Question

operation fundamental thx a lot  

2.

Units that an organization will carry over and above Q in order to meet contingency is known as?

	A.	Overflow stock
	B.	Extra inventory
	C.	Safety Stock
	D.	Safety inventory

3.

The following are components of what type of inventory cost: finance charges, warehousing, and shelf space, handling equipment, bookkeeping, insurance, taxes or spoilage?

	A.	Total cost
	B.	Ordering cost
	C.	Holding cost
	D.	Maintenance cost

4.

The objective of Inventory Management is to……

	A.	Ensure product is available to meet customer demands.
	B.	Strike a balance between inventory investment and customer service.
	C.	Minimize costs of buy raw materials.
	D.	Maintain enough raw materials for production.

5.

Method used to determine the best routes to ship from several points of supply (sources) to points of demands (destination) to minimize production and shipping costs.

	A.	The Factor- Rating Method
	B.	Location Cost-Volume Analysis
	C.	Center-of-Gravity Method
	D.	Transportation Model

6.

What type of decision would taxes, labor availability and environmental regulations part of?

	A.	Site
	B.	Region
	C.	Country
	D.	Rural

7.

Inventory management solves what two basic issues?

	A.	The amount of raw material needed for production and customers.
	B.	The amount of raw material needed for production and customers.
	C.	How much and when to order.
	D.	How much goods and services are needed to meet demand and how to deliver the goods and services.

Answer 1

2. (c) Safety Stock

Safety stock is an additional quantity of an item held in the inventory to reduce the risk that the item will be out of stock. It acts as a buffer stock in case sales are greater than planned and/or the supplier is unable to deliver the additional units at the expected time.

3. (c) Holding Cost

Holding costs are those associated with storing inventory that remains unsold. These costs are one component of total inventory costs, along with ordering and shortage costs. A firm's holding costs include the price of goods damaged or spoiled, as well as that of storage space, labor, and insurance.

4. (b) Strike a balance between inventory investment and customer service.

The objectives of inventory management are to provide the desired level of customer service, to allow cost-efficient operations, and to minimize the inventory investment.

5. (d) Transportation Model

The transportation model addresses the concept of moving a thing from one place to another without change. It assumes that any damage en route has negative consequences, and so it's used to analyze transportation systems and find the most efficient route for resource allocation.

6. (c) Country

7. (d) How much goods and services are needed to meet demand and how to deliver the goods and services

The objective of inventory management is to figure out the most efficient way to manage the available inventory and to keep the customers happy by providing the finished products on time.