BUAD 331 EXAM 2 STUDY GUIDE 2026 TESTED
QUESTIONS FULL SOLUTION
◉ ___ involves a review of the sales, costs, and profit projections for a
new product to find out whether they satisfy the company's
objective. Answer: Business analysis
◉ A brand created and owned by a reseller of a product or service is
called a _ _. Answer: private brand
◉ All of the following are true of the Product Life Cycle (PLC)
concept EXCEPT:. Answer: It is a predictive framework that
marketers can aply to product development.
◉ What is one major issue that still exists in a lean fulfillment model.
Answer: Inventory must be held in anticipation of customer orders
◉ For many products, researchers have shown that out of the whole
order cycle, on average how many time is actually value-added
time?. Answer: 5% or less
◉ Some companies have a mismatch between their product's
characteristics and the supply chain they use. Suppose Company A is
producing innovative products using a lean supply chain system.
,And customers are about the long order cycle time. What Company
A do to correct this mismatch?. Answer: Decrease product varieties
to make the product more functional
◉ In the above Economic Order Quantity (EOQ) model, the manager
wants to optimize fulfillment. As a SCM consultant, what will you
suggest to the manager?. Answer: Lower cycle stock by reducing
ordering/set up costs and lower
◉ An increase in the variation of demand from the customer level up
through the manufacturer to the suppliers that results in greater
amounts of wasted inventory and increased cost in the supply chain
is called:. Answer: bullwhip effect
◉ Lean order fulfillment differs from traditional order fulfillment in
that lean utilizes:. Answer: Smaller inventory deployment and
shorter cycle times
◉ Dr. Bell talked about the example of the collaboration between
Walmart and P&G, to improve supply chain performance. Out of the
following statements, which is not irrelevant?. Answer: P&G shares
its cost structure information with Walmart during price
negotiations
, ◉ Which of the following is NOT one of the three questions you
should ask when making an order fulfillment decision?. Answer:
How should we price the product?
◉ Dell sells direct to consumers, so that they do not actually start
making computers until the customer order comes in, at which point
they then order from their suppliers and have the computer
manufactured very quickly. The point where the customer order
triggers this response in manufacturing is called:. Answer: Order
penetration point
◉ A crossdock is a. Answer: part of a quick response system where
inbound shipments are mixed but not stored
◉ Which of the following is an incorrect statement about the Naive
EOQ process?. Answer: It accounts for lead time variance and
demand variance
◉ The economic order quantity (EOQ) model attempts to:. Answer:
Calculate the optimal amount of inventory to be reordered by
balancing ordering costs with carrying costs.
◉ Grizzly Fishing Shop needs to put together a re-order plan for fly-
fishing rods. Given that this product is high cost and highly
customized in order to meet the unique demands of different users,
John should utilize which of the following strategies?. Answer: Order
QUESTIONS FULL SOLUTION
◉ ___ involves a review of the sales, costs, and profit projections for a
new product to find out whether they satisfy the company's
objective. Answer: Business analysis
◉ A brand created and owned by a reseller of a product or service is
called a _ _. Answer: private brand
◉ All of the following are true of the Product Life Cycle (PLC)
concept EXCEPT:. Answer: It is a predictive framework that
marketers can aply to product development.
◉ What is one major issue that still exists in a lean fulfillment model.
Answer: Inventory must be held in anticipation of customer orders
◉ For many products, researchers have shown that out of the whole
order cycle, on average how many time is actually value-added
time?. Answer: 5% or less
◉ Some companies have a mismatch between their product's
characteristics and the supply chain they use. Suppose Company A is
producing innovative products using a lean supply chain system.
,And customers are about the long order cycle time. What Company
A do to correct this mismatch?. Answer: Decrease product varieties
to make the product more functional
◉ In the above Economic Order Quantity (EOQ) model, the manager
wants to optimize fulfillment. As a SCM consultant, what will you
suggest to the manager?. Answer: Lower cycle stock by reducing
ordering/set up costs and lower
◉ An increase in the variation of demand from the customer level up
through the manufacturer to the suppliers that results in greater
amounts of wasted inventory and increased cost in the supply chain
is called:. Answer: bullwhip effect
◉ Lean order fulfillment differs from traditional order fulfillment in
that lean utilizes:. Answer: Smaller inventory deployment and
shorter cycle times
◉ Dr. Bell talked about the example of the collaboration between
Walmart and P&G, to improve supply chain performance. Out of the
following statements, which is not irrelevant?. Answer: P&G shares
its cost structure information with Walmart during price
negotiations
, ◉ Which of the following is NOT one of the three questions you
should ask when making an order fulfillment decision?. Answer:
How should we price the product?
◉ Dell sells direct to consumers, so that they do not actually start
making computers until the customer order comes in, at which point
they then order from their suppliers and have the computer
manufactured very quickly. The point where the customer order
triggers this response in manufacturing is called:. Answer: Order
penetration point
◉ A crossdock is a. Answer: part of a quick response system where
inbound shipments are mixed but not stored
◉ Which of the following is an incorrect statement about the Naive
EOQ process?. Answer: It accounts for lead time variance and
demand variance
◉ The economic order quantity (EOQ) model attempts to:. Answer:
Calculate the optimal amount of inventory to be reordered by
balancing ordering costs with carrying costs.
◉ Grizzly Fishing Shop needs to put together a re-order plan for fly-
fishing rods. Given that this product is high cost and highly
customized in order to meet the unique demands of different users,
John should utilize which of the following strategies?. Answer: Order
