TOM 3010 Ch 10;61 Intro to inventory management Review Questions Perfectly Answered
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Course
TOM 3010 Ch 10;61 Intro to inventory management
Institution
TOM 3010 Ch 10;61 Intro To Inventory Management
__ of inventory can absorb variations in flow rates by acting as a source of supply for a downstream step. - ️️Buffers
__ stock is held just in case demand turns out to be higher than predicted. - ️️Safety
_blank_ is the average amount of time (in days) it takes a unit to flow through the...
__ of inventory can absorb variations in flow rates by acting as a source of supply for a downstream
step. - ✔ ✔ Buffers
__ stock is held just in case demand turns out to be higher than predicted. - ✔ ✔ Safety
_blank_ is the average amount of time (in days) it takes a unit to flow through the system. - ✔ ✔
Days-of-supply
_blank_ is the inverse of days-of-supply. - ✔ ✔ Daily turns
— Which process metric is the equivalent of days-of-supply? - ✔ ✔ Buffers
"Bait and __ " is a questionable practice used by some retailers when there is a stockout of a product. -
✔ ✔ Switch
Another term for unpredictable variations is __ - ✔ ✔ Stochastic
Another term for unpredictable variations is - ✔ ✔ Stochastic
Because __ time cannot be zero, Little's Law tells us there is always inventory in a process. - ✔ ✔
Flow
Cost of goods sold should be used to estimate flow rate because __ is measured in "cost dollars." - ✔
✔ Inventory
Daily turns is the inverse of _blank_. - ✔ ✔ Days-of-supply
Drag the description of inventory to the type it describes.
Raw Material —>
Work-in-process —>
Finished goods —> - ✔ ✔ Raw Material-before a process
Work-in-process-inside a process
Finished goods-after a process
, How does an increased inventory holding cost per unit affect the per-unit profit? - ✔ ✔ Decreases it
How does truck transportation lead to inventory? - ✔ ✔ Firms want to load trucks completely to
lower transportation cost per unit.
If a firm has the opportunity to invest money at a 10% annual rate of return then having $100 invested
in inventory for a whole year has what opportunity cost of capital? - ✔ ✔ $10
Inventory builds up when producing a batch at a rate that _blank_ the flow rate of the item through the
process - ✔ ✔ Is more than
Inventory costs can be calculated in terms of holding costs per year, but it can also be useful to express
them as a percentage of _blank_. - ✔ ✔ Cost of goods sold
Inventory management is the practice of deciding on the __ , location, and type of inventory in a
process. - ✔ ✔ Amount
Inventory management is the practice of deciding on the quantity, __ , and type of inventory in a
process. - ✔ ✔ Location
Inventory turns are calculated as flow __ divided by inventory. - ✔ ✔ Rate
Inventory turns are calculated as flow rate divided by - ✔ ✔ Inventory
Inventory turns are typically __ for food stores than jewelry stores. - ✔ ✔ Higher
Inventory turns can be calculated from an income statement as _blank_ divided by inventory. - ✔ ✔
Cost-go-goods-sold
Match the types of variation.
seasonal—>
stochastic—> - ✔ ✔ Seasonal-predictable
stochastic-random
Over the last 30 years, days-of-supply for U.S. retailers has been _blank_. - ✔ ✔ Decreasing
RFID tags are used to support which inventory management capability? - ✔ ✔ Product and demand
tracking
Safety stock is used to accommodate which type of variation? - ✔ ✔ Stochastic
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