MGSC 395 STUDY GUIDE ALL ANSWERS AND
QUESTIONS SET A+
✔✔Which of the following is NOT considered a pressure to hold large inventories?
A.
the potential to reduce stockouts
B.
the cost of insurance
C.
the cost of placing an order
D.
the need to increase machine utilization - ✔✔B
✔✔A perpetual inventory system requires that
A.
inventory records are always current.
B.
inventory is always in stock.
C.
inventory is constantly being produced.
D.
inventory is always on order. - ✔✔A
✔✔_________ items, consisting of raw materials and work-in-process inventories, are
those items whose required quantity varies with the production plans for other items
held in the firm's inventory.
A.
Cycle stock
B.
Independent demand
C.
MRO
D.
Dependent demand - ✔✔D
, ✔✔Lewis Machine Tools is considering reducing lot size to reduce cycle inventory.
Which of the following is a change that should be made for lot size reduction to be
effective?
A.
Increase lead times
B.
Allowing backorders
C.
Increasing repeatability
D.
Offer seasonal pricing plans - ✔✔C
✔✔The primary lever to reduce anticipation inventory is to
A.
match demand rate with production rate.
B.
rely on more equipment and labor buffers.
C.
streamline the methods for placing orders and making setups.
D.
improve demand forecasts so that fewer surprises come from customers. - ✔✔A
✔✔What is the primary lever to reduce cycle inventory?
A.
use flexible automation
B.
improve demand forecasts
C.
reduce the lot sizes
D.
place orders closer to the time when they must be received - ✔✔C
✔✔Lisa's Card Cache uses ABC analysis. Which of the following statements is NOT
true of ABC analysis?
A.
Generally, the Class A items account for approximately 80 percent of the dollar usage.
B.
ABC analysis uses the Pareto chart concept.
C.
ABC analysis allows the company to control inventory shrinkage.
D.
Inventory items are ranked on the basis of dollar usage. - ✔✔c
✔✔An individual item or product that has an identifying code and is held in inventory
somewhere along the supply chain is called a
QUESTIONS SET A+
✔✔Which of the following is NOT considered a pressure to hold large inventories?
A.
the potential to reduce stockouts
B.
the cost of insurance
C.
the cost of placing an order
D.
the need to increase machine utilization - ✔✔B
✔✔A perpetual inventory system requires that
A.
inventory records are always current.
B.
inventory is always in stock.
C.
inventory is constantly being produced.
D.
inventory is always on order. - ✔✔A
✔✔_________ items, consisting of raw materials and work-in-process inventories, are
those items whose required quantity varies with the production plans for other items
held in the firm's inventory.
A.
Cycle stock
B.
Independent demand
C.
MRO
D.
Dependent demand - ✔✔D
, ✔✔Lewis Machine Tools is considering reducing lot size to reduce cycle inventory.
Which of the following is a change that should be made for lot size reduction to be
effective?
A.
Increase lead times
B.
Allowing backorders
C.
Increasing repeatability
D.
Offer seasonal pricing plans - ✔✔C
✔✔The primary lever to reduce anticipation inventory is to
A.
match demand rate with production rate.
B.
rely on more equipment and labor buffers.
C.
streamline the methods for placing orders and making setups.
D.
improve demand forecasts so that fewer surprises come from customers. - ✔✔A
✔✔What is the primary lever to reduce cycle inventory?
A.
use flexible automation
B.
improve demand forecasts
C.
reduce the lot sizes
D.
place orders closer to the time when they must be received - ✔✔C
✔✔Lisa's Card Cache uses ABC analysis. Which of the following statements is NOT
true of ABC analysis?
A.
Generally, the Class A items account for approximately 80 percent of the dollar usage.
B.
ABC analysis uses the Pareto chart concept.
C.
ABC analysis allows the company to control inventory shrinkage.
D.
Inventory items are ranked on the basis of dollar usage. - ✔✔c
✔✔An individual item or product that has an identifying code and is held in inventory
somewhere along the supply chain is called a
