SCMA 1006 Chapter 8 Quiz 1

Question 1 10 out of 10 points The economic order quantity (EOQ) deals with calculating the proper order size with respect to ____ costs and ____ costs. SelectedAnswer:D. carrying;ordering Question 2 10 out of 10 points The EOQ is the point at which carrying costs equal ordering costs. SelectedAnswer:Tru e Question 3 10 out of 10 points High inventory turnover indicates that a company is taking longer to sell its inventory. SelectedAnswer:Fals e Question 4 10 out of 10 points Inventory shrinkage refers to the fact that products lose value through time. SelectedAnswer:Fals e Question 5 10 out of 10 points Under ____, the size and timing of replenishment orders are the responsibility of the manufacturer. SelectedAnswer:B. Vendor-Managed Inventory Question 6 0 out of 10 points Dead inventory (dead stock) refers to product for which there is no sales during a ____ month period. SelectedAnswer:A. six Question 7 10 out of 10 points The number of times that inventory is sold in a one year period is referred to as average inventory. SelectedAnswer:Fals e Question 8 10 out of 10 points One way of dealing with dead stock (inventory) is for companies to simply throw it away. SelectedAnswer:Tru e Question 9