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# Bus 230 Wk 7 Quiz Chapter 8,9 - All Possible Questions

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BUS 230 WK 7 Quiz Chapter 8,9 - All Possible Questions

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BUS 230 WK 7 Quiz Chapter 8,9 - All Possible Questions

1. Inventory use that is determined directly by customer orders is called:

a. derived demand.
b. dependent demand
c. anticipated demand.
d. independent demand.
a. scheduled demand.
2. “A” items in ABC analysis are:

a. reviewed infrequently.
b. particularly critical in financial terms.
c. normally carried in large quantities.
d. ordered infrequently.
a. commonly managed by carrying inventory.
3. When the carrying cost of inventory is expressed as a percentage:

a. it is usually the same as the borrowing cost of the organization.
b. the lower it is, the lower the economic order quantity.
c. it usually exceeds 57.5 percent per year.
d. it must exclude the insurance cost of inventory.
e. it is multiplied by the material unit cost to calculate the per unit carrying cost.
4. On an annual requirement of 100 items spread evenly throughout the year, any purchaser has an opportunity of buying all 100 units at a price of \$100 each, or buying 10 units at a time at a price of \$120. If the inventory carrying cost is 25 percent per year and assuming no ordering costs:

a. buying 100 at a time will save the company \$2,500 per year.
b. buying 100 at a time will save the company \$2,000 per year.
c. buying 100 at a time will save the company \$1,100 a year.
d. buying 100 at a time will save the company \$900 per year.
e. buying 100 at a time will save the company \$200 a year.
5. Closed-loop MRP:

a. is a system which closes the loop between the supplier and the purchaser.
b. requires a feedback loop between purchasing and accounting.
c. provides a feedback loop between capacity and the master production schedule.
d. requires a check between the master production schedule and inventory.
e. allows a unit manager...