MBA 6205 FINAL - (CH 7/8/9/10/13) EXAM
MOSTLY TESTED QUESTIONS AND ANSWERS
100% VERIFIED/DETAILED|GET IT CORRECT|
2024/2025 NEWEST UPDATED BEST RATED
TO SCORE A+ FOR EXCELLENT PASS
EVERYTHING YOU NEED
raw materials and component parts - CORRECT ANSWERS items that are
bought from suppliers to use in the production of a product
work in process inventory - CORRECT ANSWERS inventory that is in the
production process
finished goods inventory - CORRECT ANSWERS items that are ready for sale to
customers
MRO inventory (acronym) - CORRECT ANSWERS Maintenance
Repair
Operating
This type of inventory include everything from office supplies, forms, toilet
paper, cleaning supplies, tools and parts needed to repair machines.
Cycle stock - CORRECT ANSWERS the portion of average inventory determined
as order quantity divided by two
seasonal stock - CORRECT ANSWERS additional inventories produced in
advance of seasonal peak demands
,MBA 6205 FINAL - (CH 7/8/9/10/13) EXAM
MOSTLY TESTED QUESTIONS AND ANSWERS
100% VERIFIED/DETAILED|GET IT CORRECT|
2024/2025 NEWEST UPDATED BEST RATED
TO SCORE A+ FOR EXCELLENT PASS
buffer (or safety) stock - CORRECT ANSWERS extra inventory held to guard
against uncertainty in demand or supply
transit inventory - CORRECT ANSWERS items being transported from one
location to another
Product cost - CORRECT ANSWERS the amount paid to suppliers for products
that are purchased
carrying (or holding) cost - CORRECT ANSWERS several expenses that are
incurred due to the fact that inventory is held
order cost - CORRECT ANSWERS the expenses incurred in placing and
receiving orders from suppliers
setup cost - CORRECT ANSWERS administrative expenses and the expenses of
rearranging a work center to produce an item
stockout (or shortage) cost - CORRECT ANSWERS cost incurred when inventory
is not available to meet demand
Inventory Turnover - CORRECT ANSWERS the ratio between average inventory
and the level of sales
, MBA 6205 FINAL - (CH 7/8/9/10/13) EXAM
MOSTLY TESTED QUESTIONS AND ANSWERS
100% VERIFIED/DETAILED|GET IT CORRECT|
2024/2025 NEWEST UPDATED BEST RATED
TO SCORE A+ FOR EXCELLENT PASS
Days of supply - CORRECT ANSWERS the number of days of business
operations that can be supported with the inventory on hand.
Days of supply formula - CORRECT ANSWERS 365 days in a year divided by the
turnover rate of the inventory turnover
ex: inventory turnover = COGS/Average inventory level = $500/$80 = 6.25 turns
days of supply = 365/6.25 = 58.4 turning inventory daily
Service level - CORRECT ANSWERS a measure of how well the objective of
meeting customer demand is met
Independent demand inventory systems - CORRECT ANSWERS inventory
management systems used when the demand for an item is beyond the control
of the organization
Dependent demand inventory systems - CORRECT ANSWERS management
systems used when the demand for an item is derived from the demand for
some other item
continuous review model - CORRECT ANSWERS inventory is constantly
monitored to decide when a replenishment order needs to be placed
MOSTLY TESTED QUESTIONS AND ANSWERS
100% VERIFIED/DETAILED|GET IT CORRECT|
2024/2025 NEWEST UPDATED BEST RATED
TO SCORE A+ FOR EXCELLENT PASS
EVERYTHING YOU NEED
raw materials and component parts - CORRECT ANSWERS items that are
bought from suppliers to use in the production of a product
work in process inventory - CORRECT ANSWERS inventory that is in the
production process
finished goods inventory - CORRECT ANSWERS items that are ready for sale to
customers
MRO inventory (acronym) - CORRECT ANSWERS Maintenance
Repair
Operating
This type of inventory include everything from office supplies, forms, toilet
paper, cleaning supplies, tools and parts needed to repair machines.
Cycle stock - CORRECT ANSWERS the portion of average inventory determined
as order quantity divided by two
seasonal stock - CORRECT ANSWERS additional inventories produced in
advance of seasonal peak demands
,MBA 6205 FINAL - (CH 7/8/9/10/13) EXAM
MOSTLY TESTED QUESTIONS AND ANSWERS
100% VERIFIED/DETAILED|GET IT CORRECT|
2024/2025 NEWEST UPDATED BEST RATED
TO SCORE A+ FOR EXCELLENT PASS
buffer (or safety) stock - CORRECT ANSWERS extra inventory held to guard
against uncertainty in demand or supply
transit inventory - CORRECT ANSWERS items being transported from one
location to another
Product cost - CORRECT ANSWERS the amount paid to suppliers for products
that are purchased
carrying (or holding) cost - CORRECT ANSWERS several expenses that are
incurred due to the fact that inventory is held
order cost - CORRECT ANSWERS the expenses incurred in placing and
receiving orders from suppliers
setup cost - CORRECT ANSWERS administrative expenses and the expenses of
rearranging a work center to produce an item
stockout (or shortage) cost - CORRECT ANSWERS cost incurred when inventory
is not available to meet demand
Inventory Turnover - CORRECT ANSWERS the ratio between average inventory
and the level of sales
, MBA 6205 FINAL - (CH 7/8/9/10/13) EXAM
MOSTLY TESTED QUESTIONS AND ANSWERS
100% VERIFIED/DETAILED|GET IT CORRECT|
2024/2025 NEWEST UPDATED BEST RATED
TO SCORE A+ FOR EXCELLENT PASS
Days of supply - CORRECT ANSWERS the number of days of business
operations that can be supported with the inventory on hand.
Days of supply formula - CORRECT ANSWERS 365 days in a year divided by the
turnover rate of the inventory turnover
ex: inventory turnover = COGS/Average inventory level = $500/$80 = 6.25 turns
days of supply = 365/6.25 = 58.4 turning inventory daily
Service level - CORRECT ANSWERS a measure of how well the objective of
meeting customer demand is met
Independent demand inventory systems - CORRECT ANSWERS inventory
management systems used when the demand for an item is beyond the control
of the organization
Dependent demand inventory systems - CORRECT ANSWERS management
systems used when the demand for an item is derived from the demand for
some other item
continuous review model - CORRECT ANSWERS inventory is constantly
monitored to decide when a replenishment order needs to be placed
