Periodic review inventory models generate order quantities that vary from time period to time period, depending on the usage rate.

The following data are pulled from a recent annual report. Calculate percent invested in inventory. Assets Raw material inventory: $120,000 Work-in-process inventory: $50,000 Finished goods inventory: $300,000 Property, plant & equipment: $500,000 Other assets: $200,000 Total assets: $1,170,000   Condensed Income Statement Revenue: $2,000,000 Cost of goods sold: $600,000 Other expenses: $1,000,000 Net income: $400,000

Given an actual demand this period of 61, a forecast for this period of 58, and an alpha of 0.3, what would the forecast for the next period be using exponential smoothing?

What is the forecast for May using a three-month weighted moving average with weights=.5 for the most recent, .3 for the month before, and .2 for two months ago? Nov. Dec. Jan. Feb. Mar. April 39 36 40 44 39 45

The reorder point is the inventory level at which action is taken to replenish the stocked item.

In a retail environment, there is no need to hold inventory because retailers can perfectly predict when shoppers will show up and what they wish to purchase.

When using the low-cost strategy for supply chain management, a firm should use buffer stocks to ensure speedy supply.

A seasonal index for a monthly series is about to be calculated on the basis of three years’ accumulation of data. The three previous July values were 110, 150, and 130. The average demand over all months during the three-year time period was 190. What is the approximate seasonal index for July?

Use of a diversified supply base represents one of the most common supply chain risk reduction tactics for several different supply chain risk categories.

In traditional “wholesale price contracts”, the buyer specifies the precise quantity required and then to pay the supplier a cost per unit for the order.