Inventory Management Question
Bank
Course Introduction
Inventory Management explores the principles and techniques involved in efficiently overseeing the flow, storage, and control of goods within an organization. This course covers key topics such as demand forecasting, inventory control models, order quantity decision-making, stock replenishment systems, and the impact of inventory policies on supply chain performance. Students will learn how to balance cost minimization with service level optimization, utilize software tools for inventory tracking, and apply strategies to reduce waste and improve responsiveness. Emphasis is placed on both traditional and contemporary approaches to inventory management in various industries.
Recommended Textbook
Supply Chain Management 5th Edition by Sunil Chopra
Available Study Resources on Quizplus
18 Chapters
1461 Verified Questions
1461 Flashcards
Source URL: https://quizplus.com/study-set/1641
Page 2
Chapter 1: Understanding the Supply Chain
Available Study Resources on Quizplus for this Chatper
93 Verified Questions
93 Flashcards
Source URL: https://quizplus.com/quiz/32562
Sample Questions
Q1) The objective of every supply chain is to maximize the overall value generated.
A)True
B)False
Answer: True
Q2) Explain the 3 decision phases (categories)that must be made in a successful supply chain.
Answer: The 3 decision phases that occur within a supply chain are supply chain strategy (or design),supply chain planning and supply chain operation.Decisions relate to the flow of information,product and funds.The difference between categories depends upon the frequency of each decision and the time frame over which it has an impact.During the supply chain strategy phase,a company determines what the chain's configurations will be,how resources will be allocated,and what processes each stage will perform.This will establish the structure of the supply chain for several years.Supply chain planning deals with decisions with a time frame from 3 months up to a year.The planning phase must work within the constraints established in the strategy phase.Planning decisions include which markets to supply from which locations,subcontracting of manufacturing,inventory policies and timing and size of marketing promotions.The supply chain operation phase operates on a weekly or daily time horizon and deals with decisions concerning individual customer orders.
To view all questions and flashcards with answers, click on the resource link above.
Page 3
Chapter 2: Supply Chain Performance: Achieving Strategic
Fit and Scope
Available Study Resources on Quizplus for this Chatper
65 Verified Questions
65 Flashcards
Source URL: https://quizplus.com/quiz/32572
Sample Questions
Q1) The uncertainty that exists due to the portion of demand that the supply chain is required to meet is the
A) rate of strategic uncertainty.
B) demand uncertainty.
C) implied demand uncertainty.
D) average forecast error.
E) none of the above
Answer: C
Q2) The first step in achieving strategic fit between competitive and supply chain strategies is to
A) understand the supply chain and map it on the responsiveness spectrum.
B) understand customers and supply chain uncertainty.
C) match supply chain responsiveness with the implied uncertainty of demand.
D) ensure that all functional strategies within the supply chain support the supply chain's level of responsiveness.
E) none of the above
Answer: B
To view all questions and flashcards with answers, click on the resource link above. Page 4
Chapter 3: Supply Chain Drivers and Metrics
Available Study Resources on Quizplus for this Chatper
72 Verified Questions
72 Flashcards
Source URL: https://quizplus.com/quiz/32573
Sample Questions
Q1) Which of the following is not an issue companies need to consider in facility location decisions?
A) Quality of workers
B) Product development
C) Proximity to customers and the rest of the network
D) Cost of facility
E) Tax effects
Answer: B
Q2) Excess capacity
A) allows a facility to be very flexible and to respond to wide swings in the demands placed on it.
B) costs money and therefore can decrease efficiency.
C) requires proximity to customers and the rest of the network.
D) both A and B
E) all of the above
Answer: D
Q3) The two major types of facilities are production sites and storage sites.
A)True
B)False
Answer: True
To view all questions and flashcards with answers, click on the resource link above. Page 5
Chapter 4: Designing Distribution Networks and Applications to E-Business
Available Study Resources on Quizplus for this Chatper
78 Verified Questions
78 Flashcards
Source URL: https://quizplus.com/quiz/32574
Sample Questions
Q1) Which distribution network design is being used when the distributor/retailer delivers the product to the customer's home instead of using a package carrier?
A) Manufacturer storage with direct shipping
B) Manufacturer/distributor storage with customer pickup
C) Distributor storage with package carrier delivery
D) Distributor storage with last mile delivery
E) Retail storage with customer pickup
Q2) Changing the distribution network design DOES NOT affect the following supply chain costs
A) transportation.
B) inventories.
C) information.
D) sourcing.
