GMS 401 Final Exam Questions and
Answers
Which of the following statements regarding A is false?
a. The company was opened by Jeff Bezos in 1995.
b. The company was founded as, and still is, a "virtual retailer" with no inventory.
c. The company is now a world-class leader in warehouse managem...
d. it states that all items require the same degree of control
e. it states that there are the critical few and the trivial many inventory items - ANSWER✔✔-d. it states
that all items require the same degree of control
ABC analysis is based upon the principle that
a. all items in inventory must be monitored very closely
b. there are usually a few critical items, and many items which are less critical
c. an item is critical if its usage is high
d. more time should be spent on class "C" items because there are more of them
e. an item is critical if its unit price is high - ANSWER✔✔-b. there are usually a few critical items, and
many items which are less critical
ABC analysis divides on-hand inventory into three classes, generally based upon
a. item quality
b. unit price
c. the number of units on hand
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