Ch. 7 Vocab for Test #2

Question 1

bought from supplier to use in the production of a project

Answer 1

raw materials and component parts

Question 2

inventory that is in the production process

Answer 2

work in progress inventory

Question 3

items that are ready for sale to customers

Answer 3

finished goods inventory

Question 4

maintenance, repair and operating supplies, mainly for company, include anything from office supplies to cleaning supplies

Answer 4

MRO Inventory

Question 5

items being transported from one location to another

Answer 5

transit inventory

Question 6

number of days a business operations can be supported with inventory on hand, given that no more inventory is bought or sold.

Answer 6

days of supply

Question 7

A measure of how well the objective of meeting customer demand is met. The ability to meet customer demand without a stockout.

Answer 7

service level policy

Question 8

where inventory is constantly monitored to decide when a replenishment order needs to be placed

Answer 8

continuous review model