SCMT 2103 EXAM 1 QUESTIONS WITH
VERIFIED ANSWERS
The objective of Walmart's early network design strategy was to: - Correct Answers -
Locate stores close to a Distribution Center
Which of the following is a theme throughout the course? - Correct Answers -How
logistics and supply chain management can be used to create a competitive advantage
Which of the following benefits did Walmart achieve from their early network design
strategy? - Correct Answers -All of these were benefits
Which of the following products would you expect to require the most safety stock?
Product A: Standard Deviation of Sales = 18, Standard Deviation of Lead Time =
23Product B: Standard Deviation of Sales = 20, Standard Deviation of Lead Time =
20Product C: Standard Deviation of Sales = 30, Standard Deviation of Lead Time =
31Product D: Standard Deviation of Sales = 29, Standard Deviation of Lead Time = 15 -
Correct Answers -Product C
Which of the following products would you expect to require the most safety stock?
Product A: Standard Deviation of Sales = 25, Standard Deviation of Lead Time =
19Product B: Standard Deviation of Sales = 29, Standard Deviation of Lead Time =
25Product C: Standard Deviation of Sales = 15, Standard Deviation of Lead Time =
20Product D: Standard Deviation of Sales = 25, Standard Deviation of Lead Time = 20 -
Correct Answers -Product B
Resilience in the 4 R's of supply chain competition is defined as being able to
_________________. - Correct Answers -deal with unexpected disruptions in the
supply chain
Which of the following products would you expect to require the most safety stock?
Product A: Standard Deviation of Sales = 10, Standard Deviation of Lead Time =
10Product B: Standard Deviation of Sales = 20, Standard Deviation of Lead Time =
10Product C: Standard Deviation of Sales = 10, Standard Deviation of Lead Time =
20Product D: Standard Deviation of Sales = 20, Standard Deviation of Lead Time = 20 -
Correct Answers -Product D
Average inventory last year was $160,000 and turns were 7. What was cost of goods
sold last year? - Correct Answers -$1,120,000
, The inventory holding cost factor is 20% and the average inventory next year is
expected to be $130,000. What is the expected inventory holding cost? - Correct
Answers -$26,000
A distribution center has 180,000 pounds of sugar and the forecast is 1,200 pounds of
sugar per day. What is the estimate of the days of supply? - Correct Answers -150
Economies of scale is defined as a reduction in ________ when volumes are increased.
- Correct Answers -average cost per unit
Which of the following is a fundamental concept of logistics management? - Correct
Answers -There are tradeoffs among many of the logistics costs and customer service
targets.
Companies outsource for many reasons. Which of the following is typically a reason for
outsourcing? - Correct Answers -All of the above
The management of the flow and storage of inventory, such that total costs are
minimized and customer service targets are achieved is referred to as: - Correct
Answers -Logistics
Logistics costs include which of the following? - Correct Answers -All of the above and
more
A company operates 365 days a year. Annual inventory turns is 12. How many days of
supply does that represent? - Correct Answers -30
_____________ is the idea that there are many other costs than just the acquisition
cost that should be accounted for in a purchase. - Correct Answers -Total cost of
ownership
Which of the following are common elements of the total cost of ownership model: -
Correct Answers -All of the above are part of the TCO model
A leveling of production costs between China, Mexico, and the United States means
that U.S. firms will increasingly focus on _____________ to be competitive. - Correct
Answers -all of the above
_____________________tells you how much demand you are losing using the
percentage of demand fulfilled from on hand inventory. - Correct Answers -the
percentage item fill rate (IFR)
Perpetual inventory is one of the major ways that percentage of time in stock and
________________are measured. - Correct Answers -percentage of items in stock
VERIFIED ANSWERS
The objective of Walmart's early network design strategy was to: - Correct Answers -
Locate stores close to a Distribution Center
Which of the following is a theme throughout the course? - Correct Answers -How
logistics and supply chain management can be used to create a competitive advantage
Which of the following benefits did Walmart achieve from their early network design
strategy? - Correct Answers -All of these were benefits
Which of the following products would you expect to require the most safety stock?
Product A: Standard Deviation of Sales = 18, Standard Deviation of Lead Time =
23Product B: Standard Deviation of Sales = 20, Standard Deviation of Lead Time =
20Product C: Standard Deviation of Sales = 30, Standard Deviation of Lead Time =
31Product D: Standard Deviation of Sales = 29, Standard Deviation of Lead Time = 15 -
Correct Answers -Product C
Which of the following products would you expect to require the most safety stock?
Product A: Standard Deviation of Sales = 25, Standard Deviation of Lead Time =
19Product B: Standard Deviation of Sales = 29, Standard Deviation of Lead Time =
25Product C: Standard Deviation of Sales = 15, Standard Deviation of Lead Time =
20Product D: Standard Deviation of Sales = 25, Standard Deviation of Lead Time = 20 -
Correct Answers -Product B
Resilience in the 4 R's of supply chain competition is defined as being able to
_________________. - Correct Answers -deal with unexpected disruptions in the
supply chain
Which of the following products would you expect to require the most safety stock?
Product A: Standard Deviation of Sales = 10, Standard Deviation of Lead Time =
10Product B: Standard Deviation of Sales = 20, Standard Deviation of Lead Time =
10Product C: Standard Deviation of Sales = 10, Standard Deviation of Lead Time =
20Product D: Standard Deviation of Sales = 20, Standard Deviation of Lead Time = 20 -
Correct Answers -Product D
Average inventory last year was $160,000 and turns were 7. What was cost of goods
sold last year? - Correct Answers -$1,120,000
, The inventory holding cost factor is 20% and the average inventory next year is
expected to be $130,000. What is the expected inventory holding cost? - Correct
Answers -$26,000
A distribution center has 180,000 pounds of sugar and the forecast is 1,200 pounds of
sugar per day. What is the estimate of the days of supply? - Correct Answers -150
Economies of scale is defined as a reduction in ________ when volumes are increased.
- Correct Answers -average cost per unit
Which of the following is a fundamental concept of logistics management? - Correct
Answers -There are tradeoffs among many of the logistics costs and customer service
targets.
Companies outsource for many reasons. Which of the following is typically a reason for
outsourcing? - Correct Answers -All of the above
The management of the flow and storage of inventory, such that total costs are
minimized and customer service targets are achieved is referred to as: - Correct
Answers -Logistics
Logistics costs include which of the following? - Correct Answers -All of the above and
more
A company operates 365 days a year. Annual inventory turns is 12. How many days of
supply does that represent? - Correct Answers -30
_____________ is the idea that there are many other costs than just the acquisition
cost that should be accounted for in a purchase. - Correct Answers -Total cost of
ownership
Which of the following are common elements of the total cost of ownership model: -
Correct Answers -All of the above are part of the TCO model
A leveling of production costs between China, Mexico, and the United States means
that U.S. firms will increasingly focus on _____________ to be competitive. - Correct
Answers -all of the above
_____________________tells you how much demand you are losing using the
percentage of demand fulfilled from on hand inventory. - Correct Answers -the
percentage item fill rate (IFR)
Perpetual inventory is one of the major ways that percentage of time in stock and
________________are measured. - Correct Answers -percentage of items in stock
