Exam (elaborations)
OSCM 373: EXAM 3 questions with 100% correct answers
- Course
- Institution
OSCM 373: EXAM 3 questions with 100% correct answers
[Show more]
Content preview
OSCM 373: EXAM 3Objectives of Inventory Management - correct answer ✔✔1. Satisfactory levels of customer service
- having the right goods available in the right quantity in the right place at the right time
2. While keeping inventory costs (ordering and carrying) within reasonable bounds (minimize)
Performance Measures - correct answer ✔✔1. Customer Satisfaction
- number and quantity of backorders
- customer complaints
2. Keeping Costs Low
- Inventory Turnover
ABC Classification System - correct answer ✔✔Classifying inventory according by importance, and
allocating control efforts accordingly
A Items: Very Important
- 10-20% of inventory
- 60-70% of dollar value
B Items: Moderately Important
C Items: Least Important
- 50-60% of inventory
- 10-15% of dollar value
To classify arrange by values in descending order
, Periodic System - correct answer ✔✔Physical count of items in inventory made at periodic intervals
Pros:
- many items ordered at same time
- savings in processing and shipping of orders
Cons:
- lack of control between reviews
- have to keep extra stock to protect against shortages
Perpetual System - correct answer ✔✔System that keeps track of removals from inventory continuously,
thus monitoring current levels of each firm
Pros:
- continuous control
- can optimize quantity and place orders when inventory drops to a predetermined level
Cons:
- added cost of record keeping
- usually has to be accompanied by a periodic physical count
Reorder Point - correct answer ✔✔specifies the level to which the inventory balance of an item must fall
before an order to replenish stock is initiated
Determinants:
- rate of demand
- lead time (interval between ordering and receiving the orders)
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 kirus27. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $17.99. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
75619 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now