Podcast
Questions and Answers
What is the meaning of inventory?
What is the meaning of inventory?
- A usable but idle resource (correct)
- A non-usable but active resource
- A tangible object that cannot be used
- A physical object that cannot be stored
What is the role of selective inventory management?
What is the role of selective inventory management?
- To maintain a large inventory for all items
- To prioritize and manage inventory for specific items (correct)
- To randomly select items for inventory management
- To efficiently manage inventory for all items
What is the exchange curve concept used for in aggregate inventory planning?
What is the exchange curve concept used for in aggregate inventory planning?
- To determine the total cost of holding inventory
- To analyze the demand patterns for different inventory items
- To establish the trade-off between ordering and holding costs (correct)
- To calculate the reorder point for inventory items
What is the function of safety stocks in inventory management?
What is the function of safety stocks in inventory management?
What is the inventory turnover ratio a measure of?
What is the inventory turnover ratio a measure of?
What is the purpose of performing sensitivity analysis on a type of inventory model?
What is the purpose of performing sensitivity analysis on a type of inventory model?
What is expressed as a fraction of the value of the goods stocked per year?
What is expressed as a fraction of the value of the goods stocked per year?
Which term refers to the opportunity cost of blocking material in a non-productive form as inventories?
Which term refers to the opportunity cost of blocking material in a non-productive form as inventories?
What does the cost of incurring shortages represent?
What does the cost of incurring shortages represent?
What is the inventory management concerned with?
What is the inventory management concerned with?