Acme has read about just-in time inventory

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Reference no: EM132255872

T or F. Please explain your answer

1. Acme Inc. has established policy that items they hold in inventory must not exceed 1 out of stock situation stockout every year. Assuming that ten orders/year are placed for a part the service level Acme wants is 90%.

2. Acme has read about Just-In Time Inventory and wants to reduce its safety stock to zero. This should result in an average service level of 0%.

3. Acme Inc has a distribution center in Boston. The central warehouse is in Chicago. If the Boston distribution center places an order for 100 widgets to the Chicago warehouse, that order would be classified as independent demand.

4. The two major components of risk are:

A. Time and cost

B. Uncertainty and damage

C. Quality and time

D. Cost and decision making circumstances

Reference no: EM132255872

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