QDM Chapter 12 Question Answers

Here we are providing verified answers for QDM chapter 12 . All Important questions are covered. The Quality Data Model (QDM) is a conceptual information model that defines clinical patient data and concepts in a standardized manner.

The appropriate level of safety stock is typically determined by

  • A. minimizing the expected stock-out cost
  • B. choosing the level of safety stock that assures a given service level
  • C. carrying sufficient safety stock so as to eliminate all stock-outs
  • D. taking the square root of the economic order quantity.

Answer: B. choosing the level of safety stock that assures a given service level.

Which of the following is NOT a type on inventory?

  • A. MRP
  • B. Work-in-Process
  • C. finished goods
  • D. raw material

Answer: A. MRP

ABC analysis divided an organization’s on-hand inventory into three classes based upon

  • A. the number of units on hand.
  • B. annual demand
  • C. annual dollar volume
  • D. unit price

Answer: C. Annual dollar volume

Policies based on ABC analysis might include investing

  • A. more in inventory security for C items.
  • B. more in supplier development for A items.
  • C. extra care in forecasting for C items.
  • D. the most time and effort verifying the accuracy of records for B items

Answer: B. More in supplier development for A items.

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A system that triggers ordering on a uniform time basis is called

  • A. a reorder point system
  • B. a fixed-quantity system
  • C. an EOQ system
  • D. a fixed-position system.

Answer: B. a fixed-position system

Cycle counting

  • A. involves shutting down production once per year to perform the annual inventory count.
  • B. increases annual inventory adjustments.
  • C. is a process by which inventory records are verified.
  • D. cannot be performed in an independent demand situation.

Answer: C. is a process by which inventory records are verified.

Which of the following does NOT belong to holding costs?

  • A. storage costs
  • B. order processing
  • C. insurance on inventory
  • D. pilferage, scrap, and obsolescence

Answer: B. order processing

Extra units that are held in inventory to reduce stock-outs are called

  • A. just-in-time inventory
  • B. demand variance
  • C. safety stock
  • D. reorder point

Answer: C. safety stock