Chapter 13 Instructor Manual
The EOQ calculation that considers loss sales or production delays is:
a. carrying costs
b. stockout costs
c. reorder point
d. ordering costs - b
The approach to managing inventory that is based on forecasted sales to schedule production is:
a. IBM
b. EOQ
c. MRP
d. JIT - c
Crucial operating decisions when selecting suppliers for inventory items includes:
a. price
b. quality of materials
c. dependability of making decisions
d. all of the above - d
The document used to request that an item be ordered is the
a. purchase order
b. purchase requisition
c. purchase advice
d. purchase auction - b
The major cost driver in the purchasing function is
a. the number of purchase orders processed
