Inventory Management Exam Preparation Guide
Course Introduction
Inventory Management focuses on the strategies and techniques essential for efficiently controlling the flow of goods and materials within an organization. The course covers key topics such as inventory planning, demand forecasting, order quantity determination, stock replenishment systems, and inventory valuation methods. Emphasis is placed on balancing customer service with minimizing costs, understanding various inventory models (including Just-in-Time and Economic Order Quantity), and utilizing technology for inventory tracking. Students will also explore the role of inventory in supply chain management and learn to make data-driven decisions to optimize inventory levels, reduce waste, and improve overall operational efficiency.
Recommended Textbook
Principles of Supply Chain Management A Balanced Approach 5th Edition by Joel D. Wisner
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14 Chapters
803 Verified Questions
803 Flashcards
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Chapter 1: Introduction to Supply Chain Management
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52 Verified Questions
52 Flashcards
Source URL: https://quizplus.com/quiz/12806
Sample Questions
Q1) According to the textbook, environmental and social impacts are considered outside of supply chain management.
A)True
B)False
Answer: False
Q2) Highly valued customers with large purchasing budgets who achieve moderate supply chain management success have been known to lower purchasing and inventory carrying costs, and create better quality products with higher levels of customer service.
A)True
B)False
Answer: True
Q3) Lean production is typically associated with which of the following company's production systems?
A) Proctor and Gamble
B) Kraft
C) Samsung
D) Toyota
Answer: D
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Page 3
Chapter 2: Purchasing Management
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55 Verified Questions
55 Flashcards
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Sample Questions
Q1) Which of the following is an advantage of a centralized purchasing department?
A) Less bureaucracy
B) More frequent shipments
C) Specialization
D) Closer contact between buyer and user
Answer: C
Q2) The Total Cost of Ownership Concept does NOT include quantitative factors.
A)True
B)False
Answer: False
Q3) The procedures for public procurement differ from the private sector.
A)True
B)False Answer: True
Q4) A reason for making items instead of buying them would include better quality control.
A)True
B)False Answer: True
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Chapter 3: Creating and Managing Supplier Relationships
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54 Verified Questions
54 Flashcards
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Sample Questions
Q1) Transactional SRM, allows the company to analyze the complete supplier base.
A)True
B)False
Answer: False
Q2) When developing successful partnerships, it is best to avoid inter-personal business relationships between buyers and suppliers.
A)True
B)False
Answer: False
Q3) Which of the following is important in developing successful relationships in a partnership?
A) Commitment by top management
B) Interpersonal business relationships between employees of the companies
C) Mutual/compatible needs that result in a win-win situation for the partners
D) All of these
Answer: D
Q4) ISO 14000 is a family of international standards for environmental management.
A)True
B)False
Answer: True
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Chapter 4: Ethical and Sustainable Sourcing
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63 Verified Questions
63 Flashcards
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Sample Questions
Q1) Which of the following is true of today's purchasing staff members?
A) They are viewed as strategic internal suppliers of the organization
B) They are expected to generate cost savings for the organization
C) They are expected to generate service and quality enhancements for the organization
D) All the above
Q2) In designing an ethical and sustainable strategy a firm might make use of which of the following?
A) Hire more supervisors to address problems quickly
B) Use performance measures to identify weaknesses
C) Create many short term relationships with suppliers
D) All of these
Q3) Reverse logistics has become an important trend in ethical and sustainable sourcing.
A)True
B)False
Q4) As relationships with suppliers become more trusted, reliable, and long-term in nature, early supplier involvement has become a popular strategy among firms.Explain THREE benefits gained from using this strategy.
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Chapter 5: Demand Forecasting
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59 Flashcards
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Sample Questions
Q1) It is possible to expect 100 percent forecast accuracy most of the time.
A)True
B)False
Q2) Without supply chain trading partners collaborating and exchanging information, the supply chain will always be suboptimal and contain excess inventories, resulting in less-than-maximum supply chain profits.
A)True
B)False
Q3) Regression analysis is commonly used in the cause-and-effect forecasting model.
A)True
B)False
Q4) When there is not a lot of currently relevant data available it is generally best to use:
A) Qualitative forecasting
B) Time series forecasting
C) Naive forecasting
D) Simple moving average forecasting
Q5) Trend variations are wavelike movements that are shorter than a year. A)True
B)False
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Chapter 6: Resource Planning Systems
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Sample Questions
Q1) In general, single integrator ERP solutions are better suited to more intricate workplaces.
A)True
B)False
Q2) MRP is the production planning system intended to develop long-range plans (more than a year away) concerning product families manufactured by the organization.
A)True
B)False
Q3) System nervousness is when even small changes to upper-level production plans cause major changes in lower-level production plans.
A)True
B)False
Q4) ERP Implosion is the process of converting a parent item's planned order releases into component gross requirements.
A)True B)False
Q5) Explain the three basic production strategies used to complete the aggregate plan.
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Page 8
Chapter 7: Inventory Management
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52 Verified Questions
52 Flashcards
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Sample Questions
Q1) MRO supplies are a type of work-in-progress.
A)True
B)False
Q2) The ABC inventory matrix combines two ABC analyses-one is based on current inventory valuation and the other is based on annual inventory dollar usage..
A)True
B)False
Q3) Steering wheels purchased by Ford are an example of dependent demand.
A)True
B)False
Q4) Which of the following is NOT an assumption of the economic order quantity (EOQ) model?
A) Demand is known, constant, and independent.
B) Lead time is known and constant.
C) Quantity discounts are not possible.
