1. Question 1

ABC analysis is based on the presumption that carefully controlling all items is necessary to produce important inventory savings.

1. T

True

1. F

False

1. Question 2

At the economic order quantity, holding costs are equal to product costs.

1. T

True

1. F

False

1. Question 3

Since it is virtually impossible to be the best in every dimension of competition, firms should in general strive to provide a ________ level of acceptance for each of the order qualifiers but ________ try to be the best in the market for the order winner(s).

1. minimal, should not
2. maximum, should not
3. minimal, should
4. maximum, should
5. Question 4

At the economic order quantity, holding costs are equal to product costs.

1. T

True

1. F

False

1. Question 5

________ means that the product is made from standard components that the manufacturer can inventory and assemble according to a customer order.

1. Assemble-to-order
2. Engineer-to-order
3. Make-to-stock
4. Make-to-order
5. Question 6

Priority in production planning relates to:

1. routing.
2. how much of what is needed and when.
3. capacity.
4. an objective of the firm.
5. Question 7

________ means that the supplier manufacturers the goods and sells from finished goods inventory.

1. Make-to-order
2. Make-to-stock
3. Assembly-to-order
4. Engineer-to-order
5. Question 8

General economic conditions seldom influence the demand for a company's products or services and the availability of inputs.

1. T

True

1. F

False

1. Question 9

At the economic order quantity, holding costs are equal to product costs.

1. T

True

1. F

False

1. Question 10

ABC analysis classifies inventoried items into three groups, usually based on annual units or quantities used.

1. T

True

1. F

False

1. Question 11

Generally a supplier must meet set minimum requirements to be considered a viable competitor in the marketplace. Customer requirements may be based on price, quality, delivery, and so forth and are called ________.

1. order winners
2. order qualifiers
3. order flexibility
4. order price
5. Question 12

The demand for automobiles would be considered an independent demand.

1. T

True

1. F

False

1. Question 13

One of the functions of inventory is to double the amount of safety stock.

1. T

True

1. F

False

1. Question 14

Inventories are materials and supplies that a business or institution carries either for sale or to provide inputs or supplies to the production process.

1. T

True

1. F

False

1. Question 15

For the products or services they buy, customers expect:

1. no after-sale service
2. lower quality
3. no pre-sale service
4. a fair price
5. Question 16

A major challenge in inventory management is to maintain a balance between inventory investment and customer service.

1. T

True

1. F

False

1. Question 17

A major challenge in inventory management is to maintain a balance between inventory investment and customer service.

1. T

True

1. F

False

1. Question 18

2 is an even and a prime number.

1. T

True

1. F

False

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1. Question 19

Which of the following statements is true regarding order winners?

1. They persuade a company's customers to choose its product.
2. They are the same in every market.
3. They are the same as order qualifiers, only better.
4. They are present in every product.
5. Question 20

In the past, supply, production, and distribution systems were organized into separate functions that reported to different departments of a company.

1. T

True

1. F

False

1. Question 21

Order winners and qualifiers for any product or market combinations are static.

1. T

True

1. F

False

1. Question 22

________ means that the manufacturer does not start to make the product until a customer's order is received.

1. Make-to-order
2. Assembly-to-order
3. Engineer-to-order
4. Make-to-stock
5. Question 23

The demand for automobiles would be considered an independent demand.

1. T

True

1. F

False

1. Question 24

Demand information usually flows from:

1. customer to supplier
2. customer to products
3. product to supplier
4. supplier to customer
5. Question 25

Which of the following strategies has the shortest delivery lead time and the least customer input?

1. make-to-stock
2. assemble-to-order
3. configure-to-order