to ensure the item price is maximized.

You are watching: The proper quantity of safety stock is typically determined by:

You room watching: The suitable quantity of safety stock is frequently determined by to provide a hedge against inflation. to tightly connect production and also distribution processes. to tightly attach a firm"s manufacturing with its customers" demand.

ABC evaluation divides one organization"s on-hand inventory into three class based upon


*

*

is a process by i m sorry inventory records are verified.
provides a measure up of list turnover.
assumes the all list records must be verified with the very same frequency.
cannot be done in one independent demand situation.

The difference(s) between the simple EOQ model and the manufacturing order quantity model is (are) that


*

there room no holding prices in the production order amount model.
the EOQ version does not call for the assumption of known, continuous lead time.
the manufacturing order quantity version does not call for the assumption of instantaneous delivery.
the manufacturing order quantity design does not need the presumption of known, constant demand.

Extra units that are hosted in inventory to reduce stockouts room called


*

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

Inventory record accuracy would be lessened by


*

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

The two most vital inventory-based concerns answered by the usual inventory version are


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

The ideal level of security stock is commonly determined by


choosing the level of safety stock that assures a given business level.
taking the square source of the economic order quantity.
carrying enough safety share so as to eliminate all stockouts.
minimizing expected stockout cost.

Which the the complying with is NOT a form of inventory?


raw material
work-in-process
MRP
finished goods

In the probabilistic model, raising the organization level will


reduce the cost of the perform policy.
increase the cost of the list policy.
cannot be determined.
have no influence on the expense of the list policy.

A system that root cause ordering ~ above a uniform time communication is called a


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

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


73
200 units
40,000 units
100

A manufacturing facility is trying to recognize the finest batch dimension for an object that is developed intermittently. This item has actually an yearly demand the 1,000 units, an yearly carrying cost of $10 every unit, and a setup cost of $400. They run 50 weeks per year, and can create 40 units per week. What is the finest batch dimension for this item?

65
400
283
800

A store wants come ensure a shelf full of marshmallow peeps together the vacation season approaches. Daily demand for peeps is normally dispersed with a average of 25 and also a typical deviation that 5. Command time is 3 days and the keep intends a 98% business level. What is their reorder point?


107
93
87
75

A production facility is trying to expand production ~ above a machine that is at this time used to create one part. This item has actually an yearly demand the 1,000 units, an annual carrying price of $10 every unit, and also a setup expense of $400. They run 50 weeks per year, and can develop 40 units per week. What percentage of the time are they making use of this machine?

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

A device that keeps monitor of each withdrawal or enhancement to inventory repeatedly is


a perpetual inventory system.
a fixed duration system.

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a fixed quantity system.See more: How many Days Is 5 Years, work In A Year, How countless Days In A Year
a constant inventory system.
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