1. Dependent demand and independent demand items
differ in that
I. |
for any product, all |
II. |
the need for |
III. |
the need for dependent-demand |
a. |
I only |
b. |
I & II only |
c. |
I & III only |
d. |
II & III only |
e. |
I, II & III |
2. Which
of the following would most likely be considered a dependent demand item?
a. |
Bicycle tires used to |
b. |
Television (TV) |
c. |
Couch |
d. |
Lawn Mower |
3. Which
of the following cannot be considered as independent demand items?
a. |
wholesale and retail |
b. |
maintenance, repair, and |
c. |
maintenance, repair, and |
d. |
raw material items that |
e. |
service industry items such |
4. ____,
such as lubricants for machines, are used in the production process, but do not
become parts of the final products.
a. |
Raw materials |
b. |
Work-in-process |
c. |
Maintenance, repair and |
d. |
Finished goods |
e. |
Cycle stock |
5. Companies
hold a supply of inventory for all of the following reasons EXCEPT:
a. |
meet variation in product |
b. |
increase production |
c. |
allow production scheduling |
d. |
purchase in bulk to take |
e. |
maintain independence of operations |
6. Which
of the following is a disadvantage of excessive inventory?
a. |
It hides production and other |
b. |
It leads to higher inventory |
c. |
It leads to lower average |
d. |
It eliminates cycle stock. |
e. |
It reduces the need to |
7. Which
of the following is not an example of an ordering cost for products purchased
from a supplier?
a. |
the cost of transmitting the |
b. |
the cost of receiving the |
c. |
the cost associated with |
d. |
the opportunity cost of not |
e. |
the cost of handling the |
ABC Inventory Matrix
Use the graph below to answer
the question(s).
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8. In
the ABC Inventory Matrix, inventory in area Y suggests
a. |
under-stocked A and B items. |
b. |
under-stocked B and C items. |
c. |
overstocked A and B items. |
d. |
over-stocked B and C items. |
e. |
inventory matches sales. |
9. In
the ABC Inventory Matrix, inventory in area Z suggests
a. |
under-stocked A and B items. |
b. |
under-stocked B and C items. |
c. |
overstocked A and B items. |
d. |
over-stocked B and C items. |
e. |
inventory matches sales. |
10. Which
of the following is NOT an assumption of the classic Economic Order Quantity
(EOQ)?
a. |
Lead time is known and |
b. |
Demand is known and constant. |
c. |
Instantaneous replenishment. |
d. |
There is no quantity |
e. |
The production rate must be |