Mikes Bikes WOB TEST 2 Flashcards
1
Q
What inventory concept includes functions and objectives?
A
Forecasting
2
Q
Safety stock equations
A
Safety Stock = (Prior period sales / 52 weeks) x number of weeks of desired safety stock
3
Q
What is the amount to order equation?
A
Amount to order = expected demand + safety stock - inventory on hand
4
Q
What happens if you forecast inaccurately
A
Loss of sales
5
Q
If you forecast 1000 bikes but demanded 2000 what would happen?
A
Lost sale of 1000 bikes
6
Q
What inventory concept includes fixed order interval model?
A
Production quantity
