to encertain that item cost is maximized.

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

You are watching: The correct quantity of safety and security stock is commonly identified by to provide a hedge against inflation. to tightly connect manufacturing and also distribution processes. to tightly attach a firm"s manufacturing via its customers" demand.

ABC evaluation divides an organization"s on-hand also inventory into 3 classes based upon


*

*

is a procedure whereby inventory documents are verified.
provides a measure of inventory turnover.
assumes that all inventory documents have to be proved via the same frequency.
cannot be done in an independent demand situation.

The difference(s) in between the standard EOQ version and also the manufacturing order amount design is (are) that


*

tbelow are no holding expenses in the production order amount design.
the EOQ version does not need the presumption of recognized, constant lead time.
the production order quantity design does not need the presumption of instantaneous delivery.
the manufacturing order amount design does not require the presumption of well-known, continuous demand also.

Extra systems that are organized in inventory to minimize stockouts are called


*

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

Inventory record accuracy would certainly be reduced by


*

cycle counting.
ABC analysis.
raising stockroom availability.
reorder points.

The 2 a lot of necessary inventory-based inquiries answered by the typical inventory model are


when to area an order and what is the expense of the order.
exactly how many of an item to order and also what is the cost of this order.
as soon as to location an order and also just how many type of of a things to order.
how many type of of an item to order and with whom the order must be put.

The proper level of security stock is commonly established by


selecting the level of safety and security stock that assures a given service level.
taking the square root of the economic order quantity.
carrying sufficient safety and security stock so regarding eliminate all stockouts.
minimizing expected stockout expense.

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


raw material
work-in-process
MRP
finimelted goods

In the probabilistic design, boosting the service level will


alleviate the cost of the inventory policy.
rise the price of the inventory policy.
cannot be figured out.
have no influence on the cost of the inventory policy.

A device that triggers ordering on a uniform time basis is dubbed a


fixed-amount mechanism.
reorder allude device.
EOQ.
fixed-period mechanism.

A agency wishes to identify the EOQ for an object that has actually an yearly demand of 2,000 systems, a expense per order of $75, and annual carrying cost of $7.50 per unit. What is the EOQ?


73
200 units
40,000 units
100

A production facility is trying to identify the finest batch size for an item that is created intermittently. This item has actually an yearly demand also of 1,000 devices, an annual delivering cost of $10 per unit, and a setup cost of $400. They run 50 weeks per year, and can develop 40 systems per week. What is the best batch dimension for this item?

65
400
283
800

A keep desires to encertain a shelf complete of marshmpermit peeps as the holiday seakid philosophies. Daily demand for peeps is typically dispersed through a mean of 25 and a typical deviation of 5. Lead time is 3 days and also the keep inoften tends a 98% company level. What is their reorder point?


107
93
87
75

A manufacturing facility is trying to expand also manufacturing on an equipment that is presently provided to create one component. This item has an annual demand also of 1,000 units, an yearly delivering price of $10 per unit, and a setup cost of $400. They run 50 weeks per year, and also deserve to produce 40 units per week. What percentage of the time are they using this machine?

even more in supplier breakthrough for A items.
additional care in forespreading for C items.
the a lot of time and initiative verifying the accuracy of documents for B items.
even more in inventory defense for C items.

A mechanism that keeps track of each withdrawal or enhancement to inventory consistently is


a perpetual inventory system.
a solved period system.

See more: Supreme Commander Forged Alliance Campaign, Supreme Commander: Forged Alliance

a addressed quantity system.See more: How Many type of Days Is 5 Years, Days In A Year, How Many kind of Days In A Year
a constant inventory device.
The Submit Answers for Grading attribute needs scripting to function. Your browser either does not support scripting or you have actually turned scripting off.So, the Submit Answers for Grading switch below will not job-related.The complying with Submit Answers for Grading button is gave in its area and also will clear your answers: The Clear Answers and also Start Over feature needs scripting to function. Your browser either does not assistance scripting or you have actually turned scripting off. So, the Clear Answers and Start Over button listed below will certainly not job-related. The adhering to Clear Answers switch is offered in its place and will clear your answers: Your web browser either does not assistance scripting or you have actually turned scripting off. Thus, the answer options will certainly NOT appear in a different order each time the page is loaded, though that is mentioned below. Note that you execute not need this attribute to use this site. Answer selections in this exercise appear in a various order each time the page is loaded.