Unlike a Requirements Philosophy of Inventory Management,a Replenishment Philosophy

question 22

Multiple Choice

Unlike a requirements philosophy of inventory management,a replenishment philosophy:

• A)Calls for orders based on higher-level items
• B)Applies to raw materials inventories
• C)Is appropriate given independent demand
• D)Causes demand to be dependent

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Definitions:

Control Charts

Graphical tools used to determine if a manufacturing or business process is in a state of statistical control.

Sample Proportion

The ratio or fraction of sample observations that belong to a certain category or that exhibit a particular attribute or characteristic.

Centerline

In statistical process control, the central value around which data points fluctuate, often representing the process average.

Lower Control Limit

The lower control limit is the lower threshold on a control chart in statistical process control, beneath which the process variability is considered to be in a state of control.