Answer base stock system Reference Inventory Control Systems Difficulty

Answer base stock system reference inventory control

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Answer: base-stock system Reference: Inventory Control Systems Difficulty: Moderate
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Chapter 12 Inventory Management503 Keywords:base, stock, base-stock 132.Inventory manager George Costanza knows too well that shrinkage occurs so he goes to the stock room every day to do a spot check of a few items, physically counting them to verify that his count agrees with the number indicated by their computerized inventory system. This method of inventory control is known as ____________. Answer: cycle counting Reference: Inventory Control Systems Difficulty: Moderate Keywords:cycle, count, counting SHORT ANSWERS 133.What are the components of holding cost? Answer: The components of holding cost include cost of capital, storage and handling cost, taxes, insurance, and shrinkage. Reference: Inventory Basics Difficulty: Moderate Keywords:holding, cost 134.What are the secondary levers for cycle inventory? 135.What are the secondary levers for safety stock inventory? 136.What are the secondary levers for pipeline inventory?
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137.What are the options for placement of inventories and how are these decisions made? Answer: Inventories can be held at the raw material, work-in-process, and finished-goods levels. Managers make inventory placement decisions by designating an item as either a special or a standard. A special is an item made to order or, if purchased, it is bought to order. A standard is an item that is made to stock or ordered to stock and is normally available upon request. Reference: Inventory Basics Difficulty: Moderate Keywords:special, standard, placement138.What is ABC analysis and how does it work?
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