A purchase order is signed with ABC company for $3,000 worth of materials. The average salary of a buyer is paid $25 an hour and manufacturing gets paid $20 an hour.
It takes 5 hours for a buyer to set up a purchase order and it takes manufacturing 10 hours to set up the job and 40 hours to process the job
How much are the ordering/ setup costs for this purchase order?

Which of the following decision is most likely to be made by the material planner?

Which of the following ordering techniques lends itself to an ETO production environment where cost of obsolescence of unique items is a significant issue?

A valid reason for carding safety stock of manufactured item is

Which of the following cost methods causes inventory valuation to decrease when costs increase?

The number of exposures to stockouts is related to

A backlog in a MTO company contains a large number of orders of many unique items, in which of the following situations would selection of a random storage location most likely reduce overall efficiency

The amount of time an item may be held in inventory before it becomes unusable

Orders that provides the supplier with forward visibility of the requirements for a component are called

Geller manufacturers a full range of lighting fixtures for the home and office. These are shipped to 4 distribution centers that serve 4 areas of the country. Each distribution center has both automated and manual storage. Which of the following is MOST similar between these 2 areas?

Purchasing several items together in order to lower ordering cost is know as