Which type of inventory is kept as a reserve to protect against fluctuations in demand and lead time?

Buffer or safety stock

True or False: The deterministic model assumes variability in demand rate and lead time.

False. The deterministic model assumes fixed and constant demand rate and lead time.

Riddle: I can’t provide service while in transportation, and I’m essential for logistics. What am I?

Transit inventory

In inventory control, the cost associated with purchasing inventory is known as ______.

Purchase Cost

What does the variable 'D' represent in inventory control notations?

Annual or yearly demand of inventory (units/year)

Which inventory model is characterized by the demand being not directly linked to other items?

Independent inventory model

Which cost is incurred for holding one unit in inventory for one complete year?

Holding or Carrying Cost

With reference to the Economic Order Quantity (EOQ) model, what does 'C₀' represent?

Cost of placing one order (Rs/order)

True or False: Safety stock is not needed in a probabilistic inventory model.

False. Safety stock is needed in a probabilistic model to prevent stockouts.

Which type of inventory is specifically built up to meet anticipated future demand?

Anticipation inventory

Fill in the blank: The __________ model is preferred when different cost factors involved with inventory are not known exactly.

Service Level Model

What is the main purpose of conducting inventory classification like ABC control?

To classify inventory items based on their usage value.

What does the variable 'Ch' denote in inventory control?

Cost of holding one unit in inventory for one complete year (Rs/unit/year)

MCQ: In the EOQ model, which curve represents the total cost? A) Curve P1 B) Curve P2 C) Curve P3 D) Curve P4

A) Curve P1

Riddle: I am the time gap between placing an order and having inventory available for use. What am I?

Lead Time