Unit 2Management of Conversion SystemChapter 10: Inventory ManagementLesson 31 - Tutorial 9Good Morning students, today we are going to have a tutorial sessionfor the previous lesson. The overall objective is to appreciate how thetheoretical concepts are translated and applied into practical businesssituations. We would start with a few problems to review our conceptualunderstanding and wind up the session with a well designed case study.I hope the session results into value addition for all of us.Let’s put our thinking caps and start now.
1. A use of inventory is(a) to decouple production and distribution processes(b) to provide a hedge against inflation(c) to enable an organization to take advantage of quantitydiscounts(d) all the above2. ABC analysis divides on-hand inventory into three classes based upon(a) unit price(b) the number of units on hand(c) annual demand(d) annual rupee value3. Cycle counting(a) Provides a measure of inventory turnover (b) Assumes that all inventory records must be verified with thesame frequency(c) Is a process by which inventory records are periodicallyverified