Rules for reordering can include___________

  1. Order when needed
  2. Order every month
  3. Order when stock falls to a predetermined level
  4. All of the above

Systems used to determine when to order are________

  1. Order point system and periodic review system
  2. Periodic review system and MRP
  3. MRP and order point system
  4. Order point system, periodic review system, and MRP

For a particular item, the average demand is 100 units a week and the lead time if four weeks. If an order is placed when there are _________ units on hand, on average, there will be enough stock on hand to last until the new stock arrives.

  1. 400
  2. 100
  3. 300
  4. 1200

Why is demand during lead time important?

  1. It is the only time a stock out can occur.
  2. If demand is greater than expected, there could be a stock out.
  3. Both of the above
  4. Neither of the above

The average inventory for a period is equal to__________

  1. Opening inventory plus ending inventory
  2. Opening inventory plus ending inventory divided by 2
  3. Opening inventory divided by 2, plus the ending inventory
  4. Ending inventory divided by 2, plus the opening inventory

The safety stock required depends on____________

  1. Variability of demand during lead time
  2. Frequency of reorder
  3. Service level desired
  4. All of the above

The most common, predictable pattern of the distribution of variation in demand is___

  1. The normal or bell curve
  2. A bimodal distribution
  3. A scatter plot distribution
  4. Random dispersion

The normal curve is described by _________________.

  1. the central tendency or average
  2. the variation or dispersion of the actual values about the average
  3. the range of values
  4. both the central tendency or average and the variation or dispersion of the actual values about the average

___________ is a statistical value that measures how closely the individual values cluster about the average

  1. Standard deviation
  2. Dispersion
  3. Mean
  4. Variation

Stock outs can result in___________

  1. A decrease in back-orders
  2. Increased sales
  3. Lost customers
  4. A decrease in future safety stocks

___________ productivity depends on the type of material equipment handling used, the location and accessibility of stock, warehouse layout, stock location system, and the order-picking system used.

  1. Labor
  2. Material
  3. Equipment
  4. Picking

In receiving goods, the warehouse must_______

  1. Inspect goods if required
  2. Check for damage
  3. Check the goods against an order and the bill of lading
  4. All of the above

A record must be maintained for each item in stock showing______

  1. The quantity on hand and received
  2. The quantity on hand, received, and issued
  3. The quantity on hand and issued
  4. The quantity received and issued

The effective use of a warehouse is influenced by_________

  1. Cube utilization and accessibility
  2. Stock location
  3. Order picking and assembly
  4. All of the above

______________ is the use of space horizontally and vertically.

  1. Accessibility
  2. Pallet positioning
  3. Cube utilization
  4. Stock location

If fast-moving items are placed _______ the receiving and shipping area, the work of moving them in and out of storage is _____________.

  1. close to, increased
  2. close to, reduced
  3. away from, reduced
  4. The first and third choices above

In a fixed-location system___________

  1. An SKU is assigned a permanent location
  2. No other items are stored there
  3. It is possible to store and retrieve items with a minimum of record keeping
  4. All of the above

An advantage to central storage is_______

  1. Increased safety stock
  2. General-purpose storage can be used.
  3. Users can carry their own safety stock.
  4. Ease of control

Inventory errors are often caused by______

  1. Secure stockrooms
  2. Trained personnel
  3. Authorized withdrawal of material
  4. Lack of audit capability

Cycle counting______

  1. Can reduce lost production
  2. Can be done by all personnel, including clerical staff
  3. Is more concerned with correcting errors in inventory counts
  4. Is slow to detect problems

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