Question

  

71. The suppler for Omega Corporation has offered the company a 5 percent discount if it will order more units less frequently. If Omega accepts the supplier's offer, the cost of carrying inventory willand the cost of running out of inventory will A) rise, decrease B) rise; stay the same C) fall; decrease D) fall; stay the same 2. Snyder Industries uses 100,000 widgets each year. If Sayder decides to place more orders each year, ordering fewer widgets each time, Sayder will be carrying inventory on average and the risk of rumning out of inventory will A) more; fall B) more; rise C) less; fall D) less; rise 73. When Best Buy vendors ship merchandise directiy to stores instend of distribution centers, the company is utilizing A) inventory control B) perpetual inventory D) production control 74. Which of the following is NOT part of the missiorof ISO? A) Provide a framework for contioual improvement B) Enforce quality standards C) Facilitate global trade and cooperation D) Promote international standards for business, govemment, and society 75. The last step in production control is to spot problems in the production process and inform management of needed ačjustments. This phase is called A) follow-up B) -evaluation C) process contrel- D) dispatching

Answer 1

71 - B inventory cost will increase however cost of running out of inventory will remain same.

72 - D, inventory will reduce which will reduce holding cost however risk of running out of inventory will increase.

73 - C

74 - C

75 - A