Chapter 11 Part I

Define raw materials

Component parts, subassemblies, and supplies are inputs to manufacturing and service-delivery processes

Inventory consists of partially finished products in various stages of completion that are awaiting further processing

Inventory is completed products ready for distribution or sale

Supplies are items used in operations but do not become parts of the finished goods, such as lubricants and cleaning supplies

Define Work-in-Process (WIP) inventory

Supplies are items used in operations but do not become parts of the finished goods, such as lubricants and cleaning supplies

Inventory is completed products ready distribution or sale

Inventory consists of partially finished products in various stages of completion that are awaiting further processing

Inventory is an additional amount of inventory that is kept over and above the average amount required to meet demand

Define Maintenance, Repair, and Operating (MRO) Inventory/supplies

Inventory is an additional amount of inventory that is kept over and above the average amount required to meet demand

Is inventory that results from purchasing or producing in larger lots than are needed for immediate consumption/sale

Inventory is completed products ready distribution or sale

Supplies are items used in operations but do not become parts of the finished goods, such as lubricants and cleaning supplies

Define finished goods inventory

Supplies are items used in operations but do not become parts of the finished goods, such as lubricants and cleaning supplies

Inventory is completed products ready distribution or sale

Inventory consists of partially finished products in various stages of completion that are awaiting further processing

Component parts, subassemblies, and supplies are inputs to manufacturing and service-delivery processes

Define cycle inventory

Is inventory that results from purchasing or producing in larger lots than are needed for immediate consumption/sale

Inventory is an additional amount of inventory that is kept over and above the average amount required to meet demand

Inventory is completed products ready distribution or sale

Inventory consists of partially finished products in various stages of completion that are awaiting further processing

What is the other name for Absolute value of inventory?

Dollar Value

Realistic Value

Forecasted Value

Stock Value

If the Inventory Turnover of Company A is .66 and Company B is 1.02. Which company is better at managing inventory assuming both companies are within same industry.

Company A

Company B

Cannot determine

If the Inventory Turnover of Company A is 3.04 and Company B is 55.02. Which company is better at managing inventory assuming both companies are from different industries.

Company A

Company B

Cannot determine

What are unique characteristics of an Independent demand?

Needs to be forecasted

Does not need to be forecasted

Can be used for parts/items that compliment a finished good

Defines the demand for a finished good and replacement part

What are unique characteristics of a dependent demand

Does not need to be forecasted

Can be used for parts/items that compliment a finished good

Needs to be forecasted

Defines the demand for a finished good and replacement part

What does the ABC Inventory/ Pareto Analysis means?

Dollar value (in sales) compared to how much you hold of inventory

How much you hold of each type of inventory

Physical quantity held in relation to physical usage of inventory

Chapter 11 Part I

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