To "decouple" or separate various parts that the production processTo administer a share of goods that will carry out a "selection" for customersTo take advantage of quantity discountsTo hedge versus inflation and upward price changes


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29. Which of the following is a role of inventory? (decoupling)a. To decouple or separate components of the production processb. Come decouple the firm native fluctuations in demand and administer a stock of items that willprovide a choice for customersc. Come take advantage of amount discountsd. Come hedge versus inflatione. All of the above are functions of inventory.
Decoupling means to separate assorted parts of the manufacturing process. Every of the parts canthen function at that own finest pace. (Functions of inventory, moderate)
Reasons to bring inventory incorporate decoupling or separating parts of the production process,decoupling the firm from fluctuations in demand and also providing a stock of products that willprovide a an option for customers, taking advantage of amount discounts, and providing ahedge versus inflation. (Introduction, moderate)
107. In part inventory models, the optimal actions occurs wherein ordering costs and also carrying costs areequal to one another. Carry out an example of a design where this "rule" does no hold; explain howthe model"s outcomes are optimal anyway. (quantity discount)
This dominance will not organize in every instances of amount discount models. In order to take advantageof a discount, it may be cheaper come order a amount that is no an EOQ. The score in quantitydiscount models is to minimize the sum of ordering, carrying, and purchase costs. (Inventorymodels because that independent demand, moderate)
22. In the amount discount model, the is feasible to have a cost-minimizing equipment where annualordering prices do not equal annual carrying costs.(quantity discount)
56. The EOQ design with quantity discounts attempts to recognize (quantity discount)a. What is the lowest amount of inventory crucial to fulfill a details service levelb. What is the shortest purchasing pricec. Whether to use fixed-quantity or fixed-period order policyd. How countless units must be orderede. What is the shortest command time
63. As soon as quantity discounts space allowed, the cost-minimizing order amount (quantity discount)a. Is always an EOQ quantityb. Minimizes the sum of holding and also ordering costsc. Minimizes the unit purchase priced. Might be a quantity listed below that in ~ which one qualifies for that pricee. Minimizes the sum of holding, ordering, and product costs
64. I m sorry of the following statements about quantity discounts is false? (quantity discount)a. The cost-minimizing solution may or may not it is in where yearly holding prices equal annualordering costs.b. In inventory management, item expense becomes relevant to inventory decisions only when aquantity discount is available.c. If carrying expenses are expressed as a percent of value, EOQ is bigger at each lower price inthe discount schedule.d. The larger yearly demand, the much less attractive a discount schedule will be.e. The smaller the ordering cost, the much less attractive a discount schedule will be.
88. In a amount discount problem, if the save in product cost is smaller sized than the boost in the sumof setup cost and also holding cost, the discount should be _____________. (quantity discount)
The an ext important assumptions of the straightforward EOQ design are demand is known and also constantover time, the lead time, that is, the time between the location of the order and also the receiptof the goods, is known and constant, the receipt the the list is instantaneous; i.e., thegoods arrive in a solitary batch, at one instant in time, amount discounts space not possible, theonly variable costs are the price of setting up or placing an order and the expense of hold orstoring inventory over time, and also if order are placed at the ideal time, stockouts or shortagescan be totally avoided. (Inventory models because that independent demand, moderate)
31. Which of the complying with is not among the 4 main species of inventory? (types of inventory)a. Raw product inventoryb. Work-in-process inventoryc. Maintenance/repair/operating it is provided inventoryd. Safety stock inventory
The four types of inventory room raw material, work-in-process, maintenance/repair/operatingsupply (MRO), and also finished goods. (Functions the inventory, easy)
Higher prices - Item expense (if purchased) - notified (or setup) expense - expenses of forms, clerks" incomes etc. - stop (or carrying) price - building lease, insurance, taxes etc.Difficult to control
80. ______________ is a an approach for dividing on-hand inventory right into three classifications based onannual dissension volume. (classification)
97. Describe ABC inventory evaluation in one sentence. What room some plans that may be based uponthe results of an abc analysis? (classification)
ABC inventory analysis is a technique for dividing on-hand inventory into three classificationsbased on yearly dollar volume. Some plans include: purchasing resources expended onsupplier development should be greater for separation, personal, instance A items than for C items; A itemsshould have actually tighter physical inventory control, and also forecasting A items might warrant morecare. (Inventory management, moderate)
121. Execute an ABC evaluation on the following collection of products. (classification)Item yearly Demand Unit CostA211 1200 $9B390 100 $90C003 4500 $6D100 400 $150E707 35 $2000F660 250 $120G473 1000 $90H921 100 $75
The table listed below details the donation of every of the eight products. Article G473 is clearly anA item, and items A211, B390, and H921 space all C items. Various other classifications room somewhatsubjective, however one an option is to label E707 and also D100 together A items, and also F660 and also C003 together Bitems.Item AnnualDemandUnitCostVolume CumulativevolumeCumulativepercentG473 1000 $90 $90,000 $90,000 29.6%E707 35 $2,000 $70,000 $160,000 52.6%D100 400 $150 $60,000 $220,000 72.3%F660 250 $120 $30,000 $250,000 82.2%C003 4500 $6 $27,000 $277,000 91.0%A211 1200 $9 $10,800 $287,800 94.6%B390 100 $90 $9,000 $296,800 97.5%H921 100 $75 $7,500 $304,300 100.0%$304,300(Inventory management, moderate) AACSB: analysis Skills
10. One benefit of bike counting is the it maintains accurate inventory records. (cycle counting)True (Inventory management, moderate)


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