One usage of inventory is

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to ensure the item price is maximized.

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to provide a hedge versus inflation.
to tightly attach production and also distribution processes.
to tightly connect a firm"s production with the customers" demand.

ABC evaluation divides an organization"s on-hand inventory right into three classes based upon

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annual dissension volume.
annual demand.
the number of units on hand.
unit price.

Cycle counting

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is a procedure by i m sorry inventory records are verified.
provides a measure of list turnover.
assumes that all inventory records must be confirmed with the same frequency.
cannot be excellent in an independent need situation.

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

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there are no holding expenses in the production order amount model.
the EOQ version does not call for the assumption of known, consistent lead time.
the manufacturing order quantity model does not need the presumption of instantaneous delivery.
the production order quantity version does not call for the presumption of known, consistent demand.

Extra units that are held in list to reduce stockouts room called

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demand variance.
just-in-time inventory.
reorder point.
safety stock.

Inventory record accuracy would be diminished by

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cycle counting.
ABC analysis.
increasing stockroom accessibility.
reorder points.

The two most necessary inventory-based concerns answered by the typical inventory design are

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when to place an order and what is the cost of the order.
how many of things to order and also what is the expense of this order.
when to location an order and how numerous of things to order.
how many of an object to order and also with who the order need to be placed.

The appropriate level of safety and security stock is generally determined by

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choosing the level of safety and security stock the assures a given company level.
taking the square source of the economic order quantity.
carrying enough safety stock so regarding eliminate all stockouts.
minimizing intended stockout cost.

Which the the adhering to is NOT a form of inventory?

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raw material
work-in-process
MRP
finished goods

In the probability model, enhancing the organization level will

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reduce the cost of the inventory policy.
increase the expense of the perform policy.
cannot it is in determined.
have no affect on the expense of the perform policy.

A mechanism that cause ordering top top a uniform time communication is referred to as a

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fixed-quantity system.
reorder allude system.
EOQ.
fixed-period system.

A firm wishes to recognize the EOQ for an object that has an yearly demand of 2,000 units, a price per stimulate of $75, and annual carrying price of $7.50 per unit. What is the EOQ?

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73
200 units
40,000 units
100

A production facility is do the efforts to recognize the best batch dimension for an object that is developed intermittently. This item has actually an annual demand of 1,000 units, an annual carrying cost of $10 per unit, and also a setup cost of $400. They run 50 weeks every year, and also can produce 40 devices per week. What is the ideal batch dimension for this item?
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65
400
283
800

A store wants come ensure a shelf complete of marshmallow peeps as the holiday season approaches. Daily need for peeps is normally spread with a mean of 25 and a typical deviation that 5. Command time is 3 days and also the keep intends a 98% company level. What is their reorder point?

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107
93
87
75

A manufacturing facility is make the efforts to expand production on a device that is currently used to develop one part. This item has actually an annual demand that 1,000 units, an yearly carrying cost of $10 every unit, and a setup expense of $400. They operate 50 weeks every year, and can develop 40 systems per week. What portion of the time are they making use of this machine?
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50%
30%
40%
20%

Policies based on ABC analysis might incorporate investing

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more in supplier advancement for A items.
extra care in forecasting for C items.
the many time and also effort verifying the accuracy of records for B items.
more in inventory protection for C items.

A mechanism that keeps track of every withdrawal or enhancement to inventory repeatedly is

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a perpetual perform system.
a fixed duration system.
a fixed quantity system.

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a consistent inventory system.
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