Inventory Management Review Questions
Course Introduction
Inventory Management explores the principles and techniques involved in effectively overseeing the flow of goods and materials within an organization. The course covers key topics such as forecasting demand, ordering and replenishment strategies, inventory control models, and performance measurement. Students learn how to balance carrying costs with service levels, manage stock in multi-echelon supply chains, and utilize technology for inventory tracking and optimization. Real-world case studies and practical exercises help students develop skills in decision-making and problem-solving to efficiently manage inventory and support organizational goals.
Recommended Textbook Operations and Supply Chain Management 15th Edition by F. Robert Jacobs
Available Study Resources on Quizplus
25 Chapters
1573 Verified Questions
1573 Flashcards
Source URL: https://quizplus.com/study-set/2909
Page 2
Chapter 1: Introduction
Available Study Resources on Quizplus for this Chatper
72 Verified Questions
72 Flashcards
Source URL: https://quizplus.com/quiz/57949
Sample Questions
Q1) Internet technology has made the sharing of reliable real-time information expensive.
A)True
B)False
Answer: False
Q2) The central idea of supply chain management is to apply a total system approach to managing the flow of information, materials, and services from raw material suppliers through factories and warehouses to the end customer.
A)True
B)False Answer: True
Q3) The approach that advocates making revolutionary changes as opposed to evolutionary changes is called "business process reengineering."
A)True
B)False
Answer: True
To view all questions and flashcards with answers, click on the resource link above.
Page 3
Chapter 2: Strategy
Available Study Resources on Quizplus for this Chatper
50 Verified Questions
50 Flashcards
Source URL: https://quizplus.com/quiz/57948
Sample Questions
Q1) A firm's business practices toward its labor force pertain mainly to the economic aspect of the triple bottom line concept.
A)True
B)False
Answer: False
Q2) In a multifactor measure of productivity, the numerator of the ratio would include all resources used or all inputs.
A)True
B)False
Answer: False
Q3) The process when a company seeks to match the benefits of a successful position while maintaining its existing position by adding new features, services, and technologies into its current portfolio is called flexibility.
A)True
B)False
Answer: False
To view all questions and flashcards with answers, click on the resource link above. Page 4
Chapter 4: Project Management
Available Study Resources on Quizplus for this Chatper
72 Verified Questions
72 Flashcards
Source URL: https://quizplus.com/quiz/57947
Sample Questions
Q1) A listing of immediate predecessor activities is important information in a CPM analysis for which of the following reasons?
A)It specifies the relationships in the CPM network of activities.
B)It provides useful timing information.
C)It includes cost information.
D)It is the probability information required in the final step of CPM.
E)None of these
Answer: A
Q2) A project can be subdivided into which of the following?
A)Job orders
B)Sub-jobs
C)Work packages
D)Sub-paths
E)Events and decisions
Answer: C
Q3) A project milestone is a specific event to be reached by a particular point in time.
A)True
B)False
Answer: True
To view all questions and flashcards with answers, click on the resource link above.
Page 5
Chapter 3: Design of Products and Services
Available Study Resources on Quizplus for this Chatper
53 Verified Questions
53 Flashcards
Source URL: https://quizplus.com/quiz/57946
Sample Questions
Q1) Ecodesign replaces one or more of the other requirements considered in the design process.
A)True
B)False
Q2) A key tool of a quality function deployment team is the house of quality matrix.
A)True
B)False
Q3) Quality function deployment (QFD):
A)Is a manufacturing function aimed at lowering cost by reducing the portion of rejected units.
B)Fills the house of quality matrix with the designer's aspirations for the product.
C)Starts with studying and listening to customers.
D)Is a place where the quality assurance function is housed.
E)Is another term for value engineering.
Q4) Designing a new product for aesthetics and for the user is generally termed industrial design.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 6
Chapter 5: Strategic Capacity Management
Available Study Resources on Quizplus for this Chatper
57 Verified Questions
57 Flashcards
Source URL: https://quizplus.com/quiz/57945
Sample Questions
Q1) In practice, achieving a perfectly balanced plant is usually both impossible and undesirable.
A)True
B)False
Q2) A production facility works best when it focuses on a fairly limited set of production objectives.
A)True
B)False
Q3) Capacity can be defined as the amount of available resource inputs relative to requirements for output over a particular period of time.
