Operations Management Final Exam QUESTIONS AND VERIFIED CORRECT ANSWERS 2024

inventory management - correct answer the planning and controlling of inventories to meet the competitive priorities of the organization inventory - correct answer a stock of materials used to satisfy customer demand or to support the production of services or goods lot size - correct answer the quantity of an inventory item management either buys from a supplier or manufactures using internal process inventory holding cost - correct answer the sum of the cost of capital plus the variable costs of keeping items on hand, such a storage and handling, taxes, insurance, and shrinkage cost of capital - correct answer the opportunity cost of investing in an asset relative to the expected return on assets of similar risk pilferage - correct answer theft of inventory by customers or employees obsolescence - correct answer inventory cannot be used or sold a full value, owning to model changes, engineering modifications, or unexpectedly low demand deterioration - correct answer physical spoilage or damage due to rough or excessive material handling results in lost value stockout - correct answer an order that cannot be satisfied, resulting in a loss of a sale backorder - correct answer customer order that cannot be filled when promised or demanded but is filled later