Inventory Management

Which answer is correct?

• Quantity Discount is reduced price for items purchased in large quantities.

• Quantity Discount is increased price for items purchased in large quantities.

• Quantity Discount is reduced price for items purchased in small quantities.

The formula for calculating the Total annual cost is:

• Total annual cost = Annual setup (ordering) cost - Annual holding cost + Annual product cost

• Total annual cost = Annual setup (ordering) cost +Annual holding cost + Annual product cost

• Total annual cost = Annual setup (ordering) cost - Annual holding cost - Annual product cost

How many advantages are there in cycle counting?

• 2

• 3

• 4

• 5

The Economic Order Quantity is the technique which

solves the problem of --------

ROP = d x --- + ss

• D

• A

• L

• E

Annual demand for notebook binders at Meyer’s Stationery Shop is 10,000 units. Brad Meyer operates his business 300 days per year and finds that deliveries from his supplier generally take 5 working days. Calculate the reorder point for the notebook binders.

• 165

• 167

• 190

• 200

The single period inventory model is often explained in terms of the "----- problem."

Which of the following is a type of inventory system that is used to manage independent demand items?

• Order point system

• Material Requirements Planning

• Time Phased Order Point

• Enterprise Resource Planning

To achieve ___ in purchasing and transportation, goods may be purchased in larger quantities than the actual demand.

Which of the following models is used to calculate the timing of the inventory order?

• Economic order quantity model

• Fixed order quantity model

• Reorder point model

• Fixed order inventory model