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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 Japanese word for ‘billboard’ or ‘signboard’?
Which of the following is the Japanese word for ‘billboard’ or ‘signboard’?A . MudaB . KaizenC . Poka-YokeD . KanbanView AnswerAnswer: D Explanation: Kanban ( 看板 ) (signboard or billboard in Japanese) is a scheduling system for lean manufacturing and just-in-time manufacturing (JIT). Poka-yoke ( ポカヨケ , [poka yoke]) is...
Do all types of warehouses require access to daylight to reduce the cost of electricity?
Do all types of warehouses require access to daylight to reduce the cost of electricity?A . No, because only ventilation can help to reduce the humidity in the warehouseB . No, because some types of stock are sensitive to sunlightC . Yes, because sunlight sterilises inventories in damp conditionsD ....
Overall inventory turnover
Overall inventory turnoverA . 2 and 4 onlyB . 1 and 4 onlyC . 2 and 3 onlyD . 1 and 3 onlyView AnswerAnswer: C Explanation: ABC analysis is applied to stock and its management. It is based loosely on the Pareto principles, better known as 80/20 rule. Pareto principle...
What is the holding cost of this beer pallet?
A supermarket calculates that the average holding cost for an item is $1.50 per cubic meter per day. A beer pallet which has volume of 0.5 cubic meter will be stored for 5 days. What is the holding cost of this beer pallet?A . $4.00B . $4.50C . $4.25D ....
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...
