1. The Q system is a strategy for selecting a (A) and a (B).

Select from below:

(A)

discount

order quantity

safety stock

(B)

stock out

lead duration

reorder point

2. What is the inventory you hold to account for issues with order strategies in the case of variable demand and/or variable lead time?

a) safety stock

b) backorder

c) emergency order

3. With ABC analysis, what does A represent?

a) The SKU with the highest dollar value

b) The highest volume SKU

4. (True or False) In the saw-tooth plot of inventory, the peak of each "tooth" is when inventory is replenished from scheduled receipts.