OMIS 338 - CHAPTER 12 QUESTIONS
& ANSWERS
Any asset held for future use or sale are known as - ANSWER inventories
Which of the following are one of the inputs to manufacturing and service-delivery
processes? - ANSWER Subassemblies
In the context of managing inventories in global supply chains, which of the following
can increase inventory accuracy to better than 98 percent (which is much higher than
the current industry average of 65 percent)? - ANSWER Radio-frequency identification
(RFID) chips
The affirmative selection and acquisition of products and services that most effectively
minimize negative environmental impacts over their life cycle of manufacturing,
transportation, use, and recycling or disposal is known as - ANSWER green purchasing
Setup costs depend on the number of - ANSWER orders placed
The price paid for purchased goods or the internal cost of producing them is called -
ANSWER unit cost
Demand that varies over time is known as - ANSWER dynamic demand
The lead time is the time between - ANSWER placement of an order and its receipt
The inability to satisfy the demand for an item - ANSWER can result in either a
backorder or lost sale
ABC inventory analysis is an application of - ANSWER the Pareto Principle
Which of the following are two principal decisions in a fixed-period system (FPS)? -
ANSWER The time interval between reviews and the reorder point
Which of the following is NOT one of the key characteristics of a fixed-point system
(FPS)? - ANSWER The time between orders (TBO) is constant when the demand rate
is stable.
Single-period inventory models are used in situations involving - ANSWER perishable
items that cannot be carried in inventory
In the context of the single-period inventory model, the cost per item of overestimating
demand is known as - ANSWER salvage cost.
& ANSWERS
Any asset held for future use or sale are known as - ANSWER inventories
Which of the following are one of the inputs to manufacturing and service-delivery
processes? - ANSWER Subassemblies
In the context of managing inventories in global supply chains, which of the following
can increase inventory accuracy to better than 98 percent (which is much higher than
the current industry average of 65 percent)? - ANSWER Radio-frequency identification
(RFID) chips
The affirmative selection and acquisition of products and services that most effectively
minimize negative environmental impacts over their life cycle of manufacturing,
transportation, use, and recycling or disposal is known as - ANSWER green purchasing
Setup costs depend on the number of - ANSWER orders placed
The price paid for purchased goods or the internal cost of producing them is called -
ANSWER unit cost
Demand that varies over time is known as - ANSWER dynamic demand
The lead time is the time between - ANSWER placement of an order and its receipt
The inability to satisfy the demand for an item - ANSWER can result in either a
backorder or lost sale
ABC inventory analysis is an application of - ANSWER the Pareto Principle
Which of the following are two principal decisions in a fixed-period system (FPS)? -
ANSWER The time interval between reviews and the reorder point
Which of the following is NOT one of the key characteristics of a fixed-point system
(FPS)? - ANSWER The time between orders (TBO) is constant when the demand rate
is stable.
Single-period inventory models are used in situations involving - ANSWER perishable
items that cannot be carried in inventory
In the context of the single-period inventory model, the cost per item of overestimating
demand is known as - ANSWER salvage cost.
