MGSC 492 Study Guide

The order quantity for a part is 1000. What would be the average inventory if you did not know the actual consumption?

500

If you were ordering 800 pieces at a time and you negotiated a new lot size with a supplier and now you were ordering 400 pieces at a time, what would be the difference in the average inventory?

200

If you were ordering 800 pieces of material and you were about to reduce the lot size to 400. If the part cost $60 each, what would be the one time saving?

12,000

A part number has a order minimum of 40 on the computer and increments defined as 10. If you get a net requirement of 69 for a period what would be the order quantity generated by the system?

70

A part is a set up with multiples of 20 as the order type. If there is a net requirement of 79, what would be the quantity generated by the system.

80

A company has cost of good sold of $800,00 and an average inventory of $50,000. What is the inventory turns?

16

A company has cost of good sold at $800,000 and wishes to put a plan together to turn the inventory 10 times. Theoretically, what would the average inventory be within the new inventory turns level?

80,000

A company has an inventory carrying cost of 20%. The original order qty was 800 and now it is 400. The part cost is $13.00. What is the annual inventory savings.

520