Welcome to your Inventory Management
1.
Indicate whether the following statement is True or False
Higher ‘inventory turns’ is better for the organization.
2.
Select which option gives all types of inventory
3.
A plant makes money shipment to a wholesaler of a particular item in average lot sizes of 280 units. The wholesaler’s average demand is 70 units per week. And the lead time from the plant is 3 weeks. On average how much cycle inventory and pipeline inventory does the wholesaler carry?
4.
John, the materials manger at Ma x manufacturing is beginning to look for ways to reduce inventory. A recent accounting statement shows the following inventory investment by category
Raw materials: $ 2845000
Work in progress: $ 5670000
Finished goods: $ 2985000
This year’s cost of goods sold will be about $29.9 million. Assume 52 business weeks per year, express total inventory as weeks of supply, inventory turns.
5.
Indicate whether the following statement is True or False– Improving demand forecast can help in reduction of safety stock.
6.
In ABC analysis, the item class which represents 20% of the items but account for 80% of the dollar usage is classified as
