Of the cost elements making up total inventory cost, which is the most difficult to estimate?
A. Stockout costs
B. Holding costs
C. Carrying costs
D. Item cost
Answer: A
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Operations Management
- T / F - MRP is a type of pull system.
- T / F - In MRP systems, inventories are managed according to their dollar usage values (i.e., high dollar usage inventories are more carefully managed compared to low dollar usage inventories).
- The bill of materials:
- The parts explosion results in the following outputs:
- Planned lead times:
- Successful MRP implementation requires:
- The three inputs for an MRP parts explosion are:
- T / F - A decrease in an item's lead-time will increase the amount of safety stock required to maintain a constant service level.
- T / F - Transit inventories are also referred to as pipeline inventories because they consist of materials that are on their way from one point to another point in the supply chain.
- Transportation cost is an example of:
- A computerized inventory system checks inventory levels at the end of the week and produces suggested orders for the coming week. What kind of system is this?
- Which cost defines the cost of capital?
- The carrying cost for inventory consists of which cost components?
- T / F - A work-breakdown structure is used in the scheduling activity of project management.
- "Slack" refers to the difference between:
- Project managers' work includes:
- Project management requires:
- The purpose of performing a forward pass is to:
- The job of the project manager is to:
- T / F - Throughput is defined as the difference between the sales and the operating expenses of a plant.
- T / F - Finite Capacity Scheduling can be used to identify the bottleneck in a given process.
- Which of the following is NOT determined by Gantt charting?
- Scheduling systems answer all of the following questions EXCEPT:
- A bottleneck is: