Multiple Choice 1

The EOQ calculation that considers loss sales or production delays is:

a. carrying costs

b. stockout costs

c. reorder point

d. ordering costs

Multiple Choice 2

The approach to managing inventory that is based on forecasted sales to schedule production is:

a. IBM

b. EOQ

c. MRP

d. JIT

Multiple Choice 3

Crucial operating decisions when selecting suppliers for inventory items includes:

a. price

b. quality of materials

c. dependability of making decisions

d. all of the above

Multiple Choice 4

The document used to request that an item be ordered is the

a. purchase order

b. purchase requisition

c. purchase advice

d. purchase auction

Multiple Choice 5

The major cost driver in the purchasing function is

a. the number of purchase orders processed

b. the price of the items purchased

c. the reputation of the supplier

d. none of the above.