Question 1

There is typically much certainty in both demand and lead time and that has a significant impact on the overall performance on an inventory control system.

True

False

Question 2

There is a relationship between much safety stock is needed and randomness,

True

False

Question 3

It is useful for someone involved in inventory management to at least be able to make rough cut discrete event simulation models in Excel.

True

False

Question 4

The two main objectives of warehousing is to minimize costs and add-value to customers.

True

False

Question 5

Most of the inventory management performance issues deal with long-term forecasting.

True

False

Question 6

When firms suffer from inferior inventory performance they may doll of the following EXCEPT:

Copy competitor's inventory transaction system.

with inventory policies in light of competition and consumer behavior.

Hire managers away from competitors.

Use outside consultants to review inventory policies/practices.

Question 7

To build a regression model, you need to define only independent variables.

True

False

Question 8

Drivers of lead time include which of the following

Distance

Order receiving processes

Mode of Transportation

All of these are drivers

Question 9

With inventory models, there are really two things to consider, which are continuous/periodic review, and continuous/discrete levels of inventory.

True

False

Question 10

1. Information needed to calculate the EOQ (Economic Order Quantity), include all of the following EXCEPT:

Cost to process an order

Inventory carrying cost

Inflation /interest rates

Average inventory