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1. In a manufacturing environment, variable costs are directly related to _____________.
real estate taxes.
production output.
suppliers' fees.
facility rent.
2. True or False? An annual inventory turnover metric of 100 is better than an annual inventory metric of 10?
True.
False.
3. Which of the following statements is NOT TRUE about The Economic Order Quantity (EOQ)
The EOQ is where Inventory Holding costs = Set up costs or Order costs.
The EOQ is the order quantity that minimizes inventory costs
The EOQ tells us how much or how many to produce or purchase at a particular time
The EOQ is the point where the price of the purchased item is the lowest.
4. If demand per day is 20 units and lead time is 6 days what is the Reorder Point Quantity?
26.
120.
240.
18.
180.
5. True or false? Using the Pareto Analysis, if an inventory item is designated an A item it will always be an A item.
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