FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 17: Inventory Control

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 41

True/False

Review LaterAdd Note

Review Later

Safety stock is not necessary in any fixed-time period system.

Correct Answer

verified

Show Answer

Question 42

True/False

Review LaterAdd Note

Review Later

One of the daily, delicate balancing acts that Logistics managers have to perform involves the trade-off between customer satisfaction and cost to serve.

Correct Answer

verified

Show Answer

Question 43

True/False

Review LaterAdd Note

Fixed-order quantity inventory systems determine the reorder point, R and the order quantity, Q values.

Firms keep supplies of inventory for which of the following reasons?

When stocked items are sold, the optimal inventory decision using marginal analysis is to stock that quantity where the probable profit from the sale or use of the last unit is equal to or greater than the probable losses if the last unit remains unsold.

In inventory models, high holding costs tend to favor low inventory levels and frequent replenishment.

One of the drivers of the direct-to-store (direct distribution) approach is the upstream migration of value- added logistics services.

Dependent demand inventory levels are usually managed by calculations using calculus-driven, cost- minimizing models.

An inventory system is a set of policies and controls that monitors levels of inventory and determines what levels should be maintained, when stock should be replenished, and how large orders should be.

In a price break model of lot sizing the lowest cost quantity is always feasible.

The fixed-order quantity inventory model favors less expensive items because average inventory is lower.