Inventory Management
Final Exam
Course Introduction
Inventory Management focuses on the principles, techniques, and strategies used to efficiently oversee and control the flow of goods, materials, and products throughout the supply chain. The course covers topics such as inventory planning, demand forecasting, ordering policies, stock valuation, inventory control systems, and the role of technology in modern inventory management. Students will analyze the importance of balancing inventory costs with customer service levels, examine different models for inventory optimization, and evaluate the impact of inventory decisions on overall business performance. Practical case studies and industry examples are used to illustrate real-world inventory challenges and solutions.
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
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Sample Questions
Q1) Encouraging or helping a firm's suppliers to perform in a desired fashion can be referred to as:
A) Progressive procurement
B) Supplier management
C) Right-shoring
D) Supply chain performance management
Answer: B
Q2) Which of the following can be defined as "The ability to meet the needs of current supply chain members without hindering the ability to meet the needs of future generations".
A) Reverse logistics
B) Enterprise resource planning
C) Sustainability
D) Strategic partnerships
Answer: C
Q3) Supply chain management activity includes managing the various compensation and benefit programs within an organization.
A)True
B)False
Answer: False
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Chapter 2: Purchasing Management
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Sample Questions
Q1) Foreign suppliers located farther away may be able to deliver goods faster than domestic suppliers due to more efficient transportation and logistical systems.
A)True
B)False
Answer: True
Q2) Firms can use total cost analysis to:
A) See how efficiently management is using its total assets to generate profits
B) Select the most cost-effective supplier
C) Show how many times a firm's inventory is utilized and replaced over an accounting period
D) Brainstorm and isolate the causes of a problem
Answer: B
Q3) When calculating Return on Investment, current assets include:
A) Cash, Accounts Receivable, and Inventory
B) Cash, Accounts Receivable, and Equipment
C) Accounts Receivable, Equipment, and Real Estate
D) Equipment, Buildings, and Real Estate
Answer: A
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Chapter 3: Creating and Managing Supplier Relationships
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Sample Questions
Q1) 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
Q2) Summers, Inc.needs to generate a list of good/services purchased per supplier.Which type software program can the manager consult to obtain this information?
A) ISO 9000
B) MRP
C) SRM
D) SCSS
Answer: C
Q3) A seven-step approach to supplier development might include identifying critical suppliers not meeting performance requirements.
A)True
B)False Answer: True
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Chapter 4: Ethical and Sustainable Sourcing
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Sample Questions
Q1) 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.
Q2) One standard which is measured in environmental supplier certification is:
A) The number of trucks owned by the supplier
B) Technology investment by the supplier
C) The suppliers' recycled content
D) The number of on-time deliveries
Q3) Demands by customers for companies to become more ethically and environmentally focused have placed added pressures on firms to improve their performance in supply chain management.
A)True
B)False
Q4) It is best for firms to learn through their own experiences the methods and tools that work the best, rather than benchmarking.
A)True
B)False
Q5) Describe THREE important steps in organizing and managing a successful strategic alliance program.
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Chapter 5: Demand Forecasting
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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) List and Explain two types of qualitative forecasting methods.
Q3) A forecast tracking signal is used to determine:
A) If the product has shipped on time
B) The location of the current shipment
C) The price to charge for the product
D) If the forecast bias is within the acceptable control limits
Q4) Toymaker Spin Master, did not properly forecast demands for their new product, Hatchimals, in 2016.This caused stockouts for their distributors.
A)True
B)False
Q5) The goal of a good forecasting technique is to minimize the deviation between actual demand and the forecast.
A)True
B)False
Q6) List FOUR benefits that can be achieved by implementing a successful CPFR program.
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Chapter 6: Resource Planning Systems
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Sample Questions
Q1) The _______________ is used to check the feasibility of the Master Production Schedule.
A) Distribution Requirement Plan
B) Material Requirement Plan
C) Capacity Requirement Plan
D) Rough-Cut Capacity Plan
Q2) An advantage/benefit of utilizing an ERP system includes which of the following?
A) ERP systems are designed to take advantage of Internet technology
B) ERP systems enable the firm to automate some of the steps of a manufacturing process
C) Both A & B
D) None of the above
Q3) Which of the following MRP terms represents the parts demanded by a parent?
A) Gross requirement
B) Component
C) Net requirement
D) Scheduled receipt
Q4) Explain the three basic production strategies used to complete the aggregate plan.
Q5) Describe the limitations of a legacy MRP system.?
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Chapter 7: Inventory Management
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Sample Questions
Q1) 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.
Q2) Which one of the following is NOT a reason for firms to carry inventory?
A) To meet variations in product demand
B) To increase production change/setup costs
C) To allow for production scheduling flexibility
D) To take advantage of quantity discounts
E) To maintain independence of operations
Q3) Steering wheels purchased by Ford are an example of dependent demand.
A)True
B)False
Q4) The (s, S) continuous review policy is to order the same quantity, Q, when physical inventory reaches the reorder point.
