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Exam 9: Inventory Management Fundamentals and Independent Demand

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Question 21

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An inventory model that is used when product cannot be received at the full order quantity is known as the ________ inventory model.

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Question 22

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A store of goods and stocks for some future use is known as ________.

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Question 23

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Use the information below to answer the following questions: The materials manager for a billiard ball maker must periodically place orders for resin,one of the raw materials used in producing billiard balls. She knows that manufacturing uses resin at a rate of 50 kilograms each day,and that it costs $.04 per day to carry a kilogram of resin in inventory. She also knows that the order costs for resin are $100 per order,and that the lead time for delivery is four (4) days. Assume 365 days in a year. -What would be the length of an order cycle - i.e.the time between successive orders using the EOQ?

Use the information below to answer the following questions: The materials manager for a billiard ball maker must periodically place orders for resin,one of the raw materials used in producing billiard balls. She knows that manufacturing uses resin at a rate of 50 kilograms each day,and that it costs $.04 per day to carry a kilogram of resin in inventory. She also knows that the order costs for resin are $100 per order,and that the lead time for delivery is four (4) days. Assume 365 days in a year. -What is the economic order quantity (EOQ) for resin?

Manufacturers that order supplies from their vendors every Monday in order to stabilize purchasing and shipping schedules are using a

Because price isn't a factor in the EOQ formula,quantity discounts won't affect EOQ calculations.

Inventory turnover is

Which one of the following is not an assumption of the basic EOQ model?

Products sent directly to customers and not placed in finished goods inventory are known as ________ inventory.

The periodic review inventory model requires a continuous monitoring of inventory levels.

Use the information below to answer the following questions: The materials manager for a billiard ball maker must periodically place orders for resin,one of the raw materials used in producing billiard balls. She knows that manufacturing uses resin at a rate of 50 kilograms each day,and that it costs $.04 per day to carry a kilogram of resin in inventory. She also knows that the order costs for resin are $100 per order,and that the lead time for delivery is four (4) days. Assume 365 days in a year. -At what point should resin be reordered?

Inventory that is completed and placed into inventory for sale at a later date is known as

Demand that is calculated from a parent item is called independent demand.

In ABC inventory analysis,items that account for sixty percent of the revenue but account for only few inventory items are classified as

Classic Kitchen cabinets has forecasted demand for 200 cabinets for the upcoming month.Based on this information and knowing that each cabinet requires two knobs,they have forecasted that 400 knobs will be required.What term can be used to describe the demand for the knobs?

In the EOQ quantity discount model,the optimum order quantity will always be found on the lowest total cost curve.

If a firm turns over inventory once a week,they would have 7 days' worth of inventory on hand.

In ABC inventory analysis,items that account for only up to 10% of the revenue but for a majority of the inventory items are classified as

Materials stored to support the functioning of the business are known as ________.

Products that are waiting to be sold to customers are known as ________ inventory.