Exam (elaborations)

MGT 301 Exam 1 || very Flawless.

0 purchase

Course
MGT 301

Institution
MGT 301

Why is it so important to carefully manage inventory? Where is inventory in the SC? correct answers Inventory control is important in maintaining the right balance of stock in your warehouses. Inventory is included in operations. Reasons to avoid inventory correct answers 1. requires additional ...

[Show more]

Preview 2 out of 11 pages

View example

Uploaded on September 12, 2024
Number of pages 11
Written in 2024/2025
Type Exam (elaborations)
Contains Questions & answers

why is it so important to carefully manage invento

Institution MGT 301
Course MGT 301

FullyFocus Member since 2 year 550 documents sold

$11.49

Add to cart

Add to wishlist

100% satisfaction guarantee
Immediately available after payment
Both online and in PDF
No strings attached

MGT 301 Exam 1 || very Flawless.
Why is it so important to carefully manage inventory? Where is inventory in the SC? correct
answers Inventory control is important in maintaining the right balance of stock in your
warehouses. Inventory is included in operations.

Reasons to avoid inventory correct answers 1. requires additional spaces -machines
2. opportunity cost of capital- expanding operations (locations, labor, etc.)
3. spoilage + shrinkage- food, medicine, etc.
4. obsolescence: old technology- pagers, landline, etc.
5. insurance, taxes, etc.
6. inventory can hide problems

Reasons to hold inventory correct answers 1. ensure customers needs are met
2. avoidance of losses/missed sales
3. preventing high priced, last minute production, transportation costs
4. preparation for product seasonality
5. ability to take advantage of bulk prices
6. buy now to anticipate of a price increase
7. important to maintain well-balanced inventory

Define the broad categories of inventory correct answers 1. Raw materials- unprocessed
purchased inputs
2. Work in Progress (wip)- partially processed materials not yet ready for sale
3. Finished goods- products ready for shipment
4. Maintenance, repair, operating (mro)- materials used when producing

Define the types of inventory correct answers 1. Cycle (average)- varies w/ lot/order size;
planned to be used at a set time
2. Safety stock- surplus to protect against uncertainties (demand, lead time, supply)
3. Anticipation- surplus to absorb uneven rates of demand/supply; seasonal
4. Pipeline (transit)- moving from point to point in the SC; open orders or scheduled receipts
5. Obsolete- out of date or not recent demand

Calculate inventory turnover correct answers turnover ratio- how many times inventory "turns"
in an accounting period

cost of revenue / average inventory

EOQ (order quantity) correct answers Square root (2RS/kC)

ROP correct answers formula W/ known constant demand- D x LT

if safety stock is needed to accommodate demand uncertainty- D x LT x SS

, define R, C, Q, S, k correct answers R- annual requirements (or demand) of the item in unites per
year
C- purchase cost per unit
Q- order quantity (units)
S- order of planning oe order (setup cost) ($ per order)
k- holding cost rate (%), where annual inventory carrying cost per unit=kc

TAIC correct answers Total Annual Inventory Cost= APC + AHC + AOC + AHC

AHC correct answers annual holding cost= (Q/2)kc

AOC correct answers annual ordering cost= (R/Q)S

APC correct answers Annual Purchase Cost= (RC)

inventory pattern of inventory over time (the sawtooth diagram) used to depict average inventory
correct answers Saw-Tooth Inventory diagram is a diagram used to keep track of the inventory of
a firm. It shows how the inventory level of a firm varies with time.

define a supply chain + elements correct answers a supply chain consists of the flow of
products+services from:
1. Raw materials manufacturing to retailers
2. component + immediate manufacture to end customers
3. final product manufacturing to wholesalers + distributors

tiers of supply chain correct answers tier 1- intermediate component manufacturing +
wholesalers distributors
tier 2- raw material suppliers + retailers

What is supply chain management? correct answers flow of goods and services and includes all
processes that transform raw materials into final products. It involves the active streamlining of a
business's supply-side activities to maximize customer value and gain a competitive advantage in
the marketplace

define vertical + horizontal integration- pros and cons of each- why today's trends are towards
horizontal correct answers Vertical- local firmed owned/controlled most SC, mass production,
poor quality, short term focus, limited customer choice

Horizontal- focus on specializations, trust based relationship w/ partners, all participants benefit,
global high quality options, boundaries between firms are blurry, omni channel order fulfillment

Today's trend- horizontal has better omni channel distribution, flexibility + responsiveness,
automation, sustainability

Sourcing correct answers to ensure the reliable supply of materials + services to hr firm @ the
lowest total cost:

The benefits of buying summaries with Stuvia:

Guaranteed quality through customer reviews

Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.

Quick and easy check-out

You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.

Focus on what matters

Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!

Frequently asked questions

What do I get when I buy this document?

You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.

Satisfaction guarantee: how does it work?

Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.

Who am I buying these notes from?

Stuvia is a marketplace, so you are not buying this document from us, but from seller FullyFocus. Stuvia facilitates payment to the seller.

Will I be stuck with a subscription?

No, you only buy these notes for $11.49. You're not tied to anything after your purchase.

Can Stuvia be trusted?

4.6 stars on Google & Trustpilot (+1000 reviews)

67479 documents were sold in the last 30 days

Founded in 2010, the go-to place to buy study notes for 15 years now

Start selling

Exam (elaborations)

MGT 301 Exam 1 || very Flawless.

Document information

Subjects

Written for

Seller

Reviews received

Content preview