Q3) The major disadvantage of a distribution network with local storage is the increased inventory and facility costs.
A)True
B)False
Q4) Explain how the design of the distribution network affects the cost of the four supply chain drivers.
6
To view all questions and flashcards with answers, click on the resource link above.
Chapter 5: Network Design in the Supply Chain
Available Study Resources on Quizplus for this Chatper
80 Verified Questions
80 Flashcards
Source URL: https://quizplus.com/quiz/32575
Sample Questions
Q1) High tariffs lead to more production locations within a supply chain network,with each location having a lower allocated capacity.
A)True
B)False
Q2) It is very important that long-term consequences be thought through when making facility decisions,because
A) network designers can use this fact to influence the role of the new facility and the focus of people working there.
B) facilities last a long time and have an enduring impact on a firm's performance.
C) it is astounding how often tax incentives drive the choice of location.
D) the location of a facility has a significant impact on the extent and form of communication that develops in the supply chain network.
E) the quality of life at selected facility locations has a significant impact on performance.
Q3) Tariffs have a minor influence on location decisions within a supply chain.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 7
Chapter 6: Designing Global Supply Chain Networks
Available Study Resources on Quizplus for this Chatper
85 Verified Questions
85 Flashcards
Source URL: https://quizplus.com/quiz/32576
Sample Questions
Q1) The appropriate discount rate used in decision tree methodology
A) should be risk-adjusted and risk may vary by period and decision node.
B) should be risk-adjusted and risk may not vary by period and decision node.
C) should not be risk-adjusted and risk may vary by period and decision node.
D) should not be risk-adjusted and risk may not vary by period and decision node.
E) None of the above are accurate.
Q2) The value of flexibility increases with an increase in uncertainty.
A)True
B)False
Q3) A logical objection to both the multiplicative and additive binomial is the fact that the underlying factor
A) takes on only one of two possible values at the end of each period.
B) takes on two values at the end of each period.
C) takes on one of many possible values at the end of each period.
D) takes on several of many possible values at the end of each period.
E) none of the above
Q4) Summarize the steps in the decision tree analysis methodology.
Q5) Explain additive and multiplicative binomial representations of uncertainty.
To view all questions and flashcards with answers, click on the resource link above. Page 8
Chapter 7: Demand Forecasting in a Supply Chain
Available Study Resources on Quizplus for this Chatper
90 Verified Questions
90 Flashcards
Source URL: https://quizplus.com/quiz/32577
Sample Questions
Q1) The mixed form of the systematic component of demand is shown as
A) level × trend × seasonal factor.
B) level + trend + seasonal factor.
C) (level + trend) × seasonal factor.
D) level × (trend + seasonal factor).
E) (level × trend) + seasonal factor.
Q2) ________ forecasting methods use historical demand to make a forecast.
A) Qualitative
B) Time-series
C) Causal
D) Simulation
Q3) With respect to time-series methods,the systematic component measures the expected value of demand and does NOT consist of
A) level.
B) trend.
C) seasonality.
D) random component.
Q4) Explain the four types of forecasting methods.
Q5) Describe the basic characteristics of forecasts that managers should be aware.
Page 9
Q6) Discuss key issues of forecasting in practice.
To view all questions and flashcards with answers, click on the resource link above.
Chapter 8: Aggregate Planning in a Supply Chain
Available Study Resources on Quizplus for this Chatper
78 Verified Questions
78 Flashcards
Source URL: https://quizplus.com/quiz/32578
Sample Questions
Q1) Which of the following is an approach a company can use to create a buffer for forecast error using safety inventory?
A) Overtime
B) Carry extra workforce permanently
C) Build and carry extra inventories
D) Subcontracting
E) Purchase capacity or product from an open or spot market
Q2) The strategy where a stable machine capacity and workforce are maintained with a constant output rate,with inventory levels fluctuating over time,is the
A) adjustable strategy.
B) Chase strategy.
C) level strategy.
D) mixed strategy.
E) time flexible strategy.
Q3) Aggregate planning is an important supply chain issue because,to be effective,it requires inputs from throughout the supply chain,but its results have little impact on the supply chain.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above.
Page 10
Chapter 9: Sales and Operations Planning: Planning Supply and
Demand in a Supply Chain
Available Study Resources on Quizplus for this Chatper
91 Verified Questions
91 Flashcards
Source URL: https://quizplus.com/quiz/32579
Sample Questions
Q1) The pricing and promotion decisions are often made by
A) marketing and sales.
B) marketing and operations.
C) operations and sales.
