MQM 227 Ch. 20 Questions and Answers 100% Correct
A company has recorded the last five days of daily demand on its only
product. Those values are 120, 125, 124, 128, and 133. The time from
when an order is placed to when it arrives at the company from its
vendor is 5 days. Assuming the basic fixed-order-quantity inventory
model fits this situation and no safety stock is needed, which of the
following is the reorder point (R)?
120
126
630
950
1,200
Using Equation 20.4, Average demand is 120 + 125 + 124 + 128 + 133/5
= 126. Lead time = 5 days, so the reorder point is 126 x 5 = 630. -
✔✔630
Using Equation 20.4, Average demand is 120 + 125 + 124 + 128 + 133/5
= 126. Lead time = 5 days, so the reorder point is 126 x 5 = 630.
Computer inventory systems are often programmed to produce a
cycle count notice in which of the following cases?
When the record shows a near maximum balance on hand
When the record shows positive balance but a backorder was written
, When quality problems have been discovered with the item
When the item has become obsolete
When the item has been misplaced in the stockroom - ✔✔When the
record shows positive balance but a backorder was written
In order to determine the standard deviation of usage during lead
time in the reorder point formula for a fixed-order-quantity inventory
model, which of the following must be computed first?
Standard deviation of daily demand
Number of standard deviations for a specific service probability
Stock-out cost
Economic order quantity
Safety stock level - ✔✔Standard Deviation of Daily Demand
The Pareto principle is best applied to which of the following
inventory systems?
EOQ
Fixed-time-period
ABC classification
Fixed-order quantity
Single-period ordering system - ✔✔ABC Classification
A company has recorded the last five days of daily demand on its only
product. Those values are 120, 125, 124, 128, and 133. The time from
when an order is placed to when it arrives at the company from its
vendor is 5 days. Assuming the basic fixed-order-quantity inventory
model fits this situation and no safety stock is needed, which of the
following is the reorder point (R)?
120
126
630
950
1,200
Using Equation 20.4, Average demand is 120 + 125 + 124 + 128 + 133/5
= 126. Lead time = 5 days, so the reorder point is 126 x 5 = 630. -
✔✔630
Using Equation 20.4, Average demand is 120 + 125 + 124 + 128 + 133/5
= 126. Lead time = 5 days, so the reorder point is 126 x 5 = 630.
Computer inventory systems are often programmed to produce a
cycle count notice in which of the following cases?
When the record shows a near maximum balance on hand
When the record shows positive balance but a backorder was written
, When quality problems have been discovered with the item
When the item has become obsolete
When the item has been misplaced in the stockroom - ✔✔When the
record shows positive balance but a backorder was written
In order to determine the standard deviation of usage during lead
time in the reorder point formula for a fixed-order-quantity inventory
model, which of the following must be computed first?
Standard deviation of daily demand
Number of standard deviations for a specific service probability
Stock-out cost
Economic order quantity
Safety stock level - ✔✔Standard Deviation of Daily Demand
The Pareto principle is best applied to which of the following
inventory systems?
EOQ
Fixed-time-period
ABC classification
Fixed-order quantity
Single-period ordering system - ✔✔ABC Classification
