Question 1

An inventory system is a set of policies and controls that monitors levels of inventory and determines what levels should be maintained, when stock should be replenished, and how large orders should be.

Accepted Answer

True

Question 2

In inventory models, high holding costs tend to favor low inventory levels and frequent replenishment.

Accepted Answer

True

Question 3

Fixed-order quantity inventory systems determine the reorder point, R, and the order quantity, Q, values.

Accepted Answer

True

Question 4

Shortage costs are precise and easy to measure.

Accepted Answer

The answer of Shortage costs are precise and easy to...

Question 5

The fixed-order quantity inventory model favors less expensive items because average inventory is lower.

Accepted Answer

The answer of The fixed-order quantity inventory model favors less...

Question 6

Fixed-order quantity inventory models are "time triggered."

Accepted Answer

The answer of Fixed-order quantity inventory models are "time triggered."...

Question 7

Fixed-order quantity inventory models are "event triggered."

Accepted Answer

The answer of Fixed-order quantity inventory models are "event triggered."...

Question 8

In inventory models, high holding costs tend to favor high inventory levels.

Accepted Answer

The answer of In inventory models, high holding costs tend...

Question 9

The fixed-time period inventory system has a smaller average inventory than the fixed-order-quantity system because it must also protect against stock outs during the review period when inventory is checked.

Accepted Answer

The answer of The fixed-time period inventory system has a...

Question 10

Fixed-time period inventory models are "time triggered."

Accepted Answer

The answer of Fixed-time period inventory models are "time triggered."...

Question 11

One of the basic purposes of inventory analysis in manufacturing and stock keeping services is to specify when items should be ordered.

Accepted Answer

The answer of One of the basic purposes of inventory...

Question 12

Dependent demand inventory levels are usually managed by calculations using calculus-driven, cost-minimizing models.

Accepted Answer

The answer of Dependent demand inventory levels are usually managed...

Question 13

Using the probability approach, we assume that the demand over a period of time is normally distributed.

Accepted Answer

The answer of Using the probability approach, we assume that...

Question 14

The computation of a firm's inventory position is found by taking the inventory on hand and adding it to the on-order inventory, and then subtracting backordered inventory.

Accepted Answer

The answer of The computation of a firm's inventory position...

Question 15

Fixed-time period inventory models are "event triggered."

Accepted Answer

The answer of Fixed-time period inventory models are "event triggered."...

Question 16

The fixed-order quantity inventory model is more appropriate for important items such as critical repair parts because there is closer monitoring and, therefore, quicker response to a potential stock out.

Accepted Answer

The answer of The fixed-order quantity inventory model is more...

Question 17

One of the basic purposes of inventory analysis in manufacturing and stock keeping services is to determine the level of quality to specify.

Accepted Answer

The answer of One of the basic purposes of inventory...

Question 18

The fixed-order quantity inventory model requires more time to maintain because every addition or withdrawal is logged.

Accepted Answer

The answer of The fixed-order quantity inventory model requires more...

Question 19

If the cost to change from producing one product to producing another were zero, the lot size would be very small.

Accepted Answer

The answer of If the cost to change from producing...

Question 20

One of the basic purposes of inventory analysis in manufacturing and stock keeping services is to determine how large the orders to vendors should be.

Accepted Answer

The answer of One of the basic purposes of inventory...

Quiz 20: Inventory Management

An inventory system is a set of policies and controls that monitors levels of inventory and determines what levels should be maintained, when stock should be replenished, and how large orders should be.

In inventory models, high holding costs tend to favor low inventory levels and frequent replenishment.

Fixed-order quantity inventory systems determine the reorder point, R, and the order quantity, Q, values.

Shortage costs are precise and easy to measure.

The fixed-order quantity inventory model favors less expensive items because average inventory is lower.

Fixed-order quantity inventory models are "time triggered."

Fixed-order quantity inventory models are "event triggered."

In inventory models, high holding costs tend to favor high inventory levels.

The fixed-time period inventory system has a smaller average inventory than the fixed-order-quantity system because it must also protect against stock outs during the review period when inventory is checked.

Fixed-time period inventory models are "time triggered."

One of the basic purposes of inventory analysis in manufacturing and stock keeping services is to specify when items should be ordered.

Dependent demand inventory levels are usually managed by calculations using calculus-driven, cost-minimizing models.

Using the probability approach, we assume that the demand over a period of time is normally distributed.

The computation of a firm's inventory position is found by taking the inventory on hand and adding it to the on-order inventory, and then subtracting backordered inventory.

Fixed-time period inventory models are "event triggered."

The fixed-order quantity inventory model is more appropriate for important items such as critical repair parts because there is closer monitoring and, therefore, quicker response to a potential stock out.

One of the basic purposes of inventory analysis in manufacturing and stock keeping services is to determine the level of quality to specify.

The fixed-order quantity inventory model requires more time to maintain because every addition or withdrawal is logged.

If the cost to change from producing one product to producing another were zero, the lot size would be very small.

One of the basic purposes of inventory analysis in manufacturing and stock keeping services is to determine how large the orders to vendors should be.