Reference no: EM13928660

Question 1. Which of the following is one of the categories of manufacturing inventory?

• Economic Order Inventory
• Work-in-process
• Quality units
• JIT Inventory

Question 2. When developing inventory cost models, which of the following are not included as costs to place an order?

• Phone calls
• Taxes
• Clerical
• Calculating quantity to order
• Postage

Question 3. In making any decision that affects inventory size, which of the following costs do not need to be considered?

• Holding costs
• Setup costs
• Ordering costs
• Fixed costs
• Shortage costs

Question 4. Which of the following are fixed-order quantity inventory models?

• Economic order quantity model
• The ABC model
• Periodic replenishment model
• Cycle counting model
• P model

Question 5. Which of the following is the set of all cost components that make up the fixed-order quantity total annual cost (TC) function?

• Annual purchasing cost, annual ordering cost, fixed cost
• Annual holding cost, annual ordering cost, unit cost
• Annual holding cost, annual ordering cost, annual purchasing cost
• Annual lead time cost, annual holding cost, annual purchasing cost
• Annual unit cost, annual set up cost, annual purchasing cost

Question 6. If annual demand is 50,000 units, the ordering cost is $25 per order, and the holding cost is $5 per unit per year, which of the following is the optimal order quantity using the fixed-order quantity model?

• 909
• 707
• 634
• 500
• 141

Question 7. If the average aggregate inventory value is $100,000 and the cost of goods sold is $450,000, which of the following is inventory turnover?

• 19.23
• 4.5
• 0.8654
• 0.2222
• None of the above

Question 8. In Hau Lee's uncertainty framework to classify supply chains, a supply chain for functional products with a stable supply process is called which of the following?

• Efficient
• Forward looking
• Agile
• Risk hedging
• Responsive

Question 9. Which of the following is an organizationally driven reason for outsourcing?

• Improve effectiveness by focusing on what the firm does best
• Turn fixed costs into variable costs
• Reduce costs through lowered cost structure and increased flexibility
• Improve risk management
• Improve credibility and image by associating with superior providers

Question 10. Which of the following is an improvement-driven reason for outsourcing?

• Shorten cycle time
• Improve effectiveness by focusing on what the firm does best
• Increase product and service value by improving response to customer needs
• Turn fixed costs into variable costs
• Reduce costs through a lower cost structure