OPS Final Exam Review

OPS Final Exam Review 1. Inventory control models assume that demand for an item is: ANSWER: either independent of or dependent on the demand for other items 2. Policies based on ABC analysis might include investing: ANSWER: more in supplier development for A items 3. Extra units that are held in inventory to reduce stock­outs are called: ANSWER: safety stock 4. A single­period inventory model is NOT applicable for: ANSWER: furniture 5. Which of the following does NOT belong to ordering costs? ANSWER: interest payments 6. In the single­period inventory model, the overage cost is: ANSWER: cost per unit ­ salvage value per unit 7. What is a system for ordering items that have little or no value at the end of a sales period? ANSWER: single­period inventory model 8. 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 9. Cycle counting: ANSWER: is a process by which inventory records are verified 10. What is the cost to prepare a machine or process for production? ANSWER: setup cost 11. Which of the following types of inventory describes inventory that has been purchased but not processed? ANSWER: raw material inventory 12. A statistical model applicable when product demand or any other variable is not known but can be specified by means of a probability distribution is referred as: .....