Chapter 6 Multiple choice questions

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. Inventory is ______________________?

A raw material item used in an operation. correct incorrect

An item stored for later use in an operation. correct incorrect

An item in transit for later use in an operation. correct incorrect

Any of the above. correct incorrect

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. Products which are completed awaiting despatch to a customer are called _______________ inventory.

Pipeline correct incorrect

Cycle correct incorrect

Finished Goods correct incorrect

Work in Process correct incorrect

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. Partially processed or finished goods which are sent between factories over large distances is called ______________ inventory.

Pipeline correct incorrect

Cycle correct incorrect

Finished Goods correct incorrect

Work in Process correct incorrect

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. Batch production such as baked goods of a number of different associated products produces _______________ inventory.

Pipeline correct incorrect

Cycle correct incorrect

Finished Goods correct incorrect

Work in Process correct incorrect

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. Semi-finished stock is also known as ________________ inventory.

Pipeline correct incorrect

Cycle correct incorrect

Work in Process correct incorrect

Anticipatory correct incorrect

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. Which of these reasons to keep inventory can lead to improved quality?

It allows processes to flow more smoothly. correct incorrect

It makes deliveries more reliable. correct incorrect

It helps to deal with short term demands. correct incorrect

It enables the best material to be sorted prior to production. correct incorrect

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. Which of these reasons to keep inventory will improve flexibility?

It allows processes to flow more smoothly. correct incorrect

It makes deliveries more reliable. correct incorrect

It helps to deal with short term demands. correct incorrect

It enables the best material to be sorted prior to production. correct incorrect

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. What do the letters EOQ stand for?

Estimated Order Quantity correct incorrect

Economic Order Quantity correct incorrect

Estimated Order Quality correct incorrect

Economic Order Quality correct incorrect

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. The EOQ of an item is calculated using the annual demand together with the ___________ cost and the __________ cost.

Direct and Variable costs correct incorrect

Indirect and Holding costs correct incorrect

Direct and Ordering costs correct incorrect

Ordering and Holding costs correct incorrect

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. Goods in transit can be tracked using RFID technology. RFID stands for?

Remote File Identification correct incorrect

Resource Frequency Identification correct incorrect

Radio Frequency Identification correct incorrect

Radar Frequency Identification correct incorrect