Module 2 SCM 300

37 Questions | Total Attempts: 295

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Module Quizzes & Trivia

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Questions and Answers
  • 1. 
    Items for which demand is influenced by market conditions. Demand is not related to demand for other items in stock or produced. 
    • A. 

      Dependent Demand Item

    • B. 

      SKU

    • C. 

      Independent Demand Item

    • D. 

      Lot size

  • 2. 
    A car or a computer are examples of:
    • A. 

      Dependent Demand Item

    • B. 

      Expensive Items

    • C. 

      Independent Demand Items

    • D. 

      Both A and B

  • 3. 
    A mouse or a tire are examples of:
    • A. 

      Independent Demand Item

    • B. 

      Dependent Demand Item

    • C. 

      Artifacts

    • D. 

      None of the above

  • 4. 
    Time elapsed between customer placing order and order being received by customer.
    • A. 

      Delivery Time

    • B. 

      Lead Time

    • C. 

      Both A and B

    • D. 

      On-time Delivery

  • 5. 
    Typically refers to the order size:
    • A. 

      SKU

    • B. 

      Lot size

    • C. 

      T.B.O

    • D. 

      None of the above

  • 6. 
    Why do companies need inventory?
    • A. 

      Insurance- Manage Risk/Uncertainty

    • B. 

      Customer Expectations- Support Strategic Plan

    • C. 

      Managing Cost- Economies of Scale

    • D. 

      All of the above

  • 7. 
    Car insurance is an example of what inventory classification?
    • A. 

      Pipeline inventory

    • B. 

      Market Inventory

    • C. 

      Anticipation Inventory

    • D. 

      Safety Stock

  • 8. 
    Protects Against uncertainty demand, lead time, supply. Not intended to be used. Cushion Insurance. 
    • A. 

      Market Inventory

    • B. 

      Safety Stock

    • C. 

      Pipeline Inventory

    • D. 

      Both A and B

  • 9. 
    Used to absorb uneven rates of demand or supply. Seasonal demand, holidays, economic production runs.
    • A. 

      Anticipatory Inventory

    • B. 

      Market Inventory

    • C. 

      Pipeline Inventory

    • D. 

      Perishable Inventory

  • 10. 
    Orders that have been placed but not yet received nor paid for by customer. Inventory "on its way" to the customer. 
    • A. 

      Market Inventory

    • B. 

      Perishable Inventory

    • C. 

      Pipeline Inventory

    • D. 

      Long-term inventory

  • 11. 
    Close-knit networks of vendors that continuously learn, improve, and prosper along with their parent companies.
    • A. 

      Kieretsu

    • B. 

      Supply Chain

    • C. 

      Demand management

    • D. 

      Supplier relations

  • 12. 
    Costs associated with inventory?
    • A. 

      Cost of the item / Purchase Cost

    • B. 

      Holding or Carrying Cost

    • C. 

      Ordering Costs

    • D. 

      Customer Service Cost

    • E. 

      All of the above

  • 13. 
    Taking over the role of your supplier. Example: We're not going to buy bread for our sandwiches, we'll make the bread ourselves from now on.
    • A. 

      Vertical Integration

    • B. 

      Backward Integration

    • C. 

      Forward Integration

    • D. 

      Acquisition

  • 14. 
    Taking over the role of companies closer to the customer. Example: We will no longer sell Coca-Coal through our distributors, from no on, we'll only sell Coke out of Coca-Cola local stores.
    • A. 

      Backward Integration

    • B. 

      Supplier management

    • C. 

      Forward Integration

    • D. 

      Vertical Integration

  • 15. 
    Inventory used to accommodate normal demand or inventory that varies directly with lot size.
    • A. 

      Cycle Stock

    • B. 

      Average Inventory

    • C. 

      Cycle Inventory

    • D. 

      All three mean the same thing

  • 16. 
    Average amount of inventory you have is:
    • A. 

      Half of your order size

    • B. 

      Half of you lot size

    • C. 

      Both A and B

    • D. 

      None of the above

  • 17. 
    If your holding cost is higher you are ordering too much.
    • A. 

      True

    • B. 

      False

  • 18. 
    You are ordering too much if your holding cost is low. 
    • A. 

      True

    • B. 

      False

  • 19. 
    Plant/Warehouse location and Technology requirements are part of:
    • A. 

      Long-term Supply Chain Considerations

    • B. 

      Logistical Considerations when choosing a supplier

    • C. 

      Competitive Priorities

    • D. 

      All of the above

  • 20. 
    Long-term supply chain management considerations when choosing a supplier are:
    • A. 

      Changing market

    • B. 

      Product improvements

    • C. 

      Growth management, capacity potential

    • D. 

      2nd and 3rd tier suppliers

    • E. 

      All of the above

  • 21. 
    Volume, Avoid Duplication, Specialization, Consolidated Shipping, Common supply base are advantages of:
    • A. 

      Decentralized Purchasing

    • B. 

      Inventory

    • C. 

      Centralized Purchasing

    • D. 

      Supplier Demand

  • 22. 
    What are some Advantages of Decentralized Purchasing:
    • A. 

      Closer knowledge of requirements

    • B. 

      Local sourcing - Relationships, lead times, flexibility

    • C. 

      Less bureaucracy

    • D. 

      All of the above

  • 23. 
    What are three types of perishable inventory?
    • A. 

      Clothing and computers

    • B. 

      Fruits, Vegetables, meat, and flowers

    • C. 

      Airline seats, rental cars, hotel rooms

    • D. 

      Nails, paper, and cleaning supplies

    • E. 

      Spoilage, Obsolescence, and time perishable

  • 24. 
    Storage, transportation, shrinkage, money, legal considerations are all components of what process?
    • A. 

      Supply chain management

    • B. 

      Process inventory

    • C. 

      Purchasing inventory

    • D. 

      Supply chain integration

    • E. 

      All of the above

  • 25. 
    Times savings, cost savings, accuracy, real time, mobility, trackability, management, benefits to the supplier are all advantages of what system?
    • A. 

      Material acquisition

    • B. 

      Upstream and downstream

    • C. 

      Supplier base

    • D. 

      E-Procurement

    • E. 

      Centralization

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