OPERATIONS MANAGEMENT CHAPTER 12 -
INVENTORY MANAGEMENT - MGMT 2500
HUMBER LAKESHORE EXAM QUESTIONS
AND 100% VERIFIED ANSWERS
\.According to the global company profile, Amazon.com's advantage in inventory
management
comes from its almost fanatical use of economic order quantity and safety stock
calculations. - ANSWERS✔-False
\.A major challenge in inventory management is to maintain a balance between
inventory investment
and customer service. - ANSWERS✔-True
\.Which item to order and with which supplier the order should be placed are the
two fundamental
issues in inventory management. - ANSWERS✔-False
\.One function of inventory is to take advantage of quantity discounts. -
ANSWERS✔-True
, \.Work-in-process inventory is devoted to maintenance, repair, and operations. -
ANSWERS✔-False
\.ABC analysis classifies inventoried items into three groups, usually based on
annual units or
quantities used. - ANSWERS✔-Fasle
\.In ABC analysis, "A" Items are the most tightly controlled. - ANSWERS✔-True
\.ABC analysis is based on the presumption that carefully controlling all items is
necessary to
produce important inventory savings. - ANSWERS✔-False
\.Cycle counting is an inventory control technique exclusively used for cyclical
items. - ANSWERS✔-False
\.One advantage of cycle counting is that it maintains accurate inventory records. -
ANSWERS✔-True
\.In cycle counting, the frequency of item counting and stock verification usually
varies from item to
item depending upon the item's classification. - ANSWERS✔-True
\.Retail inventory that is unaccounted for between receipt and time of sale is
known as shrinkage. - ANSWERS✔-True
INVENTORY MANAGEMENT - MGMT 2500
HUMBER LAKESHORE EXAM QUESTIONS
AND 100% VERIFIED ANSWERS
\.According to the global company profile, Amazon.com's advantage in inventory
management
comes from its almost fanatical use of economic order quantity and safety stock
calculations. - ANSWERS✔-False
\.A major challenge in inventory management is to maintain a balance between
inventory investment
and customer service. - ANSWERS✔-True
\.Which item to order and with which supplier the order should be placed are the
two fundamental
issues in inventory management. - ANSWERS✔-False
\.One function of inventory is to take advantage of quantity discounts. -
ANSWERS✔-True
, \.Work-in-process inventory is devoted to maintenance, repair, and operations. -
ANSWERS✔-False
\.ABC analysis classifies inventoried items into three groups, usually based on
annual units or
quantities used. - ANSWERS✔-Fasle
\.In ABC analysis, "A" Items are the most tightly controlled. - ANSWERS✔-True
\.ABC analysis is based on the presumption that carefully controlling all items is
necessary to
produce important inventory savings. - ANSWERS✔-False
\.Cycle counting is an inventory control technique exclusively used for cyclical
items. - ANSWERS✔-False
\.One advantage of cycle counting is that it maintains accurate inventory records. -
ANSWERS✔-True
\.In cycle counting, the frequency of item counting and stock verification usually
varies from item to
item depending upon the item's classification. - ANSWERS✔-True
\.Retail inventory that is unaccounted for between receipt and time of sale is
known as shrinkage. - ANSWERS✔-True
