Chapter 11

What is the title of chapter 11?

APICS defines inventory as...

• Those stocks that are the root of all evil.

• Those stocks used to support all activities related to avoid sudden shifts in availability

• Those stocks used to support production, activities, and customer service

• Those stocks used to support maintenance repair and operating supplies

Answer explanation

This is on page 333. It will be in the exam.

unpredictable fluctuations from downstream customers

• Supply uncertainty

• demand uncertainty

• transportation uncertainty

• warehousing uncertainty

Answer explanation

Page 337

Business conditions that force companies to hold inventory is called an inventory ______

Answer explanation

Page 337

Extra inventory that a company holds to protect itself against uncertainties

a form of inventory buildup to buffer against some event that may not happen

• Anticipation inventory

• Hedge inventory

• Cycle stock

• Transportation inventory

Answer explanation

All type of inventory are defined on page 335

inventory items whose demand levels are beyond a company's complete control

• independent demand

• dependent demand

• periodic review

• demand and supply uncertainty

Answer explanation

Page 338