Question

3) Which of the following is most true of cycle counting?

a.

requires the checking of many items a few times during the year

b.

requires the checking of every item many times during the year

c.

it is applied to all inventory items once a year

d.

it is used to identify and remove the root causes of errors in inventory recor

e.

It will always provide 100% inventory record accuracy

4) Which of the following is NOT TRUE concerning the Facility Location Decision?

a.

It is a long-term decision

b.

We are concerned with the product mix and or services the facility will offer

c.

We need to know how many facilities we should open, close or expand

d.

We need to know what territory the facility will serve

e.

Tangible factors are more important than intangible factors.

Answer 1

Cycle counting is defined as the process of counting all stock keeping units over the year. It helps in identifying the root cause of errors in inventory records. It also helps in removing those root causes. Therefore, the correct option is (d). All other options are incorrect as they are wrong statements about cycle counting.

Facility location is a long term decision. It involves concerns such as how many facilities to be opened, closed, and expanded and what territory they will serve. For any facility location, intangible factors such as customer convenience are more important than tangible factors. Therefore, the correct option is (e).