1. A key TRADE OFF to consider in inventory management is ___________.
how many items to hold in inventory vs. location of the facility.
how often to purchase items vs. how quickly you receive them.
holding costs vs. set up or order costs.
carrying cost vs. warehouse expenses.
None of the above.
2. Considering inventory, which of the following statements is NOT TRUE?
Inventory ties up working capital.
Inventory is an expensive asset.
Inventory is subject to shrinkage.
Inventory balance is reported on a company's income statement.
3. For a bicycle manufacturer, an example of a dependent demand item is _____.
electricity to run the plant.
the bicycle's steering wheel.
the labor force required to make the bicycle.
the finished bicycle.
None of the above.
4. MRO inventory items do not include ________.
cleaning supplies for the factory.
packaging materials for finished goods.
raw steel used in production of finished goods.
parts to repair production equipment
5. WIP or work in process is a type of inventory that can be described as __________.
items needed to run the business.
products ready to ship to customers.
items purchased from outside suppliers.
materials that should be disposed of.
materials and parts partially transformed.