3 Inventory Analysis Online Quiz Questions

True or false: Stock moving through production or transportation is pipeline inventory, even if it is not available at a particular location.

A buyer compares supplier invoice prices after applicable discounts. Which inventory cost category captures the amount paid for the goods?

A business uses a steady-demand policy with a fixed order quantity of 240 units. Approximately how many units of average cycle stock does it hold?

What inventory-analysis term names the value calculated by multiplying an item's annual demand by its unit cost?

Select all statements that correctly describe inventory cost trade-offs.

A retailer wants to measure the proportion of replenishment cycles in which no stockout occurs. Which service measure should it use?

True or false: Under the stated random-lead-time variance model, if lead time is fixed, lead-time variation contributes zero to the variance of demand during lead time.

Average demand is 18 units per day, lead time is 4 days, and safety stock is 12 units. Using $\text{ROP}=\text{average demand during lead time}+\text{safety stock}$, what is the reorder point? Enter a whole number of units.

Select all assumptions stated for the approximate variance formula for demand during a random lead time.

A location has 82 units on hand, 25 units on order, and 12 units of backorders. What is its inventory position?

During a stock review, an item has been moving slowly and some units are aging. What is this most likely to signal?

Describe a practical review for one item at one stocking location. Identify the information to examine, explain what demand estimate is relevant, and state how the review findings should guide updates to the inventory assumptions or target.

True or false: The proper objective of inventory management is always to minimize inventory, regardless of the effect on availability or shortages.

A supplier's delivery may be delayed unexpectedly. Which inventory role describes extra stock held to cushion against that uncertainty?

What inventory category describes stock moving through production or transportation, even if it is not available at a particular location?

A store has 52 units on hand, 24 units on order, and 9 units backordered. What is its inventory position?

A business increases its order quantity so it places fewer orders. Which cost trade-off is most likely?

A product has average demand of 12 units per day, a fixed lead time of 4 days, and 18 units of safety stock. Using the reorder point formula, what is the reorder point?