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ODM Ch 12 Test With
Solution
Raw material inventory - ANSWER materials that are usually purchased buthave yet to enter the manufacturing process
work-in-process (WIP) inventory - ANSWER products or components that areno longer raw materials but have yet to become finished products
MRO - ANSWER maintenance, repair, and operating materials finished-goods inventory - ANSWER an end item ready to be sold, but still anasset on the company's books.
ABC analysis - ANSWER a method for dividing on-hand inventory into threeclassifications based on annual dollar volume.
cycle counting - ANSWER a continuing reconciliation of inventory withinventory records
shrinkage - ANSWER retail inventory that is unaccounted for between receiptand sale.
pilferage - ANSWER a small amount of theft holding cost - ANSWER the cost to keep or carry inventory in stock. ordering cost - ANSWER the cost of the ordering process setup cost - ANSWER the cost to prepare a machine or process forproduction
setup time - ANSWER the time required to prepare a machine or process forproduction
economic order quantity (EOQ) model - ANSWER an inventory-controltechnique that minimizes the total of ordering and holding costs
robust - ANSWER giving satisfactory answers even with substantial variationin the parameters
have little or no value at the end of a sales period. fixed-quality system (Q) - ANSWER an ordering system with the same orderamount each time
perpetual inventory system - ANSWER a system that keeps track of eachwithdrawal or addition to inventory continuously, so records are always current. fixed-period system (P) - ANSWER a system in which inventory orders aremade at regular time intervals
we can sell it and trade it - ANSWER inventory is a transferable asset, whatdoes this mean?
raw materials - ANSWER basic form of inventory turn our inputs into outputs - ANSWER what do we do with our inventory? by how critical it is - ANSWER how are we going to list our products?
cycle counting - ANSWER a continuing reconciliation of inventory records storing - ANSWER we need to keep track of our inventory cycles because________ it costs us money
shrinkage - ANSWER retail inventory that is unaccounted for between receiptand sale
setup cost - ANSWER the cost to prepare a machine or process forproduction
ordering cost - ANSWER the cost of the ordering process
