SU MBA6012 Week 5 Knowledge Check

Question 1One quantitative method for determining the appropriate amount of inventory to acquire is known as the economic order quantity (EOQ).

Question 1 options:

                True

                False

Question 2 The inventory turnover ratio is also called “inventory turns”.

Question 2 options:

                True

                False

Question 3 The Theory of Constraints postulates that every system has a constraint, or a bottleneck, which restricts the flow through the system.

Question 3 options:

                True

                False

Question 4 In TOC, the drum is the inventory at the constraint to keep the constraint constantly operating.

Question 4 options:

                True

                False

Question 5 In forecasting, Error = Forecast sales/demand – Actual sales/demand

Question 5 options:

                True

                False