Exam (elaborations)
OMIS 338- EXAM 2 questions well answered already passed
- Course
- Institution
OMIS 338- EXAM 2 questions well answered already passed
[Show more]
Content preview
OMIS 338- EXAM 2Inventory Management - correct answer ✔✔Objective of inventory management is to strike a balance
between inventory investment and customer service
Importance of inventory - correct answer ✔✔most expensive assets
less inventory= lower costs but greater chance of running out
more inventory raises costs but always keeps customers happy
Functions of inventory - correct answer ✔✔Provide a selection of goods for anticipated demands
separate various parts of the production process
advantage of quantity discounts
hedge against inflation
Inventory Example - correct answer ✔✔Department store
stockroom/warehouse
grocery store
auto work-in-process
Types of inventory - correct answer ✔✔Raw material
work-in-process
finished goods
maintenance/repair/oeprating (MRO)
Raw material - correct answer ✔✔purchased but not processed
work in process - correct answer ✔✔undergone some changes but not completed
, finished goods - correct answer ✔✔completed product awaiting shipment
maintenance/repair/operating (MRO) - correct answer ✔✔necessary to keep machinery and processes
productive
material flow cycle - correct answer ✔✔input --> wait for inspection --> wait to be moved --> move time
--> wait in queue for operator --> setup time --> run time --> output
managing inventory - correct answer ✔✔using ABC analysis
keeping records maintained
ABC analysis - correct answer ✔✔divides inventory into three classes based on annual dollar volume,
delivery problems, quality problems, high shortage or holding cost, anticipated engineering changes
policies that focus on the few critical parts and not the many trivial ones
Record accuracy with the periodic systems - correct answer ✔✔regular checks of inventory
record accuracy with the perpetual inventory - correct answer ✔✔tracks receipts and subtractions on a
continuing basis
Independent - correct answer ✔✔demand for item is free from outside control of the demand for any
other item in inventory
basic economic order quantity model
production order quantity model
quantity discount model
Dependent - correct answer ✔✔demand for item is determined by a demand for some other item in the
inventory
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 BravelRadon. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $14.99. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
71947 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now