Consider the following functions of inventory:
1. to decouple or separate parts of the production process.
2. to provide a stock of goods that will provide a selection for customers.
3. to take advantage of quantity discounts.
4. to hedge against inflation.
Which of the above functions are valid?
The statements about ABC analysis are following:
1. Inventory may be categorized by measures other than dollar volume.
2. It categorizes on-hand inventory into three groups based on annual rupee volume.
3. It is an application of the pareto principle.
4. It states that all items require same degree of control.
5. It states that there are the critical few and the trivial many inventory items.
Which of the above statements are true?
ABC analysis divides on-hand inventory into three classes, generally based on
The two most basic inventory answerd by the typical inventory model are
Which of the following statements about the basic EOQ model is true?
The EOQ model with quantity discounts attempts to determine
The purpose of safety stock is to
A disadvantage of the fixed-period inventory system is that
Two groups of costs in inventory control are
Two costs are involved in inventory control viz. carrying cost and ordering cost.
In basic economic order quantity model for the optimal order quantity,
For economic order quantity Holding cost = ordering cost