D) marketing, operations, and sales.
E) marketing and operations without sales.
Q2) In general,as the fraction of increased demand coming from forward buying grows,offering the promotion during the peak demand period becomes more attractive.
A)True
B)False
Q3) A firm that builds dedicated facilities to produce a relatively stable output of products over time in a very efficient manner and purchases peak production capability from other companies is using subcontracting.
A)True
B)False
Q4) A firm can vary supply of product by controlling production capacity and inventory. A)True
B)False
Page 11
To view all questions and flashcards with answers, click on the resource link above.
Chapter 10: Coordination in a Supply Chain
Available Study Resources on Quizplus for this Chatper
87 Verified Questions
87 Flashcards
Source URL: https://quizplus.com/quiz/32563
Sample Questions
Q1) A reduction in replenishment lead time helps dampen the bullwhip effect by reducing the underlying uncertainty of demand.
A)True
B)False
Q2) Behavioral obstacles are often related to the way the supply chain is structured and reduce the bullwhip effect.
A)True
B)False
Q3) How does cooperation and trust improve performance in a supply chain partnership?
Q4) Incentive obstacles refer to situations where incentives offered to different stages or participants in a supply chain lead to actions that increase variability and reduce total supply chain profits.
A)True
B)False
Q5) The bullwhip effect moves a supply chain away from the efficient frontier by increasing cost and decreasing responsiveness.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 12
Chapter 11: Managing Economies of Scale in the Supply
Chain: Cycle Inventory
Available Study Resources on Quizplus for this Chatper
95 Verified Questions
95 Flashcards
Source URL: https://quizplus.com/quiz/32564
Sample Questions
Q1) Describe the impact of trade promotions on cycle inventory.
Q2) Cycle inventory exists in a supply chain because different stages exploit economies of scale to lower total cost.
A)True
B)False
Q3) To reduce the optimal lot size by a factor of k,the fixed order cost S must be reduced by a factor of k.
A)True
B)False
Q4) Aggregating across products,retailers,or suppliers in a single order allows for A) an increase in lot size for individual products.
B) an increase in customer demand.
C) a reduction in holding cost per unit.
D) a reduction in lot size for individual products.
E) a reduction in purchase price per unit.
Q5) Price discrimination is the practice where a firm charges differential prices to maximize profits.
A)True
B)False
Q6) Discuss the characteristics of a successful multi-echelon supply chain. Page 13
To view all questions and flashcards with answers, click on the resource link above.
Page 14
Chapter 12: Managing Uncertainty in a Supply Chain: Safety Inventory
Available Study Resources on Quizplus for this Chatper
96 Verified Questions
96 Flashcards
Source URL: https://quizplus.com/quiz/32565
Sample Questions
Q1) In most supply chains,the key to reducing the underlying forecast uncertainty is to link all forecasts throughout the supply chain to customer demand data.
A)True
B)False
Q2) The appropriate level of safety inventory is determined by the uncertainty of both demand and supply and the desired level of cycle inventory.
A)True
B)False
Q3) The required safety inventory grows rapidly with a decrease in the desired product availability.
A)True
B)False
Q4) All inventory between a given stage in the supply chain and the final customer is called the
A) cycle inventory.
B) demand inventory.
C) echelon inventory.
D) safety inventory.
To view all questions and flashcards with answers, click on the resource link above. Page 15
Chapter 13: Determining the Optimal Level of Product Availability
Available Study Resources on Quizplus for this Chatper
80 Verified Questions
80 Flashcards
Source URL: https://quizplus.com/quiz/32566
Sample Questions
Q1) A supply chain can use a high level of product availability to improve its responsiveness and attract customers,thus increasing revenue for the supply chain.
A)True
B)False
Q2) Under tailored postponement,a firm produces the amount that is very likely to sell using
A) the lower cost production method with postponement and produces the portion of demand that is uncertain using postponement.
B) the lower cost production method without postponement and produces the portion of demand that is uncertain using postponement.
C) the higher cost production method with postponement and produces the portion of demand that is uncertain using postponement.
D) the higher cost production method without postponement and produces the portion of demand that is uncertain using postponement.
Q3) Explain how tailored sourcing can be used to improve profitability.
Q4) Explain the relationship between product availability and supply chain profitability.
To view all questions and flashcards with answers, click on the resource link above.
Page 16
Chapter 14: Transportation in a Supply Chain
Available Study Resources on Quizplus for this Chatper
60 Verified Questions
60 Flashcards
Source URL: https://quizplus.com/quiz/32567
Sample Questions
Q1) Ignoring inventory costs when making transportation decisions can result in choices that worsen the performance of a supply chain.
