Reference no: EM132198818

1. The Gregory Hospital Group would like to use the economic order quantity (EOQ) model to manage their inventory of needles used in care operations of intensive care patients. However, they are in need of more understanding of the constraints and goals of using this model. Which of the following statements correctly states assumptions and goals of the EOQ model?

Using EOQ assumes that demand and lead-time are held constant through the order cycle

EOQ assumes that each unit that is ordered will be used, and thus, overstocking will not be an issue.

EOQ seeks to compute an order quantity such that total order and holding costs are equal.

Only a & c are correct

All of the above statements are correct

2. Which of the following statements about inventory management is incorrect?

Inventory is defined as the stock of any item or resource used in an organization, and includes raw materials, work-in-process and finished goods.

Cycle counting is a physical inventory-taking technique in which inventory is counted on a frequent basis rather than once or twice a year

The goal of the inventory control system is to ensure that items are always ordered using consistent time intervals.

One of the goals of inventory accuracy is to ensure that electronic recording of inventory is the same as the amount of on-hand inventory

One use of inventory is to maintain independence of operations across the supply chain.

3. Which of the following statements is false about the concept of kaizen?

Kaizen is one of the various lean management tools that helps an organization implement a continuous improvement system.

Poka-Yoke means that fool-proofing is built into the production process

To reach targeted improvements using kaizen methodology, firms engage in practices such as root-cause analysis.

Elimination of product movement and queue time between operations, reduction of inventory and employees are of central focus in kaizen.

Line stopping empowerment of workers and quality inspection are two kaizen techniques.

4. Which of the following is best classified as a polycentric policy of strategic approaches to international staffing?

a. Managers from headquarters staff key positions.

b. Host-country nationals staff key positions.

c. An international cadre of skilled managers are assigned to global subsidiaries regardless of nationality.

d. Key positions are filled by individuals in the region of the subsidiary.