1) Which of the following is NOT one of the four main types of inventory? A) raw material inventory B) work-in-process inventory C) maintenance/repair/operating supply inventory D) safety stock inventory E) finished-goods inventory
2) In ABC analysis, "A" items are the most tightly controlled. • TRUE • FALSE
3) Which category of inventory holding costs has a much higher percentage than average for rapidchange industries such as PCs and cell phones? A) housing costs B) material handling costs C) labor cost D) investment costs E) pilferage, scrap, and obsolescence
4) At the economic order quantity, holding costs are equal to product costs. • TRUE • FALSE
5) In the production order quantity model, inventory does not arrive in a single moment but flows in at a steady rate, resulting in a larger production/order quantity than in an otherwise identical EOQ problem. • TRUE • FALSE
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