In a retail store, when does the lead time end?
When the inventory is stocked on the shelf
Lead time variability is really a measure of lead time ___________________.
uncertainty
Which are components of lead time?
Loading onto the truck
Order picking
Order transmittal
Lead time is best defined as:
The time between when an order is placed and when it is received and available for use or sale.
Which has the correct order of lead time processes?
Order creation, picking, staging, transit
Lead time is the time between when an order is placed and the inventory is ___________________.
Available for use
Which is a common bottleneck mentioned in the video that increases lead time?
Receiving facilities at or near capacity
Safety stock increases which aspect of a continuous review policy?
Reorder point
Which inventory policy will create the most uncertainty for a company's transportation providers?
Continuous review
When determining when or how much to order, which inventory variable should be used?
Inventory position
Which inventory policy requires less safety stock?
Continuous review
A reorder point is a point in _______________________.
A company's inventory position
If a customer uses a continuous review policy to manage inventory, when is it possible to stockout?
Only during the lead time
If a company places a replenishment order on the same day each week, which policy is being used?
Periodic review
If a fulfillment center has no on-hand inventory but receives an order that cannot be immediately filled, this order represents ______________ if the customer will wait.
A backorder
How can a company's inventory position be determined?
On-hand inventory plus on-order inventory minus backorders
Inventory is good in the right _______________.
quantity
Inventory is a supply of goods that are held for purpose of _______________.
Future utilization
Which type of inventory is used as a buffer against uncertainty in demand and lead time?
Safety stock
Which form of inventory is the most expensive to hold?
Finished goods
Which type of inventory is the amount of the expected amount of inventory on-hand when the next replenishment arrives?
Safety stock
Which type of inventory allows a company to take advantage of transportation utilization?
Cycle stock
Which of the following is/are a form of inventory?
Raw materials
Work-in-process
Finished goods
Which type of inventory is in a transportation unit?
In-transit inventory
Which is a clear sign of a bottleneck in a manufacturing process?
Work-in-process inventory is building behind.
A bottleneck is the ______________ part of a process.
Slowest
Which type of inventory is the amount of inventory that is expected to sell during a replenishment period?
Cycle stock
Which form of inventory is being transformed into a final product?
Work-in-process
The cost associated with inventory shrink is classified as a ________ cost.
Risk
Obsolescence is likely a bigger problem for which type of product.
Fresh apples
Which aspect of inventory carrying cost is usually the largest?
Capital
Which is a cost associated with inventory?
Item cost
Ordering or setup cost
Shortage cost
Carrying cost
Capital costs can be viewed as the _________________ associated with the money tied up in inventory.
Opportunity
For which type of product is a shipper likely to be least concerned about transportation?
Product with low carrying cost
If the inventory carrying cost percentage is 25%, then how much would it cost to carry an inventory with a value of $900?
$225
Taking the value of the item, of the inventory, and ________________ the inventory carrying cost percentage tells me how much it costs to carry that inventory annually.
multiplying it by