Operations Management
17th Edition
ISBN: 9781259142208
Author: CACHON, Gérard, Terwiesch, Christian
Publisher: Mcgraw-hill Education,
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Chapter 10, Problem 8CQ
Summary Introduction
To determine: The correct option.
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It is costly to hold inventory, but inventory can also be useful in a process because:a. adding inventory to a process will shorten the average time a unit spends in a process.b. adding inventory to a process can help reduce situations in which sales are lost due touncertain demand.c. adding inventory to a process is likely to increase quality.d. adding inventory to a process will increase the profit margin of the item.
The period from the date of order is placed to the date merchandise is delivered for sale is called:
a.
Lead time
b.
Buffer stock
c.
Reorder point
d.
Usage rate
Why does maintaining an inventory that matches a predetermined formulary make good business sense?
Chapter 10 Solutions
Operations Management
Ch. 10 - It is costly to hold inventory, but inventory can...Ch. 10 - A delivery truck from a food wholesaler has just...Ch. 10 - Prob. 3CQCh. 10 - Prob. 4CQCh. 10 - Prob. 5CQCh. 10 - Prob. 6CQCh. 10 - Prob. 7CQCh. 10 - Prob. 8CQCh. 10 - Prob. 9CQCh. 10 - Prob. 10CQ
Ch. 10 - Prob. 11CQCh. 10 - Prob. 1PACh. 10 - Prob. 2PACh. 10 - Prob. 3PACh. 10 - An electronics manufacturer has 25 days-of-supply...Ch. 10 - Prob. 5PACh. 10 - Prob. 6PACh. 10 - Prob. 7PACh. 10 - Prob. 8PACh. 10 - An online shoe retailers annual cost of holding...Ch. 10 - Prob. 10PACh. 10 - Prob. 11PACh. 10 - Prob. 12PACh. 10 - Prob. 13PACh. 10 - Prob. 14PACh. 10 - Prob. 15PACh. 10 - Prob. 16PACh. 10 - A retailer has annual sales of 500,000 and an...Ch. 10 - Prob. 18PACh. 10 - Prob. 19PACh. 10 - Prob. 1CCh. 10 - Prob. 3CCh. 10 - Prob. 4C
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- Why are physical inventory counts made when a perpetual inventory system is used? a. Same as last year principle requires it b. It verifies inventory numbers recorded c. SEC recommends it d. CFO typically has doubts about the purchasing departmentarrow_forwardWhy would just-in-case' or conventional inventory management methods prefer to 'just-in-time.'?arrow_forward47 Companies take a physical count of inventory at the end of the accounting period. Taking a physical count of inventory involves_________________________. a. Counting of each kind of inventory b. Measuring of each kind of inventory c. Weighing of each kind of inventory d. All the given optionarrow_forward
- Which of the following type of inventory can be used to describe the "Cleaning materials" used in an organization A. Work in Process B. Spare parts C. Consumables D. Seasonalarrow_forwardSuppose the newsvendor model is used to manage inventory. Which of the followingcan happen when the order quantity is increased by one unit? a. Expected sales increases by more than one unit.b. Expected leftover inventory increases by more than one unit.c. Expected sales decrease by less than one unit.d. Expected leftover inventory increases by less than one unit.arrow_forward. The company believes that a proper inventory control system (techniques) helps the enterprise in solving the problems of liquidity, eliminating excessive stocks, and achieving increased profits, with substantial reduction in working capital. Critically evaluate the possible different inventory control systems adopted in the company in the light of above information.arrow_forward
- ####### In periodic inventory review policy, a lot size is calculated based on the difference between ____ and on-hand inventory. (a) average demand during lead time (b) reorder point (ROP) (c) order-up-to level (OUL) i want answer within 1 hour, i will upvote if you provide answer within 1 hour. Thanks in advance.arrow_forwardImagine that you are the chief operations officer (COO) of Amazon.com. You are interested in creating a competitive advantage for your company (compared to other online retailers) in that you wish to be able to provide to your customers faster shipping than you have been able to provide with your existing set of warehouses and fulfillment centers. It has been decided that using overnight shipping on every order (which would, of course, be about as quick as shipping could be) has been eliminated as a possibility due to being prohibitively expensive. Describe what you would recommend as the COO to improve the speed with which Amazon.com customers receive the products that they have ordered. What negative consequences or disadvantages, if any, do you see as a result of your proposed solution?arrow_forwardUncommitted inventory is called a. Free inventory b. Safety stock c. Obsolete inventory d. Available-to-promise inventory e. Lead time inventoryarrow_forward
- Inventory is a current asset that should provide return on the capital invested. From your understanding, why is inventory is so crucial to the efficient and effective management of a firm? Provide relevant example to support your answer.arrow_forwardMany firms have made significant strides in reducing their inventories. Which of the following would be least likely to encourage managers to reduce inventory? A. Instituting a charge against the budget for managers based on the size of the inventory. B. Using throughput costing. C.Using absorption costing. D.Using variable costing.arrow_forwardThe inventory turnover is calculated using the annual cost of goods sold and the aggregate inventory value on average. True or False?arrow_forward
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Inventory Management | Concepts, Examples and Solved Problems; Author: Dr. Bharatendra Rai;https://www.youtube.com/watch?v=2n9NLZTIlz8;License: Standard YouTube License, CC-BY