Question 1

Manufacturers that order supplies from their vendors every Monday in order to stabilize purchasing and shipping schedules are using a

Accepted Answer

The fixed time period model involves ordering supplies at fixed intervals, such as every Monday, to stabilize purchasing and shipping schedules. This contrasts with the continuous review model, which triggers orders based on inventory levels rather than time.

Question 2

Inventory models that order in regular weekly or monthly time intervals are known as ________ models.

Accepted Answer

fixed time period

Question 3

Inventory that has been received and is in the production phase is known as

Accepted Answer

Work-in-process inventory refers to items that are currently being manufactured but are not yet complete, fitting the description of inventory in the production phase.

Question 4

Inventory that has been received and is in the production phase is known as phased in inventory.

Accepted Answer

Inventory that has been received and is in the production phase is typically referred to as work-in-process (WIP) inventory, not phased in inventory.

Question 5

The probability that an item will be available in stock for order fulfillment when it is needed is known as ________.

Accepted Answer

The answer of The probability that an item will be...

Question 6

Inventory that is completed and placed into inventory for sale at a later date is known as

Accepted Answer

Make-to-stock inventory refers to items that are completed and stored in inventory before they are sold, allowing companies to meet customer demand immediately from stock.

Question 7

Producing extra inventory during periods of low demand,which is then consumed during periods of high demand,is known as ________.

Accepted Answer

The answer of Producing extra inventory during periods of low...

Question 8

The period between placing and receiving an order is known as ________.

Accepted Answer

The answer of The period between placing and receiving an...

Question 9

Producing extra inventory during periods of low demand,which is then consumed during periods of high demand is known as

Accepted Answer

Production smoothing, also known as level production strategy, involves maintaining a constant production rate despite fluctuations in demand. This approach allows companies to produce extra inventory during low demand periods to meet higher demand in future periods without significant changes in production levels.

Question 10

In fixed time period inventory models,inventory is reordered

Accepted Answer

In fixed time period inventory models, inventory is reordered at regular time intervals, regardless of the current stock level. This approach contrasts with models where orders are placed based on inventory reaching a certain level.

Question 11

Products that are waiting to be sold to customers are known as

Accepted Answer

Finished goods inventory refers to products that have been completed and are ready to be sold to customers.

Question 12

In fixed time period inventory models,inventory is reordered when it reaches a predetermined stock level.

Accepted Answer

In fixed time period inventory models, orders are placed at the end of a predetermined time period, not based on inventory reaching a specific stock level.

Question 13

Building up inventory in anticipation of unforeseen global supply chain interruptions is known as ________.

Accepted Answer

The answer of Building up inventory in anticipation of unforeseen...

Question 14

Products sent directly to customers and not placed in finished goods inventory are known as

Accepted Answer

Make-to-order inventory refers to products that are manufactured or assembled only after an order is received, which means they are sent directly to the customer and not stored in finished goods inventory.

Question 15

Service level is the probability that an item will be available in stock for order fulfillment.

Accepted Answer

Service level refers to the likelihood or probability that inventory will be sufficient to meet demand, ensuring that an item is available for sale or order fulfillment without stockouts.

Question 16

A store of goods and stocks for some future use is known as ________.

Accepted Answer

The answer of A store of goods and stocks for...

Question 17

Manufacturers of seasonal demand products who manufacture the product throughout the year,so as to build up an inventory buffer to be used during the high demand season are using a technique called

Accepted Answer

Production smoothing, also known as level production strategy, involves producing goods at a constant rate regardless of the season, to ensure that inventory is built up in anticipation of peak demand periods. This helps in managing production costs and workforce levels more efficiently.

Question 18

Hallmark manufactures greeting cards throughout the year,building up inventory during lean periods to be utilized during the holiday period.They are using a technique known as ________.

Accepted Answer

The answer of Hallmark manufactures greeting cards throughout the year,building...

Question 19

Production smoothing is balancing the cost of set-ups with inventory carrying costs.

Accepted Answer

The answer of Production smoothing is balancing the cost of...

Question 20

Inventory that is kept at the intersection of differing stages of production to maintain continuity of processing is called hedge inventory.

Accepted Answer

Inventory kept at the intersection of differing stages of production to maintain continuity of processing is called buffer inventory or safety stock, not hedge inventory. Hedge inventory refers to a surplus stock that is held to protect against future price increases or shortages.

Quiz 9: Inventory Management Fundamentals and Independent Demand