BCOR 360 EXAM 5 QUESTIONS AND ANSWERS
__________ is a form of inventory buildup to buffer against some event that may not
happen. - Answer -hedge inventory
Anticipation inventory is __________. - Answer -inventory that is held in anticipation of
customer demand
Dependent demand inventory is __________. - Answer -inventory items whose
demand levels are tied directly to a company's planned production of another item
__________ is extra inventory that a company holds to protect itself against
uncertainties in either demand or replenishment time. - Answer -safety stock
A periodic review system is __________. - Answer -an inventory system that is used to
manage independent demand inventory
a single period inventory system is ______________ - Answer -used when demand
occurs in only a single point in time
In a continuous review system, the inventory level for an item is constantly monitored,
and when the reorder point is reached, an order is released. To simplify the discussion
of continuous review systems, it is assumed that the variables that underlie the system
are constant.
One variable is demand, which __________. - Answer -states that the inventory item of
interest has a constant demand per period
__________ is when the expected cost of a shortage equals the expected cost of
having excess units within a single-period inventory system. - Answer -target stocking
point
__________ is inventory items whose demand levels are beyond a company's complete
control.` - Answer -independent demand inventory
In the continuous review system, __________ is the cost of holding a single unit in
inventory for a year. - Answer -H
__________ is holding safety stock in a single location instead of multiple locations.
Several locations then share safety stock inventories to lower overall holding costs by
reducing overall safety stock levels. - Answer -inventory pooling
Service level __________. - Answer -indicates the amount of demand to be met under
conditions of demand and supply uncertainty
__________ is a form of inventory buildup to buffer against some event that may not
happen. - Answer -hedge inventory
Anticipation inventory is __________. - Answer -inventory that is held in anticipation of
customer demand
Dependent demand inventory is __________. - Answer -inventory items whose
demand levels are tied directly to a company's planned production of another item
__________ is extra inventory that a company holds to protect itself against
uncertainties in either demand or replenishment time. - Answer -safety stock
A periodic review system is __________. - Answer -an inventory system that is used to
manage independent demand inventory
a single period inventory system is ______________ - Answer -used when demand
occurs in only a single point in time
In a continuous review system, the inventory level for an item is constantly monitored,
and when the reorder point is reached, an order is released. To simplify the discussion
of continuous review systems, it is assumed that the variables that underlie the system
are constant.
One variable is demand, which __________. - Answer -states that the inventory item of
interest has a constant demand per period
__________ is when the expected cost of a shortage equals the expected cost of
having excess units within a single-period inventory system. - Answer -target stocking
point
__________ is inventory items whose demand levels are beyond a company's complete
control.` - Answer -independent demand inventory
In the continuous review system, __________ is the cost of holding a single unit in
inventory for a year. - Answer -H
__________ is holding safety stock in a single location instead of multiple locations.
Several locations then share safety stock inventories to lower overall holding costs by
reducing overall safety stock levels. - Answer -inventory pooling
Service level __________. - Answer -indicates the amount of demand to be met under
conditions of demand and supply uncertainty
