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.
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
- 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