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Question 31 Not yet answered Marked out of 1.00 p Flag question [Question text] Which of the following is NOT a form of inventory in a manufacturing firm? Select one: A. Production plant B. Work-in-progress O C. Raw material O D. Finished goods Question 32 Not yet answered Marked out of 1.00 p Flag question [Question text] The management of inventory is important because Select one: A. carrying excessive inventory can result in a loss of sales B. carrying too little inventory will adversely affect the firm's CAPM C. carrying too much inventory can result in a loss of efficiency and profitability D. carrying too little inventory can decrease the average collection period Question 33 Not yet answered Marked out of 1.00 p Flag question [Question text] Which of the following measures should be taken to deal with the issue relating to NOT having the right item at the right place at the right time? Select one: A. Decrease the inventory order. B. Decrease the reorder point. C. Increase the safety stock. O D. Decrease the safety stock. Question 34 Not yet answered Marked out of 1.00 p Flag question [Question text] All of the following are relationships that exist for safety stock EXCEPT: Select one: A. the greater the risk of running out of stock, the larger the safety stock. B. the larger the opportunity cost of the funds invested in inventory, the smaller the safety stock. C. the higher the profit margin per unit, the lower the safety stock necessary. D. the greater the uncertainty associated with future forecasts of use, the larger the safety stock. Question 35 Not yet answered Marked out of 1.00 p Flag question [Question text] Sterling Clips Sdn. Bhd. estimates that it will sell 10,000 porcelain clips next year. The average per unit carrying cost of the clips is RM10. The per order cost of ordering is RM250. Assume that Sterling Clips wants a safety stock of 200 clips. If it reorders the clips based on the economic order quantity (EOQ), what is its average inventory of porcelain clips (round to the nearest unit)? Select one: A. 654 B. 454 O C. 354 O D. 554

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