to ensure the item cost is maximized.

You are watching: The proper quantity of safety stock is typically determined by

You space watching: The appropriate quantity of safety stock is typically determined by to provide a hedge against inflation. to tightly attach production and also distribution processes. to tightly attach a firm"s production with its customers" demand.

ABC evaluation divides one organization"s on-hand inventory right into three class based upon


*

*

is a procedure by i beg your pardon inventory records are verified.
provides a measure up of perform turnover.
assumes that all list records must be verified with the same frequency.
cannot be excellent in an independent need situation.

The difference(s) in between the straightforward EOQ model and the manufacturing order quantity version is (are) that


*

there space no holding costs in the production order quantity model.
the EOQ model does not need the presumption of known, consistent lead time.
the manufacturing order quantity model does not need the assumption of instantaneous delivery.
the production order quantity model does not need the assumption of known, constant demand.

Extra systems that are hosted in perform to alleviate stockouts are called


*

demand variance.
just-in-time inventory.
reorder point.
safety stock.

Inventory document accuracy would be diminished by


*

cycle counting.
ABC analysis.
increasing stockroom accessibility.
reorder points.

The two most important inventory-based inquiries answered by the common inventory version are


when to place an order and what is the price of the order.
how numerous of an item to order and what is the expense of this order.
when to location an order and how plenty of of an item to order.
how countless of things to order and also with who the order have to be placed.

The suitable level of security stock is frequently determined by


choosing the level of safety stock that assures a given service level.
taking the square source of the economic order quantity.
carrying enough safety stock so as to eliminate all stockouts.
minimizing expected stockout cost.

Which the the complying with is NOT a form of inventory?


raw material
work-in-process
MRP
finished goods

In the probabilistic model, raising the service level will


reduce the expense of the inventory policy.
increase the price of the perform policy.
cannot be determined.
have no impact on the expense of the inventory policy.

A system that triggers ordering ~ above a uniform time basis is referred to as a


fixed-quantity system.
reorder point system.
EOQ.
fixed-period system.

A agency wishes to identify the EOQ for an item that has actually an annual demand of 2,000 units, a expense per bespeak of $75, and also annual carrying price of $7.50 every unit. What is the EOQ?


73
200 units
40,000 units
100

A manufacturing facility is trying to determine the finest batch size for things that is created intermittently. This item has an annual demand the 1,000 units, an annual carrying expense of $10 every unit, and a setup cost of $400. They operate 50 weeks every year, and can produce 40 units per week. What is the best batch size for this item?

65
400
283
800

A save wants to ensure a shelf full of marshmallow peeps as the holiday season approaches. Daily demand for peeps is normally distributed with a median of 25 and also a standard deviation the 5. Command time is 3 days and the keep intends a 98% business level. What is their reorder point?


107
93
87
75

A production facility is do the efforts to broaden production on a maker that is currently used to produce one part. This item has actually an annual demand that 1,000 units, an annual carrying price of $10 every unit, and a setup expense of $400. They run 50 weeks every year, and also can produce 40 devices per week. What percent of the time are they utilizing this machine?

more in supplier breakthrough for A items.
extra treatment in forecasting for C items.
the many time and effort verifying the accuracy of records for B items.
more in inventory defense for C items.

A system that keeps monitor of every withdrawal or addition to inventory continuously is


a perpetual perform system.
a fixed period system.

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a fixed amount system.See more: How plenty of Days Is 5 Years, job In A Year, How numerous Days In A Year
a continuous inventory system.
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