Inventory Control Models MCQs
Inventory Control Models MCQs
Answer these 20 Inventory Control Models MCQs and see how sharp is your knowledge of Inventory Control Models.
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1: Economic production quantity is used to determine ______ a product the firm is to produce
A. How much
B. Why
C. QUALITY
D. All of these
2: ______ is the optimum inventory level in stock for single-period inventory systems
A. Quantity discounts
B. Optimal stocking level
C. Reorder point
D. Service level
3: Quantity discounts price reductions designed to induce buyers to increase their order sizes
A. True
B. False
4: Reorder point is a predetermined level of inventory that signals when a ______ is to be placed to replenish it
A. New order
B. Old order
C. Both a & b
D. None of these
5: The probability that the demand during the lead time will be met from the inventory in stock is known as
A. Service level
B. Service-level factors
C. Target inventory level
D. None of these
6: Which of correct statement of Service-level factors
A. A predetermined inventory level that is established for fixed order interval systems
B. A strategy in which employees of a service company are hired as contractors
C. A demand-matching strategy in which production is geared toward producing
D. Another term for Z values in the context of service levels
7: _______ is a predetermined inventory level that is established for fixed order interval systems that is high enough to meet all demand
A. Target inventory level
B. Service level
C. Service-level factors
D. Both a & b
8: ______ is the probability that the demand during the lead time will be met from the inventory in stock.
A. Service level
B. Target inventory level
C. Safety stock
D. Reorder point
9: The ______ model assumes the company will produce the items.
A. Economic order quantity
B. Economic production quantity
C. Quantity discount
D. Holding cost
10: The two fundamental questions in inventory management and control are how much to order, and when to ______.
A. Stock
B. Reorder
C. Order
D. Offer discount
11: ______ is a predetermined inventory level that is established for fixed-order interval systems, that is high enough to meet all demand.
A. Service level
B. Target inventory level
C. Safety stock
D. Reorder point
12: The ______ model assumes that a quantity ordered is delivered all at once.
A. Optimal production
B. Economic production quantity
C. Quantity discount
D. Economic order quantity
13: The ______ results in a lower average inventory level than the economic order quantity model.
A. Incremental production
B. Reorder point
C. Average inventory level
D. Safety stock
14: Replenish it.
A. Optimal stocking level
B. Target inventory level
C. Safety stock
D. Reorder point
15: One of Target Canada’s biggest mistakes was ______.
A. Mismanaging their inventory
B. Offering quantity discounts
C. Selling products at a cheaper price
D. Bad customer service
16: ______ models are also applicable in highly repetitive production environments that are characterized by long production runs.
A. Economic order quantity
B. Economic production quantity
C. Quantity discount
D. Reorder point
17: The chief difference in the economic production quantity and economic order quantity models is the ______.
A. Reorder point
B. Quantity discount
C. Average inventory level
D. Safety stock
18: When quantity discounts are in effect, then the ______ is determined by minimizing the total annual costs, which consists of total annual ordering, holding, and purchase costs.
A. Economic order quantity
B. Economic production quantity
C. Quantity discount
D. Reorder point
19: The ______ model assumes the company will order items from an outside vendor.
A. Economic order quantity
B. Economic production quantity
C. Quantity discount
D. Reorder point
20: The ______ model can be used to select transportation modes by factoring in-transit holding-cost and volume-transportation rates into the total annual cost equation.
A. Economic order quantity
B. Economic production quantity
C. Quantity discount
D. Reorder point
21: Which of the following models is used to determine how much of a product the firm is to produce and when?
A. Economic order quantity
B. Economic production quantity
C. Quantity discount
D. Reorder point
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Inventory Control Models MCQs
