MANG 3402 FINAL QUESTIONS AND ANSWERS
Which of the following is NOT a type of inventory?
A. MRP
B. finished goods
C. work-in-process
D. raw material
A. MRP
Which of the following does NOT belong to holding costs?
A.
order processing
B.
pilferage, scrap, and obsolescence
C.
insurance on inventory
D.
storage costs
A.
order processing
Extra units that are held in inventory to reduce stockouts are called
A.
reorder point.
B.
,demand variance.
C.
safety stock.
D.
just-in-time inventory.
C.
safety stock.
If demand per day stays constant and lead time for a new order increases, then the
reorder point
A.
decreases.
B.
increases.
C.
stays constant.
D.
equals zero.
B.
increases.
With a probabilistic model, increasing the service level
A.
will decrease the level of safety stock.
B.
will have no impact on the cost of the inventory policy.
C.
, will reduce the cost of the inventory policy.
D.
will increase the cost of the inventory policy.
D.
will increase the cost of the inventory policy.
The appropriate level of safety stock is typically determined by
A.
carrying sufficient safety stock so as to eliminate all stockouts.
B.
taking the square root of the economic order quantity.
C.
choosing the level of safety stock that assures a given service level.
D.
minimizing the expected stockout cost.
C.
choosing the level of safety stock that assures a given service level.
A major challenge in inventory management is to maintain a balance between inventory
investment and customer service.
T/F
True
Work-in-process inventory is devoted to maintenance, repair, and operating materials.
T/F
False
Which of the following is NOT a type of inventory?
A. MRP
B. finished goods
C. work-in-process
D. raw material
A. MRP
Which of the following does NOT belong to holding costs?
A.
order processing
B.
pilferage, scrap, and obsolescence
C.
insurance on inventory
D.
storage costs
A.
order processing
Extra units that are held in inventory to reduce stockouts are called
A.
reorder point.
B.
,demand variance.
C.
safety stock.
D.
just-in-time inventory.
C.
safety stock.
If demand per day stays constant and lead time for a new order increases, then the
reorder point
A.
decreases.
B.
increases.
C.
stays constant.
D.
equals zero.
B.
increases.
With a probabilistic model, increasing the service level
A.
will decrease the level of safety stock.
B.
will have no impact on the cost of the inventory policy.
C.
, will reduce the cost of the inventory policy.
D.
will increase the cost of the inventory policy.
D.
will increase the cost of the inventory policy.
The appropriate level of safety stock is typically determined by
A.
carrying sufficient safety stock so as to eliminate all stockouts.
B.
taking the square root of the economic order quantity.
C.
choosing the level of safety stock that assures a given service level.
D.
minimizing the expected stockout cost.
C.
choosing the level of safety stock that assures a given service level.
A major challenge in inventory management is to maintain a balance between inventory
investment and customer service.
T/F
True
Work-in-process inventory is devoted to maintenance, repair, and operating materials.
T/F
False
