With

operations, a product is made before the

a$.$ make$-$to$-$order, supply

b$.$ make$-$to$-$order, demand

c$.$ make$-$to$-$stock, supply

d$.$ make$-$to$-$stock, demand

Which of the following is NOT an essential skill for inventory management? $[2]$

a$.$ Knowing the expected arrival dates of incoming product

b$.$ Forecasting future demand

c$.$ Negotiating product prices

d$.$ Knowing the current location of each product

e$.$ Knowing how much product on the shelf has been designated for orders to be packed and shipper in the future

Expecting the price of a popular brand of canned soup to increase in the future, a supermarket orders extra cases of the soup. This is an example of holding inventory because of changes in the of the inventory. $[2]$

a$.$ value

b$.$ demand

c$.$ consumer attitude

d$.$ supply

e$.$ none of the above

Inventory can be measured in many ways EXCEPT

$2$

a$.$ Profit

b$.$ days of supply

c$.$ physical units

d$.$ dollars

Inventory turns for durable items are usually those for perishable goods. $[2]$

a$.$ lower than

b$.$ higher than

c$.$ same as

d$.$ twice as much as

Which of the following statements is FALSE regarding inventory holding costs? $[2]$

a$.$ A holding cost percentage specifies how long the item is actually held.

b$.$ A holding cost percentage is the ratio of the cost to hold an item in inventory for a particular time period relative to the cost to purchase the item

c$.$ A holding cost percentage must be defined for a certain time period.

d$.$ No matter what the holding cost percentage is$,$ the longer an item is held in inventory, the higher the cost.

A manufacturer of computers sells $12,000$ units per year. On average, the manufacturer has $2,000$ computers in inventory. How many days$-$of$-$supply does the manufacturer carry in inventory? $[2]$