Inventory Management Review Questions
Course Introduction
Inventory Management explores the principles, strategies, and techniques essential for efficiently managing inventory within a supply chain. This course covers key topics such as demand forecasting, inventory control systems, stock replenishment methods, economic order quantity (EOQ), safety stock calculations, and the integration of technology in inventory management. Students will analyze case studies and real-world scenarios to develop skills in balancing inventory levels, reducing costs, and optimizing service levels. The course also emphasizes the role of inventory management in supporting organizational objectives, addressing challenges in both manufacturing and service sectors.
Recommended Textbook
Principles of Supply Chain Management A Balanced Approach 3rd Edition by
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14 Chapters
729 Verified Questions
729 Flashcards
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Joel D. Wisner
Chapter 1: Introduction to Supply Chain Management
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52 Verified Questions
52 Flashcards
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Sample Questions
Q1) According to the textbook,the keys to successful supply chain management include trust and honest,accurate communications between supply chain partners.
A)True
B)False
Answer: True
Q2) Which of the following would be considered a third party provider?
A) A Raw materials supplier
B) An intermediate component manufacturer
C) A firm that leases storage warehousing
D) An end product manufacturer
Answer: C
Q3) Transportation management,customer relationship management,network design,and service response logistics are all important issues that are most closely related to:
A) Purchasing
B) Manufacturing
C) Integration
D) Logistics
Answer: D
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Page 3
Chapter 2: Purchasing Management
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Sample Questions
Q1) According to the Annual Survey of Manufacturers,the cost of materials exceeds the value added to the materials during manufacturing.
A)True
B)False
Answer: True
Q2) A purchase order is legally binding once issued by the buyer.
A)True
B)False
Answer: False
Q3) According to the textbook,the Las Vegas division of Harrah's Entertainment utilizes which of the following purchasing structures?
A) Autocratic
B) Decentralized
C) Centralized
D) Hybrid (centralized-decentralized)
Answer: D
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Page 4
Chapter 3: Creating and Managing Supplier Relationships
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Sample Questions
Q1) According to the textbook,SRM software varies based on capabilities offered.AMR research has identified 5 areas of distinction for an SRM system.Provide three of these key tenets of SRM.
Answer: Automation Integration Visibility
Collaboration
Optimization
Q2) Field failures,loss of goodwill,a decreased reputation,and warranty costs can all be classified as:
A) Pre-transaction costs
B) Post-transaction costs
C) Transaction costs
D) All of these
Answer: B
Q3) One result of an effective supplier certification program is an increase in the supplier base.
A)True
B)False
Answer: False
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Chapter 4: Ethical and Sustainable Sourcing
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Sample Questions
Q1) The application of ethical principles to business situations can be referred to as:
A) Business ethics
B) Social responsibility
C) Ethical Sourcing
D) Strategic Sourcing
Q2) Developing a collaborative negotiation infrastructure include four steps: building a preparation process,develop a negotiation database.Design a negotiation launch process,and institute a feedback mechanism.
A)True
B)False
Q3) Purchasing departments can be seen as a primary designer and facilitator of important inward- and outward-facing sourcing policies.
A)True
B)False
Q4) Companies that experience late deliveries or low product quality from their supplier may resort to insourcing.
A)True
B)False
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Chapter 5: Demand Forecasting
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Sample Questions
Q1) According to textbook,which of the following companies is recognized as a leader in CPFR software solutions?
A) Autonomy
B) Cloud software
C) JDA software
D) Transperion
Q2) As tighter control limits are instituted for the tracking signal,there is a greater probability of finding exceptions that require no action,but it also means catching changes in demand earlier.
A)True
B)False
Q3) Some measures of forecasting accuracy include mean absolute deviation,mean absolute percentage error,and mean squared error.The formula for each is dependent on the forecast error,which is calculated by using the equation:
A) Actual demand for period t divided by the forecasted demand for period t
B) Actual demand for period t plus the forecasted demand for period t
C) Actual demand for period t minus the forecasted demand for period t
D) The average of Actual demand for period t and forecasted demand for period t
Q4) List and describe two types of qualitative forecasting methods.
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Chapter 6: Resource Planning Systems
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Sample Questions
Q1) Which of the following seeks to develop short range plans seeking to effectively and efficiently manage components and/or subassemblies over time period of few days to a few weeks?
A) RRP
B) MPS
C) RCCP
D) MRP
Q2) According to the text,a firm should always run its operations at 100 percent capacity to ensure changes affecting demand can be met.
A)True
B)False
Q3) 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
Q4) MRP systems are simply a more modern version of the ERP systems of the 1980's. A)True
B)False
Q5) What is ERP? Why was it developed?
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Chapter 7: Inventory Management
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Sample Questions
Q1) When demand and lead time are constant,reorder point is the demand during lead time.
A)True
B)False
Q2) Electronic Product Code (EPC)is the only RFID standard adopted by the commercial sector and the U.S.Department of Defense.
A)True
B)False
Q3) Which of the following is not an example of an ordering cost for products purchased from a supplier?
