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Inventory turnover

1. The inventory turnover ratio used in measuring supply-chain efficiency is found by the ratio of which of the following?
a. Cost of goods sold/Average aggregate inventory value
b. Fixed costs/Variable costs
c. Sales costs/Marketing costs
d. Cost of goods sold/Cost to sell goods

2. The total value of all items held in inventory for the firm at cost is which of the following?
a. Cost of goods to be sold
b. Average aggregate inventory value
c. Weeks supply of goods
d. Inventory turnover

3. In outsourcing which of the following internal activities and decision responsibilities can not be transferred to outside contractors?
a Activities involving people
b Activities involving facilities
c Activities involving equipment
d Activities involving shareholders

4. An important issue in facility location analysis is business climate. An unfavorable business climate could be indicated by which of the following?
a Similar-sized businesses nearby
b The willingness of local politicians to provide favorable treatment for a consideration
c The presence of other foreign companies in the case of international locations
d The local presence of companies in the same industry

5. Which of the following are key inventory reduction targets under lean production?
a. FIFO inventory
b Hidden inventory
c. Safety Stock
d. Lost inventory

6. In designing a lean production facility layout a designer should do which of the following?
a Design for work flow balance
b Locate flexible workstations off line
c Link operations through a push system
d Balance capacity using job shop analysis

7. The inventory turnover ratio used in measuring supply-chain efficiency is found by the ratio of which of the following?
a Cost of goods sold/Average aggregate inventory value
b Fixed costs/Variable costs
c Sales costs/Marketing costs
d Cost of goods sold/Cost to sell goods

Solution Preview

1. The inventory turnover ratio used in measuring supply-chain efficiency is found by the ratio of which of the following?
a. Cost of goods sold/Average aggregate inventory value
b. Fixed costs/Variable costs
c. Sales costs/Marketing costs
d. Cost of goods sold/Cost to sell goods
This ratio shows how many times a company's inventory is sold and replaced over a period of time. a. Cost of goods sold/Average aggregate inventory value

2. The total value of all items held in inventory for the firm at costs is which of the following?
a. Cost of goods to be sold
b. Average aggregate inventory value
c. Weeks supply of goods
d. Inventory turnover
The cost of inventory when the items are added up: ...

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