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Inventory that separates various parts of the production process performs a(n)________ function.

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The two most basic inventory questions answered by the typical inventory model are:


A) timing of orders and cost of orders.
B) order quantity and cost of orders.
C) timing of orders and order quantity.
D) order quantity and service level.
E) ordering cost and carrying cost.

F) B) and C)
G) C) and D)

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All EXCEPT which of the following statements about ABC analysis are true?


A) In ABC analysis,inventory may be categorized by measures other than dollar volume.
B) ABC analysis categorizes on-hand inventory into three groups based on annual dollar volume.
C) ABC analysis is an application of the Pareto principle.
D) ABC analysis suggests that all items require the same high degree of control.
E) ABC analysis suggests that there are the critical few and the trivial many inventory items.

F) A) and B)
G) A) and C)

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