1. In Operations Management and the potential for variation reduction, what are two key factors that impact inventory management?

	a.	Lead time variations and forecast errors
	b.	Normal distribution and Poisson distribution
	c.	Supply and demand of excess and obsolete inventory
	d.	Reorder point and economic order quantity
	e.	Management philosophy and supplier performance

2.. ROP, reorder point, models involve what considerations?

	a.	Service level and safety stock
	b.	Quantity on hand and quantity on order
	c.	Standard deviation of demand and six sigma
	d.	Inventory requirements and demand lead times
	e.	None of the above

3. Effective inventory decisions depend on having;

	a.	Good inventory records
	b.	Good cost information
	c.	Good estimates of demand
	d.	All of the above
	e.	None of the above

4. EOQ, economic order quantity, models address the question of;

	a.	When to order
	b.	How much to order
	c.	Where to order
	d.	Why to order
	e.	None of the above

5. The Single Period or News Boy model is used to handle the ordering of perishable items. Analysis of single period situations generally focuses on what two costs?

	a.	Shortage costs and Excess costs
	b.	Ordering costs and Shipping costs
	c.	Holding costs and Salvage costs
	d.	Purchase costs and Inventory costs
	e.	Costs of Quality and Production