BSOP330 Week 4 Quiz

BSOP330 Week 4 Quiz 1. Question : (TCO 12) Which of the following statements regarding Amazon.com is false? The company was opened by Jeff Bezos in 1995. The company was founded as, and still is, a virtual retailer with no inventory. The company is now a world-class leader in warehouse management and automation. The company uses both United Parcel Service and the U.S. Postal Service as shippers. 2. Question : (TCO 12) Which of the following is a function of inventory? to decouple or separate parts of the production process to decouple the firm from fluctuations in demand and provide a stock of goods that will provide a selection for customers to take advantage of quantity discounts to hedge against inflation 3. Question : (TCO 6) Which of the following statements regarding the production order quantity model is true? It applies only to items produced in the firm's own production departments. It relaxes the assumption that all the order quantity is received at one time. It relaxes the assumption that the demand rate is constant. It minimizes the total production costs. It minimizes inventory. 4. Question : (TCO 6) The purpose of safety stock is to replace failed units with good ones. eliminate the possibility of a stockout. eliminate the likelihood of a stockout due to erroneous inventory tally. control the likelihood of a stockout due to the variability of demand during lead time. protect the firm from a sudden decrease in demand. 5. Question : (TCO 12) For a certain item, the cost-minimizing order quantity obtained with the basic EOQ model was 200 units and the total annual inventory cost was $600. The inventory carrying cost per unit per year for this item is _____. $1.50 $2.00 $3.00 $150.00 Not enough data to determine

BSOP330 Week 4 Quiz

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