Scribd Logo
Upload

Welcome to Scribd!

  • 26 views

    MS29P TutorialQuestionsInventory JIT

    Uploaded by

    Solar Pro
    The document contains 16 multiple choice and calculation questions about inventory management and Just-in-Time concepts. The questions cover topics such as the activities involved in inventory management, types of inventory, factors for determining stock quantities, the importance of physical stock counts, definitions of inventory costs like carrying costs and order costs, reorder points, economic order quantities, and factors that can impact Just-in-Time systems.

    Copyright:

    © All Rights Reserved
    Download as DOC, PDF, TXT or read online from Scribd

    MS29P TutorialQuestionsInventory JIT

    Uploaded by

    Solar Pro
    26 views2 pages
    The document contains 16 multiple choice and calculation questions about inventory management and Just-in-Time concepts. The questions cover topics such as the activities involved in inventory management, types of inventory, factors for determining stock quantities, the importance of physical stock counts, definitions of inventory costs like carrying costs and order costs, reorder points, economic order quantities, and factors that can impact Just-in-Time systems.

    Original Title

    MS29P_TutorialQuestionsInventory_JIT.doc

    Copyright

    © © All Rights Reserved

    Available Formats

    DOC, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    The document contains 16 multiple choice and calculation questions about inventory management and Just-in-Time concepts. The questions cover topics such as the activities involved in inventory management, types of inventory, factors for determining stock quantities, the importance of physical stock counts, definitions of inventory costs like carrying costs and order costs, reorder points, economic order quantities, and factors that can impact Just-in-Time systems.

    Copyright:

    © All Rights Reserved
    Download as DOC, PDF, TXT or read online from Scribd
    Download as doc, pdf, or txt
    26 views2 pages

    MS29P TutorialQuestionsInventory JIT

    Uploaded by

    Solar Pro
    The document contains 16 multiple choice and calculation questions about inventory management and Just-in-Time concepts. The questions cover topics such as the activities involved in inventory management, types of inventory, factors for determining stock quantities, the importance of physical stock counts, definitions of inventory costs like carrying costs and order costs, reorder points, economic order quantities, and factors that can impact Just-in-Time systems.

    Copyright:

    © All Rights Reserved
    Download as DOC, PDF, TXT or read online from Scribd
    Download as doc, pdf, or txt
    You are on page 1of 2

    1

    TUTORIAL QUESTIONS – MS29P


    INVENTORY AND JUST-IN-TIME

    1. List the nine activities involved in inventory management

    2. Name and describe two (2) types of inventory

    3. Describe two (2) factors to be considered in determining inventory stock quantity

    4. Explain the importance to physical stock counts

    5. There must be a clearly understood and followed procedure to obtain items from the
    warehouse/stores. Discuss

    6. Define lead time, carrying cost, order cost and stock-out cost (give examples)

    7. A characteristics of Just-in-time purchasing with respect to quality is to:


    (a) help suppliers to meet quality requirements
    (b) have 100% incoming inspection
    (c) impose maximum product specifications on the supplier
    (d) none of the above

    8. The main purpose of safety stock is to:


    (a) reduce the likelihood of a stock-out due to variable demand during lead time
    (b) have a good relationship with suppliers
    (c) ensure that quality products are produced
    (d) none of the above

    9. The most significant obstacle to JIT is,


    (a) inventory removal
    (b) reorienting people’s thinking
    ( c) geography
    (d) reducing machine set-up time
    (e) all of the above

    10. JIT is a system for:


    (a) enforced problem solving
    (b) reducing inventory
    ( c) increasing production capacity
    (d) reducing set-up time
    (e) all of the above
    2

    11. A local TV distributor has found from experience that demand for a certain TV model
    is fairly constant at a rate of 50 sets per month. Lead time is effectively zero and no
    shortages are to be allowed. If the holding cost is $60 per unit per year and ordering
    cost is estimated to be $50 per order.
    (a) How many sets should be ordered to minimize inventory cost?
    (b) What is the total inventory cost?
    (c) How many orders will be processed per year
    (d) What is the time interval between orders

    12. Name four factors that hinders Just-in Time inventory in Jamaica

    13. It takes approximately 2 weeks (14 days) for an order of steel bolts to arrive once the
    order is placed. The demand for the bolts is fairly constant; on an average the manager
    has observed that the hardware store sells 500 of these bolts each day. Because the
    demand is fairly constant, she believes she can avoid stockouts completely if she orders
    the bolts at the correct time. What is the reorder point?

    14. Sande Johnson is attempting to perform an inventory analysis on one of her most
    popular products. Annual demand for this product is 5,000 units; holding cost is $50
    per unit per year. Order costs for her company typically run nearly $30 per order and
    lead time averages 10 days. (Assume a 50-week year).
    a) What is the economic order quantity?
    b) What is the reorder point?
    c) What is the total inventory cost?
    d) What is the optimal number of orders per year?
    e) What is the optimal number of days between orders (assume 200 working days
    per year)?

    15. Christine Adams, of Adams Plumbing, uses 1,200 of a certain spare part that costs $25
    for each order and $24 annual holding cost. Calculate the total cost for order sizes of
    25, 50 and 100. Identify the economic order quantity and consider the implications for
    making an error in calculating the economic order quantity.

    16. The goods section of a large department store sells 175 units per month of a certain
    large bath towel. The unit cost of a towel to the store is $2.50 and the cost of placing an
    order has been estimated to be $12.00. The store uses an inventory carrying charge of
    27% per year. Determine the optimal order quantity, order frequency, and the annual
    cost of inventory management. If, through automation of the purchasing process, the
    ordering cost can be cut to $4.00, what will be the new economic order quantity, order
    frequency, and annual inventory management cost? Explain these results.

    D. Anthony Chevers

    You might also like