Quiz 7

Question 1 | | 1 / 1 point |

Which of the following is not one of the four main types of inventory?

Question options:

| A)  | safety stock inventory |

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| B)  | finished goods inventory |

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| C)  | work-in-progress inventory |

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| D)  | maintenance/repair/operating supply inventory |

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| E)  | raw material inventory |

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Question 2 | | 1 / 1 point |

Which of the following would not generally be a motive for a firm to hold inventories?

Question options:

| A)  | to take advantage of quantity discounts |

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| B)  | to minimize holding costs |

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| C)  | to eliminate safety stock |

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| D)  | to provide a stock of goods that will provide a selection for customers |

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| E)  | to decouple or separate parts of the production process |

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Question 3 | | 1 / 1 point |

ABC analysis is based upon the principle that

Question options:

| A)  | more time should be spent on class "C" items because there are more of them. |

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| B)  | as with grade distribution in many MBA courses, there should be more medium-level "B" items than either "A" or "C" items. |

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| C)  | all items in inventory must be monitored very closely. |

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| D)  | there are usually a few critical items, and many items which are less critical. |

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| E)  | an item is critical if its usage is high. |

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Question 4 | | 1 / 1 point |

Cycle counting

Question options:

| A)  | provides a measure of inventory turnover. |

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| B)  | assumes that all inventory records must be verified with the same frequency. |

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| C)  | assumes that the most frequently used items must be counted more frequently. |

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| D)  | provides a measure of inventory accuracy. |

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| E)  | is a process by which inventory records are verified once a year. |

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Question 5 | | 1 / 1 point |

The two most basic inventory questions answered by the typical inventory model are

Question options:

| A)  | timing and cost of...