Business

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Introduction to Management Science, 10e (Taylor) Chapter 16 Inventory Management 1) Independent demand items are used internally to produce a final product. Answer: FALSE Diff: 2 Page Ref: 744 Main Heading: Elements of Inventory Management Key words: dependent demand items 2) Dependent demand items are final products demanded by an external customer. Answer: FALSE Diff: 2 Page Ref: 744 Main Heading: Elements of Inventory Management Key words: independent demand items 3) Inventory costs include carrying, ordering, and shortage costs. Answer: TRUE Diff: 1 Page Ref: 744 Main Heading: Elements of Inventory Management Key words: inventory costs 4) The purpose of inventory management is to determine how much…show more content…
Answer: TRUE Diff: 2 Page Ref: 746 Main Heading: Economic Order Quantity Models Key words: inventory costs 21) Shortage costs include loss of customer goodwill. Answer: TRUE Diff: 2 Page Ref: 746 Main Heading: Economic Order Quantity Models Key words: inventory costs 22) If a business frequently runs out of inventory their service levels are negative. Answer: FALSE Diff: 2 Page Ref: 768 Main Heading: Economic Order Quantity Models Key words: service level 23) __________ demand items are generally final products demanded by customers. Answer: independent Diff: 2 Page Ref: 744 Main Heading: Economic Order Quantity Models Key words: independent demand items 24) The purpose of inventory management is to determine __________ and __________ to order. Answer: how much/when Diff: 2 Page Ref: 746 Main Heading: Economic Order Quantity Models Key words: inventory management 25) __________ demand items are used internally to produce a final product. Answer: dependent Diff: 2 Page Ref: 744 Main Heading: Economic Order Quantity Models Key words: independent demand items 26) Inventory __________ costs include storage cost and the cost of capital. Answer: carrying Diff: 2 Page Ref: 744 Main Heading: Economic Order Quantity Models Key words:

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