INVENTORY MANAGEMENT

The objective of inventory management is to minimize the cost of holding inventory.

• True

• False

The overall objective of inventory management is to achieve satisfactory levels of customer service while keeping inventory costs reasonable.

• True

• False

One important use of inventories in manufacturing is to

decouple operations through the use of work in process

inventories.

• True

• False

Fixed Order Point was represent and determine by EOQ and Fixed Order Interval is set time interval and reviewed at a certain.

• True

• False

In the basic EOQ model, annual ordering cost and annual ordering cost are equal for the optional order quantity

• True

• False

Set up costs are analyse to which one of these costs

• Shortage

• Holding

• Excess

• Ordering

The cost of Insurance and Taxes are included in

• Cost of ordering

• Set up cost

• Inventory Carrying cost

• Cost of shortage

The objective of inventory management is to minimize holding costs

• True

• False

When using EOQ ordering, the order quantity must be computed in every order cycle

• True

• False

The order cost per order of an inventory is RM400 with an annual carrying cost of RM10 per unit. The economic Order Quantity (EOQ) for an annual demand of 2000 units

• 400

• 440

• 480

• 500