Question 1

What are the secondary levers for cycle inventory?

Accepted Answer

The secondary levers for cycle

Question 2

A(n)________ is a system used to review the inventory position at fixed times intervals and,if the position has dropped to (or below)a predetermined level,to place a variable-sized order to cover expected needs.

Accepted Answer

optional r

Question 3

In an ABC analysis,the class _____ SKUs,which typically make up ________ % of the SKUs,account for only about 5% of the dollar usage.

Accepted Answer

The answer of In an ABC analysis,the class _____ SKUs,which...

Question 4

Scenario 9.10
Demand = 52,000 units/year
Standard deviation of weekly demand = 110 units
Ordering costs = $45/order
Holding costs = $0.50/unit/year
Cycle-service level = 90%
Lead time = 2 weeks
Number of weeks per year = 52 weeks
A normal distribution table is appended to this exam.
-Use the information in Scenario 9.10.What is the EOQ for this item?

Accepted Answer

A) greater than 0 but less than or equal to 1,500 units 
B) greater than 1,500 but less than or equal to 3,000 units 
C) greater than 3,000 but less than or equal to 4,500 units 
D) greater than 4,500 units 
A) greater than 0 but less than or equal to 1,500 units 
B) greater than 1,500 but less than or equal to 3,000 units 
C) greater than 3,000 but less than or equal to 4,500 units 
D) greater than 4,500 units

Question 5

Which one of the following is NOT a method for tracking inventory and ensuring accurate records?

Accepted Answer

A) assigning responsibility to specific employees for issuing and receiving materials 
B) updating the reorder points to minimize safety stock 
C) cycle counting 
D) logic error checks 
A) assigning responsibility to specific employees for issuing and receiving materials 
B) updating the reorder points to minimize safety stock 
C) cycle counting 
D) logic error checks

Question 6

EOQ should be used if you follow a make-to-stock strategy and the item has relatively stable demand.

Accepted Answer

A) True 
 B)False

Question 7

A(n)________ is an inventory control method whereby an order is issued each time a withdrawal is made,for the same amount of the withdrawal.

Accepted Answer

The answer of A(n)________ is an inventory control method whereby...

Question 8

Use the following to answer the questions below.
Shipments of Product A from a distribution center to a retailer are made in lots of 350.The retailer's average demand for A is 75 units per week.Lead time from distributor to retailer is 3 weeks.The retailer pays for the shipments when they leave the distributor.The distributor has agreed to reduce the lead time to 2 weeks if the retailer will purchase quantities of 400 per shipment instead of 350.
-Refer to the instruction above.With the change in purchased quantities,the average cycle inventory will:

Accepted Answer

A) decrease by 75 units. 
B) increase by 50 units. 
C) decrease by 25 units. 
D) increase by 25 units. 
A) decrease by 75 units. 
B) increase by 50 units. 
C) decrease by 25 units. 
D) increase by 25 units.

Question 9

Use the following to answer the questions below.
Shipments of Product A from a distribution center to a retailer are made in lots of 350.The retailer's average demand for A is 75 units per week.Lead time from distributor to retailer is 3 weeks.The retailer pays for the shipments when they leave the distributor.The distributor has agreed to reduce the lead time to 2 weeks if the retailer will purchase quantities of 400 per shipment instead of 350.
-Refer to the instruction above.The net impact on the retailer will be:

Accepted Answer

A) no net change in average cycle and pipeline inventories. 
B) a net average increase in cycle and pipeline inventories of 50 units. 
C) a net average decrease in cycle and pipeline inventories of 75 units. 
D) a net average decrease in cycle and pipeline inventories of 50 units. 
A) no net change in average cycle and pipeline inventories. 
B) a net average increase in cycle and pipeline inventories of 50 units. 
C) a net average decrease in cycle and pipeline inventories of 75 units. 
D) a net average decrease in cycle and pipeline inventories of 50 units.

Question 10

What is generally true about the class A SKUs in ABC analysis? They represent about:

Accepted Answer

A) 50 percent of all SKUs. 
B) 80 percent of all SKUs. 
C) 20 percent of the dollar usage. 
D) 80 percent of the dollar usage. 
A) 50 percent of all SKUs. 
B) 80 percent of all SKUs. 
C) 20 percent of the dollar usage. 
D) 80 percent of the dollar usage.

Question 11

Consider the following conditions for an item used in the Hess Company's manufacturing process: On-hand inventory: 40 units
Open orders (scheduled receipts): 100 units
Backorders: 60 units
What is Hess's inventory position for this item?

