## You order a box of pencils from an office supply keep and also use them one-by-one until they are all gone. The pencils are:

hedge inventory.

You are watching: Which of these is not an assumption of the basic continuous review model?

security stock.
anticipation inventory.
cycle stock.

## Some carriers desire their supply chain partners (suppliers) to co-locate, i.e., move as close as possible to them. This would reduce:

anticipation inventory.
smoothing inventory.
hedge inventory.
transport inventory.

## A men"s suit is composed of primary material, lining, thread, butlots, and a zipper. Which of these statements is best?

Suit zippers are a dependent demand item.
Thread is an independent demand also item.
Suit butloads are independent demand also items.
Suits are dependent demand items.
 Mr. Drucker uses a periodic testimonial device to control the inventory in his dry products save. He likes to keep 15 sacks of sugar on his shelves based upon the annual demand also figure of 225 sacks. It prices \$2 to place an order for sugar and expenses \$1 to organize a sack in inventory for a year. Mr. Drucker checks inventory someday and also notes that he is down to 9 sacks; exactly how a lot must he order? 15 sacks 6 sacks. 30 sacks 9 sacks
 The R&H Mercantile tracks the usage of boxes of macaroni and cheese (utilizing a periodic inventory system) and has actually concluded that demand in the time of lead time is normally dispersed with a mean of 60 boxes and a typical deviation of 24 boxes. R&H Mercantile has been making use of 91 as a reorder point; what is the likelihood that they will certainly run out of inventory before the following shipment arrives? About 5% About 20% About 0% About 10%

## Which of these is NOT an presumption of the basic continuous testimonial model?

The price of each item is continuous, regardmuch less of exactly how many kind of are ordered at a time.
The order amount is continuous, regardmuch less of the demand.
Demand for the item is consistent.

## Demand for baskets is evenly spcheck out throughout the year, through a full of 5,000 systems essential. It prices about \$2 to hold a basket in inventory for a year and also \$12 to area an order. How many baskets need to be ordered at a time in order to minimize the annual cost of ordering and transporting inventory?

 The Sims run their hamburger company 365 days a year and also obey the financial order amount formula without question. They use 40 hamburger buns per day; it costs them \$10 to area an order and \$0.50 to organize a bun in inventory for a year. Their hamburger bun supplier is equally dedicated, additionally maintaining its doors open up and ovens baking 365 days a year. How many type of days pass in-between orders for more hamburger buns? around 67 days about 30 days about 12 days about 22 days
 Gymkata is making a comeearlier, and the local video store wants to make certain it has plenty of copies on hand. The store decides to order 250 copies at a time provided their annual holding expenses of \$5 per unit and also their ordering expense of \$12 per order. The ideal estimates of the annual demand are 75,000 devices. How much additional is being spent on the planned inventory plan as compared to the optimal ordering quantity? \$2070 extra \$485 extra \$1225 extra \$4225 extra
 Big Tim orders chalk and also erasers for the public school mechanism. The institution device offers 50 boxes per day on average via a traditional deviation of 10 boxes. The lead time for a box of chalk is 9 days and the reorder allude is established so that 99% of the time, the replenishment order arrives prior to this priceless commodity is worn down. What must the reorder point be? 520 boxes 450 boxes 472 boxes 506 boxes
 The regional theater orders popcorn from a conglomeprice that uses a price break for a big order. Ordering much less than 500 boxes at a time costs \$1 per box, but ordering 500 boxes approximately 1000 boxes prices \$0.90 per box and ordering over 1000 boxes at a time results in a \$0.80 per box charge. Annual demand is 12,000 boxes and also tright here is an \$8 price to order and also a \$0.50 yearly per box cost for holding inventory. How many type of boxes need to be ordered at a time? 619 499 1000 500
 Dr. Sullins, DDS buys toothbrushes for the brushing seminars he runs Saturdays at the neighborhood center. The toothbrushes are dated, and are disposed if they are not used during one of the seminars. The excellent medical professional buys brushes for \$1 and sells them for \$2.50 to seminar attendees. The brushes that are not provided are sold to a neighborhood orthodontist for \$0.25 each. What is the business level for Dr. Sullin"s operation? 0.80 0.75 0.33 0.67
 Fiesta Bowl tickets have a face value of \$75 and are offered by scalpers in the location external the stadium to eager, ticketless alumni at \$350. The scalpers have actually hit upon a scheme to recoup some money from tickets that they have purchased that they can not sell; framing the tickets and selling them as mementos to alumni of the winning team. The framed tickets are marketed at \$100 each after paying a framer \$50 to put the ticket in a mahogany shadow box. If demand for tickets is typically distributed with a suppose of 200 and a typical deviation of 60, just how many kind of tickets have to the scalper buy at challenge value? 283 tickets 138 261 117 tickets

## The bullwhip impact says that:

the farther upstream the supply chain, the higher the influence of a tiny disturbance downstream.
the greater the result of a disturbance downstream, the farther upstream the supply chain.
the higher the result of a disturbance upstream, the farther downstream the supply chain.
the farther downstream the supply chain, the higher the impact of a little disturbance upstream.

## The price and also value of inventory rise as products relocate down the supply chain. One means operations and also supply chain supervisors counteract the negative element of this fact is by:

using a continuous inventory device.
using a regular inventory device.
proclaiming to boost demand also.

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inventory pooling.