A) the cost of transmitting the order
B) the cost of receiving the product
C) the cost associated with processing the invoice
D) the opportunity cost of not ordering from a least cost supplier
E) the cost of handling the product
Q4) Briefly describe the differences between dependent and independent demand.Provide examples of dependent and independent demand items for each of the following industries: automotive industry,personal computer industry,bicycle industry
Q5) Name the two major RFID standards.
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Chapter 8: Process Management: Lean and Six Sigma in
the Supply Chain
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Sample Questions
Q1) 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
Q2) A lean system is also known as a push system.
A)True
B)False
Q3) Efficient Consumer Response and Keiretsu Relationships are supply chain concepts concerned with speed and flexibility.
A)True
B)False
Q4) Acceptance sampling is a statistical technique that enables a reject or accept decision to be made based on information obtained from a representative sample drawn from the population.
A)True
B)False
Q6) Why is the workforce considered such an important element of lean production? Page 10
Q5) Describe SPC and Acceptance Sampling.What is the key difference between the two?
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Chapter 9: Domestic USand Global Logistics
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Sample Questions
Q1) With FOB pricing,a supplier is the legal owner of a product until the product reaches its destination.
A)True
B)False
Q2) In order to provide more comprehensive delivery service,some freight-only airlines have invested in developing their own motor carrier fleets to provide full door to door service delivery.
A)True
B)False
Q3) According to the textbook,the largest ocean containerships can carry how many twenty-foot containers?
A) Between 3,000 and 5,000
B) Between 5,000 and 8,000
C) Between 8,000 and 10,000
D) Over 10,000
Q4) In cost-of-service pricing,the cost of shipping increases proportionally with distance.
A)True
B)False
Q5) List and explain three capabilities of lean warehousing.
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Chapter 10: Customer Relationship Management
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Sample Questions
Q1) Since many companies do not have the knowledge,resources (money/people),or capability of building an infrastructure to support a CRM program,many companies have chosen to outsource this responsibility to a(n):
A) ASP
B) Customer Support Specialist Firm
C) DSS
D) Marketing Facilitator
Q2) The element of a CRM program involved with the use of data-mining software and customer behavior analytics is:
A) Segmenting customers
B) Predicting customer behaviors
C) Customer value determination
D) Customer preference determination
Q3) In general,companies avoid social media sites since they rarely are able to find useful information about customer opinions via blogs and social networking sites.
A)True
B)False
Q4) What are three of the recent trends in CRM?
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Chapter 11: Global Location Decisions
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Sample Questions
Q1) Certain states in the United States have laws that secure the rights of employees to decide for themselves whether or not to join or financially support a labor union.These laws are called:
A) Employee freedom acts
B) Free trade laws
C) Right-to-work laws
D) Sanctioned union acts
Q2) The following facility location technique uses fixed and variable costs to analyze potential locations:
A) Break-even model
B) Business cluster analysis model
C) Weighted-factor rating model
D) Mean absolute deviation model
Q3) Many multinational corporations are moving their facilities and headquarters out of Taiwan and some Southeast Asian countries in order to take advantage of the proximity to customers.The more attractive customer markets are developing in China.
A)True
B)False
Q4) 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) You are determining the productivity of your company's service.In your calculation,the inputs used consist of the sum of your company's labor,materials,energy,and capital costs.This can also be referred to as:
A) Multiple-factor productivity
B) Productivity utilization
C) Multi-input efficiency
D) Extended productivity
Q2) 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
Q3) When studying queuing models,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) Discuss the important issues involved in managing a global service.
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Chapter 13: Supply Chain Process Integration
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Sample Questions
Q1) According to the text,mapping the network of primary trading partners is something that should be done in which stage of the supply chain integration model:
A) Review and establish supply chain strategies
B) Identify critical supply chain trading partners
C) Align supply chain strategies with key supply chain process objectives
D) Assess and improve internal integration of key supply chain processes
Q2) Which of the following is considered an obstacle to supply chain integration?
A) RFID Technology
B) Vendor Managed Inventory
C) Lack of Supply Chain Visibility
D) All of these
Q3) Which of the following identifies the key customers,determines their needs,and then develops products and/or services to meet those needs?
A) Customer Service Management
B) Product Development and Commercialization
C) Customer Relationship Management
D) Demand Management
Q4) List and describe <u>FIVE </u>of the eight key supply chain business processes.
Q5) What is RFID technology and how will it aid in management of the supply chain?
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Chapter 14: Performance Measurement Along the Supply Chain
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Sample Questions
Q1) According to the textbook,Best Buy has been working to a develop flexible and responsive supply chain that would be considered a:
A) Push supply chain
B) Demand-driven supply network
C) SCOR supply chain
D) GSCM
Q2) Once the supply chain partner requirements are understood,supply chain members can then:
A) Develop an appropriate information technology system
B) Develop their organizational skill sets
C) Audit their capabilities to see if they are consistent with the needs of the end customers
D) Implement a quality development program for the employees
Q3) When utilizing performance standards,the difference between the standard and the actual performance is called:
A) Productivity Gap
B) Organizational Variance
C) Certified Variance
D) Performance Variance
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