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Which of the following costs does the EOQ minimise?
Which of the following costs does the EOQ minimise?A . Total cost of safety stockB . Total cost of ordering inventoryC . Total cost of annual inventory costD . Total cost of carrying stockView AnswerAnswer: C Explanation: Economic order quantity (EOQ) was developed in 1913 by Ford W. Harris and...
The amount of inventory available at the start of an accounting period is known as...?
The amount of inventory available at the start of an accounting period is known as...?A . Buffer stockB . Work-in-progressC . Opening stockD . Closing stockView AnswerAnswer: C Explanation: Opening stock is the starting amount of inventory that a business has at a fixed moment in time. This could be...
Which of the following best describes the relationship between a service level and safety stock?
Which of the following best describes the relationship between a service level and safety stock? A. A safety stock is not always required to achieve a required service level B. A service level decreases in proportion to a decrease in safety stock C. When safety stock is zero the service...
Which of the following should be considered when an organisation plans for disposing obsolescent and redundant stock? Select TWO that apply.
Which of the following should be considered when an organisation plans for disposing obsolescent and redundant stock? Select TWO that apply.A . Financial costsB . Economic order quantityC . ABC analysisD . Takt timeE . Environmental issuesView AnswerAnswer: A, E Explanation: If the planning and mitigation measures fail and redundant...
Which of the following best describes the term ‘periodic review’?
Which of the following best describes the term ‘periodic review’?A . Items are reviewed and orders placed depending on requirementsB . Items are reviewed when the Kanban is triggeredC . Items are reviewed when the price is at its lowestD . Items are reviewed as part of an imprest systemView...
The amount of inventory available at the start of an accounting period is known as...?
The amount of inventory available at the start of an accounting period is known as...?A . Buffer stockB . Work-in-progressC . Opening stockD . Closing stockView AnswerAnswer: C Explanation: Opening stock is the starting amount of inventory that a business has at a fixed moment in time. This could be...
To test the product durability
To test the product durabilityA . 1 and 2 onlyB . 3 and 4 onlyC . 2 and 3 onlyD . 1 and 4 onlyView AnswerAnswer: C Explanation: It would be really convenient if we could just hand our products directly to the customers, but that’s not possible. Packaging needs...
Which of the following is the correct statement about total ordering cost?
Which of the following is the correct statement about total ordering cost?A . Rise as the average stock level risesB . Equal the number of orders placed times the cost of placing an orderC . Rise as the order quantity risesD . Fall with the per period usage rateView AnswerAnswer:...
Which of the following is the material handling equipment which uses the suction force to lift an item?
Which of the following is the material handling equipment which uses the suction force to lift an item?A . Vacuum lifterB . Sack truckC . DollyD . Pallet stackerView AnswerAnswer: A Explanation: VACUUM LIFTER uses the vacuum pad which attaches itself to a product. The suction force al-lows the product...
There are no duplicate product codes
There are no duplicate product codesA . 2 and 4 onlyB . 3 and 4 onlyC . 1 and 3 onlyD . 1 and 2 onlyView AnswerAnswer: C Explanation: The product code is often the key to obtaining documentation relating to products. Product codes are often use to link to...
