Assignment #7 - Chapter 7 Questions with 100%
Verified Answers
Describe dependent demand - Correct Answer internal demand for parts based on
demand for the final product
Describe independent demand - Correct Answer demand for a firm's end product
What are the four broad categories of inventory? - Correct Answer raw materials
work-in-progress
finished goods
maintenance, repair & operations (MRO)
What are the inventory cost categories? - Correct Answer direct,
indirect,
fixed,
variable,
order/setup,
holding/carrying
What is inventory turn ratio? - Correct Answer how many times inventory can turn over
in a given period
What does inventory turn ratio indicate? - Correct Answer indicates a company's ability
to generate revenue per dollar of inventory
What is cycle counting and purpose? - Correct Answer counting inventory; to reconcile
discrepancy between physical inventory and inventory record
Describe the ABC inventory control system and how it is used. - Correct Answer method
to determine which inventory unit should be counted more frequently; A is best or most
expensive
What are some of the deficiencies of barcodes? - Correct Answer can only store limited
amount of information
What are the four parts of an RFID system? - Correct Answer tag
reader
communication network
software
What does the EOQ model seek to accomplish? - Correct Answer Economic Order
Quantity
find the optimal order size that minimizes the sum of the total annual inventory costs
Verified Answers
Describe dependent demand - Correct Answer internal demand for parts based on
demand for the final product
Describe independent demand - Correct Answer demand for a firm's end product
What are the four broad categories of inventory? - Correct Answer raw materials
work-in-progress
finished goods
maintenance, repair & operations (MRO)
What are the inventory cost categories? - Correct Answer direct,
indirect,
fixed,
variable,
order/setup,
holding/carrying
What is inventory turn ratio? - Correct Answer how many times inventory can turn over
in a given period
What does inventory turn ratio indicate? - Correct Answer indicates a company's ability
to generate revenue per dollar of inventory
What is cycle counting and purpose? - Correct Answer counting inventory; to reconcile
discrepancy between physical inventory and inventory record
Describe the ABC inventory control system and how it is used. - Correct Answer method
to determine which inventory unit should be counted more frequently; A is best or most
expensive
What are some of the deficiencies of barcodes? - Correct Answer can only store limited
amount of information
What are the four parts of an RFID system? - Correct Answer tag
reader
communication network
software
What does the EOQ model seek to accomplish? - Correct Answer Economic Order
Quantity
find the optimal order size that minimizes the sum of the total annual inventory costs
