Which one of the following items is most likely a derived-demand inventory item?

The EOQ model is designed to determine how much:    A.  total inventory a firm needs in any one year. B.  total inventory costs will be for any one given year. C.  inventory should be purchased at a time. D.  inventory will be sold per day. E.  a firm loses in sales per day when an inventory item is depleted. Refer to section 20.8

51.

At the optimal order quantity size, the:    A.  total cost of holding inventory is fully offset by the restocking costs. B.  carrying costs are equal to zero. C.  restocking costs are equal to zero. D.  total costs equal the carrying costs. E.  carrying costs equal the restocking costs. Refer to section 20.8

52.	The EOQ model is designed to minimize:    A.  production costs. B.  inventory obsolescence. C.  the carrying costs of inventory. D.  the costs of replenishing inventory. E.  the total costs of holding inventory. Refer to section 20.8

53.

Which one of the following items is most likely a derived-demand inventory item?    A.  cereal ready to be bagged and shipped to stores B.  tires held in inventory by an auto maker C.  shoes on display in a retail store D.  toys ready to be shipped to toy stores E.  wheat harvested by a farmer Refer to section 20.8

54.

Inventory needs under a derived-demand inventory system are:    A.  primarily dependent upon the competitive demands placed on a firm's suppliers. B.  based on the anticipated demand for the finished product. C.  based on minimizing the cost of restocking inventory. D.  held constant over time. E.  determined by a kanban system. Refer to section 20.8