A)True
B)False
Q4) The larger the capacity cushion, the better.
A)True
B)False
Q5) The basic notion of economies of scale is that as a plant gets larger and volume increases, the average cost per unit of output drops.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 7
Chapter 6: Learning Curves
Available Study Resources on Quizplus for this Chatper
55 Verified Questions
55 Flashcards
Source URL: https://quizplus.com/quiz/57944
Sample Questions
Q1) You are a consultant specializing in estimating the costs after the employees learn how to do a job more efficiently by repetition.Your client can produce a product the first time at a cost of $2,500.If their 65 percent learning curve allows them to reduce their costs on each product, what is the total cost of producing 400 units of the new product?
A)$100,000
B)$78,900
C)$58,600
D)$45,765
E)$37,850
Q2) You have determined that a 75 percent learning curve is appropriate for a task.If the initial timing of the person performing that job was 50 minutes, and if you need the job performed 500 times, how many minutes of work will be required?
A)25,000 minutes
B)3,184 minutes
C)1,895 minutes
D)1,379 minutes
E)636.8 minutes
To view all questions and flashcards with answers, click on the resource link above.
Chapter 7: Manufacturing Processes
Available Study Resources on Quizplus for this Chatper
41 Verified Questions
41 Flashcards
Source URL: https://quizplus.com/quiz/57943
Sample Questions
Q1) A difference between project and continuous flow categories of process flow structures is which of the following?
A)The size and bulk of the product
B)Discrete parts moving from workstation to workstation
C)Degree of equipment specialization
D)Being a "virtual factory"
E)Profit per unit
Q2) The placement of which of the following is not determined by production process organization decisions?
A)Departments
B)Work groups
C)Workstations
D)Machines
E)Emergency exits
Q3) The focus in the make-to-stock environment is on providing finished goods where and when the customers want them.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 9
Chapter 8: Facility Layout
Available Study Resources on Quizplus for this Chatper
55 Verified Questions
55 Flashcards
Source URL: https://quizplus.com/quiz/57942
Sample Questions
Q1) In balancing an assembly line, workstation cycle time has to be less than the time between successive units coming off the end of the line.
A)True
B)False
Q2) Using the assembly-line balancing procedures for any assembly line balancing problem, comparing the theoretical number of work stations (call it X) and the actual number of work stations required using shortest processing time first rule (call it Y), which of the following is most appropriate?
A)X is always less than Y
B)X is sometimes more than Y
C)X is never less than Y
D)X is sometimes less than Y and sometimes more than Y
E)X is always less than or equal to Y.
Q3) Assembly-line balancing means assigning all necessary tasks to a series of workstations so that each workstation has no more than can be done in the workstation cycle time and so that idle time across all workstations is minimized.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 10
Chapter 9: Service Processes
Available Study Resources on Quizplus for this Chatper
61 Verified Questions
61 Flashcards
Source URL: https://quizplus.com/quiz/57941
Sample Questions
Q1) Because little or no inventory is carried in a service operation, it is easy to separate the operations management functions from marketing in services.
A)True
B)False
Q2) Poka-yokes are procedures that block the inevitable mistake from becoming a service defect.
A)True
B)False
Q3) Service guarantees can be used at the service design stage to focus the firm's delivery system on the things it must do well to satisfy the customer.
A)True
B)False
Q4) Which of the following is not an element of a good service guarantee?
A)Unconditional (no small print)
B)The customer controls the process
C)Easy to understand
D)Easy to communicate
E)Meaningful to the customer
To view all questions and flashcards with answers, click on the resource link above.
11
Chapter 10: Waiting Line Analysis and Simulation
Available Study Resources on Quizplus for this Chatper
70 Verified Questions
70 Flashcards
Source URL: https://quizplus.com/quiz/57940
Sample Questions
Q1) A small vendor has either a good day of sales with an average of $1,000 or a bad day with an average of only $500 for the day.To simulate these outcomes, random numbers from 00 to 99 should be assigned with the intervals determined from the frequency distribution.If, during the last 100 days, the vendor had 27 good days and 73 bad days, which of the following is a correct random-number interval for a bad day?
A)28 to 99
B)27 to 73
C)27 to 100
D)27 to 99
E)00 to 26
Q2) Best customer last is a queue discipline discussed in the textbook.
