XAppendixIII - Inventory Management

XAppendixIII - Inventory Management - Appendix III:...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Appendix III: Inventory Management MULTIPLE CHOICE QUESTIONS 1. Inventory holding costs typically include: A. clerical costs of purchase-order preparation. B. costs of deterioration, theft, or spoilage. C. costs associated with lost sales to customers. D. forgone interest on money tied up in inventory. E. items "B" And "D" above. Answer: E LO: 1 Type: RC 2. Inventory holding costs would typically include all of the following except : A. insurance. B. theft. C. transportation. D. obsolescence. E. warehouse rent. Answer: C LO: 1 Type: RC 3. At the economic order quantity: A. total annual inventory costs, holding costs, and ordering costs are all minimized. B. total annual inventory costs and holding costs are minimized. C. total annual inventory costs are minimized, and holding costs equal ordering costs. D. total annual inventory costs are minimized, and holding costs exceed ordering costs. E. total annual inventory costs are minimized, and ordering costs exceed holding costs. Answer: C LO: 1 Type: N 4. Chan uses an economic order quantity model and has determined an optimal order size of 600 units.
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 06/22/2011 for the course ALL 101 taught by Professor Laus during the Spring '11 term at FIU.

Page1 / 3

XAppendixIII - Inventory Management - Appendix III:...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online