SC Quiz #4
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School
Rutgers University *
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Course
799:301
Subject
Industrial Engineering
Date
Dec 6, 2023
Type
docx
Pages
2
Uploaded by BrigadierStraw27455
Jack Poliviou
Intro to Supply Chain
10/5/23
Quiz #4
4.1 The four broad categories of inventory are raw materials, work-in-
process, MRO, and finished goods.
A. True
B. False
4.2 The Economic Order Quantity (EOQ) is the optimal order size because it
minimizes the annual total inventory cost.
A. True
B. False
4.3 There are no inventories in the service industry.
A. True
B. False
4.4 The top 2 primary functions of inventory are (1) To meet customer
demand, and (2) To buffer against uncertainty in demand and/or supply.
A. True
B. False
4.5 The lowest inventory level at which a new order must be placed to avoid
a stockout is known as the Replenishment Threshold
A. True
B. False
4.6 Inventory costs which are independent of the output quantity are called?
A. Indirect Costs
B. Variable Costs
C. Fixed Costs
D. Carrying Costs
4.7 Which inventory stock level is generally used for a very specific purpose
or future event, and for a defined period of time?
A. Cycle Stock
B. Safety Stock
C. Strategic Stock
D. Pipeline Stock
4.8 Which of the following is NOT an example of an ordering cost for products
purchased from a supplier?
A. The cost of transmitting the order
B. The cost of receiving the product
C. The cost associated with processing the invoice
D. The opportunity cost of not ordering from a least cost supplier
E. The cost of handling the product
4.9 The primary purpose of the basic economic order quantity model is
A. To calculate the reorder point, so that replenishments take place at the
proper time
B. To minimize the sum of carrying cost and holding cost
C. To maximize the customer service level
D. To minimize the sum of ordering cost and carrying cost
4.10 A type of inventory system that issues an order whenever a withdrawal
is made from inventory, is known as?
A. ABC System
B. Bin System
C. Base Stock Level System
D. Single Period Inventory Model
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