SOM $306$

Spring $2024$

Exam #$2$

Test No$.2$ BLUE

SOM $306$

Spring $2024$

Exam #$2$

The substitution of machinery that has sensing and control devices for human labor is best described by

a$.$ Automation

b$.$ Feedback control

c$.$ Flexible manufacturing

d$.$ Computer$-$aided manufacturing

Which of the following is typically the largest of all inventory costs?

a$.$ Shortage costs

b$.$ Holding costs

c$.$ Purchase costs

d$.$ Pipeline costs

If there are shipping cost economies that result from bundling orders for different items together, the

$q,$ model becomes a relatively more attractive option.

a$.$ Reorder point

b$.$ Fixed$-$order quantity

c$.$ Fixed$-$order interval

d$.$ Economic order quantity

Which of the following is NOT one of the assumptions of the basic EOQ model?

a$.$ Annual demand is known and constant

b$.$ Lead times are stable

c$.$ Quantity discounts are applied automatically

d$.$ Each order is received in a single delivery

In an A$-$B$-$C inventory system, a typical percentage of the number of A skus $/$ part numbers in inv

a$.10$

b$.30$

c$.50$

d$.70$

The purpose of cycle counting is to:

a$.$ Count all inventory items

b$.$ Reduce theft $/$ shrinkage $/$ spillage

c$.$ Count a portion of the inventory items every month