______ An inventory management system in which replenishment stock is ordered when the stock reaches a reorder point and the replenishment quantity is kept fixed.

What does inventory include?

A hybrid inventory system in which the inventory analyst reviews the inventory position at fixed time periods.

What do inventory costs generally fall into?

______ is the inventory between the Purchasing and Production.

What do ordering costs include?

What is the purpose of inventory?

______ is the ratio of cost of goods sold over average inventory cost.

______ is the provision of service to customers before, during and after a purchase.

A fixed order quantity system is more susceptible to stockouts than a fixed order interval system.

Does anticipation stock refer to inventory that is held in advance of anticipated demand, usually to meet seasonal or promotional needs?

The order cycle is also called the replenishment cycle.

Stockouts are permitted as an assumption associated with the basic EOQ model.

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

The optimal ordering quantity in the EOQ model occurs at the point where the sum of carrying costs and ordering costs are minimized.

Inventories affect both the balance sheet and the income statement.

Under economic-order quantity decision model, it is assumed that _____.

Safety stock:

The maximum order level should not exceed the safety stock.

Stockouts is synonymous with surplus.

More order size or quantities entails more ordering costs.

SMO Bookstore is trying to determine the optimal order quantity for a popular book. The store feels that the book will sell approximately 17, 000 copies in a year. The carrying cost per copy is RM2 and it costs RM60 to order more books. Determine the optimal EOQ level.

Kinokuniya Bookstore will sell approximately 17, 000 copies of books in a year. The company maintains 2,200 units as the desired safety stock and it normally take 20 days to receive the order made. If the EOQ of the bookstore is 1010 units, calculate the reorder point. Assume 360 days in one year.

Acson Electronics purchases 150, 000 units of one component of its air conditioner per year. The selling price of the cooler fan is RM1500 per unit. The company analyzed its inventory costs and has found that the component has an order cost of RM300 per order and carrying cost is 10% of its selling price. Determine the optimal EOQ level.

Calculate the inventory cost of a firm if its usage is 150,000 units, EOQ is 775 units, ordering cost is RM300, selling price is RM1500 and carrying cost is 10% of its selling price.

Which of the followings is NOT the types of inventories?

Which of the following are the common techniques of managing inventories? You may answer more than one.

The order cost per order of an inventory is Rs. 400 with an annual carrying cost of Rs. 10 per unit. The Economic Order Quantity (EOQ) for an annual demand of 2000 units is

A certain type of computer costs $1,000, and the annual holding cost is 25% value of the computer. Annual demand is 10,000 units, and the order cost is $150 per order. What is the approximate economic order quantity?

Which of the following combinations best represents how inventory levels are typically controlled in an ABC system?

A retailer has four items in its inventory:

• Item P: Annual demand = 2,000 units, Unit price = $15.

• Item Q: Annual demand = 5,000 units, Unit price = $10.

• Item R: Annual demand = 1,000 units, Unit price = $50.

• Item S: Annual demand = 10,000 units, Unit price = $2.

• Classify items based on the Pareto principle: which items are under A?

What is the main criterion used in ABC analysis to classify inventory items?

In ABC analysis, what percentage of total inventory value is typically attributed to A-class items?

A company has the following inventory data:

X (D, unit price): 1,500; 20

Y: 3,000; 15

Z: 500; 50

W: 2,000; 10

V: 4,000; 5

Based on the cumulative percentage of total value, which items would typically fall into A-Class?

Which of the following is NOT a reason for holding inventory?

“Carrying” inventory includes production control costs and purchase costs.

Increasing the price and intentionally selling it as new items are suggestions for dealing with dead stock (inventory).

Production and use can occur simultaneously is not an assumption of the EOQ model.

A product for which there are no sales during a twelve-month period is called:

Which concept classifies inventory based on value importance?

Average demand × replenishment cycle is: