Question 1

"A" items in ABC analysis are:

Accepted Answer

A) reviewed infrequently. 
B) normally carried in large quantities. 
C) ordered infrequently. 
D) commonly managed by carrying inventory. 
E) particularly critical in financial terms. 
A) reviewed infrequently. 
B) normally carried in large quantities. 
C) ordered infrequently. 
D) commonly managed by carrying inventory. 
E) particularly critical in financial terms. E

Question 2

A material requirements planning (MRP)system:

Accepted Answer

A) controls the "A" items. 
B) reduces inventory. 
C) is easily carried out without technology. 
D) requires exploration of the bill of material as the basis of planning. 
E) is essential for operating a JIT system. 
A) controls the "A" items. 
B) reduces inventory. 
C) is easily carried out without technology. 
D) requires exploration of the bill of material as the basis of planning. 
E) is essential for operating a JIT system. D

Question 3

When a retailer uses daily sales of each product to identify patterns and to forecast inventory requirements,this is an example of:

Accepted Answer

A) a time series forecasting technique. 
B) a deterministic model. 
C) a causal model. 
D) a qualitative model. 
E) a repetitive pattern technique. 
A) a time series forecasting technique. 
B) a deterministic model. 
C) a causal model. 
D) a qualitative model. 
E) a repetitive pattern technique. A

Question 4

Continuous Planning,Forecasting and Replenishment (CPFR)generates the most accurate forecast possible and develops effective replenishment plans by:

Accepted Answer

A) linking sales and marketing to supply management inside the buying organization. 
B) linking sales and marketing processes across supply chain organizations. 
C) enabling multiple trading partners to collaborate. 
D) linking a supply chain department with sales representatives in a supply chain. 
E) enabling supply management to collaborate internally with other functions. 
A) linking sales and marketing to supply management inside the buying organization. 
B) linking sales and marketing processes across supply chain organizations. 
C) enabling multiple trading partners to collaborate. 
D) linking a supply chain department with sales representatives in a supply chain. 
E) enabling supply management to collaborate internally with other functions.

Question 5

The demand for a particular service may be:

Accepted Answer

A) dependent or independent. 
B) fixed quantity or fixed period. 
C) variable or static. 
D) tangible or intangible. 
E) continuous,discrete,or periodic. 
A) dependent or independent. 
B) fixed quantity or fixed period. 
C) variable or static. 
D) tangible or intangible. 
E) continuous,discrete,or periodic.

Question 6

A reduction in set-up costs and time impacts:

Accepted Answer

A) transit inventories. 
B) anticipation inventories. 
C) cycle inventories. 
D) decoupling inventories. 
E) buffer inventories. 
A) transit inventories. 
B) anticipation inventories. 
C) cycle inventories. 
D) decoupling inventories. 
E) buffer inventories.

Question 7

The following cost is not a carrying,holding,or possession cost:

Accepted Answer

A) the purchase price of the item. 
B) interest on the money invested in inventory. 
C) transactional costs of keeping inventory records. 
D) cost of obsolete inventory. 
E) insurance on inventory. 
A) the purchase price of the item. 
B) interest on the money invested in inventory. 
C) transactional costs of keeping inventory records. 
D) cost of obsolete inventory. 
E) insurance on inventory.

Question 8

Capacity requirements planning (CRP):

Accepted Answer

A) uses ABC analysis as an integral part of the process. 
B) is essential to minimize in-house inventories. 
C) performs for manufacturing resources what MRP does for materials. 
D) ignores the human resources required,and focuses on needed machine resources. 
E) calculates the service level by dividing average inventory carried by annual sales. 
A) uses ABC analysis as an integral part of the process. 
B) is essential to minimize in-house inventories. 
C) performs for manufacturing resources what MRP does for materials. 
D) ignores the human resources required,and focuses on needed machine resources. 
E) calculates the service level by dividing average inventory carried by annual sales.

Question 9

On an annual requirement of 100 items spread evenly throughout the year,any purchaser has an opportunity of buying all 100 units at a price of $100 each,or buying 10 units at a time at a price of $150.If the inventory carrying cost is 25 percent per year and assuming no ordering costs:

Accepted Answer

A) buying 100 at a time will save the company $3,937.50 per year. 
B) buying 100 at a time will save the company $4,125 per year. 
C) buying 100 at a time will save the company $6,250 per year. 
D) buying 10 at a time will save the company $3,875 per year. 
E) buying 10 at a time will save the company $5,000 per year. 
A) buying 100 at a time will save the company $3,937.50 per year. 
B) buying 100 at a time will save the company $4,125 per year. 
C) buying 100 at a time will save the company $6,250 per year. 
D) buying 10 at a time will save the company $3,875 per year. 
E) buying 10 at a time will save the company $5,000 per year.

Question 10

Decoupling inventories are carried:

Accepted Answer

A) to cover a well-defined future need. 
B) to make it possible to carry on activities on each side of a major process linkage point independently of each other. 
C) to stock the distribution pipelines. 
D) to protect against machine breakdown. 
E) to protect against uncertainties in supply and demand. 
A) to cover a well-defined future need. 
B) to make it possible to carry on activities on each side of a major process linkage point independently of each other. 
C) to stock the distribution pipelines. 
D) to protect against machine breakdown. 
E) to protect against uncertainties in supply and demand.

"A" items in ABC analysis are:

A material requirements planning (MRP)system:

When a retailer uses daily sales of each product to identify patterns and to forecast inventory requirements,this is an example of:

Continuous Planning,Forecasting and Replenishment (CPFR)generates the most accurate forecast possible and develops effective replenishment plans by:

The demand for a particular service may be:

A reduction in set-up costs and time impacts:

The following cost is not a carrying,holding,or possession cost:

Capacity requirements planning (CRP):

On an annual requirement of 100 items spread evenly throughout the year,any purchaser has an opportunity of buying all 100 units at a price of $100 each,or buying 10 units at a time at a price of $150.If the inventory carrying cost is 25 percent per year and assuming no ordering costs:

Decoupling inventories are carried:

Purchasing and Supply Management

Supply Strategy

Supply Organization

Supply Processes and Technology

Make or Buy, Insourcing, and Outsourcing

Need Identification and Specification

Quality

Delivery

Price

Cost Management

Supplier Selection

Supplier Evaluation and Supplier Relationships

Global Supply Management

Legal and Ethics

Other Supply Responsibilities

Supply Function Evaluation and Trends

Filters

Exam 8: Quantity and Inventory

"A" items in ABC analysis are:

A material requirements planning (MRP)system:

When a retailer uses daily sales of each product to identify patterns and to forecast inventory requirements,this is an example of:

Continuous Planning,Forecasting and Replenishment (CPFR)generates the most accurate forecast possible and develops effective replenishment plans by:

The demand for a particular service may be:

A reduction in set-up costs and time impacts:

The following cost is not a carrying,holding,or possession cost:

Capacity requirements planning (CRP):

On an annual requirement of 100 items spread evenly throughout the year,any purchaser has an opportunity of buying all 100 units at a price of $100 each,or buying 10 units at a time at a price of $150.If the inventory carrying cost is 25 percent per year and assuming no ordering costs:

Decoupling inventories are carried:

Purchasing and Supply Management

Supply Strategy

Supply Organization

Supply Processes and Technology

Make or Buy, Insourcing, and Outsourcing

Need Identification and Specification

Quality

Delivery

Price

Cost Management

Supplier Selection

Supplier Evaluation and Supplier Relationships

Global Supply Management

Legal and Ethics

Other Supply Responsibilities

Supply Function Evaluation and Trends

Filters