SUPPLY CHAIN EXAM 2 UARK
QUESTIONS AND ANSWERS
ROA will increase if we generate ________ profit with _____ assets. - Correct Answers
-more; fewer
The direct effect of an increase in inventory is reduction in __________. - Correct
Answers -ROA
The % of demand fulfilled from on hand inventory is called _____. - Correct Answers -
Fill rate
By spending less on transportation, one will most likely
I: Increase the lead time
II: Decrease the lead time
III: Increase the variability of lead time
IV: Decrease the variability of lead time. - Correct Answers -I & III
One of the effects of adding distribution centers is reducing store lead time and
inventory. If store inventory is reduced, the ROA will _______. - Correct Answers -
increase
GMROI _________________________
A) is the Gross Margin Return on Inventory Investment
B) measures the performance of inventory
C) includes gross margin in the calculation - Correct Answers -all of these
ROA is profit divided by _____. - Correct Answers -assets
Inventory is a component of __________ on the balance sheet. - Correct Answers -
Assets
An increase in transportation costs can have a secondary effect on ROA that actually
increases ROA. This can happen if the additional spending on transportation
___________. - Correct Answers -Both of these
One of the direct effects of investing in third party logistics provider is a reduction of
_________ costs and an increase in ___________ costs. - Correct Answers -fixed;
variable
, Profit divided by assets is - Correct Answers -ROA
Fill rate is the % of __________ from on hand inventory. - Correct Answers -Demand
fulfilled
As the number of distribution centers increases, inbound transportation costs ________
but outbound transportation costs ________. - Correct Answers -increase; decrease
Consider the following analysis for four SKUs in a product category. Which is the best
estimate of the turns of the category as a whole? - Correct Answers -1.55
Unit sales divided by average inventory is called ______. - Correct Answers -Inventory
turns
If you wanted to assess inventory turns of a category with multiple SKUs, the best way
to do that would be to ________________: - Correct Answers -add up the unit sales for
the category and divide by the total inventory level for the category.
When calculating inventory turns, it is acceptable to use _______________ in the
numerator and __________ in the denominator. - Correct Answers -Unit Sales; Average
Unit Inventory & Cost of Goods Sold; Average Inventory Cost
Which of the following metrics can be used in evaluating SKU inventory performance?
A) Inventory turns
B) GMROI
C) Periods of supply - Correct Answers -All of the above
Which of the following metrics tells you how many periods it will take to sell through your
inventory on hand? - Correct Answers -Periods of supply
Logistics lead time is the time ________________. - Correct Answers -from when an
order is placed until it's actually received and ready for use or sale
Globalization of production has led to ___________________.
A) extended supply chains
B) uncertainty in supply
C) uncertainty in demand - Correct Answers -A & B
Forecast error is expected to decrease ___________________. - Correct Answers -as
the planning horizon decreases
Which is a component of logistics lead time?
I. Customers order cycle time
II. Procurement time
III. Manufacturing time & delivery time - Correct Answers -II and III
QUESTIONS AND ANSWERS
ROA will increase if we generate ________ profit with _____ assets. - Correct Answers
-more; fewer
The direct effect of an increase in inventory is reduction in __________. - Correct
Answers -ROA
The % of demand fulfilled from on hand inventory is called _____. - Correct Answers -
Fill rate
By spending less on transportation, one will most likely
I: Increase the lead time
II: Decrease the lead time
III: Increase the variability of lead time
IV: Decrease the variability of lead time. - Correct Answers -I & III
One of the effects of adding distribution centers is reducing store lead time and
inventory. If store inventory is reduced, the ROA will _______. - Correct Answers -
increase
GMROI _________________________
A) is the Gross Margin Return on Inventory Investment
B) measures the performance of inventory
C) includes gross margin in the calculation - Correct Answers -all of these
ROA is profit divided by _____. - Correct Answers -assets
Inventory is a component of __________ on the balance sheet. - Correct Answers -
Assets
An increase in transportation costs can have a secondary effect on ROA that actually
increases ROA. This can happen if the additional spending on transportation
___________. - Correct Answers -Both of these
One of the direct effects of investing in third party logistics provider is a reduction of
_________ costs and an increase in ___________ costs. - Correct Answers -fixed;
variable
, Profit divided by assets is - Correct Answers -ROA
Fill rate is the % of __________ from on hand inventory. - Correct Answers -Demand
fulfilled
As the number of distribution centers increases, inbound transportation costs ________
but outbound transportation costs ________. - Correct Answers -increase; decrease
Consider the following analysis for four SKUs in a product category. Which is the best
estimate of the turns of the category as a whole? - Correct Answers -1.55
Unit sales divided by average inventory is called ______. - Correct Answers -Inventory
turns
If you wanted to assess inventory turns of a category with multiple SKUs, the best way
to do that would be to ________________: - Correct Answers -add up the unit sales for
the category and divide by the total inventory level for the category.
When calculating inventory turns, it is acceptable to use _______________ in the
numerator and __________ in the denominator. - Correct Answers -Unit Sales; Average
Unit Inventory & Cost of Goods Sold; Average Inventory Cost
Which of the following metrics can be used in evaluating SKU inventory performance?
A) Inventory turns
B) GMROI
C) Periods of supply - Correct Answers -All of the above
Which of the following metrics tells you how many periods it will take to sell through your
inventory on hand? - Correct Answers -Periods of supply
Logistics lead time is the time ________________. - Correct Answers -from when an
order is placed until it's actually received and ready for use or sale
Globalization of production has led to ___________________.
A) extended supply chains
B) uncertainty in supply
C) uncertainty in demand - Correct Answers -A & B
Forecast error is expected to decrease ___________________. - Correct Answers -as
the planning horizon decreases
Which is a component of logistics lead time?
I. Customers order cycle time
II. Procurement time
III. Manufacturing time & delivery time - Correct Answers -II and III