D) Production and use occur simultaneously.
E) The only variable costs are setup cost and holding cost.
Q5) Describe the ABC inventory matrix, and how is it used to manage inventory.
Q6) Name and briefly explain the four basic types of inventory.
Q7) List five of the assumptions of the EOQ model.
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Chapter 8: Process Management: Lean and Six Sigma in
the Supply Chain
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52 Verified Questions
52 Flashcards
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Sample Questions
Q1) Describe SPC and Acceptance Sampling.What is the key difference between the two?
Q2) Lean production, JIT, and Six Sigma quality mean the same thing.
A)True
B)False
Q3) Which of the following are among the MOST important elements of the lean production philosophy?
A) Quality inspections and a standardized product line
B) Fully automated assembly lines and a large supplier base
C) Large inventories and quality inspections
D) Waste reduction and continuous improvement
Q4) Which company probably played the largest role in the development of the Toyota Production System?
A) General Motors
B) Chrysler
C) Ford
D) Boeing
Q5) A weakness of lean systems is that none of its practices are related to the environment or sustainability.
A)True
B)False
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Chapter 9: Domestic USand Global Logistics
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65 Verified Questions
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Sample Questions
Q1) Logistics is what creates the efficient flow of goods between supply chain partners, allowing profits and competitive advantage to be maximized.
A)True
B)False
Q2) ______________ creates the efficient flow of goods between supply chain partners, allowing profits and competitive advantage to be maximized.
A) Operations
B) Transportation planning
C) Logistics
D) Procurement
Q3) A primary advantage for motor carriers is the weather.
A)True
B)False
Q4) Intermodal marketing companies (IMCs) are companies that act as intermediaries between intermodal
A) Trucking companies
B) Railroad companies
C) Waste management companies
D) Warehouse management companies
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Chapter 10: Customer Relationship Management
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53 Verified Questions
53 Flashcards
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Sample Questions
Q1) You work for a company that segments customers by demographic information, and then markets specifically to those customers who are located in the Los Angeles area.This is an example of:
A) Target marketing
B) Cross-selling
C) Geographic marketing
D) Personalized customer communication
Q2) Define THREE of the goals of the common CRM program.How does CRM software attempt to achieve each of these goals?
Q3) Today, successful CRM applications will be measured by the personal value created for the users.
A)True
B)False
Q4) Safeguarding customer information is a legal and ethical responsibility for any company collecting, processing, and transmitting sensitive customer data.
A)True
B)False
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Chapter 11: Global Location Decisions
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Sample Questions
Q1) High tariffs encourage multinational corporations to set up factories to produce locally.
A)True
B)False
Q2) Business clusters provide the competitive environment that promotes increasing innovation and profitability.
A)True
B)False
Q3) What are the three levels of any location decision?
Q4) According to the text, the development of cleaner, more fuel-efficient affordable energy technologies and renewable energy technologies will:
A) Not have an impact on the supply chain
B) Increase the cost of production and distribution
C) Decrease the costs in the supply chain
D) Cause companies to shut down
Q5) Facility location has a short-term impact on the firm's supply chains.
A)True
B)False
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Chapter 12: Service Response Logistics
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63 Verified Questions
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Sample Questions
Q1) A service had 1320 customers in one week, with 200 labor hours.The next week, the service had 1380 customers with 220 labor hours.What was the productivity growth from period 1 to period 2?
Q2) Service capacity is the number of customers per day the firm's service delivery systems are designed to serve.
A)True
B)False
Q3) A microfranchise is a type of franchising concept which is seen as a good way for economically disadvantaged people to make a living.
A)True
B)False
Q4) Themed restaurants such as the ESPN zone (sports theme), Rainforest Cafe (jungle theme), and Chuck E.Cheese (kids theme) are all examples of Entertailment facilities.
A)True
B)False
Q5) Discuss four important issues involved in managing a global service.
Q6) Define service response logistics and describe the important elements.
Q7) What are three key differences between services and manufacturing?
Page 14
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Chapter 13: Supply Chain Process Integration
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Sample Questions
Q1) External process integration can be an extremely challenging task because it can potentially cause a change in one or more organizational cultures.
A)True
B)False
Q2) According to the text, IBM had made sizeable investments in India growth markets and created a new procurement center in New Delhi.
A)True
B)False
Q3) One of the key supply chain business processes is order fulfillment, which seeks to forecast demand and coordinate purchasing and distribution in an effort to balance customer demand with the firm's manufacturing capacity.
A)True
B)False
Q4) In 2014, supply chain process integration was found to be the most significant predictor of firm's competitive position.
A)True
B)False
Q5) List and describe FIVE of the eight key supply chain business processes.
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Page 15
Chapter 14: Performance Measurement Along the Supply Chain
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57 Verified Questions
57 Flashcards
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Sample Questions
Q1) A company produces 300 bicycles every day.Each bicycle is worth $250.The inputs used to make those bicycles are labor, materials, and machine costs.The company pays their employees a total of $10,000 per day, the materials to make each bicycle cost $50, and the cost to operate the machines is $3000 per day.Based only on the data provided, what is this company's total productivity for one day?
A) 2.68
B) 0.33
C) 0.77
D) 1.31
Q2) Web-based balanced scorecard applications are sometimes referred to as performance dashboards.
A)True
B)False
Q3) The Balanced Scorecard approach to performance measurement seeks to improve managerial decision-making by aligning an organization's performance measures with its strategic plan and goals.
A)True
B)False
Q4) Briefly describe the FOUR primary perspectives of the balanced scorecard.
Page 16
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