OM 300 Exam 3
Question 1.
One use of inventory is _____.
ANSWER
to provide a hedge against inflation
Question 2.
The objective of inventory management is to _____.
ANSWER
strike a balance between inventory investment and customer service
Question 3.
Which of the following types of inventory describes inventory that has been purchased but not processed? a. finished-goods inventory
b. work-in-progress inventory c. raw material inventory d. maintenance/repair/operating supply inventory
ANSWER
c. raw material inventory
Question 4.
What is the cost to prepare a machine or process for production?
ANSWER
setup cost
Question 5.
The difference between the basic EOQ model and the production order quantity model is that _____.
ANSWER
the production order quantity model does not require the assumption of instantaneous delivery
Question 6.
Extra units that are held in inventory to reduce stockouts are called _____.
ANSWER
safety stock
Question 7.
A supply chain ends with _____.
ANSWER
a satisfied customer
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Question 1.
One use of inventory is _____.
ANSWER
to provide a hedge against inflation
Question 2.
The objective of inventory management is to _____.
ANSWER
strike a balance between inventory investment and customer service
Question 3.
Which of the following types of inventory describes inventory that has been purchased but not processed? a. finished-goods inventory
b. work-in-progress inventory c. raw material inventory d. maintenance/repair/operating supply inventory
ANSWER
c. raw material inventory
Question 4.
What is the cost to prepare a machine or process for production?
ANSWER
setup cost
Question 5.
The difference between the basic EOQ model and the production order quantity model is that _____.
ANSWER
the production order quantity model does not require the assumption of instantaneous delivery
Question 6.
Extra units that are held in inventory to reduce stockouts are called _____.
ANSWER
safety stock
Question 7.
A supply chain ends with _____.
ANSWER
a satisfied customer
1/4
