Question 1 (2 points)

ABC analysis ranks items in an inventory based upon their importance from an inventory management perspective. Parts are classified as A parts, B parts, or C parts. In order to do this we must calculate the: __________ for each inventory item.

Question 2 (4 points)

Economic order quantity (EOQ) for an item is determined by calculating the lowest total annual cost for managing the item. The two annual costs considered in this total cost are: ______ __________.

Question 3 (2 points)

The required service level and the standard deviation of demand are used in determining an items _________.

Question 4 (6 points)

Name 3 systems for planning and ordering inventory.