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WorksheetsInventory Management As Level
Total questions: 6
Worksheet time: 3mins
Lead time is the time between placing an order and the order being delivered. Look at the inventory control chart. What is the lead time ?
1 week
3 weeks
2 weeks
4 weeks
What is the buffer inventory level?
Buffer inventory level is kept in reserve in case of a late delivery or
an increase in demand.
150 units
100 units
50 units
200 units
All of the following are costs of not holding enough inventories, except:
idle machinery
lost customer orders
obsolescence
the cost of having to make urgent orders
Which one of the following is not a cost of holding inventories?
wastage
opportunity cost
warehousing costs
lost sales
In which one of the following circumstances is JIT inventory control least likely to be effective?
when demand is predictable
when suppliers are located close by
when production staff are multi-skilled
when traditional quality - inspection method are used
In which of the following circumstances is JIT inventory control most likely to be used?
when the cost of any halt to production is high
during a period of high global inflation
in an industry in which there is a high risk of obsolescence
where there is a weak relationship between the manufacturer and the supplier
