What is true about inventory? - ANS For many businesses, inventory is the largest asset on the balance sheet at any given time. Can be difficult to convert back into cash It is a good idea to try to get your inventory down as far as possible What is the Single-period Inventory Model? - ANS Used when we are making a one-time purchase of an item What is the Fixed-order Quantity Inventory Model? - ANS Used when we want to maintain an item "in-stock," and when we restock, a certain number of units must be ordered. What is the Fixed-time Period Inventory Model? - ANS The item is ordered at certain intervals of time What is inventory? - ANS The stock of any item or resource used in an organization. Includes raw materials, finished products, component parts, supplies, work-in-process What is manufacturing inventory? - ANS Refers to items that contribute to or become part of a firm's products What is an inventory system? - ANS The set of policies and controls that monitor levels of inventory Determines what levels should be maintained, when stock should be replenished, and how large orders should be What are the 6 purposes of inventory? - ANS To maintain independence of operations To meet variation in product demand To allow flexibility in production scheduling To provide a safeguard for variation in raw material delivery time To take advantage of economic purchase-order size Domain specific reasons-- anticipation, in-transit, strategic, etc. What are the 4 types of inventory costs? - ANS Holding (or carrying) costs Setup (or production change) costs Ordering costs Shortage costs What is independent demand? - ANS The demands for various items are unrelated to each other. (manual two-bin) What is dependent demand? - ANS The need for any one item is a direct result of the need for some other item. (rate-based synchronous planning) What are single-period inventory models? - ANS One time purchasing decision. Seeks to balance the costs of inventory overstock and understock What are multi-period inventory models? - ANS Fixed-order quantity models. -Event triggered (i.e. running out of stock) (EOQ) Fixed-time period models -Time triggered (i.e. monthly sales call by sales rep) What is safety stock? - ANS The amount of inventory carried in addition to expected demand Best approach is to use probability What is inventory accuracy? - ANS How well the inventory records agree with physical count What is cycle counting? - ANS A physical inventory-taking technique in which inventory is counted on a frequent basis rather than once or twice a year What is the Pareto Principle? - ANS Also known as the 80/20 rule, it states that, for many events, roughly 80% of the effects come from 20% of the causes.
Quality you can trust: written by students who passed their tests and reviewed by others who've used these notes.
No worries! You can instantly pick a different document that better fits what you're looking for.
No subscription, no commitments. Pay the way you're used to via credit card and download your PDF document instantly.
“Bought, downloaded, and aced it. It really can be that simple.”