A)True
B)False
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Chapter 8: Process Management: Lean and Six Sigma in
the Supply Chain
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Sample Questions
Q1) Provide an overview of the beliefs of each of the following quality professionals: W.E.Deming
Philip Crosby
Joseph Juran
Q2) A weakness of lean systems is that none of its practices are related to the environment or sustainability.
A)True
B)False
Q3) Describe SPC and Acceptance Sampling.What is the key difference between the two?
Q4) Which of the following layouts is primarily designed to process parts, components, or jobs requiring the same or similar processing steps, saving duplication of equipment and labor:
A) Work centers
B) Production kanbans
C) Work-in-process
D) Manufacturing Cells
Q5) Some of Deming's 14 points actually conflict with many Six Sigma concepts. A)True B)False
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Chapter 9: Domestic USand Global Logistics
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Sample Questions
Q1) In Europe, rail transportation tends to be much more prevalent and reliable than rail transportation in the U.S., because European track, facilities, and equipment are newer and better maintained.
A)True
B)False
Q2) Which of the following legislative acts is NOT in support of transportation deregulation?
A) Railroad Revitalization and Regulatory Reform Act
B) Staggers Rail Act
C) FAA Authorization Act
D) Reed-Bulwinkle Act
Q3) Reverse logistics can have a positive impact on the environment through activities such as?
A) Data warehousing
B) Reneging
C) Risk pooling
D) Recycling
Q4) Explain some intermodal transportation alternatives.
Q5) Does risk pooling favor a centralized or decentralized warehousing system? Why?
Q6) List and explain three capabilities of lean warehousing.
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Chapter 10: Customer Relationship Management
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Sample Questions
Q1) A customer's lifetime value is calculated by:
A) Summing the projected annual profitability of the customer
B) Summing the annual sales of the customer and then dividing by the projected lifetime
C) The firm's MRP system
D) Finding the NPV of a customer's projected lifetime profits for the firm
Q2) CRM systems today require less training because:
A) The systems don't do as many things as they used to.
B) They are designed to be more user-friendly
C) Pre-purchase training sessions have become very sophisticated
D) All of the above
Q3) Which of the following is one of the most basic and important activities of CRM?
A) Segmenting customers
B) Cross-selling customers
C) Increasing churn
D) Finding customers
Q4) Creating a good CRM plan is necessary prior to purchasing a CRM system.Briefly describe a CRM plan.
Q5) Define THREE of the goals of the common CRM program.How does CRM software attempt to achieve each of these goals?
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Chapter 11: Global Location Decisions
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Sample Questions
Q1) Which of the following is a critical issue in sustainable development?
A) Labor and legal problems
B) Countertrade
C) Climate change
D) Supply base optimization
Q2) Facility location decisions can affect the efficiency and effectiveness of managing supply chains, the level of service provided to customers, and a firm's overall competitive advantage.
A)True
B)False
Q3) When an organization is considering future facility locations, provide three human resource related issues that the organization would need to consider.
Q4) Which of the following is a factor in choosing a location?
A) Currency stability
B) Freight forwarders
C) Yokoten
D) All of the above
Q5) What are the three levels of any location decision?
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Chapter 12: Service Response Logistics
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Sample Questions
Q1) 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
Q2) Which of the following is an example of a person that would be considered to provide a Pure Service?
A) Attorney/Lawyer
B) Management Consultant
C) Musical Entertainer
D) All of the above
Q3) A customer who enters the waiting line but leaves the system prior to receiving service is said to have:
A) Balked
B) Reneged
C) Stalled
D) Disposed
Q4) Explain two service layout strategies that help to maximize customer service, server productivity, and service efficiencies, which support the overall business strategy.
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Chapter 13: Supply Chain Process Integration
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Sample Questions
Q1) Two methods for managing supply chain risk include utilizing a supply chain IT system and identifying backup suppliers.
A)True
B)False
Q2) 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
Q3) According to the textbook, there are four key supply chain business processes: Purchasing, Manufacturing, Distribution, and Returns.
A)True
B)False
Q4) Information technology advances, for example, have made cyber attacks:
A) Less common
B) More common
C) Nearly impossible
D) Limited to franchises
Q5) List and describe FIVE of the eight key supply chain business processes.
Q6) List and explain TWO of the causes of the bullwhip effect.
Page 15
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Chapter 14: Performance Measurement Along the Supply Chain
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Sample Questions
Q1) Which of the following BSC framework perspectives deals with new product development, innovative elements of processes, and time-based measures?
A) Financial
B) Internal Business Process
C) Customer
D) Reliability
Q2) Which of the following is focused on promoting the sharing of environmental responsibility along the supply chain?
A) SCOR
B) Balanced Scorecard
C) GSCM
D) Single-factor productivity measures
Q3) Which of the following is a problem with a company establishing standards for performance? For example: production rates of 10 units per hour.
A) Employees are driven to work so fast they may make defects
B) Employees and managers may falsify production records
C) Once performance goals are reached, incentives to improve may disappear
D) All of the above
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