T304 Inventory Management

Partially completed goods are also known as ______

______ cost refers to costs incurred when demand exceeds the supply of inventory

_______ cost refers to the cost associated with receiving an inventory.

It refers to the stock that is held in excess of expected demand.

It refers to the cost to carry an items in inventory for a length of time.

 Using basic EOQ model, a setup cost of 40, an ordering cost of Php 5, and a holding cost of Php 1 per unit per year will result in an EOQ of: 

 Using basic EOQ model, if D = 60 per month, S = $12, and H = $10 per unit per month, EOQ is: 

It refers to the discipline that helps organizations determine the amount of inventory re-order and "when to order"

The rate of demand is an important factor in determining the ROP: 

• True

• False

When to order can be calculated by the ROP and EOQ

• True

• False