Inventory Managment.9px;=”” 12px=””>Q1. Darly Havidson is a small manufacturer of motorcycles. Which of the following would not be inventory to this company?a. Gaskets used in assembling its motorsb. Copy paper in the main officec. The cost of advertising its product to consumersd. Steel sheets waiting to be manufactured into motorcycles.9px;=”” 12px=””>Q2. Inventoriesa. reduce the risk of not receiving supplier materialb. are generally costless for the producerc. can never be reduced without reducing profitsd. all of the above.9px;=”” 12px=””>Q3. Which of the following is a cost of holding inventory?a. Salary of the CEOb. T.V. advertising costsc. Breakage and spoilaged. All of the above.9px;=”” 12px=””>Q4. Which inventory system provides the most up-to-date inventory counts?a. Periodicb. Perpetualc. Peripateticd. Perennial .9px;=”” 12px=””>Q5. Which of the following costs is associated with inventory?a. Holding costsb. Ordering costsc. Shortage costsd. All of the above.9px;=”” 12px=””>Q6. Kendall Corp is a computer manufacturer with four items in its inventory. The cost of each item and its annual usage by Kendall are as shown Which items would you consider “A” items?ItemCost per ItemAnnual UsageAnnual VolumeA.Cables$60.0010,000$600,000B.Hard Drives$50.005,000$250,000C.Labels$1.0075,000$75,000D.Switches$1.505,000$7,500a. Cablesb. Hard drivesc. Labels d. Switches.9px;=”” 12px=””>Q7. Which items would be classified as “C” Items for Kendall?a. Cablesb. Hard drivesc. Labelsd. Switches.9px;=”” 12px=””>Q8. The process of ordering, using and receiving inventory is called thea. Economic Order Quantity (EOQ)b. Shipping Timec. Gyrocycled. Inventory Cycle.9px;=”” 12px=””>Q9. Which of the following is not true about Just-in-Time Inventories…a. They require close coordination between supplier and manufacturerb. They require a computerc. They have been adapted in manufacturing plants worldwided. They are never monitored by suppliers.9px;=”” 12px=””>Q10. A manufacturer uses 3,000 units of materials (Q) per year. They order the 1,000 units for delivery at the beginning of the year. The annual cost of holding a material is $10/unit (H). What is the annual inventory holding cost for Barnes Widget Manufacturers? (Reminder Annual Holding Costs = (Q/2)*H)a. $30,000b. $20,000c. $15,000d. $10,500.9px;=”” 12px=””>Q11. Gidget Manufacturing uses 10,000 units of inventory per year. Orders are placed in 2,000 unit increments. If each order costs $2,000 to place, what is the expected annual ordering cost for Gidget Manufacturing? (Reminder Annual Ordering Costs = (D/Q)*S)a. $2,000b. $5,000c. $8,000d. $10,000.9px;=”” 12px=””>Q12. A manufacturing company uses 20,000 units of inventory per year. They order inventory in 1,000 increments at a cost of $100 per order. They have also determined the cost to hold inventory is $30 per unit. What is the total inventory cost for Widgets and Gidgets? (Reminder Total Cost equation TC= (Q/2)*H + (D/Q)*S)a. $4,000b. $15,000c. $17,000d. $19,000.9px;=”” 12px=””>Q13. A hardware store has an inventory ordering cost of $500. If demand is 1,000 units and holding cost is $4 per unit, what is the optimal order size? (Reminder Optimal Order Size = Qo = (Square Root of (2DS/H))a. 50 televisions per orderb. 100 televisions per orderc. 500 televisions per orderd. 1,000 televisions per order.9px;=”” 12px=””>Q14. Yarpo Supermarket uses 100 gallons of heating oil per day. The lead-time on a delivery is four days. For safety reasons, the company always wants to have a two-day supply of fuel oil on hand. What is the reorder point? (Reminder ROP = d * LT + S)a. 60b. 600c. 6,000d. 60,000.9px;=”” 12px=””>Q15. Smileys Candies sells 20 boxes of chocolate per day. The candy company delivers chocolate every Monday. Smileys calls its orders in on Friday. If Smileys always wants to keep 20 boxes as a safety stock, and it has 30 boxes on hand, how many boxes should it order? (Reminder Fixed Order Interval, Q = d * (OI) + d * (LT) + S a)a. 300 boxesb. 190 boxesc. 140 boxesd. 90 boxesInventory Managmenta. Gaskets used in assembling its motorsb. Copy paper in the main officec. The cost of advertising its product to consumersd. Steel sheets waiting to be manufactured into motorcyclesa. reduce the risk of not receiving supplier materialb. are generally costless for the producerc. can never be reduced without reducing profitsd. all of the abovea. Salary of the CEOb. T.V. advertising costsc. Breakage and spoilaged. All of the abovea. Periodicb. Perpetualc. Peripateticd. Perennial a. Holding costsb. Ordering costsc. Shortage costsd. All of the abovea. Cablesb. Hard drivesc. Labels d. Switchesa. Cablesb. Hard drivesc. Labelsd. Switchesa. Economic Order Quantity (EOQ)b. Shipping Timec. Gyrocycled. Inventory Cyclea. They require close coordination between supplier and manufacturerb. They require a computerc. They have been adapted in manufacturing plants worldwided. They are never monitored by suppliersa. $30,000b. $20,000c. $15,000d. $10,500a. $2,000b. $5,000c. $8,000d. $10,000a. $4,000b. $15,000c. $17,000d. $19,000a. 50 televisions per orderb. 100 televisions per orderc. 500 televisions per orderd. 1,000 televisions per ordera. 60b. 600c. 6,000d. 60,000a. 300 boxesb. 190 boxesc. 140 boxesd. 90 boxes