10 Questions
a method for dividing on-hand inventory into three classifications based on annual dollar volume
extra stock to allow for uneven demand; a buffer.
a statistical model applicable when product demand or any other variable is not known but can be specified by means of a probability distribution
a system that keeps track of each withdrawal or addition to inventory continuously, so records are always current
a system for ordering items tha have little or no value at the end of the sales period
an economic order quantity technique applied to production orders
the inventory level (point) at which action is taken to replenish the stocked item
in purchasing systems, the time between placing an order and receiving it; in production systems, the wait, move, queue, setup, and run times for each component produced
Total Annual Cost formula
Single-period Inventory Model formula
Test your knowledge of inventory management methods with this quiz. Explore topics such as economic order quantity, ABC analysis, continuous review system, and probabilistic inventory models.
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