Which of the following is an inventory order system that places orders at varying times based on the average demand during the lead time?
A. order point system
B. Periodic review system
C. Min-max system
D. Economic order quantity(EOQ)
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Placing an order for replenishment inventory early can
A. reduce the bullwhip effect
B. cause a spike in demand
C. require a very large increase in safety stock to get to 100 percent order fullfilllment
D. create the potential for a very large overstock
which of the following is a definition of inventory
A. Items to support production, supporting activities, and customer service
B. Speed at which items pass through an organization
C. Branch of management concerned with planning and controlling items
D. Cost roll-up as a part goes through a manufacturing process
which of the following would be classified as work-in-process inventory?
A lubricant intended to keep production equipment running
B. A component part that has just been received at the factory
C. An item that is on its way to a customer in a truck
D. a completely processed item awaiting inspection
Which of the following is an example of holding inventory in anticipation of future demand?
A retailer who orders inventory based on what marketing thinks will be sold
B. A manufacturer who build up inventory to reduce the risk of supply failures
C. A retailer who purchases more now because the price is going up
D. a manufacturer who buys in bulk to get a discount
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