A)True
B)False
Q3) An infinite population in waiting line management refers to a population that is large enough in relation to the service system so that the change in population size caused by subtractions or additions to the population does not significantly affect the system probabilities.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above.
Page 12
Chapter 11: Process Design and Analysis
Available Study Resources on Quizplus for this Chatper
53 Verified Questions
53 Flashcards
Source URL: https://quizplus.com/quiz/57939
Sample Questions
Q1) Hybrid processes combine features of make-to-order and make-to-stock production processes.
A)True
B)False
Q2) When we use a make-to-stock production process, we control our production based on a desired amount of finished goods inventory.
A)True
B)False
Q3) An advantage of a make-to-stock process is which of the following?
A)It features rapid delivery of a standard product.
B)All units of output are unique.
C)It responds directly to customer orders.
D)It allows the firm to avoid inventory costs.
E)It combines the best features of other processes.
Q4) A service operation by its very nature is a make-to-stock type of production process.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 13
Chapter 12: Six Sigma Quality
Available Study Resources on Quizplus for this Chatper
69 Verified Questions
69 Flashcards
Source URL: https://quizplus.com/quiz/57938
Sample Questions
Q1) The primary purpose of the Malcolm Baldrige National Quality Award is which of the following?
A)To encourage the spread of statistical quality control
B)To improve human resource development and management in manufacturing
C)To help companies review and structure their quality programs
D)To prove that American firms were competitive in quality
E)To emphasize the use of quantitative methods in process management
Q2) A quality guru named Philip Crosby defined quality as conformance to requirements.
A)True
B)False
Q3) Design of experiments (DOE) is sometimes referred to as multivariate testing.
A)True
B)False
Q4) A process that is in Six-Sigma control will produce no more than two defects out of every million units.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 14
Chapter 13: Statistical Quality Control
Available Study Resources on Quizplus for this Chatper
63 Verified Questions
63 Flashcards
Source URL: https://quizplus.com/quiz/57937
Sample Questions
Q1) You want to determine the control lines for a p-chart for quality control purposes.If the total number of defects from all samples is 2,500, the number of samples is 100, and the sample size is 50, which of the following would be the standard deviation used in developing the control lines?
A)0.4900
B)0.2499
C)0.1556
D)0.0707
E)0.02499
Q2) Comparing traditional view of the cost of variability and Taguchi's view of cost of variability,
A)Both views are about the same.
B)Traditional view holds that as long as the product is within specification, there is no difference.
C)Taguchi's view holds that closer to the midpoint of specifications better it is.
D)B and C are true.
E)None of the above.
To view all questions and flashcards with answers, click on the resource link above. Page 15
Chapter 14: Lean Supply Chains
Available Study Resources on Quizplus for this Chatper
71 Verified Questions
71 Flashcards
Source URL: https://quizplus.com/quiz/57936
Sample Questions
Q1) A principle of value stream mapping is to concentrate on speeding up value-added operations.
A)True
B)False
Q2) You have been called in as a consultant to set up a Kanban control system.The first thing to do is to determine the number of Kanban card sets needed.Your research shows that the expected demand during lead time for a particular component is 150 per hour.You estimate the safety stock should be set at 25 percent of the demand during lead time.The tote trays used as containers can hold 8 units of stock, and the lead time it takes to replenish an order is 2 hours.Which of the following is the number of Kanban card sets necessary to support this situation.You found that the number of Kanban cards needed is 47.Your client now tells you that they miscalculated the demand and the true demand is 300 per hour.All other things remain the same.What is the most appropriate answer from the choices below?
A)Number of Kanban cards will stay the same
B)Number of Kanban cards will decrease.
C)number of Kanban cards will be 94
D)47
E)23.5 (rounded to 24).
To view all questions and flashcards with answers, click on the resource link above.
Page 16
Chapter 15: Logistics Distribution, and Transportation
Available Study Resources on Quizplus for this Chatper
55 Verified Questions
55 Flashcards
Source URL: https://quizplus.com/quiz/57935
Sample Questions
Q1) An important issue in facility location analysis is business climate.An unfavorable business climate could be indicated by which of the following?
A)Similar-sized businesses nearby
B)The willingness of local politicians to provide favorable treatment for a consideration
C)The presence of other foreign companies in the case of international locations
D)The local presence of companies in the same industry
E)An established educational institution nearby
Q2) Which of the following is not a criterion that influences manufacturing plant or warehouse facility location decisions?
