MGMT 333 Exam 4 Questions And Answers 2024

MGMT 333 Exam 4 Questions And Answers 2024 Inventory - ANS-a stock or store of goods. Firms typically stock hundreds or even thousands of items in inventory, ranging from small things such as pencils, paper clips, screws, nuts, and bolts to large items such as machines, trucks, construction equipment, and airplanes. -Many of the items a firm carries in (blank) relate to the kind of business it engages in. Independent-Demand - ANS-The inventory models described relate primarily to what are referred to as __________________ _______________ items- that is, items that are ready to be sold or used. Independent-demand Dependent-demand - ANS-A computer would be an _______________ _____________________ item, whereas the components used to assemble a computer would be _________________ __________________ items. Return on Investment (ROI) - ANS-One widely used measure of managerial performance relates to __________________ ________ _______________________, which is profit after taxes divided by total assets. -Because inventories may represent a significant portion of total assets, a reduction of inventories can result in a significant increase in ROI, although that benefit has to be weighed against a possible risk of decrease in customer service. -raw materials and purchased parts -partially completed goods, called work-in-process (WIP) -Finished-goods inventories (manufacturing firms) or merchandise (retail stores) -Tool and supplies -Maintenance and repairs (MRO) inventory -Goods-in-transit to warehouses, distributors, or customers (pipeline inventory) - ANS-Types of Inventories -To meet anticipated customer demand (anticipation stocks) -To smooth production requirements -firms that experience variation in product demand often use inventory to achieve constant output during times of demand increases, and use inventory to "soak up" output that exceeds demand. Firms that experience seasonal patterns in demand often build up inventories during preseason periods to meet overly high requirements during seasonal periods. (seasonal inventories) -To decouple operations... Continues...