Please help with these questions thank you. Practice questions 56.Which of the f
ID: 368231 • Letter: P
Question
Please help with these questions thank you.
Practice questions 56.Which of the following is not one of the three basic costs of inventory management? O stocking costs O carrying costs O ordering costs O shortage costs 57. The cost of holding an item in inventory is referred to as a(n) O ordering cost. O carrying cost O shortage cost. O supply chain cost. O Carrying costs 58 reflect a loss of sales when customer demand cannot be satisfied Holding costs O Shortage costs Demand costs 59. A forecasting model has produced the following forecasts Period January February March April May Demand Forecast Error 120 110 115 125 130 110 115 120 115 125 The mean absolute deviation (MAD) for the end of May is O 7.5 O 3.0 O 7.0 O 10.0.Explanation / Answer
56. The answer is given below:
Shortage costs
The basic types of inventory are the holding cost, ordering cost and stock out costs.
57. The answer is given below:
Ordering cost
Holding an item in inventory is referred to as ordering cost, as where the orders are placed and all paper works are done.
58. The answer is given below:
Shortage costs
The customer demand would not be satisfied when there is a shortage costs as that leads towards the loss.
59. The answer is given below:
10.0
The mean absolute deviation is 125-115=10