A)Proximity to customers
B)Historical cost
C)Infrastructure of a country
D)Quality of labor
E)Business climate
Q3) Facility location analysis considers proximity to customers important to timeliness of deliveries.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above.
17
Chapter 16: Global Sourcing and Procurement
Available Study Resources on Quizplus for this Chatper
66 Verified Questions
66 Flashcards
Source URL: https://quizplus.com/quiz/57934
Sample Questions
Q1) The optimal strategy for functional products is to use an efficient supply chain.
A)True
B)False
Q2) Two common measures to evaluate supply chain efficiency are the Consumer Price Index and the beta flow system.
A)True
B)False
Q3) A financially driven reason for outsourcing is that it can help gain access to new markets, especially in developing countries.
A)True
B)False
Q4) The best strategy for innovative products is to use either a responsive or an agile supply chain.
A)True
B)False
Q5) Outsourcing allows a firm to achieve an improved focus on its core competencies.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 18
Chapter 17: Enterprise Resource Planning Systems
Available Study Resources on Quizplus for this Chatper
45 Verified Questions
45 Flashcards
Source URL: https://quizplus.com/quiz/57933
Sample Questions
Q1) ERP systems allow for integrated planning across the different functional areas in a firm.
A)True
B)False
Q2) How often are major software changes typically made to ERP?
A)Every 12 months
B)Every 1 to 2 years
C)Every 3 to 5 years
D)Every 5 to 10 years
Q3) Within ERP, which set of applications is the largest and most complicated?
A)Finance
B)Manufacturing and logistics
C)Sales and marketing
D)Human resources
Q4) Data warehouses are useful mechanisms to support daily routine tasks.
A)True
B)False
Q5) Defects often occur during changeovers.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 19
Chapter 18: Forecasting
Available Study Resources on Quizplus for this Chatper
90 Verified Questions
90 Flashcards
Source URL: https://quizplus.com/quiz/57932
Sample Questions
Q1) In decomposition of time series data, it is relatively easy to identify cycles and autocorrelation components.
A)True
B)False
Q2) MAD statistics can be used to generate tracking signals.
A)True
B)False
Q3) Trend lines are usually the last things considered when developing a forecast.
A)True
B)False
Q4) In a forecasting model using simple exponential smoothing, the data pattern should remain stationary.
A)True
B)False
Q5) Because the factors governing demand for products are very complex, all forecasts of demand contain error.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 20
Chapter 19: Sales and Operations Planning
Available Study Resources on Quizplus for this Chatper
61 Verified Questions
61 Flashcards
Source URL: https://quizplus.com/quiz/57931
Sample Questions
Q1) Foregone profit margins are considered as relevant aggregate operations planning costs.
A)True
B)False
Q2) In an overview of the major operations planning activities in a typical logistics organization, which of the following activities most immediately follows aggregate sales and operations planning?
A)Process planning
B)Strategic capacity planning
C)Vehicle dispatching
D)Vehicle capacity planning
E)Warehouse receipt planning
Q3) One of the conditions that makes yield management effective is when inventory is easily stored and held for a time when demand is stronger.
A)True
B)False
Q4) The sales and operations planning process consists of a series of meetings.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 21
Chapter 20: Inventory Management
Available Study Resources on Quizplus for this Chatper
102 Verified Questions
102 Flashcards
Source URL: https://quizplus.com/quiz/57930
Sample Questions
Q1) In order to determine the standard deviation of usage during lead time in the reorder point formula for a fixed-order-quantity inventory model, which of the following must be computed first?
A)Standard deviation of daily demand
B)Number of standard deviations for a specific service probability
C)Stock-out cost
D)Economic order quantity
E)Safety stock level
Q2) Using the fixed-time-period inventory model, and given an average daily demand of 15 units, 3 days between inventory reviews, 1 day for lead time, 30 units of inventory on hand, a service probability of 98 percent, and a standard deviation of daily demand is 3 units, which of the following is the order quantity?
A)About 30.4
B)About 36.3
C)About 42.3
D)About 56.8
E)About 59.8
To view all questions and flashcards with answers, click on the resource link above.
