1. Boeing receives an order from American Airlines to make 10 jet engines, this order for Boeing considered.
2. The following inventory model is typically for reordering products destined for special events.
   1. Reorder point
   2. Stock
   3. EOQ
   4. Single period inventory model
   5. Dependent demand
3. Using the ABC classification system for inventory, which of the following is a true statement?
   1. Inexpensive and low usage items are classified as "F" no matter how critical
   2. The "A" items are similar to the "B" items
   3. The " C " items are of high dollar value
   4. You should allocate about 50% of the dollar volume to "B" items
4. A vacuum supplier chooses to carry inventory. The following might be one of the reasons.
   1. To provide a feeling of security for the workforce
   2. To make sure storage space is utilized
   3. In case the supplier changes the design
   4. To maintain independence of operations
   5. To hedge against wage increases
5. Tommy's restaurant typically looks at the inventory of their supplies once every two weeks. Tommy's restaurant follows a ____ inventory model:
   1. Single-period problem
   2. Safety stock
   3. Fixed order quantity model (Q model)
   4. Price break model
   5. Fixed time period model (P model)
6. CVS uses ____ since it has a system where an order of a predetermined amount of products is sent to its suppliers as soon as inventory levels reach a certain amount.
   1. Single-period problem
   2. Safety stock
   3. Fixed order quantity model (Q model)
   4. Price break model
   5. Fixed time period model (P model)
7. Checking and auditing a subset of inventory regularly for accuracy is known as:
   1. Physical inventory
   2. Cycle counting
   3. Error resolution
   4. Inventory status reporting
   5. None of the above
8. Frequent counting of inventory (more than once a year) allows manufacturing companies.
   1. To determine if there are errors in the inventory balances and to determine the root cause and make corrections
   2. To make the financial side of the business more confident, inventory is accurate
   3. To try to adjust the inventory balances
   4. Inventory status reporting
   5. None of the above
9. The p-model model is most suitable when:
   1. Grouping orders with similar weight and shape
   2. A company has switched from mass production to lean production.
   3. Grouping items ordered from the same distribution center
   4. Grouping items with similar holding costs Spare parts are ordered when a new machine is purchased.
10. Which one of the following is a determinant of the reorder point
    1. The average daily demand
    2. Location of the consumers
    3. The packaging of the product
    4. The cost of placing an order
    5. Weight of the product
11. MRP is based on independent demand. True or False
12. Which of the following is an output to the master production schedule?
    1. Aggregate component schedule
    2. Material requirements planning
    3. Prototype products from product development
    4. Bill of materials
    5. Firm orders from customers
13. The time-phased plan specifying how many and when the firm plans to build each item is called the materials requirements plan (MRP)? True or False
14. Which of the following is an input file necessary to run an MRP system?
    1. Planned-order schedules
    2. Bill of materials (BOM) files
    3. Quality management report
    4. Purchasing contracts
    5. Exception reports
15. In inventory models with price breaks, the feasible quantity is determined by finding the lowest cost among alternatives. True or False
16. To have an order quantity of a single unit in a fixed-quantity inventory model, the following cost must be taken to zero?
    1. Set up cost
    2. Variable cost
    3. Carying cost
    4. Fixed cost
    5. Inventory cost
17. The master schedule of sims manufacturing shows production demand of 600 items, of which 340 have been sold. The remaining 260 items are?
    1. Stockout
    2. MRP
    3. Safety Stock
    4. Available to Promise
    5. Lead Time
18. The bill of materials files contains the complete product description, list the materials. True or False
19. Transaction costs are higher with MRP compared to two-bin, since the latter is more appropriate for dependent demand. True or False
20. To reduce waste, companies employ two-bin inventory control with JIT. True or False.
21. Inventory turn measures how efficiently inventory is used. True or False.
22. An output to the material requirements planning (MRP) system is an exception report. True or False
23. MRP is most valuable in industries where a number of products are made in batches using the same productive equipment. True or False.
24. The master production schedule states the number of items to be produced during specific time periods. True or False
25. Safety stock cannot be computed when using the fixed-order quantity inventory model by multiplying a value representing the number of standard deviations to achieve a service level or probability by the standard deviation or periodic demand. True or False.
26. Safety stock can be defined as the amount of inventory carried in addition to the expected demand. True or False.
27. The fixed-period inventory system requires more safety stock than a fixed-quantity system because:
    1. A stockout can occur during the review period as well as during the lead time.
    2. This model is used for products that have large standard deviations of demand.
    3. This model is used for products that require very high service levels.
    4. Replenishment is not instantaneous.
    5. Setup costs and holding costs are large.
28. Dependent demand inventory levels are usually managed by calculation using calculus-derived, cost-minimizing models. True or False.
29. One of the basic purposes of inventory analysis in manufacturing and stock keeping services is to specify when items should be ordered. True or False.
30. An inventory system is a set of policies and controls that monitors levels of inventory and determines what levels should be maintained, when stock should be. True or False.
31. Longer projects are better served with MRP than with project management. True or False.
32. A company has recorded the last six days of daily demand on a single product they sell. Those values are 37, 115, 93, 112, 73, and 110. The time from when an order is placed to when it arrives at the company from its vendor is 3 days. Assuming the basic fixed-order quantity inventory model fits this situation, and no safety stock is needed, what is the reorder point (R)?
    1. 120
    2. 126
    3. 630
    4. 950
    5. 1,200