The Following Is a True Statement About Safety Stock:

Mrp software programs are popular because of the ease of manual approaches. Computation of the amount of safety stock does not require any knowledge of demand standard deviation and delivery lead time D.

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A P system lends itself more to quantity discounts than does a Q system.

. A P system requires more administrative control and. Select the description which most closely fits the term SAFETY STOCK. B It must always be carried.

A Safety stock depends on the variation of demand during the lead time. E None of the above is true. Option 4 is the true statement about safety stock.

A P system requires more safety stock than a Q system. Inventory management is simply known as a systematic approach to sourcing storing and selling inventory. The larger the opportunity cost of the funds invested in inventory the larger the safety stock.

A listing of components required to manufacture a product d. Given a certain level of service the longer the lead time the bigger the safety stock we would need to keep. Safety stock is required if lead time is variable.

When demand increases Economic Order Quantity decreases D. Safety stock only buffers for the variability of demand over lead time. D All of the above are correct.

Decreasing the lead time can decrease the safety stock. There is a direct relationship between safety. Safety stock is used to reduce the chance of experiencing stockout.

When holding costs increase Economic Order Quantity decreases B. Which of the following relationships hold true for safety stock. 1 on a question.

Given a certain level of service the longer the lead time the bigger the safety stock we would need to keep. See the answer See the answer done loading. Safety stock essentially increases the reorder level C.

Given a certain level of safety stock the Cost per Stockout Event. Which of the following statements is true. When ordering or setup costs increase.

B It is not needed with EOQ models. Which of the following statements is true about safety stock. A is right answer.

It is not needed with EOQ models. A stock is a share of ownership in a company b. A stock is a type of debt investment that acts like a loan.

It includes raw materials and finished goodsIt is also regarded as having the right. Which of the following relationships hold true for safety stock. The safety stock will not change when switching from a continuous to a periodic review policy.

A net requirements plan adjusts for on-hand inventory. Which of the following statements about stocks is TRUE. A It depends on the required service level.

Safety stock refers to an additional amount of products that an organization holds in inventory so as to lower the risk of stock-outs. Given a certain level of safety stock the Cost per Stockout Event will always be higher than the Cost per Item Short. The safety stock needed to meet the same service level increases as demand variability increases C.

Based on statistics a firm can ALWAYS be 100 confident that they will have enough inventory to meet future demand OC. When service level decreases Economic Order Quantity decreases C. A It depends on the required service level.

The predictability of inventory usage. None of the above. A Safety stock is required if demand is variable.

Improved demand forecasting error can increase the safety stock. Which of the following statements is correct. Safety stock is the probability that the inventory on hand during the lead time is sufficient to meet expected demand.

Safety Stock only applies to Independent Demand. E None of the above is. The greater the risk of running out of stock the smaller the safety of stock.

Which of the following statements about safety stock are true. The following is a true statement about Safety Stock. Safety Stock only applies to Independent Demand Inventory NEVER Dependent Demand Inventory C.

The safety stock needed to meet the same service level decreases as lead time increases B. B the larger the opportunity cost of the funds invested in inventory the larger the safety stock. Which one of the following statements is best.

Safety stock can be a negative number Also explain the answer. The following is a true statement about Safety Stock. Based on statistics a firm can NEVER be 100 confident that they will have enough inventory to meet.

D All of the above are true. The amount of safety stock that a firm carries depends upon A. The following is a TRUE statement about inventory within a continuous review system.

The time when an order should be placed e. The safety stock will not change when switching from a continuous to a periodic review policy. C Safety stock depends on the length of the lead time.

The larger the safety stock a firm has the more profitable a firm is. A stock is a type of investment that invests in a mix of different types of investments d. E None of the above is true.

Extra inventory of an item carried to protect against variations in demand during lead time c. C It depends only on the amount of demand. Which of the following is not a true statement about automated clearinghouses ACHs.

B It depends only on the amount of demand. Safety stock only buffers for the variability of demand over lead time. It is necessary for single period models.

C the greater the uncertainty associated with forecasted demand the smaller the safety stock. D Safety stock is required if lead time is variable. Which of the following statements is true about safety stock.

The time period necessary to fill inventory orders. Safety Stock only applies to Dependent Demand Inventory NEVER Independent Demand Inventory B. Keeping safety stock is expensive therefore it can never be used for managing class B.

Safety stock acts as a buffer which reduces the risk of stock-outs and provides longer lead times. Given a certain level of safety stock the Item Fill Rate will always be higher than the Cycle Service Level. B Safety stock depends on the service level desired.

Distortion can be minimized when safety stock is held at each workstation rather than at the finished goods or raw material levels. Longer lead times require an organization to keep bigger safety stock to cater to any unexpected spikes in demand. Based on statistics a firm can NEVER be 100 confident that they will have enough inventory to meet future demand B.

D All of the above are true. A stock is a type of savings account that pays interest based on current interest rates in the money market c. C It must always be carried.

C It is necessary for single period models. There is always a trade off between level of service and cost that should be considered when determining the safety factor k. A the greater the risk of running out of stock the smaller the safety of stock.

The riskiness of the storage facility. The true statement about inventory is that Firms decrease inventory because the more we spend on inventory the more we need to spend on other inventory-related expenditures. Which of the following statements about reorder point ordering isare true.

Both A and B are correct E. Which of the following statements about reorder point ordering isare true. The time it takes to replenish an item in inventory.

Safety stock is required if demand is variable.

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