22
Chapter 21: Material Requirements Planning
Available Study Resources on Quizplus for this Chatper
83 Verified Questions
83 Flashcards
Source URL: https://quizplus.com/quiz/57929
Sample Questions
Q1) Which of the following industry types have high expected benefits from the application of MRP?
A)Fabricate-to-order
B)Hospitals
C)Assemble-to-order
D)Aircraft manufacturers
E)Oil refineries
Q2) Which of the following is one of the main purposes of an MRP system?
A)Educate personnel in basic work rules.
B)Determine the amount of materials needed to produce each end item.
C)Stimulate the work force.
D)Decrease labor requirements.
E)Increase inventory accuracy.
Q3) An output of MRP is a bill of materials (BOM) file.
A)True
B)False
Q4) A lot-for-lot (L4L) lot-sizing technique does not take into account setup costs or capacity limitations.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 23
Chapter 22: Workcenter Scheduling
Available Study Resources on Quizplus for this Chatper
61 Verified Questions
61 Flashcards
Source URL: https://quizplus.com/quiz/181532
Sample Questions
Q1) Which of the following is a tool of shop-floor control?
A)The hours worked per employee report
B)The anticipated delay report
C)The permanent work-in-process report
D)Time and motion studies
E)Product and process control report
Q2) When work is scheduled in detail using the setup and run time required for each order, it is called which of the following?
A)Infinite loading
B)Finite loading
C)Machine-limited
D)Labor-limited
E)Johnson's rule
Q3) The assignment method is useful in solving scheduling problems that have which of the following characteristics?
A)There are n jobs to be distributed to n machines or workers.
B)Each job can only be done on one particular machine.
C)Speed and efficiency are important.
D)The objective is to minimize cost and lateness of delivery.
E)The jobs have to go through more than one process.
To view all questions and flashcards with answers, click on the resource link above. Page 24
Chapter 23: Theory of Constraints
Available Study Resources on Quizplus for this Chatper
55 Verified Questions
55 Flashcards
Source URL: https://quizplus.com/quiz/181533
Sample Questions
Q1) According to the theory of constraints, throughput is the rate at which product is passed through the manufacturing system.
A)True
B)False
Q2) Which of the following is an approach to dealing with a bottleneck?
A)Keep a buffer inventory in front of it to ensure that it always has something to work on.
B)Use Johnson's sequencing rules on bottleneck operations.
C)Don't worry about the bottleneck; it will take care of itself.
D)Move things to a faster bottleneck.
E)Pay an incentive bonus to workers on the bottleneck operation.
Q3) Which of the following is a "focusing step" of Dr.Eli Goldratt's theory of constraints?
A)Reduce system constraints.
B)Reinforce system constraints.
C)Support system constraints.
D)If you have no system constraints, make some.
E)Identify system constraints.
To view all questions and flashcards with answers, click on the resource link above.
Chapter 24: Health Care
Available Study Resources on Quizplus for this Chatper
60 Verified Questions
60 Flashcards
Source URL: https://quizplus.com/quiz/57926
Sample Questions
Q1) Decoupling points are IV and electronic monitoring connections, which are decoupled when a patient is moved from an operating room to recovery.
A)True
B)False
Q2) Which of the following is an American Hospital Association hospital classification?
A)Pediatric
B)Specialty
C)Orthopedic
D)Osteopathic
E)Research
Q3) A hospital is a facility whose staff provides services relating to observation, diagnosis, and treatment to cure or lessen the suffering of patients.
A)True
B)False
Q4) A general rule for the design of a hospital is to combine patient, guest, and staff traffic flows.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 26
Chapter 25: Operations Consulting
Available Study Resources on Quizplus for this Chatper
53 Verified Questions
53 Flashcards
Source URL: https://quizplus.com/quiz/181492
Sample Questions
Q1) One form of gap analysis used in operations consulting is benchmarking particular client company processes against firms that are exemplars in the process and measuring the differences.
A)True
B)False
Q2) Which of the following is a data analysis and solution development tool from the operations consulting tool kit?
A)Bottleneck analysis
B)Employee surveys
C)Gap analysis
D)Balanced scorecard
E)Responsibility charts
Q3) SWOT stands for strengths, weaknesses, opportunities, and threats.
A)True
B)False
Q4) An effective job of operations consulting results in an alignment between strategy and process dimensions in a way that enhances the business performance of the client.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 27