Independent Demand Inventory Management Systems MCQs
Independent Demand Inventory Management Systems MCQs
The following Independent Demand Inventory Management Systems MCQs have been compiled by our experts through research, in order to test your knowledge of the subject of Independent Demand Inventory Management Systems. We encourage you to answer these multiple-choice questions to assess your proficiency.
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1: _______ are purchased items consumed in-house to support manufacturing.
A. Raw materials
B. Works-in-process
C. Finished goods
D. Maintenance, repair, and operating supplies
2: _______ are inventories held to satisfy demand when production problems occur.
A. Anticipation inventories
B. Cycle inventories
C. Hedge inventories
D. Safety stocks
3: _______ are inventories held so demand can be met during periods of expected high deman
A. Anticipation inventories
B. Cycle inventories
C. Hedge inventories
D. Safety stocks
4: _______ occur when a company stockpiles inventories to protect against supply shortages.
A. Anticipation inventories
B. Cycle inventories
C. Hedge inventories
D. Safety stocks
5: _______ are administrative costs associated with purchasing items.
A. Order costs
B. Inventory carrying costs
C. Stockout costs
D. Purchase costs
6: _______ includes the cost of lost sales, lost goodwill, and damage to the firm’s reputation.
A. Order cost
B. Inventory carrying cost
C. Stockout cost
D. Purchase cost
7: The external demand for a firm’s finished goods is _______.
A. Dependent demand
B. The bullwhip effect
C. Independent demand
D. Economic order quantity
8: The _______ requires higher safety stock levels than the reorder point model.
A. Optimal review period
B. Periodic review model
C. Probabilistic demand reorder point model
D. Robust model
9: _______ are purchased items used in manufactured products or services.
A. Raw materials
B. Works-in-process
C. Finished goods
D. Maintenance, repair, and operating supplies
10: _______ are items in some intermediate stage of processing.
A. Raw materials
B. Work-in-process
C. Finished goods
D. Maintenance, repair, and operating supplies
11: ______ are completed products ready for delivery to customers.
A. Raw materials
B. Works-in-process
C. Finished goods
D. Maintenance, repair, and operating supplies
12: _______ are inventories created when a firm purchases a quantity large enough to last until the next purchase period
A. Anticipation inventories
B. Cycle inventories
C. Hedge inventories
D. Safety stocks
13: _______ is the actual cost of items bought from suppliers.
A. Order cost
B. Inventory carrying cost
C. Stockout cost
D. Purchase cost
14: The _______ is theinventory on-hand needed to satisfy demand during the order lead time period
A. Economic order quantity
B. Reorder point
C. Quantity discount model
D. Service level
15: The _______ is an extension of the EOQ model when price discounts are allowed
A. Order lead time
B. Reorder point
C. Quantity discount model
D. Service level
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Independent Demand Inventory Management Systems MCQs
