Inventory Management Questions And
Answers With Verified Solutions Already
Passed Updated 2025
What characteristics and challenges apply to inventory management in the services
sector? - ANSWER✔✔- Direct customer contact
- Inventories perish
- Capacity must be planned
- Capacity is linked to inventory
A software manufacturer uses 100,000 DVDs each year. The procurement cost is
$50 per order, and the holding cost is $10 per DVD each year.
What is the EOQ for the DVDs? - ANSWER✔✔The square root of: 2 × 100,000 ×
50 divided by 10 = 1,000
A printing house uses 250 boxes of paper every 30 days for producing a popular
text book. The lead time for fulfilling customer orders is 15 days. To cope with
unexpected increases in customer demand, the company maintains a safety stock of
200 boxes of paper.
What is the ROP for the boxes of paper? - ANSWER✔✔325
Procurement costs - ANSWER✔✔- Cost of setting up supplier accounts
- Rent for Purchasing department office
Holding costs - ANSWER✔✔- Rent for warehouse space
- Cost of renting storage facilities
Stock-out costs - ANSWER✔✔-Discounts offered to clients waiting for products
-Cost of lost clients
You use the cost of each individual item purchased to value the inventory -
ANSWER✔✔Specific cost
You use the most recent price of goods purchased to value the inventory -
ANSWER✔✔FIFO
Answers With Verified Solutions Already
Passed Updated 2025
What characteristics and challenges apply to inventory management in the services
sector? - ANSWER✔✔- Direct customer contact
- Inventories perish
- Capacity must be planned
- Capacity is linked to inventory
A software manufacturer uses 100,000 DVDs each year. The procurement cost is
$50 per order, and the holding cost is $10 per DVD each year.
What is the EOQ for the DVDs? - ANSWER✔✔The square root of: 2 × 100,000 ×
50 divided by 10 = 1,000
A printing house uses 250 boxes of paper every 30 days for producing a popular
text book. The lead time for fulfilling customer orders is 15 days. To cope with
unexpected increases in customer demand, the company maintains a safety stock of
200 boxes of paper.
What is the ROP for the boxes of paper? - ANSWER✔✔325
Procurement costs - ANSWER✔✔- Cost of setting up supplier accounts
- Rent for Purchasing department office
Holding costs - ANSWER✔✔- Rent for warehouse space
- Cost of renting storage facilities
Stock-out costs - ANSWER✔✔-Discounts offered to clients waiting for products
-Cost of lost clients
You use the cost of each individual item purchased to value the inventory -
ANSWER✔✔Specific cost
You use the most recent price of goods purchased to value the inventory -
ANSWER✔✔FIFO
