OM Chapter 12

The objective of inventory management is to

Which of the following types of inventory describes inventory that has been purchased but not​ processed?

ABC analysis divides an​ organization's on-hand inventory into three classes based upon

Policies based on ABC analysis might include investing

Inventory record accuracy would be decreased by

Cycle counting

Which of the following does NOT belong to holding​ costs? order proccessing insurance on inventory pilferage, scrap

What is the cost to prepare a machine or process for​ production?

Which of the following is NOT one of the basic assumptions of the basic EOQ​ model?

Extra units that are held in inventory to reduce stockouts are called

The difference between the basic EOQ model and the production order quantity model is that

A statistical model applicable when product demand or any other variable is not known but can be specified by means of a probability distribution is referred as

With a probabilistic​ model, increasing the service level

The appropriate level of safety stock is typically determined by

What is a system for ordering items that have little or no value at the end of a sales​ period?

A​ single-period inventory model is NOT applicable for newspapers milk furniture seasonal good

In the​ single-period inventory​ model, the overage cost is

For seasonal​ products, the service level should be set to equal

A system that keeps track of each withdrawal or addition to inventory continuously is

A system that triggers ordering on a uniform time basis is called

Which of the following is NOT one of the assumptions of​ fixed-period systems?

The production order quantity model

Most inventory models attempt to minimize __________.

Which of these conditions is not necessary for the economic order quantity model to be valid?

Extra units that are held in inventory to reduce stockouts are called __________.

Inventory management policies based on ABC analysis might include investing

Generally, inventory types are divided into four main categories. Which of the following is not one of the four main categories of inventory? safety stock inventory raw material inventory maintenance/repair inventory

A disadvantage of the fixed-period inventory system is that

In the probabilistic model, increasing the service level will __________.

If demand is not uniform and constant, the stockout risks can be controlled by __________.

A system that triggers ordering on a uniform time basis is called

Cycle counting __________.

The two most important inventory-based questions answered by the typical inventory model are

One use of inventory is __________.

The difference between the basic Economic Order Quantity (EOQ) model and the production order quantity model is that

Which of the following should be higher in P systems than Q systems?

The appropriate level of safety stock is typically determined by

The objective of inventory management is to