ch12_study_out

ch12_study_out - Shortage costs 12. What is the A-B-C...

Info iconThis preview shows pages 1–7. Sign up to view the full content.

View Full Document Right Arrow Icon
STUDY OUTLINE FOR CHAPTER 12 INVENTORY MANAGEMENT 1. Explain why inventory management is a core operations management activity. 2. How is inventory defined? 3. Explain the difference between independent-demand and dependent-demand inventory. 4. Name some of the different kinds of inventories manufacturing firms carry.
Background image of page 1

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

View Full DocumentRight Arrow Icon
5. List eight reasons for holding inventories. 1) 2) 3) 4) 5) 6) 7) 8) 6. What is the overall objective of inventory management? 7. List five requirements for effective inventory management. 1) 2) 3) 4) 5)
Background image of page 2
8. Define these terms: inventory turnover periodic counting system perpetual counting system RFID tags 9. Briefly describe a two-bin system.
Background image of page 3

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

View Full DocumentRight Arrow Icon
10. Define lead-time and indicate why it is important. 11. Briefly define each of these and give examples of each: Holding (carrying) costs Ordering Costs
Background image of page 4
Background image of page 5

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

View Full DocumentRight Arrow Icon
Background image of page 6
Background image of page 7
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: Shortage costs 12. What is the A-B-C approach for inventory management? What is the typical measure of importance? 13. What is cycle counting? 14. What are the two basic questions in inventory management? 15. What are EOQ models used for? 16. Which EOQ model should be used if replenishment occurs over time instead of as a single delivery? 17. When is the fixed order interval model appropriate? 18. What are ROP models used for? 19. What is meant by the term fill rate ? 20. In what kinds of circumstances would the single-period model be used? 21. What kinds of costs are generally associated with the term excess cost? 22. List four areas that have potential to improve reduce costs and improve customer satisfaction. a. b. c. d....
View Full Document

Page1 / 7

ch12_study_out - Shortage costs 12. What is the A-B-C...

This preview shows document pages 1 - 7. Sign up to view the full document.

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