TEST BANK
CHAPTER 8: INVENTORY MANAGEMENT
Multiple Choice Questions (correct answers are bolded)
1. ___________ refers to stocks of goods and materials that are maintained for many purpos, the most common being to satisfy normal demand patterns.
a. Logistics
b. Supply chain management
c. Inventory
d. Production
[LO: Beginning of chapter material; Easy; Concept; AACSB Category 3: Analytical thinking]
2. Holding high levels of inventory results in ___________ inventory carrying costs and ___________ stockout costs.
a. high; high
b. high; low
c. low; high
d. low; low
[LO: Beginning of chapter material: Moderate; Application; AACSB Category 3: Analytical thinking]
3. Holding low levels of inventory results in ___________ inventory carrying costs and ___________ stockout costs.
a. high; high
b. high; low
c. low; high
d. low; low
[LO: Beginning of chapter material: Moderate; Application; AACSB Category 3: Analytical thinking]
4. ___________ stock refers to inventory that is needed to satisfy normal demand during the cour of an order cycle.
a. Ba
b. Speculative
c. Pipeline
d. Safety
[LO 8.1: To learn about the ways that inventory can be classified; Easy; Concept; AACSB Category 3: Analytical thinking]
5. ___________ stock refers to inventory that is held in addition to cycle stock to guard against uncertainty in demand and/or lead time.
撂高儿 a. Ba
b. Pipeline
c. Speculative
d. Buffer
[LO 8.1: To learn about the ways that inventory can be classified; Easy; Concept; AACSB Category 3: Analytical thinking]
6. Another name for safety stock is ___________ stock.
a. ba
b. buffer
c. cycle
d. speculative
[LO 8.1: To learn about the ways that inventory can be classified; Easy; Concept; AACSB Category 3: Analytical thinking]
7. ___________ stock refers to inventory that is en route between various nodes in a logistics system.
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a. Pipeline
b. Safety
c. Speculative婚姻家庭篇
d. Cycle
[LO 8.1: To learn about the ways that inventory can be classified; Easy; Concept; AACSB Category 3: Analytical thinking]
8. ___________ stock refers to inventory that is held for veral reasons, to include asonal demand, projected price increas, and potential shortages of product.
a. Ba
b. Safety
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c. Pipeline
d. Speculative
[LO 8.1: To learn about the ways that inventory can be classified; Easy; Concept; AACSB Category 3: Analytical thinking]
9. ___________ stock is carried to stimulate demand.
a. Ba
b. Psychic
c. Speculative
d. Attractive
[LO 8.1: To learn about the ways that inventory can be classified; Moderate; Concept; AACSB Category 3: Analytical thinking]
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10. Inventory costs in the United States in the twenty-first century reprent approximately ___________ of total logistics costs.
a. one-fifth
b. one-fourth
c. one-third
d. one-half
[LO 8.2: To discuss inventory costs and the trade-offs that exist among them; Moderate; Application; AACSB Category 3: Analytical thinking]
11. Which of the following statements if fal?
a. The importance of individual carrying costs factors (categories) is generally consistent from product to product.
b. Inventory carrying costs consist of a number of different components or factors.
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c. In general, companies prefer to carry less inventory as carrying costs increa.
d. In general, inventory carrying costs are expresd in percentage terms.
大黄副作用[LO 8.2: To discuss inventory costs and the trade-offs that exist among them; Difficult; Synthesis; AACSB Category 3: Analytical thinking]
12. Inventory carrying costs in the United States since 2010 have ranged between ___________ and ___________ percent.
a. 4; 5
b. 9; 10
c. 14; 15
d. 19; 20
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[LO 8.2: To discuss inventory costs and the trade-offs that exist among them; Difficult; Application; AACSB Category 3: Analytical thinking]
13. Inventory shrinkage ___________.
a. refers to another name for inventory turnover
b. refers to the fact that more items are recorded entering than leaving warehousing facilities
c. refers to situations where the size and/or volume of inventory is decread over time
d. refers to a technique of stabilizing unit loads by using shrink wrap packaging
[LO 8.2: To discuss inventory costs and the trade-offs that exist among them; Moderate; Concept; AACSB Category 3: Analytical thinking]
14. Each of the following is a component of inventory carrying cost except:
