1. Cycle counting:

a) means that we count all articles after a specified time period

b) leads us to count A items more frequent then B items

c) require all A items to be counted the same day

d) is a legal requirement

2. Extra units in inventory to help reduce stockouts are called:

a) reorder point.

b) safety stock.

c) just-in-time inventory.

d) all of the above.

3. The EOQ model is

a) not very useful in practice since the assumptions are

unrealistic

b) finds the optimal safety stock

c) is quite useful, due to the fact that the optimum is quite flat

d) depending on the standard deviation of the demand

e) has an impact of the re-order-point

4. The safety stock in re-order point system:

a) shall with a certain probability cover demand exceeding

the expected during the lead-time

b) is a non-linear function of lead-time

c) is not depending on the order-quantity

d) all of the above.