1. Classify the following inventory items as either A, B, or C items using the ABC inventory control system:

Item #

Annual Sales

Unit Cost

1

130 units

$ 4.00

2

400 units

15.30

3

25 units

17.00

4

1320 units

1.25

5

90 units

2.10

a.

item 1 (C), item 2 (A), item 3 (C), item 4 (B), item 5 (C)

b.

item 1 (B), item 2 (A), item 3 (A), item 4 (C), item 5 (C)

c.

item 1 (C), item 2 (B), item 3 (C), item 4 (A), item 5 (C)

d.

item 1 (A), item 2 (B), item 3 (C), item 4 (A), item 5 (B)

e.

item 1 (B), item 2 (C), item 3 (B), item 4 (C), item 5 (A)

2.Which of the following would refer to the 80/20 rule when applied to the ABC inventory control system?

a.

80 percent of the items account for 20 percent of the groups.

b.

20 percent of the items account for 80 percent of the tasks.

c.

80 percent of the unit cost accounts for 20 percent of the items.

d.

80 percent of the total annual $ usage is accounted for, by 20 percent of the items.

e.

None of these.

3.Which of the following describes a global RFID challenge?

a.

Foreign firms will not use global RFID since the field communication standards tend to vary from country to country.

b.

Globally, the RFID industry does not have its own UHF spectrum allocation.

c.

RFID tags are passive in undeveloped countries.

d.

RFID can track outbound shipments only.

e.

All of the above.