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test bank for MAN 4504-ch12-reviewed br experts-GRADED A

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Operations Management, 11e (Heizer/Render) Chapter 12 Inventory Management Section 1 The Importance of Inventory 1) According to the global company profile, Amazon.com's advantage in inventory man ... agement comes from its almost fanatical use of economic order quantity and safety stock calculations. Answer: FALSE Diff: 2 Learning Outcome: Compare the advantages and disadvantages of common inventory systems 2) A major challenge in inventory management is to maintain a balance between inventory investment and customer service. Answer: TRUE Diff: 1 Learning Outcome: Compare the advantages and disadvantages of common inventory systems 3) Which item to order and with which supplier the order should be placed are the two fundamental issues in inventory management. Answer: FALSE Diff: 2 Learning Outcome: Compare the advantages and disadvantages of common inventory systems 4) One function of inventory is to take advantage of quantity discounts. Answer: TRUE Diff: 2 Key Term: Quantity discount Learning Outcome: Compare the advantages and disadvantages of common inventory systems 5) Work-in-process inventory is devoted to maintenance, repair, and operating materials. Answer: FALSE Diff: 1 Key Term: Work-in-process (WIP) inventory Learning Outcome: Compare the advantages and disadvantages of common inventory systems 6) Which of the following statements regarding Amazon.com is FALSE? A) The company was opened by Jeff Bezos in 1995. B) The company was founded as, and still is, a "virtual" retailer with no inventory. C) The company is now a world-class leader in warehouse automation and management. D) The company uses both United Parcel Service and the U.S. Postal Service as shippers. E) Amazon obtains its competitive advantage through inventory management. Answer: B Diff: 2 Learning Outcome: Compare the advantages and disadvantages of common inventory systems [Show More]

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