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
management comes from i
...
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
management 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
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