Reference no: EM132195858

1. In a continuous inventory system an order is placed

for a variable amount whenever the inventory on hand decreases to less than the lead time demand

for a variable amount after the passage of a fixed amount of time

for the same fixed amount whenever the inventory on hand decreases to a certain level

for the same constant amount after the passage of a fixed amount of time

2. In the ABC inventory classification system

A. items require the most control

B items require more control than C items but less control than A items

B items require the most control

A items require less control than B items

3. In the periodic, or fixed-time-period system

the time between orders is constant and the order size varies

the time between orders varies and the order size is constant

both the time between orders and the order size vary

both the time between orders and the order size are constant

4. Lot sizing

determines the quantities in which items are usually made or purchased

involves physically counting at least some inventory items daily and reconciling differences

subtracts on-hand quantities and scheduled receipts from gross requirements

subtracts an item's lead time from its due date to determine order date

5. When production or purchasing is made in predetermined batches or lots

planned order receipts are always equal to net requirements

planned order receipts are always smaller than net requirements

planned order receipts can be different from net requirements

planned order receipts occur after net requirements