Chap 11 Test Prep Study Guide Graded A+

Stable demand is usually called: {Ans: static demand}Suzie's Sweetshop makes special boxes of Valentine's Day chocolates. Each costs $14 in material and labor and sells for $25. After Valentine's Day, Suzie reduces the price to $12.00 and sells any remaining boxes. Suppose that demand is normally distributed with a mean of 70 and a standard deviation of 9. Determine the optimal number of boxes to make. Use Appendix A to determine z-value. Round z-value to two decimal places. Do not round any other intermediate calculations. Round your answer to two decimal places. {Ans: 79.18}_______ inventory is inventory that results from purchasing or producing in larger lots than are needed for immediate consumption or sale. {Ans: Cycle}Which statement is true of the independent demand for a stock-keeping unit (SKU)? {Ans: A stock-keeping unit needs to be forecasted.}________ inventory consists of partially completed products in various stages of completion that are awaiting further processing. {Ans: Work-in-process}In the context of ABC inventory analysis, which of the following statements is true of class C items? {Ans: Class C items can be managed using automated computer systems.}