One usage of inventory is

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to encertain that item cost is maximized.

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to administer a hedge versus inflation.
to tightly link production and distribution processes.
to tightly connect a firm"s production via its customers" demand also.

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

*
yearly dollar volume.
annual demand.
the number of devices on hand.
unit price.

Cycle counting

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is a procedure by which inventory records are verified.
offers a measure of inventory turnover.
assumes that all inventory records should be showed via the very same frequency.
cannot be done in an independent demand instance.

The difference(s) in between the basic EOQ version and also the production order amount version is (are) that

*
tbelow are no holding prices in the production order quantity version.
the EOQ model does not need the presumption of well-known, continuous lead time.
the manufacturing order amount model does not call for the presumption of instantaneous delivery.
the manufacturing order amount model does not require the presumption of known, constant demand.

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

*
demand variance.
just-in-time inventory.
reorder allude.
security stock.

Inventory record accuracy would be decreased by

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

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

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when to location an order and what is the price of the order.
exactly how many type of of an object to order and what is the price of this order.
once to place an order and also just how many type of of an item to order.
how many of an object to order and through whom the order need to be put.

The proper level of safety stock is typically established by

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picking the level of safety and security stock that assures a offered business level.
taking the square root of the financial order amount.
transferring adequate safety stock so regarding get rid of all stockouts.
minimizing meant stockout expense.

Which of the following is NOT a form of inventory?

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raw material
work-in-process
MRP
finished goods

In the probabilistic version, increasing the service level will

*
alleviate the cost of the inventory policy.
boost the price of the inventory policy.
cannot be determined.
have actually no affect on the cost of the inventory plan.

A mechanism that triggers ordering on a uniform time basis is referred to as a

*
fixed-quantity device.
reorder suggest system.
EOQ.
fixed-duration system.

A firm wishes to determine the EOQ for an item that has actually an yearly demand of 2,000 systems, a expense per order of $75, and also yearly transporting expense of $7.50 per unit. What is the EOQ?

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40,000 units
73
100
200 units

A manufacturing facility is trying to identify the finest batch dimension for an object that is created intermittently. This item has actually an annual demand also of 1,000 devices, an annual moving price of $10 per unit, and also a setup cost of $400. They run 50 weeks per year, and also have the right to produce 40 systems per week. What is the finest batch dimension for this item?
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800
400
283
65

A keep wants to encertain a shelf complete of marshmpermit peeps as the holiday seachild approaches. Daily demand for peeps is usually spread through a suppose of 25 and also a standard deviation of 5. Lead time is 3 days and also the save inhas a tendency a 98% business level. What is their reorder point?

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107
93
87
75

A production facility is trying to expand also manufacturing on an equipment that is currently used to develop one component. This item has actually an annual demand of 1,000 devices, an yearly moving expense of $10 per unit, and also a setup expense of $400. They operate 50 weeks per year, and also have the right to create 40 devices per week. What percent of the moment are they using this machine?
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40%
50%
20%
30%

Policies based on ABC evaluation might encompass investing

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

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

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a perpetual inventory mechanism.
a fixed period system.
a solved amount system.

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a consistent inventory system.
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