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OMIS 338- EXAM 2 questions well answered already passed
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OMIS 338- EXAM 2 questions well answered already passed
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OMIS 338- EXAM 2Inventory Management - correct answer ✔✔Objective of inventory management is to strike a balance
between inventory investment and customer service
Importance of inventory - correct answer ✔✔most expensive assets
less inventory= lower costs but greater chance of running out
more inventory raises costs but always keeps customers happy
Functions of inventory - correct answer ✔✔Provide a selection of goods for anticipated demands
separate various parts of the production process
advantage of quantity discounts
hedge against inflation
Inventory Example - correct answer ✔✔Department store
stockroom/warehouse
grocery store
auto work-in-process
Types of inventory - correct answer ✔✔Raw material
work-in-process
finished goods
maintenance/repair/oeprating (MRO)
Raw material - correct answer ✔✔purchased but not processed
work in process - correct answer ✔✔undergone some changes but not completed
, finished goods - correct answer ✔✔completed product awaiting shipment
maintenance/repair/operating (MRO) - correct answer ✔✔necessary to keep machinery and processes
productive
material flow cycle - correct answer ✔✔input --> wait for inspection --> wait to be moved --> move time
--> wait in queue for operator --> setup time --> run time --> output
managing inventory - correct answer ✔✔using ABC analysis
keeping records maintained
ABC analysis - correct answer ✔✔divides inventory into three classes based on annual dollar volume,
delivery problems, quality problems, high shortage or holding cost, anticipated engineering changes
policies that focus on the few critical parts and not the many trivial ones
Record accuracy with the periodic systems - correct answer ✔✔regular checks of inventory
record accuracy with the perpetual inventory - correct answer ✔✔tracks receipts and subtractions on a
continuing basis
Independent - correct answer ✔✔demand for item is free from outside control of the demand for any
other item in inventory
basic economic order quantity model
production order quantity model
quantity discount model
Dependent - correct answer ✔✔demand for item is determined by a demand for some other item in the
inventory
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