1. A company that sells 60 units of product in a given year and has an average quantity on hand of 10 units. There are 360 selling days and 261 production days in the year. The company has on hand how many days of product inventory?

A) 0.16
B) 0.23
C) 43
D) 60



2. A company has an asset turnover ratio of 1.8, inventory of $3,000, a 20% profit margin, and $5,000 in total assets. What is the total sales volume for the company?

A) $5,400
B) $9,000
C) $15,000
D) $25,000



3. A manufacturing company has several inexpensive items that are critical to the production process. The supply of these items has been depleted several times.Which of the following actions is most likely to reduce stockouts?

A) Assign personnel to manage the items.
B) Standardize the items.
C) Increase minimum inventory levels for the items.
D) Initiate a vendor-managed inventory (VMI) program for the items.



4. Which of the following types of information would be an appropriate basis for a qualitative forecast?

A) Leading indicators
B) Regression analysis
C) Order history
D) Shipment history



5. The use of a seasonal index as a forecasting technique measures the ratio of the:

A) average seasonal demand to the average demand for all periods.
B) average demand for all periods to the average seasonal demand.
C) average seasonal demand to the standard deviation of the demand for all periods.
D) standard deviation of the seasonal demand to the standard deviation of demand for all periods.