OM 300 nunnelly exam 3 questions with answers

OM 300 nunnelly exam 3 questions
|\ |\ |\ |\ |\ |\




with answers |\




One use of inventory is
|\ |\ |\ |\




A. to tightly synchronize production and distribution processes.
|\ |\ |\ |\ |\ |\ |\




B. to provide a hedge against inflation.
|\ |\ |\ |\ |\ |\




C. to tightly synchronize a firm's production with its customers'
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\


demand.
D. to ensure that item cost is maximized. - CORRECT ANSWERS
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\


✔✔B


The objective of inventory management is to
|\ |\ |\ |\ |\ |\




A. decouple various parts of the production process.
|\ |\ |\ |\ |\ |\ |\




B. provide a selection of goods for anticipated customer demand.
|\ |\ |\ |\ |\ |\ |\ |\ |\




C. take advantage of quantity discounts.
|\ |\ |\ |\ |\




D. strike a balance between inventory investment and customer
|\ |\ |\ |\ |\ |\ |\ |\ |\


service. - CORRECT ANSWERS ✔✔D |\ |\ |\ |\




Which of the following types of inventory describes inventory that
|\ |\ |\ |\ |\ |\ |\ |\ |\


has been purchased but not processed?
|\ |\ |\ |\ |\ |\




A. maintenance/repair/operating supply inventory
|\ |\ |\




B. finished-goods inventory
|\ |\




C. work-in-process inventory
|\ |\




D. raw material inventory - CORRECT ANSWERS ✔✔D
|\ |\ |\ |\ |\ |\ |\

, What is the cost to prepare a machine or process for production?
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\




A. setup cost
|\ |\




B. ordering cost
|\ |\




C. holding cost
|\ |\




D. preparation cost - CORRECT ANSWERS ✔✔A
|\ |\ |\ |\ |\ |\




The difference between the basic EOQ model and the production
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\


order quantity model is that
|\ |\ |\ |\




A. the production order quantity model does not require the
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\


assumption of instantaneous delivery. |\ |\ |\




B. the production order quantity model does not require the
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\


assumption of known, constant demand. |\ |\ |\ |\




C. there are no holding costs in the production order quantity
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\


model.
D. the EOQ model does not require the assumption of known,
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\


constant lead time. - CORRECT ANSWERS ✔✔A
|\ |\ |\ |\ |\ |\




Extra units that are held in inventory to reduce stockouts are
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\


called
A. just-in-time inventory.
|\ |\




B. demand variance.
|\ |\




C. reorder point.
|\ |\




D. safety stock. - CORRECT ANSWERS ✔✔D
|\ |\ |\ |\ |\ |\