventory....

Question 2

Explain what "decoupling" means in the context of inventory management.

Accepted Answer

The answer of Explain what "decoupling" means in the context...

Question 3

What are the main reasons that an organization has inventory?

Accepted Answer

The answer of What are the main reasons that an...

Question 4

What are the assumptions of the EOQ model?

Accepted Answer

The answer of What are the assumptions of the EOQ...

Question 5

Describe the costs associated with ordering and maintaining inventory.

Accepted Answer

The answer of Describe the costs associated with ordering and...

Question 6

When demand is constant and lead time is variable, safety stock computation requires three inputs: the value of Z, __________, and the standard deviation of lead time.

Accepted Answer

The answer of When demand is constant and lead time...

Question 7

Describe ABC inventory analysis in one sentence. What are some policies that may be based upon the results of an ABC analysis?

Accepted Answer

The answer of Describe ABC inventory analysis in one sentence....

Question 8

Several inventory models assume "independent demand." Explain what that term means and why the assumption is important.

Accepted Answer

The answer of Several inventory models assume "independent demand." Explain...

Question 9

When is a good time for cycle-counting personnel to audit a particular item?

Accepted Answer

The answer of When is a good time for cycle-counting...

Question 10

Define shrinkage. List three or more examples of shrinkage.

Accepted Answer

The answer of Define shrinkage. List three or more examples...

Question 11

A(n) __________ system triggers inventory ordering on a uniform time frequency.

Accepted Answer

The answer of A(n) __________ system triggers inventory ordering on...

Question 12

What are the techniques to control service inventories?

Accepted Answer

The answer of What are the techniques to control service...

Question 13

List the typical components that constitute inventory holding or carrying costs.

Accepted Answer

The answer of List the typical components that constitute inventory...

Question 14

What is cycle counting?

Accepted Answer

The answer of What is cycle counting?...

Question 15

List the typical cost components that constitute ordering costs in inventory systems.

Accepted Answer

The answer of List the typical cost components that constitute...

Question 16

What is MRO an acronym for?
 What is the function of MRO inventories?

Accepted Answer

The answer of What is MRO an acronym for?
 What...

Question 17

In the basic economic order quantity model and in the production order quantity model, optimal behavior occurs where annual setup costs equal annual holding costs. Is this a coincidence, or a fundamental element of these models?
 Answer in a well-constructed paragraph.

Accepted Answer

The answer of In the basic economic order quantity model...

Question 18

Compare the assumptions of the production order quantity model to those of the basic EOQ model.

Accepted Answer

The answer of Compare the assumptions of the production order...

Question 19

Assume two inventory problems with identical demand, holding cost, and setup cost. In one, goods arrive instantly, but in the other goods arrive at a measurable rate. Which of these problems will have the larger optimal order quantity?
 Why?

Accepted Answer

The answer of Assume two inventory problems with identical demand,...

Question 20

In some inventory models, the optimal behavior occurs where ordering costs and carrying costs are equal to one another. Provide an example of a model where this "rule" does not hold; explain how the model's results are optimal anyway.

Accepted Answer

The answer of In some inventory models, the optimal behavior...

Quiz 15: Inventory Management