16. The two most basic inventory questions answered by the typical inventory model are
a. timing and cost of orders
b. quantity and cost of orders
c. timing and quantity of orders
d. order quantity and service level
e. ordering cost and carrying cost
17. Among the advantages of cycle counting is that it ______________.
a. makes the annual physical inventory more acceptable to management
b. does not require the detailed records necessary when annual physical inventory is used
c. does not require highly trained people
d. allows more rapid identification of errors and consequent remedial action than is
possible with annual physical inventory
e. does not need to be performed for less expensive items
18. Which of the following is an element of inventory holding costs?
a. housing costs
b. material handling costs
c. investment costs
d. pilferage, scrap and obsolescence
e. All of the above are elements of inventory holding cost.
19. Most inventory models attempt to minimize _______________.
a. the likelihood of a stockout
b. the number of items ordered
c. total inventory based costs
d. the number of orders placed
e. the safety stock
20. Top executives tend to focus their attention on which type of forecasts?
e. the forecast for the next day’s absentee levels