Accepted Answer

A) 200 units 
B) 140 units 
C) 80 units 
D) 40 units 
A) 200 units 
B) 140 units 
C) 80 units 
D) 40 units

Question 12

Scenario 9.5
Cranium,Inc. ,purchases term papers from an overseas supplier under a continuous review system.The average demand for a popular mode is 300 units a day with a standard deviation of 30 units a day.It costs $60 to process each order and there is a five-day lead-time.The holding cost for a paper is $0.25 per year and the company policy is to maintain a 98% service level.Cranium operates 200 days per year.A normal distribution table is appended to this exam.
-Use the information in Scenario 9.5.What is the cost of holding the safety stock necessary to maintain the 98% service level?

Accepted Answer

A) less than or equal to $30 
B) greater than $30 but less than $40 
C) greater than $40 but less than $50 
D) greater than $50 
A) less than or equal to $30 
B) greater than $30 but less than $40 
C) greater than $40 but less than $50 
D) greater than $50

Question 13

A ________ lever is one that must be activated if inventory is to be reduced.

Accepted Answer

The answer of A ________ lever is one that must...

Question 14

Which one of the following statements about inventory control systems is best?

Accepted Answer

A) A single-bin system is essentially a P system,with the target inventory and current inventory position established visually. 
B) A base-stock system minimizes ordering and setup costs by placing orders more infrequently. 
C) The base-stock system is mostly used for inexpensive items because it maximizes cycle inventory costs. 
D) Visual systems are intended for use with high-value items,such as jet engines,that don't experience a steady demand. 
A) A single-bin system is essentially a P system,with the target inventory and current inventory position established visually. 
B) A base-stock system minimizes ordering and setup costs by placing orders more infrequently. 
C) The base-stock system is mostly used for inexpensive items because it maximizes cycle inventory costs. 
D) Visual systems are intended for use with high-value items,such as jet engines,that don't experience a steady demand.

Question 15

The ________ determines the frequency and quantity to order.

Accepted Answer

The answer of The ________ determines the frequency and quantity...

Question 16

A backorder occurs when a customer order cannot be filled when it is placed,but is instead filled later.

Accepted Answer

A) True 
 B)False

Question 17

When considering reorder points and inventory position,if an item has an inventory position of 200 units,an order will be placed only if the reorder point is ________ .

Accepted Answer

less than

Question 18

A(n)________ system is a system of inventory control in which a maximum level is marked on the storage shelf,and the inventory is brought up to the mark periodically.

Accepted Answer

The answer of A(n)________ system is a system of inventory...

Question 19

The ________ determines the frequency and quantity to order.

Accepted Answer

The answer of The ________ determines the frequency and quantity...

Question 20

ABC analysis is a process for categorizing SKUs according to dollar usage so that managers can focus on items with the highest dollar value.

Accepted Answer

A) True 
 B)False

Exam 9: Supply Chain Inventory Management

What are the secondary levers for cycle inventory?

A(n)________ is a system used to review the inventory position at fixed times intervals and,if the position has dropped to (or below)a predetermined level,to place a variable-sized order to cover expected needs.

In an ABC analysis,the class _____ SKUs,which typically make up ________ % of the SKUs,account for only about 5% of the dollar usage.

Which one of the following is NOT a method for tracking inventory and ensuring accurate records?

EOQ should be used if you follow a make-to-stock strategy and the item has relatively stable demand.

A(n)________ is an inventory control method whereby an order is issued each time a withdrawal is made,for the same amount of the withdrawal.

What is generally true about the class A SKUs in ABC analysis? They represent about:

Consider the following conditions for an item used in the Hess Company's manufacturing process: On-hand inventory: 40 units Open orders (scheduled receipts): 100 units Backorders: 60 units What is Hess's inventory position for this item?

A ________ lever is one that must be activated if inventory is to be reduced.

Which one of the following statements about inventory control systems is best?

The ________ determines the frequency and quantity to order.

A backorder occurs when a customer order cannot be filled when it is placed,but is instead filled later.

When considering reorder points and inventory position,if an item has an inventory position of 200 units,an order will be placed only if the reorder point is ________ .

A(n)________ system is a system of inventory control in which a maximum level is marked on the storage shelf,and the inventory is brought up to the mark periodically.

The ________ determines the frequency and quantity to order.

ABC analysis is a process for categorizing SKUs according to dollar usage so that managers can focus on items with the highest dollar value.

Using Operations to Compete

Project Management

Process Strategy

Process Analysis

Quality and Performance

Capacity Planning

Constraint Management

Lean Systems

Supply Chain Design

Supply Chain Location Decisions

Supply Chain Integration

Supply Chain Sustainability and Humanitarian Logistics

Forecasting

Operations Planning and Scheduling

Resource Planning

Decision Making

Waiting Line

Special Inventory Models

Linear Programming

Simulation

Financial Analysis

Acceptance Sampling Plans

Measuring Output Rates

Learning Curve Analysis

Operations Scheduling

Filters

In an ABC analysis,the class _ SKUs,which typically make up ____ % of the SKUs,account for only about 5% of the dollar usage.