1a. The capacity that a machine or system should realize given optimal operating conditions is known as

A. design capacity.

B. available capacity.

C. rough capacity.

1b. In fixed time period inventory models, inventory is reordered

A.when stock reaches a predetermined level.

B.at regular time intervals.

C.at midnightwhen time is fixed.

1c. Inventory turnover is A.average inventory divided by annual sales.

B.average inventory divided by cost of goods sold.

C.cost of goods sold divided by average inventory. 1d.In ABC inventory analysis, items that account for only up to 10% of the revenue but for a majority of the inventory items are classified as

A. B items.

B. C items.

C. None of the above

1e.The capacity for a machine or system that is available after accounting for scrap and rework and also factors in inefficiencies inherent in the system is known as

A.design capacity.

B.actual capacity.

C.rough capacity.

1f. Best Tools maintains an average finished goods inventory of $15 million and its annual cost of goods sold is $180 million. How many times per year do they turn over their inventory?

a. 15

b. 8.33

c. 12