Reference no: EM132298563
1. In a manufacturing environment, INDIRECT COSTS are also known as ________.
overhead.
carrying costs.
MRO costs.
back orders.
None of the above.
2. In a manufacturing environment, VARIABLE COSTS are directly related to _______.
real estate taxes.
production output.
suppliers' fees.
facility rent.
3. TRUE or FALSE? An annual INVENTORY TURNOVER METRIC of 100 is better than an annual inventory turnover metric of 10?
True.
False.
4. 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 sales price of the item is the lowest.
5. If demand per day is 20 units and lead time is 6 days what is the REORDER POINT QUANTITY?
26.
120.
240.
18.
180.
6. TRUE or FALSE? Using the PARETO ANALYSIS to manage inventory, if an inventory item is designated an A item it will always be an A item.
True.
False.
7. Companies use CYCLE COUNTING to ____.
monitor supplier performance.
evaluate supplier lead times.
accurately determine the amount of inventory on hand.
estimate sales for the upcoming quarter.
8. When making the decision to either MAKE an item yourself or to PURCHASE it from an outside supplier, the supply chain manager often uses the decision making tool called ________.
Breakeven Analysis.
Center of Gravity Model.
ABC Analysis.
Weighted Factor Analysis.