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What does a negative projected ending inventory value mean?
A.
It suggests that the sales forecasts aren't accurate.
B.
It suggests to decrease sales.
C.
It suggests that less production may be needed if the sales forecasts are accurate.
D.
It suggests to increase sales.
E.
It suggests that more production may be needed if the sales forecasts are
accurate. - E
What does a negative available-to-promise number mean?
A.
The negative projected ending inventory value leads to a negative available-to-
promise number.
B.
It suggests to decrease sales.
C.
,It suggests to increase sales.
D.
It means that the available inventory is over-sold. Production should be
decreased.
E.
It means that the available inventory is over-sold. Additional units should be
manufactured or purchased. - E
As a manager, a negative
___________ Is much easier to deal with. - PROJECTED ENDING
INVENTORY
What are the implications for setting minimum order quantities in an MRP
environment?
A.
Setting minimum order quantities may lead to a decline in production cost.
B.
A high minimum order quantity may result in having to hold and manage
inventory and incur inventory holding costs.
C.
Setting minimum order quantities may result in delaying the deliveries.
D.
Setting minimum order quantities means that the available inventory is over-sold.
- B
, _______________ refers to the broad set of activities carried out by organizations
to analyze sourcing opportunities, develop sourcing strategies, select suppliers,
and carry out all the activities required to procure goods and services.
A.
Supply management
B.
Goods management
C.
Demand management
D.
Personnel management - A
_______________ shows us how much the company paid for the inventory it had
on hand at the time of the report.
A.
Merchandise inventory
B.
Return on assets (ROA)
C.
Cost of goods sold (COGS)
D.
Profit margin - A
_______________ holds that $1 in cost savings increases pretax profits by $1,
while a $1 increase in sales increases pretax profits by only $1 multiplied by the
pretax profit margin.