A)True
B)False
Q2) Firms can significantly reduce the safety inventory they require by physically aggregating inventories in one location,which will also decrease transportation cost.
A)True
B)False
Q3) The vehicle-related cost is incurred whether the vehicle is operating or not and is considered fixed for short-term operational decisions by the carrier.
A)True
B)False
Q4) What trade-offs do managers need to consider when making transportation decisions?
A) Transportation cost versus inventory cost
B) Transportation cost versus customer responsiveness
C) Inventory cost versus customer responsiveness
D) A and B only
To view all questions and flashcards with answers, click on the resource link above. Page 17
Chapter 15: Sourcing Decisions in a Supply Chain
Available Study Resources on Quizplus for this Chatper
104 Verified Questions
104 Flashcards
Source URL: https://quizplus.com/quiz/32568
Sample Questions
Q1) Which contracts create information distortion that result in excess inventory in the supply chain and a greater mismatch of supply and demand?
A) Buyback or returns contract
B) Revenue-sharing contract
C) Quantity flexibility contract
D) A and B only
Q2) Exchange rates,taxes,and duties can be significant for a firm with a global manufacturing and supply base.
A)True
B)False
Q3) Single sourcing is used to ensure a degree of competition and guarantee the possibility of a backup should a source fail to deliver.
A)True
B)False
Q4) Sourcing a product overseas may have lower product cost but will generally incur a higher inbound transportation cost.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 18
Chapter 16: Pricing and Revenue Management in a Supply Chain
Available Study Resources on Quizplus for this Chatper
86 Verified Questions
86 Flashcards
Source URL: https://quizplus.com/quiz/32569
Sample Questions
Q1) Revenue management may be defined as
A) the use of differential costing based on product or capacity availability to decrease supply chain cost.
B) the use of differential costing based on customer segment, time of use, and product or capacity availability to increase profitability.
C) the use of differential pricing based on customer segment, time of use, and product or capacity availability to decrease supply chain surplus.
D) the use of differential pricing based on customer segment, time of use, and product or capacity availability to increase supply chain surplus.
Q2) The goal when making the overbooking decision is to maximize supply chain profits by
A) maximizing the value of wasted capacity and the cost of capacity shortage.
B) maximizing supply chain profits.
C) minimizing the cost of wasted capacity and the cost of capacity shortage.
D) minimizing the cost of wasted capacity and minimizing capacity shortages.
Q3) Any asset that loses value over time is perishable.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 19
Chapter 17: Information Technology in a Supply Chain
Available Study Resources on Quizplus for this Chatper
66 Verified Questions
66 Flashcards
Source URL: https://quizplus.com/quiz/32570
Sample Questions
Q1) The goal of the CRM macro process is to
A) negotiate an effective contract that best meets enterprise needs.
B) improve the design of products.
C) fulfill demand generated by ISCM processes.
D) generate customer demand and facilitate transmission and tracking of orders.
Q2) The ISCM processes should have strong integration with the SRM macro process,because supply planning,fulfillment,and field service are all dependent on suppliers and therefore the SRM processes.
A)True
B)False
Q3) There are 4 major SRM processes.Which of the following is not one of these?
A) Sell
B) Negotiate
C) Source
D) Buy
Q4) Explain the role of information technology in the supply chain.
Q5) Every industry has the same key success factors.
A)True
B)False
Q6) Explain the role of information in the supply chain.
Page 20
To view all questions and flashcards with answers, click on the resource link above.
Chapter 18: Sustainability and the Supply Chain
Available Study Resources on Quizplus for this Chatper
55 Verified Questions
55 Flashcards
Source URL: https://quizplus.com/quiz/32571
Sample Questions
Q1) In the context of greenhouse gas emission,direct emissions are
A) controlled by the reporting entity.
B) created through waste disposal.
C) come from utility based services.
D) come from employee based travel.
Q2) Walmart started its focus on sustainability as a defensive move given the beating it was taking from environmental activists.
A)True
B)False
Q3) What are the challenges to greater sustainability posed by the tragedy of the commons?
Q4) ________ can be used to assess the environmental impacts associated with a product's life from cradle to grave.
A) CRM
B) SRM
C) LCA
D) MRP
Q5) Discuss the role of sustainability supply chains.
Q6) Discuss the factors driving an increased focus on sustainability.
Page 21
To view all questions and flashcards with answers, click on the resource link above.