__________________ is a continuing reconciliation of inventory with inventory records. Bottleneck analysis ABC analysis Work-in-process management Cycle Counting Economic order quantity (EOQ) analysis Lead time for one of Montegut Manufacturing’s fastest moving products is 4 days. Daily demand during this period is 100 units per day. What would be an appropriate re-order point? 25 units 600 units 100 units 400 units One of the functions of inventory is to: consistently purchase the least expensive and lowest quality material. not take advantage of quantity margins. lease warehouse space in instead of purchasing it. take advantage of quantity discounts. What is the value of the bullwhip measure for a company with a variance of demand equal to 450 and a variance of orders equal to 400? 0.889 1.125 22.5 0.044 50 A given operation uses the POQ model. Annual setup costs have been computed to be $1000. What is the annual holding cost? $1 000 cannot determine $1 500 $1 750 In the basic EOQ model if D=6000 per year S=$100 H=$5 per unit per year the economic order quantity is approximately: 24 490 310 141 100 $2 000 Consider a firm with an annual net income of $20 million revenue of $60 million and cost of goods sold of $25 million. If the balance sheet amounts show $2 million of inventory and $500 000 of property plant & equipment how many weeks of supply does the firm hold? 3.20 0.08 2.60 4.16 12.50 __________________ are inventories devoted to keeping machinery and processes productive. ABC inventory Finished-Goods inventory MRO (Maintenance/Repair/Operating) inventory Work-in-process (WIP) inventory Raw Material inventory The assumptions of the production order quantity model are met in a situation where annual demand is 3650 units setup cost is $50 holding cost is $12 per unit per year the daily demand rate is 10 and the daily production rate is 100. The production order quantity for this problem is approximately: 548 144 184 365 139 _________________ has been purchased but not processed. Work-in-process (WIP) inventory Finished-Goods inventory ABC inventory MRO (Maintenance/Repair/Operating) inventory Raw Material inventory A container of bolts currently located in Houston TX needs to be delivered to a facility in Sioux Falls SD. The standard ground shipment method takes three days. However for an additional charge of $30.00 the container can be sent by two-day air. The holding cost per day for this type of item has been estimated at $21.09. Which shipping option is more economical? both shipments are more economical neither shipment is more economical two-day air shipment standard three day ground shipment • Guemmer Specialty Foods can produce their famous cherry pies at a rate of 1650 cases per day (this is the daily production rate). The firm distributes the pies to regional stores and restaurants at a steady rate of 250 cases per day (this is the daily demand rate). The cost of each production setup is $320. Annual holding costs are $11.50 per case per year. Annual demand is 62 500 cases. Assume 250 working days per year. Assume the POQ (Production Order Quantity) model is used by Guemmer Specialty Foods. Refer to Scenario 5. What is the number of production runs per year? o 20.23 o 250 o 55.23 o 30.87 __________________ divides on-hand inventory into three classifications on the basis of annual dollar volume. Raw Material analysis MRO (Maintenance/Repair/Operating) analysis ABC analysis Work-in-process (WIP) analysis Finished-Goods analysis A given operation uses the POQ model. Annual holding cost has been computed to be $500. What is the annual setup cost? $2 000 $500 cannot determine $1 000 $750 Guemmer Specialty Foods can produce their famous cherry pies at a rate of 1650 cases per day (this is the daily production rate). The firm distributes the pies to regional stores and restaurants at a steady rate of 250 cases per day (this is the daily demand rate). The cost of each production setup is $320. Annual holding costs are $11.50 per case per year. Annual demand is 62 500 cases. Assume 250 working days per year. Assume the POQ (Production Order Quantity) model is used by Guemmer Specialty Foods. Refer to Scenario 5. What is the optimal Production Order Quantity (POQ)? 320.33 1650 250 2024.70
