Question 1. Which of the following is one of the categories of manufacturing inventory?
- Economic Order Inventory
- Work-in-process
- Quality units
- JIT Inventory
Question 2. When developing inventory cost models, which of the following are not included as costs to place an order?
- Phone calls
- Taxes
- Clerical
- Calculating quantity to order
- Postage
Question 3. In making any decision that affects inventory size, which of the following costs do not need to be considered?
- Holding costs
- Setup costs
- Ordering costs
- Fixed costs
- Shortage costs
Question 4. Which of the following are fixed-order quantity inventory models?
- Economic order quantity model
- The ABC model
- Periodic replenishment model
- Cycle counting model
- P model
Question 5. Which of the following is the set of all cost components that make up the fixed-order quantity total annual cost (TC) function?
- Annual purchasing cost, annual ordering cost, fixed cost
- Annual holding cost, annual ordering cost, unit cost
- Annual holding cost, annual ordering cost, annual purchasing cost
- Annual lead time cost, annual holding cost, annual purchasing cost
- Annual unit cost, annual set up cost, annual purchasing cost
Question 6. If annual demand is 50,000 units, the ordering cost is $25 per order, and the holding cost is $5 per unit per year, which of the following is the optimal order quantity using the fixed-order quantity model?
Question 7. If the average aggregate inventory value is $100,000 and the cost of goods sold is $450,000, which of the following is inventory turnover?
- 19.23
- 4.5
- 0.8654
- 0.2222
- None of the above
Question 8. In Hau Lee's uncertainty framework to classify supply chains, a supply chain for functional products with a stable supply process is called which of the following?
- Efficient
- Forward looking
- Agile
- Risk hedging
- Responsive
Question 9. Which of the following is an organizationally driven reason for outsourcing?
- Improve effectiveness by focusing on what the firm does best
- Turn fixed costs into variable costs
- Reduce costs through lowered cost structure and increased flexibility
- Improve risk management
- Improve credibility and image by associating with superior providers
Question 10. Which of the following is an improvement-driven reason for outsourcing?
- Shorten cycle time
- Improve effectiveness by focusing on what the firm does best
- Increase product and service value by improving response to customer needs
- Turn fixed costs into variable costs
- Reduce costs through a lower cost structure