1) Which of the following statements is best about inventorymanagement?

Select one:

a. inventories and production can be managed separately

b. inventory is not important at the production planninglevel

c. inventories are usually insignificant on the balancesheet

d. all the above are true

e. none of the above is true

2)

Which of the following items is/are NOT belonging to thecarrying inventory?

Select one:

a. capital costs

b. storage costs

c. purchase cost

d. both a and c

e. none of the above

3)

Which of the following statements is/are true?

Select one:

a. the annual cost of ordering depends on the number of ordersper year

b. the annual cost of ordering can be reduced by ordering lessat any one time

c. the annual cost of carrying inventory can be decreased byordering less at one time

d. both a and c

e. none of the above is true

4)

Which of the following costs is/are belonging to orderingcost?

Select one:

a. setup costs

b. costs of placing a purchase order

c. back-order costs

d. both a and b

e. all of the above

5)

Which of the following would NOT be included in calculatinginventory carrying costs?

Select one:

a. capital costs

b. lost capacity costs

c. risk costs

d. both a and b

e. none of the above

6)

Which of the following statements is/are most accurate?

Select one:

a. about 20% of the items will usually account for about 80% ofthe total value

b. ‘A’ class items should have the tightest possible control

c. the general rule using the ABC approach is to have plenty ofeverything in stock

d. both a and b

e. none of the above