chapter 9: Operations Management: Processes and Supply Chains, 10e
3 views 0 purchase
Course
Ch10
Institution
Ch10
the document contains questions and answers on supply chain under the operation management. it will help you get a deeper understanding on this course. it will also help one to save time as well as grasp alot. the best document to use when preparing for your exam.
Operations Management: Processes and Supply Chains, 10e
(Krajewski et al.)
Chapter 9 Supply Chain Inventory Management
1) Inventory management is the planning and controlling of inventories in order to meet the
competitive priorities of the organization.
Answer: TRUE
Reference: Introduction
Difficulty: Easy
Keywords: inventory management, planning, controlling
2) When looking at inventory management, the term "lot size" refers to the physical dimensions
of the area where the inventory is stored.
Answer: FALSE
Reference: Introduction
Difficulty: Easy
Keywords: inventory management, lot size
3) When looking at inventory management, the term "lot size" refers to the quantity of an
inventory item management either buys from a supplier or manufactures using internal
processes.
Answer: TRUE
Reference: Introduction
Difficulty: Easy
Keywords: inventory management, lot size, buys, manufactures
4) The primary reason for keeping inventories low is that inventory represents a temporary
monetary investment in goods on which a firm must pay interest.
Answer: TRUE
Reference: Inventory and Supply Chains
Difficulty: Easy
Keywords: inventory, investment
5) One component of the holding cost of inventory is interest.
Answer: TRUE
Reference: Inventory and Supply Chains
Difficulty: Moderate
Keywords: holding cost, inventory, interest
6) One component of the ordering cost of inventory is shrinkage.
Answer: FALSE
Reference: Inventory and Supply Chains
Difficulty: Moderate
Keywords: ordering cost, shrinkage
7) A stock out occurs when an item that is typically stocked is not available to satisfy a demand
the moment it occurs.
Answer: TRUE
Reference: Inventory and Supply Chains
Difficulty: Moderate
Keywords: stockout
8) A backorder occurs when a customer order cannot be filled when it is placed, but is instead
filled later.
, Answer: TRUE
Reference: Inventory and Supply Chains
Difficulty: Moderate
Keywords: backorder, fill
9) Setup cost is independent of order size.
Answer: TRUE
Reference: Inventory and Supply Chains
Difficulty: Moderate
Keywords: setup cost
10) Reducing setup costs will increase the pressure to keep larger inventories.
Answer: FALSE
Reference: Inventory and Supply Chains
Difficulty: Moderate
Keywords: setup cost
11) Increasing inventory levels can sometimes help a firm reduce both its inbound and
outbound transportation costs.
Answer: TRUE
Reference: Inventory and Supply Chains
Difficulty: Moderate
Keywords: pressure for large inventories
12) A quantity discount is attractive because there is a drop in the price per unit when the
order is sufficiently large.
Answer: TRUE
Reference: Inventory and Supply Chains
Difficulty: Moderate
Keywords: quantity discount
13) Repeatability is an undesirable feature of some orders because they must be repeated
until the order is filled correctly.
Answer: FALSE
Reference: Inventory and Supply Chains
Difficulty: Moderate
14) The primary lever to reduce anticipation inventory is to place orders closer to the time when
they must be received.
Answer: FALSE
Reference: Inventory and Supply Chains
Difficulty: Moderate
Keywords: anticipation inventory, safety stock
15) A stock-keeping unit (SKU) is an individual item or product that has an identifying code and
is held in inventory somewhere along the supply chain.
Answer: TRUE
Reference: ABC Analysis
Difficulty: Easy
Keywords: SKU, individual item, inventory, identifying code
16) A stock-keeping unit (SKU) is a specially designed container for holding a specific amount
of an inventory item somewhere along the supply chain.
Answer: FALSE
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller bestwriting96. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $8.49. You're not tied to anything after your purchase.
